Beruflich Dokumente
Kultur Dokumente
A
Major Research Project Report
On
CONSUMER BEHAVIOUR
For The Partial Fulfillment Of
Master of Business Administration
2013-15
SUBMITTED TO :Dr. Namrata Gupta
H.O.D. of Mgmt. Dept.
DECLARATION
This is to declare that the Major Research Project Report has been
accomplished by me and being submitted in partial fulfillment of
requirement for the award of the Degree of Master of Business
Administration from Maharana Pratap College of Technology,
Gwalior.
The work has not been submitted by me anywhere else for the
award of any degree or diploma.
Date:
Nipul Sharma
Place:
MBA IV Semester
GUIDE CERTIFICATE
It is certified that the Major research Report entitled,
of Master of Business
Administration of
Date :
Place:
Dept.
H.O.D. of Management
ACKNOWLEDGEMENT
Finally
am
indebted
to
our
other
faculty
Nipul Sharma
MBA IV Sem.
TABLE OF CONTENTS
CHAPTER 1:
CHAPTER 2:
-LITERATURE REVIEW
-RATIONALE
-OBJECTIVE
CHAPTER 3:
- RESEARCH METHADOLOGY
-UNIVERSE
-SAMPLE
-HYPOTHESIS
-RESEARCH DESIGN
-TOOLS FOR DATA COLLECTION
-TOOLS FOR DATA ANALYSIS
CHAPTER 4:
CHAPTER 5:
-CONCLUSIONS
-IMPLICATIONS
-LIMITATION
-SCOPE FOR FUTURE WORK
REFERENCES:
-BIBLIOGRAPHY
-WEBLIOGRAPHY
ANNEXURES:
-QUESTIONNAIRE
Chapter 1
INTRODUCTION/CONCEPTUAL FRAMEWORK
Introduction/Conceptual Framework
The effect of celebrity endorsement on consumer buying behavior, with special
reference to bike segment undertakes a applied research in which the study of
effect of celebrity use in advertisements of bike. This study will focus on the
impact of celebrity on consumer buying behavior and their impact on consumer
decision.
Celebrity endorsement is a special type of advertisement which includes a famous
person from film fraternity, athletes, and sports, modelling world etc. it helps in
promoting the product brand and also increasing the sales of the product. Celebrity
endorsement not only has developed in recent years, it is being used from the past
for promoting the product. This type of marketing strategy is used to promote the
product and has proved in itself a boon in advertising world. It is mainly used to
influence the consumer who comes across these advertisements as it is accessed in
the consumers mind for many days even after the advertisement. Celebrity
endorsement has not always helped in promoting the product but it has been
developed considerably over the years. It is very expensive to endorse a celebrity
for a product but in the long run it has helped in increasing the sales of the product.
Celebrities are also interested in endorsing themselves in the product as they get
compensation for it and their image is been developed considerably. Businesses
have long sought to distract the attention of the potentials customers that live in a
world of ever increasing commercial bombardment. Everyday consumers are
exposed to thousands of voices and images in magazines, news paper, and on
billboards, websites, radio and television .Every brand attempts to steal a fraction
of an unsuspecting persons time to inform him or her of the amazing and different
attributes of the product at hand.
Because of the constant media saturation that most people experience daily, they
eventually become numb to the standard marketing techniques.
The study is to be done within the purview of certain variables which will clearly
underline the factors which affect the consumer buying decision and would help in
the study of effect of celebrity endorsement on consumer buying behavior & the
corresponding factors involved in it.
There are various variables (factors) which is affect the decision of consumer use
of celebrity in advertisements.
Various studies suggest that the overall cost of attracting new customers in the
market is much higher as compared to retaining existing ones, thus companies
must seek both to develop an effective and efficient communication with their
existing consumers along with attracting potential customers utilizing its marketing
mix.
It is a known fact that the best endorsements achieve an eclectic balance between
the product (brand) and the celebrity. Giving a brand a 'face' is more than just a
marketing strategy to increase sales or gain market share, it is a decision that can
change the future of the brand forever.
Choice of the celebrity, hence, is of utmost importance and is usually done based
on many different parameters - appeal, looks, popularity or even just a fantasy
figure to endorse a brand. India is a country where people are star-struck by film
stars, cricketers, politicians, and even criminals. Why? Populations of 1 billion and
ticking, everyday people need something or someone to look up to. A sense of
security, admiration, comfort, familiarity, and above all, someone they aspire to be
at some hidden level in their lives. And clever marketers leverage this very
celebrity appeal and are successfully carrying out their jobs by giving the bottom
lines of all the brands what they want - profit, market share and even recall. But
how much star power is too much? "Does Amitabh really use Tide," asked a 6 year
old to her mother. Her mother laughs and says, "No way, just a gimmick." What
does that do to the brand?
Now, despite the potential benefits derived from celebrity endorsements, they
increase a marketer's risk manifolds and should be treated with full attention and
aptitude. A brand should be cautious when employing celebrities to ensure promise
believability and delivery of the intended effect. The growing importance of
mythical characters as celebrities and their sway over the target segments are
ample proof of public demand for icons to look up to. As the celebrities traverse
from a mere commercial presence to public welfare message endorsements, a
whole new dimension is added to this process and helps us in achieving a holistic
view of the impact which celebrities generate in every sphere and segment through
their well-versed endorsements.
Does anyone buy a product because a Bollywood or TV actor/actress stands up and
reads a script in somewhat convincing manner? Are their distinctions in how
consumers perceive these types of endorsements and respond to them?
What happens when a celebrity endorser gets involved in a public scandal, or
worse, dies? Will the product lose consumer support or perish?
The most important thing to remember is that putting a celebrity in an ad is not an
idea in itself. Unfortunately, this is how most celebrities are being used in Indian
advertising, where they just become a prop. Ideally, there should be an idea that
makes the celebrity relevant to the product and the consumer.
The four Qs:
Quick saliency: It gets cut through because of the star and his attention getting
value. Goodlass Nerolac has ensured high saliency for its brand with the inclusion
of Amitabh Bachchan in its advertising.
brand.
Harnessed: The celebrity's image is integrated with the ad's storyline.
Brand value comes from the customers experience with the product. If the product
meets or beats his expectations, then a positive brand image is created, else a
negative brand image is created. Therefore it is essential to set the customer
expectations accordingly. This is most common in established consumer products Beauty products, household cleaning products, food products etc.
4 Create a purchase intention
These are marketing promotion advertisements - Buy one, get one free, or get
additional discounts if you buy within a particular date etc.. The sole purpose of
such communication messages is to encourage customers to buy immediately or
within a short period after seeing Use of celebrity endorsements to create a
purchase intention has been very limited. This is mainly because such
advertisements adversely affect the personality brand value of the celebrity. Being
associated with a discount deal is not favorable image for the celebrity and the
customer.
Variable definitions:Advertising
Advertising is any paid form of non personal presentation and promotion of ideas,
goods, or services by identified sponsor.
Consumer
Consumers as individuals generally purchase products or services for personal
consumption for his/her own use, household or gift. It means they are identified as
end users.
Celebrity
McCracken's (1989) defines a celebrity as, "any person who enjoys a public
recognition and who utilizes this recognition on behalf of any consumer product by
coming along with it in an advert. As per (Friedman and Friedman, 1979), a
celebrity is an individual who is a Globally famous and renowned icon among
populace in cosmopolitan societies. He can be an entertainer to the public, a movie
superstar, a television actor or a sportsman, etc owning special entertaining
qualities respectively.
Chapter- 2
Chapter 2: Review of Literature, Rational and Objectives
2.1 -LITERATURE REVIEW
2.2 -RATIONALE
2.3 -OBJECTIVE
signed Bollywood stars, shah rukh khan and saif ali khan as their brand
ambassadors.
The term celebrity refers to an individual who is known to the public (actor
figure, entertainer, etc.) for his or her achievements the areas other than that of the
product class endorsed (Friedman and Friedman, 1979). Celebrities appear in
public in different ways. First, they appear in public when fulfilling their
profession, e.g., Viswanathan Anand, who plays chess in front of the audience.
Furthermore, celebrities appear in public by attending special celebrity events, e.g.,
award ceremonies, Inauguration or world premieres of movies. In addition, they
present in news, fashion, magazines, and tabloids, which provide second
information on events and the private life of celebrities through mass media
channel (e.g., Smiriti Irani being regulated featured in various publications). Last
but not the least, celebrities act as spokes-people in advertising to promote
products and services, which is referred to celebrity endorsement.
(http://pakistanmba.jimdo.com )
Celebrity is a person who has excelled in his / her field of action or activity.
In our day to day activity, we perform many acts, may at home, at work place, on
field in sports, in social life. But these acts may be daily routine or just "acts" per
say giving no extra- ordinary results, not noticed by anybody surrounding, and not
taken into notice by Media. E.g. A bandit queen of chambal valley was very
famous, but was terror before her surrender to police. But she never becomes
celebrity. But an actress Ms Seema Biswas who acted in film on "Bandit Queen"
on life of that bandit, became very famous and a Celebrity. They pull crowds with
their presence only. If it is understood that BIG B is coming for shooting a film, to
a particular location on a particular day , then there is big commotion in that area.
Police worry about law and order situation, even young generation throng there in
big nose to have glimpses of BIG B and even wait since early morning leaving
aside their. Celebrities are people who enjoy public recognition by a large share of
a certain group of people. Whereas attributes like attractiveness, extraordinary
lifestyle or special skills are just examples and specific common characteristics
cannot be observed, it can be said that within a corresponding social group,
celebrities generally differ from the social norm and enjoy a high degree of public
awareness.
(McCracken, Grant (1989), "Who is the Celebrity Endorser?" Journal of Consumer
Research, 16 (December), 310-321
A product endorsement is a form of testimonial from someone which indicates that
they like or approve of a product. Commonly, product endorsements are solicited
from people who are socially prominent, allowing companies to advertise their
products with statements like as used by such-and-such an actress, or the official
product of company/event X. It's hard to miss a product endorsement on product
packaging and in advertisements; most companies keep their endorsements front
and centred so that they are always in the public eye. The concept of the product
endorsement is quite ancient. In England, for example, several companies have
been advertising themselves as by appointment to the Queen for hundreds of years,
indicating that they enjoy the patronage of the British royal family. Consumers are
often seduced by the idea of purchasing a product which is endorsed by someone
wealthy or famous, as though by buying the product, the consumer also becomes
affiliated with the person who endorses it. Modern product endorsements can come
with contracts worth substantial amounts of money. For example, many sports stars
agree to participate in product endorsement campaigns with the understanding that
the company will compensate them for the trouble; some stars donate the proceeds
to charities they support, using the product endorsement as a public relations
campaign. In exchange for an endorsement contract, someone may agree to use the
product publicly whenever possible, and they may be restricted from using
2.2 -RATIONALE
The rationale behind the study is to add to the already existing stock of knowledge
and taking into consideration the left over variables and providing an entirely new
dimension to it.
Advertising is any paid form of non personal presentation and promotion of ideas,
goods, or services by identified sponsor. Marketer uses the brand image of
celebrity it positioning the product in consumer mind.
Over object for research is Does people purchase a bike after watch a celebrity in
the advertisement and get influenced by them?
It is a known fact that the best endorsements achieve an eclectic balance between
the product and the celebrity. Giving a brand a 'face' is more than just a marketing
strategy to increase sales or gain market share, it is a decision that can change the
future of the brand forever. Choice of the celebrity, hence, is of utmost importance
and is usually done based on many different parameters - appeal, looks, popularity
or even just a fantasy figure to endorse a brand. Celebrity endorsement cannot
guarantee fool-proof success. The celebrity endorsement strategy must be
integrated with target market characteristics, and the other elements of the
marketing mix such as product design, branding, packaging, and pricing. The
message execution that will be mouthed by the celebrity must likewise be made
clear and single-minded. You can do this cleverly by aligning the spirit of the brand
to the product, or by using a celebrity because it ensures that people will notice
you, and hopefully remember what the brand is saying. Smart associations are ones
where the former happens.
2.3 OBJECTIVE
1
Chapter- 3
METHADOLOGY
3.1- RESEARCH METHADOLOGY
3.2 -UNIVERSE
3.3 -SAMPLE
3.4 -HYPOTHESIS
3.5 -RESEARCH DESIGN
3.6-TOOLS FOR DATA COLLECTION
3.7 -TOOLS FOR DATA ANALYSIS
3.2 UNIVERSE
The universe chooses for the research study is the 18 to 30 age group people of
Indore.
3.3 -SAMPLE
A sample design is a finite plan for obtaining a sample from a given population.
Simple random sampling is used for this study.
a.
b.
c.
SAMPLE SIZE
UNIT
NO. OF QUESTIONS
:
:
:
Sampling Procedure:
The procedure adopted in the present study is random sampling, select respondent
randomly from population.
3.4 HYPOTHESIS
There is no impact of celebrity endorsement on consumer buying behavior for
Purchasing a bike.
- SAMPLE:
A finite subset of population, selected from it with the objective of investigating its
properties called a sample. A sample is a representative part of the population. A
sample of 200 respondents in total has been randomly selected. The response to
various elements under each questions were totaled for the purpose of various
statistical testing.
-VARIABLES OF THE STUDY:
The direct variable of the study is the effect of celebrity endorsement indirect
variables are the market image, perception, personality, attachment.
Chapter- 4
RESULT AND DISCUSSION
MAJOR RESULT
We have two objectives
1 To find the effect of celebrity endorsement on consumer buying behavior for
purchasing a bike.
2 To identify the most influential celebrity for bike endorsement. For this we
make Hypothesis which is there is no impact of celebrity endorsement on
consumer buying behavior for purchasing a bike.
QUESTIONNAIRE
For objective first
rating range from 1 to 5 where stand for
1 Strongly Disagree.
2 Somewhat Disagree.
3 Neutral.
4 Somewhat Agree.
5 Strongly Agree.
1. Celebrity endorsing is the motivating factors when you plan to buy a Bike?
1. 2. 3. 4. 5.
2. Do you believe Bike specifically advertised by the celebrities is of good
quality?
1. 2. 3. 4. 5.
3. Celebrity is the most persuading factor to purchase the Bike?
1. 2. 3. 4. 5.
4. Bike companies are investing large amounts of money for using celebrities; do
you think its helping them to increase their total revenue?
1. 2. 3. 4. 5.
5. Does the presence of celebrities like John Abraham, Amir Khan or Dhoni in an
advertisement encourage you to purchase Bike?
1. 2. 3. 4. 5.
6. Do you believe the celebrities also use those products which they themselves
endorse?
1. 2. 3. 4. 5.
7. Do you give value celebrity endorsement when purchasing a Bike?
1. 2. 3. 4. 5.
8. Does celebrity endorsement help in brand promotion?
1. 2. 3. 4. 5.
9. As a celebrity, do you look to buy products that are endorsed by celebrity?
1. 2. 3. 4. 5.
10. Any quality of celebrity like Success, Personality, Attractiveness, and
Nationality eg Indian Celebrity, Status about the celebrity would influence your
decision to buy?
1. 2. 3. 4. 5.
11. Would you be prepared to pay more for a Bike which is advertised by a
celebrity endorser?
1. 2. 3. 4. 5.
12.Would you consider a Bike to be of a high quality if it was endorsed by a
celebrity?
1. 2. 3. 4. 5.
13. Give your opinion:- I am more likely to purchase a Bike if it is being
advertised by a celebrity that I like or admire?
1. 2. 3. 4. 5.
14.If you had previously bought a Bike due to celebrity influence, would that
celebrity personal problems or lack of success effect your opinion of the Bike?
1. 2. 3. 4. 5.
15.As an observer, do you believe that celebrity endorsing advertisement affects
the Bike consumers buying patterns?
1. 2. 3. 4. 5.
For objective second
16.What type of celebrity endorsement persuades you personally to purchase
products?
Film star
Cricketer
Famous personalities Other
17.As a bike consumer, what brand of bike you purchase did you purchase most
recently?
a. Mahindra Stilo b.TVS Star city c. Herohonda Karizma d.Yamaha SZ
18. Please rate the following celebrities as a brand endorser:1 Excellent
2Average
3Poor
4cant say
Chapter- 5
CONCLUSION
5.1 CONCLUSION
5.2 IMPLICATION
5.3 LIMITATIONS OF THE STUDY
5.4 SCOPE FOR FUTURE WORK
5.1 CONCLUSION
Celebrities have always been the easiest way for a new product launch (consumer
goods) and will remain to do so in the near future on account of their mass appeal
and a world full of star stuck loyal fans. But the impact on the brand is much
greater than just an advertisement showing a celebrity.
We have seen that the correct choice of a celebrity can surely increase sales but
when it comes to long term loyalty and impact on the brand. The effect is yet
somewhat debatable. In the end, the product must deliver for the customer, no
matter who endorses the product, if the customer does not see himself getting value
from his purchase, he will not buy it. But yes, celebrities over time can influence
the loyalty and make a person friendlier to a brand. Brand and celebrities are here
to stay for a long time and in this age of slick advertising and mass media and
unthinkable budgets, celebrities are having a field day charging huge amounts and
making more money than their mainstream professions. But then do they really
care about the brand? Or is it just the money? But the bottom line, celebrity
endorsements are here to stay.
Let us accept one thing - the world of advertising and brand building does not
believe in the Laissez-Faire principle. Unless you reach out to the customer, make
him think and nudge him that little bit, you will fall short of your targets and that is
a cardinal sin, given the competition.
The brand managers work on an extremely sleek, thought-controlling process
which may be propounded as the Multiplier Effect. They are smart, pragmatic
people and know very well that Mr. Singh, sitting in his cosy home in Delhi and
watching his favourite action hero driving the brand new LX car model, would not
walk up to the car showroom next day and book one for himself. They offer simple
feelers like concept and lifestyle to him, which are inherent to the product
advertisement, with or without the celebrity endorsement.
5.2 IMPLICATION
The given principles were linked to specific managerial suggestions regarding
more effective use of celebrities to enhance brand equity:
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.
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.
Celebrity endorsements will be more effective when using a celebrity who is
not already strongly associated with another product or service.
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.
Test potential brand/celebrity combinations to ensure that the impression and
image of the celebrity is positive for the target audience.
Celebrity endorsements will be more effective for less familiar brands.
Celebrity endorsers will be more effective for brands for which consumers
have limited knowledge/facts.
Celebrity endorsers will be more effective when integrated across the
elements of the marketing mix.
Caution in choice of celebrity endorser is warranted given the potential risk of
tarnishing the brands image.
The limitations of the study are the following The data was collected through questionnaire. The responds from the
respondents may not be accurate.
The sample taken for the study was only 200 and the results drawn may not be
accurate.
Lack of experience of Researcher.
5.4 SCOPE FOR FUTURE WORK
The present study on employee motivation helps to get clear picture about the
factors which motivates the employees. This in turn helps the management to
formulate suitable policy to motivate the employees. Hence, the motivational level
of the employees may also change. The factors that motivate the employees may
change with change in time because the needs of employees too change with
change in time. So continuous monitoring and close observation of factors that
motivate the employees is necessary to maintain a competent work force. Only
with a competent work force an organization can achieve its objective. Moreover,
human resource is the most valuable asset to any organization. A further study with
in dept analysis to know to what extent these factors motivate the employees is
required and important conclusions can be drawn.
REFERENCES:
Reference
Jobber, D. (2001) Principles & Practice of Marketing 3rd edition, London UK,
McGraw-Hill.
Journal of Marketing and Communication Jan-April 2010 ,Vol. 5 Issue 3,p20 25,5p
European Journal of Marketing, 2010, Vol. 44 Issue 3/4, p436-450, 15p, 1
Diagram, 1 Chart Journal of Global Marketing, 2009, Vol. 22 Issue 2, p121-137,
17p, 2 Diagrams, 4 Charts
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