A STUDY ON IMPACT OF
CELEBRITY ENDORCEMENT ON
The field of consumer behavior is the study of individuals, groups or organizations
and the processes they use to select, secure, use and dispose of product, services,
experiences, or ideas to satisfy needs and impacts that these processes have on the
consumer and society. And understanding the consumer behavior is the prime and
toughest task in front of every marketer. There are a lot of factors, which influence
consumer buyer behavior. This study aimed at to understand the ―influence of
celebrity endorsee on consumer buying behavior and brand building.”
Marketers pay millions of Dollars to celebrity endorsee hoping that the stars will
bring their magic to brand they endorse and make them more appealing and
successful. But all celebrity glitter is not gold.
Celebrity sources may enhance attitude change for a variety of reasons. They may
attract more attention to the advertisement than would non-celebrities or in many
cases, they may be viewed as more credible than non-celebrities. Third, consumers
may identify with or desire to emulate the celebrity. Finally, consumer may
associate known characteristics of the celebrity with attributes of the product that
coincide with their own needs or desire.
The effectiveness of using a celebrity to endorse a firm's product can generally be
improved by matching the image of the celebrity with the personality of the
product and the actual or desired serf concept of the target market.
What therefore seems relevant by the study that yes definitely celebrity endorsee
influence consumer buying behavior and brand building but while using celebrity
endorsee, marketer has to take care of all the aspect that whether the brought
personality and image of celebrity matches or not, whether celebrity endorsee has
deep penetration among the masses or not, whether he is considered as credible
source or not etc
CHAPTER - I
WHAT IS A BRAND?
The word 'brand' is a comprehensive term. To brand is to name or mark indelibly
as proof of ownership. It means a sign or symbol of quality. It is the best means of
advertising and positioning in the market. Branding is the best means to capture
and retain the consumer demand in a competitive market. The marketer can create
brand equity, brand loyalty and brand image for his products.
Branding is the practice of giving a specified name to a product or group of
products from one seller. The specified name creates individually in the product;
hence it can be easily distinguished or recognized in the market from the rival
products. The role purpose of branding is to distinguish our branded product from
those of competitors. A well promoted brand name which has earned reputation in
the market is very difficult to complete with.
A brand cans levels of meaning:
Attributes: A brand first brings to mind certain attributes. Thus, Mercedes
suggest expensive, well-built, well-engineered, durable, high prestige, high
resale value, fast and so on. The company may use one or more of these
attributes to advertise the car. For years Mercedes advertised, Engineered like
no other car in the world. This tagline served as the positioning platform for
projecting the car's other attributes.
Benefits: A brand is more than asset of attributes. Customers are not buying
attributes they are buying benefits. Attributes need to the translated into
functional and/. Or emotional benefits. The attribute durable could translate into
the functional benefit. I won't benefits. The attribute durable could translate into
the functional benefit. The attribute expensive might translate into the
emotional benefit. The car helps me feel important and admired. The attribute
well built might translate into the functional and emotional benefit. I am safe in
case of an accident.
Values: The brand also says something about the producer's value. Thus,
Mercedes stands for high performance, safety, prestige, and so on. The brand
marketer must figure out the specific groups of car buyers who are seeking
Culture: the brand may represent a certain culture. The Mercedes represents
German culture; organized efficient, high quality.
Personality: The brand can also project a certain personality. Mercedes may
suggest a no-nonsense boss (person), a regaining lion (animal), or an austere
palace (object). Some times it might take on the personality of an actual ell-
known person or spokesperson.
User: The brand suggests the kind of consumer who buys or uses the product.
We would be surprised to see a 20 year-old secretary dragging a Mercedes. We
would expect, instead to see a 55- year old top executive behind the wheel. The
users will be those who respect the products' values, culture, and personality.
The fist decision is whether the company should develop a brand name of its
product. In the past, most products went unbranded. Producers and intermediaries
sold their goods out of brands, bins and cases, without any supplier identification.
Buyers depended on the Delhi's integrity. The earliest signs of branding were the
medieval guilds efforts to require crafts people to put trademark on their products
to protect themselves and consumers against inferior quality. In the five arts, too
branding began with artists signing their works.
Today, branding is such a strong face that the hardly any thing goes unbranded.
Most of the products and services now coming up with their brand name.
Whatever else we may be in our lives-child. Parent, student, worker, lover, jogger
or stamp collector- we are all consumers, all of our days. We buy and use goods
and services constantly, to eat; to wear, to read, to watch to play to travel in, to
keep us healthy, to make us wealthy and if not wise, at least better educated, the act
of consumption is therefore an integral and intimate part of our daily existence.
And that a there whether we have a lot of money to spend or very little.
In every long country of the world billions of purchases of goods and services are
made every year. In the U.S., for example, the activity now accounts per most of
the economy-some $ 4 trillion, or about two third of the annual gross national
Consumer decision making varies with the type of buying decision. The decision to
buy toothpaste, a tennis racket, a personal computer and a new car are all very
different. Complex and expensive purchases are likely to more buyer deliberation
and more participants. Assael distinguished four types of consumer buying
behavior based on the degree of buyer involvement and the degree of differences
Complex Buying behavior
Consumers engage in complex buying behavior when they are highly involved in
involved in a purchase and aware of significant differences among brands. This is
usually the case when the product is expensive bought infrequently, risky and
highly self-expressive. Typically the consumer does not know much about the
product category and has much to learn. For example person buying a personal
computer may not know what attributes to look for many of the product features
carry no meaning unless the buyer has done handson research: "16K memory",
"disk storage" "screen resolution," and so on.
Complex buying behavior involves a three-step process. First the buyer develops
beliefs about the product. Second, he or she develops attitudes about the product.
Third he or she makes a thoughtful purchase choice. The consumer‘s information
gathering and evaluation behavior. The market needs to develop strategies.
Dissonance - reducing buyer behavior
Sometimes the consumer is highly involved in a purchase but sees little difference
in the brands. The high involvement is based on the fact that the purchase is
expensive, infrequent, and asky. In this case the buyer will shop around to learn
what is available but will buy will by fairly quickly, perhaps responding primarily
to a good price or to purchase convenience. For example carpet buying is a high-
involvement decision because carpeting is expensive and self-expressive yet the
buyer may consider most carpet brands in a given price range to be the same.
After the purchase, the consumer might experience dissonance that stems from
noticing certain disquieting features of the carpet or hearing favorable thing about
other carpets. The consumer will be alert to information that justifies his or her
Habitual buying behavior
Many products are bought under conditions of low consumer involvement and the
absences of significant brand differences consider salt. Consumer has little
involvement in this product category. They go to the store and reach for the brand.
If they keep reaching for the same brand it is out of habit not strong brand loyalty.
There is good evidence that consumers have low involvement with most low cost,
frequently purchased products. With low involvement products, consumer
behavior does not pass through the normal belief /attitude/behavior sequence.
Consumers do not search extensively be information about the brands, evaluate
their characteristics, and make a weighty decision on which brands to buy.
Variety-Seeking Buying Behavior
Some buying situations characterized by low consumer involvement but significant
brand differences. He consumers often do a lot of brand switching. Think about
cookies. The consumer has some beliefs about cookies, chooses a brand of cookies
without much evaluation, and evaluates the product during consumption. But net
time the consumer may reach for another brand out of boredom or a wish for a
different taste. Brand switching occurs for the sake of variety rather than
Literature Review Of Celebrity Endorsement
Celebrity endorsement in mass media advertising has become a very beneficial
phenomenon for many countries and has significantly increased in the past decade,
and should be the main principle of brand communications since it is the key to
marketing success. Any product that is displayed in a television commercial or
magazine advertisement by a corporation that uses a celebrity or well known
public figure to give a testimonial or information about the product, is practicing
celebrity endorsement. Although commonly thought of starting in the United
States, celebrity endorsement began in India during the ‗80s but has since been
adopted by countries in Asia, Europe, and almost worldwide. Modern mass media
(especially that of tabloids) has increased exposure of celebrities to the point that it
is unavoidable to not be exposed to a celebrity face. The primary principle that
celebrity endorsement works off of is the public recognition of the celebrity
endorser as an admirable or desirable cultural force. It is not uncommon to view
commercials from the past 10 years and see popular icons like Britney Spears
endorsing a particular soft drink like Pepsi or Michael Jordan endorsing Nike as
the number one brand for anyone that has even the slightest liking to sports.
These celebrities among many others, are used to promote products, services, and
ideas (Kambitsis et al., 2002). A reason for the increase in the usage of celebrity
endorsing on various levels of mass media is almost exclusively due to the fact that
this strategy results in more positive advertisement and product(Dean and Biswas,
2001), as well as an increase in the purchasing of the product and in turn, increased
finances for the producer (Erdogan, 2001). ct ratings
A Definition of ‘Celebrity’
Celebrities are people who enjoy public recognition by a large share of 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.
This is true for classic forms of celebrities, like actors (e.g. Meg Ryan, Pierce
Brosnan), models (e.g. Naomi Campbell, Gisele Buendchen), sports athletes (e.g.
Anna Kournikova, Michael Schumacher),entertainers (e.g. Oprah Winfrey, Conan
O‘Brien) and pop stars (e.g. Madonna, David View Forbes.com (2002).Bowie) –
but also for less obvious groups like businessmen (e.g. Donald Trump, Bill Gates)
or politicians (e.g. Rudy Giuliani, Lee Kuan Yew). Celebrities appear in public in
different ways. First, they appear in public when fulfilling their profession, e.g.
Pete Sampras, who plays tennis in front of an audience in Wimbledon?
Furthermore, celebrities appear in public by attending special celebrity events, e.g.
the Academy Awards, or world premieres of movies. In addition, they are present
in news, fashion magazines, and tabloids, which provide second source
information on events and the ‗private life‘ of celebrities through mass-media
channels (e.g. Fox 5 news covering Winona Ryder‘s trial on shoplifting, In Style).
but not least, celebrities act as spokespeople in advertising to promote products and
services (Kambitsis et al. 2002, Tom et al. 1992).
Multiple Brand and Celebrity Endorsement
Studying TV and print advertisements, one will realize that either some celebrities
are endorsing several brands or a specific brand is endorsed by different
spokespersons. These concepts are called multiple brand endorsement and
multiple celebrity endorsement respectively. Some spokespersons are ―shared‖ by
different advertising firms, i.e. they are promoting more than one brand (Tripp et
al. 1994, p. 535). Golf champion Tiger Woods has endorsed American Express,
Rolex, and Nike. Actress Catherine Zeta-Jones is used by T-Mobile and Elizabeth
Arden. James Bond character Pierce Brosnan promotes Omega, BMW, and
Noreico. Top model and actress Milla Jovovich is a spokesperson for a broad range
of brands, including L‘Oreal, Banana Republic, Christian Dior, Calvin Klein, and
Donna Karan. The question is, does this special form of celebrity endorsement
does affect consumers‘ brand attitudes? Following Tripp et al. (1994), the
endorsement of as many as four products negatively influences the celebrity
spokesperson‘s credibility (i.e.). In fact, Andie McDowell is also a spokesperson
for L‘Oréal. However, she is used to endorse products for women of her age group,
e.g. the hair color brand ‗Excellence‘. Expertise and trustworthiness) and
likeability. They further add that these effects are independent of the celebrity, i.e.
the perceptions of even well-liked stars can be influenced. Reasons may be found
in the lack of distinctiveness, with one famous person endorsing several products
instead of concentrating on and representing one specific brand. Though these
findings may be valid, it does not automatically mean that the concept of multiple
product endorsement is useless. Further research is suggested on potential positive
effects, like transfer of positive brand images, and on the shape of Consumers‘
response when more than four products are endorsed.
Hrithik Roshan, Aiswarya Rai, Aggasi, Samphas, Anna Kornikova, Saurav
Ganguly & Rahul Dravid Shah Rukh Khan, Sachin Tendulkar, Madonna, Bill
Cosby Michael Jordan, these names have become symbols of the role of endorsers
in advertising. Firms spend millions of dollars to sign up celebrities to endorse
their products. Some popular endorsers such as Michael Jordan earn as much as
$40 million a year from endorsements alone. Endorsement contracts are now so
lucrative that many professionals in sports and entertainment direct their careers to
this end. In some sports, such as track and field events, winning at the Olympics
has pretty much become a means to subsequent endorsement contracts.
Firms spend all this money on endorsements because finding the right celebrity
endorser for their products can pay tremendous dividends. For example, some
brands such as Nike's Air Jordan have been built around the image of a star. Nike
earned over $200 million from its Air Jordan Lines of shoes and clothes in 1991
alone. Yet as the example of Madonna suggests, celebrity endorsers cave a
powerful means of communicating a distinct image for a brand to target segment as
well as a source of problems for the advertiser. Other types of endorsers can be
equally effective but cost much less.
Types of endorsers
A endorser is a person, character or organization that speaks or appears in an ad in
support of the advertiser or its claim. The terms endorser includes the terms
spokesperson or model. The endorsement process is the identification, selection
and use of endorsers to communicate with a target segment.
Endorsers can be grouped into three broad classes : experts, celebrities and lay
endorsers. Each has special characteristics and roles in the communication process.
We will first consider a definition of the three types of endorser and then describe
Now that a distinction has been made between the two general types of advertising
endorsers, it is important to more formally explain endorser attributes and the role
they play bin facilitating communication effectiveness. Extensive research has
demonstrated that two basic attributes contribute to an endorser's effectiveness:
1. Attractiveness and
Each involves a different mechanism by which the endorser affects consumer
attitudes and behavior. Some of these points have already been mentioned, but a
formal treatment will now ensure that these key concepts are fully understood.
1. Attractiveness : The Process of Identification
Attractiveness does not mean simply physical attractiveness -although that can be a
very important attribute-but includes any number of virtuous characteristics that
receivers may perceive in an endorser intellectual skills, personality properties,
lifestyle characteristics athletic prowess and so on. The general concept of
attractiveness consists of three related ideas: similarity familiarity and liking. That
is an endorser is considered attractive to receivers if they share a sense of whether
the two are similar in any respect. Gabriela Stabbing, in another milk-mustache
advertisement would seem to epitomize the use of attractiveness and capture all
dimensions of that concept. That is Sabatini, in addition to her physical beauty, is
attractive to tennis fans who are similar to her (in the sense that they also play or
enjoy tennis), are familiar with her (via watching her play on TV and reading about
her) and like her (due to her generally pleasant demeanor and fiery competitive
When receivers find something in an endorser that they consider attractive
persuasion occurs via an identification process. That is when receivers perceive a
source to be attractive, they identify with the endorser and are very likely to adopt
the attitudes, behaviors, interests, or preferences of the source.
In other words, an attractive endorser does not necessarily benefit a product if there
is a poor match up between the endorser and the product.
2. Credibility: The process of Internalization
In its most basic sense, credibility refers to the tendency to believe or trust
someone. When an information source such as an endorser, is perceived as credible
the source can change attitudes through a psychological process called
internalization. Internalization occurs when the receiver accepts the endorser's
position on an issue as his or her own. An internalized attitude tends to be
maintained even if the source of th4e message is forgotten or if the source switches
to a different position.
Two important properties of endorser credibility
are expertise and trustworthiness. Expertise refers to the knowledge, experience or
skills possessed by an endorser as they relate to the communications topic. Hence,
athletes are considered to be experts when it comes to the endorsement of sport-
related products. Expertise is a perceived rather than an absolute phenomenon.
Whether an endorser is deed an expert is unimportant; al that matters is how he or
she is perceived by the target audience. An endorser perceived by an audience as
an expert on a given subject is more persuasive in changing audience opinions
pertaining to his or her area of expertise than an endorser who is not perceived as
possessing the same characteristic. This no doubt explains the extensive use of
athletes to endorse sports-related product.
Trustworthiness refers to the honesty, integrity
and believability of a source. While expiates and trustworthiness are not mutually
exclusive, often a particular endorser is perceived as highly trustworthy but not
particularly expert. An endorser's trustworthiness depends primarily on the
audience's perception of his or her endorsement motivations. If the audience
believes that an endorser is motivated purely by self-interest, he or she will be less
persuasive than someone the audience perceives as having noting to gain by
endorsing the product or as being completely objective.
Interestingly research with ethnic minorities reveals that when a spokesperson
matches the audience's ethnicity, spokesperson trustworthiness in enhanced which,
in turn promotes more favorable attitudes towards the advertised brand.
Advertisers capitalize on the value of trustworthiness by selecting endorsers who
are widely regarded as being honest, believable and dependable people. This
probably explains why celebrities such a Candice Bergen. Bill Cosby Michael
Jhordan. Angela Lans-buy and Arnold Palmer are successful endorsers. They
simply appear to be individuals who can be trusted.
CELEBRITIES ENDORSEMENT IN ADVERTISING
Advertising pay million of dollars to celebrities, hoping that the stars will bring
their magic to the products and services they endorse and make them more
appealing and successful. Are the dollars well spent? Not always. Although actress
Candice Bergen‘s ―Dine Lady‖ portrayal for long-distance phone carrier Sprint
was highly successful, and Jaclyn Smith moved millions to buy her clothing line at
Kmart, Cybill Shepered and James Garner were discontinued as spokespersons for
the Beef Industry Council. And a Pepsi commercial featuring pop diva Madonna
that cost mega millions to produce was aired only once in the United States before
being pulled off the air. Why? Why did entertainer Bill Cosby fail as an endorser
for E.F. Hutton despite his success for Jell-O and Kodak? And what impact did
boxing champion Mike Tyson‘s rape conviction and the allegations of child
molestation and drug addiction against pop singer Michael Jackson have on Pepsi,
for which both were spokesmen?
These are not only interesting questions, but
questions that marketers and advertisers need answers to as they plan their
Is it smart to use celebrity endorsements for
Stars, who are known to shape destinies, cast an enormous influence. No, we‘re not
talking about astrology here. We‘re referring to the powerful effect of celebrities
on destinies of brands. One approving nod from a famous face can translate into
millions in brand sales. Perhaps that‘s why the world over, companies have been
using stars to endorse everything, from food to food chains, from soft and hard
drinks to health drinks, from clothes and accessories to cars (and the tyres on
which they run). Even political parties are awestruck by the charisma of stars. Such
is the magnetism of celebrities in this country that in the recent general elections,
major political parties fielded a record number of film stars and cricketers to
contest from important constituencies around the country.
Celebrities ensure attention of the target group by breaking the clutter of
advertisements and making the ad and the brand more noticeable.
A celebrity‘s preference for a brand gives out a persuasive message - because the
celebrity is benefiting from the brand, the consumer will also benefit.
Stars are loved and adored by their fans and advertisers use stars to capitalise on
these feelings to sway the fans towards their brand.
Different stars appeal differently to various demographic segments (age, gender,
class, geography etc.).
Mass Appeal: Some stars have a universal appeal and therefore prove to be a good
bet to generate interest among the masses.
Celebrity endorsements are very expensive. Therefore their use in an ad should
be justified. In other words, the message strategy for a brand should strongly
warrant the use a known face in an idea. Sadly, very often the celebrity is hired
first and an idea is then weaved around his or her presence. Khan stresses, ―The
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.‖
A celebrity‘s presence in the ad should be contextual.
When Sachin Tendulkar declares, ―Boost is the secret of my energy,‖ it doesn‘t
seem out of context. Internationally, Nike‘s association with Michael Jordan is
legendary and also logical.
When it doesn’t work?
In the last decade or so, there has been a spurt in the use of celebrity endorsements.
And with it, there has been an increase in the number of instances of brands failing
to take off in spite of the biggest and brightest stars endorsing it and consequently
leading to speculation about the soundness of celebrity endorsements as a
According to leading management thinker ―Many celebrity endorsements fail
because they identify a celebrity they like in an emotive and un-researched manner
and then try to create advertising to force-fit the celebrity into the creative concept.
Often, the finished advertising is at best contrived, and often, simply laughable. In
the end, the brand suffers from a mismatched concept and celebrity, and millions
of dollars are flushed away. If this company is publicly listed, imagine the
disservice the company has done for its shareholders.‖ 
There are several reasons why celebrity endorsements fail to produce the desired
effect, and each of them has to more to do with the core communication strategy
and less with the celebrity‘s pull. ―Celebrities cannot really be blamed if their
endorsements fail to push up the brand sales,‖ says Mendonza. Indeed, for it is
important to recognise that celebrities can create interest - whether that interest
converts into sales depends on various factors such as brand-celebrity disconnect,
improper positioning, clutter of celebrities, or even product life-cycle.
Five causes of letdown
It‘s worth going over some of the reasons why celebrity endorsements may not
1. Improper positioning
Associating with a star, however big he or she may be, in itself does not guarantee
sales. The most it can do is generate interest in the product or create a buzz around
it. Take the case of Maruti Versa, which was launched amidst a lot of fanfare about
three years ago. In spite of Maruti signing up superstar Amitabh Bachchan and his
son Abhishek Bachchan as brand ambassadors for Versa, the brand‘s sales
remained sluggish. To be fair, the Big B magic did work and the ads created
significant interest, drawing people into the showroom. But perhaps the positioning
itself was faulty as people were expecting a larger than life car, just like the
brand‘s ambassador. Last year, we saw Versa being re-positioned as a family car,
with the core proposition being, ―the joy of traveling together.‖ In the words of
Ravi Bhatia, General Manager of Marketing at Maruti, Versa has started doing
well and has witnessed an upswing since the new positioning. Last year, the
average sales were 80-100 vehicles a month. Now they are selling 450 vehicles a
2. Brand-celebrity disconnect
If the celebrity used represents values that conflict with the brand values and
positioning, the advertising will create a conflict in the minds of the target audience
who may reject the proposition. Take for instance Toyota, one of world‘s leading auto
companies. Toyota chose teeny-pop singer Britney Spears for its brand Soluna Vios, a
family sedan, which is preferred by married men and women with children. According
to Phan, a youth icon like Britney would‘ve been better used by Toyota for a sleek
sports vehicle and for Soluna Vios, Toyota should choose someone like a mature man,
Harrison Ford for example. 
3. Clutter Flutter
In recent times, there has been such a deluge of celebrity endorsements that it has led
to the very clutter that it aimed to break. For instance, Amitabh Bachchan endorses or
has endorsed Pepsi, ICICI, BPL, Parker pens, Nerolac, Dabur, Reid & Taylor, Maruti
Versa, Cadbury and a few social messages too. Bollywood badshah Shah Rukh Khan
endorses Omega, Tag Heuer, Pepsi, Hyundai, Clinic All Clear and Airtel among other
brands has to his credit more television commercials than feature films since 1992.
This over-exposure can be bad for the brand. Khan adds, ―We seem to have just 2 ½
celebrities in a country of 1 billion people which is a terrible tragedy. Consequently,
each celebrity is called upon to push maybe a dozen brands or so. Which is great for
the celebrity but I think it is pretty daft for the brand because the impact of the
celebrity reduces as the number of brands he endorses increases.‖ Parmeswaran
agrees, ―Unfortunately in India, we have too many brands chasing too few celebrities.
And the recall value drops by a huge margin when you move from an A Class
celebrity to a B Class.‖
4. Dissatisfaction with product
You cannot sell an ordinary product just by making a celebrity endorse it. In fact, if
anything, the product will fail faster because the presence of the celebrity will create a
buzz and more people will know about the ―ordinariness‖ of the product.
Parmeswaran says, ―Unfortunately using a celebrity seems to be the easy way out of a
parity product situation.‖ Sachin Tendulkar‘s endorsement of Fiat Palio was quite a
success initially. But as word about the poor fuel efficiency of Palio spread, its sales
took a beating. In this case, Sachin‘s presence could‘ve worked wonders but for the
poor performance of the car in a market that is highly performance conscious.
5. Confusion/ Scepticism
The use of celebrities can be confusing. Some viewers forget brand that a celebrity
is approving. Others are so spellbound by the personality of the celebrity that they
completely fail to notice the product/brand being advertised. The brand is
overshadowed in the overwhelming presence of the star. In some cases, a celebrity
can give rise to scepticism because it might be a bit too much for the masses to
believe that the celebrities who are rich and can afford the best in the world are
actually using a mass product being advertised on television. On the contrary,
people might speculate about such things as ―how much did the brand pay to rope
him/ her in as the brand ambassador?‖
Risks associated with Celebrity Endorsements
Fame is a fickle and fleeting companion and can ditch the famous at the slightest
provocation. Celebrities, being human, make mistakes. But their mistakes get as
much attention as their celebrity status and this can adversely affect the brands that
they are endorsing. There are a number of examples, both Indian and International,
where scandals and scams involving celebrity endorsers have caused
embarrassment to the brands they endorse. Companies have to make quick
decisions when one of their endorsers comes under fire or their own image could
be tarnished. Guilty by association in a consumer‘s eyes describes it best.
Magic Johnson lost his endorsement deals when he announced in 1991 that he‘s
HIV-positive. It wasn‘t until July 2003 that he landed his first endorsement deal
since the announcement.
It‘s a tricky situation for marketers. If a brand continues with the celebrity, it may
adversely affect the image of the brand and consequently, brand sales. If the brand
chooses to distance itself with the tainted celebrity, the huge costs spent on roping
in the celebrity and making of the ads may go down the drain and even then the
association of the brand with the celebrity might by then be so ingrained that the
damage is already done. ―It‘s a two-way street. One way it shows the strength of
the brand promotion. But it is also fraught with risk if your brand ambassador fails
to perform in the related field,‖ says Reliance India Mobile (RIM) marketing head
Kaushik Roy. RIM uses Cricket star Virendra Sehwag as its brand ambassador.
Roy added, ―We want to try and avoid celebrity endorsements as much as possible.
Over-dependence on them will create problems in future so we should stand on our
Celebrity endorsement can be key to marketing success
There's no denying the fact that marketing chiropractic can be challenging. The
public has long been exposed to negative reports about it from the medical and
drug industries, as well as from well-meaning but uninformed consumer advocates.
They've heard chiropractic jokes on sit-coms and warnings on the nightly news.
To market chiropractic in general — and your practice in particular — you must
first overcome lingering fears, ignorance and skepticism that keep people from
coming to your office. One of the most powerful ways to surmount these obstacles
is to use a celebrity endorsement.
When you tell people that chiropractic can help them, they may or may not believe
you. After all, you have a vested interest in selling your services.
But when celebrities say that chiropractic has helped them, and it could help
others, people tend to listen — and believe. After all, most people assume "he
wouldn't say it if it weren't true."
"When you get a celebrity to endorse your company or sign a licensing
agreement, you benefit from customers' awareness of the property, [which]
could include the perception of quality, educational value or a certain image."
After researching the impact of celebrity endorsements, Melissa St. James, a
doctoral fellow and marketing instructor at The George Washington University
"Studies show that using celebrities can increase consumers' awareness of the
ad, capture [their] attention and make ads more memorable" (quoted in
"Celebrity Endorsements," by Kimiko L.)
INFLUENCE OF CELEBRITY ENDORSEMENT ON
CONSUMER BUYING BEHAVIOR IN IN INDIAN CONTEXT
Towel-clad models can sell just about anything. Soaps shampoos, body lotions,
safety razors, electric hair removers, men's toiletry even ceramic tiles and
bathroom fittings. And if the model happens to be a television icon who enjoys a
huge fan following among youngsters, the product will sell like hot cakes. So when
the Kerala-based S.V.Products launched its new brand of sandalwood soap. It hired
a celebrity to endorse the soap, Result: A towel-clad Cyrus Broacha was hawking
Chandrika soap on the idiot box.
When bollywood heartthrob Revenna Tandan featured in the ad for Rotomac pens
some years ago, many people wondered whether it was a good idea to hire such a
high-priced model. But the strategy paid off and Rotomac today is a name to
reckon with in the writing instruments industry.
Using celebrities to peddle wares is not new for the Rs. 5,000 crore Indian
advertising industry. After all, it's easier to influence people if a celebrity is
endorsing the product. Says Imam Siddiqui, model coordinator, Ammirati Puris
Lintas: "The strategy helps because a celebrity is instantly recognizable and brand
recognition becomes easy".
But that's where the similarity with the past ends. Now, even small and medium-
sized companies are roping in big names to sell their products. For instance, one of
the highest paid celebrity models, Sachin Tendulkar features in the Today's pen
ads. That's not all. Rani Mukherjee, who features in the high profile Pepsi ad along
with Shah Rukh Khan and Kajol is also endorsing the humble bicycle.
Also, many companies realize that the bigger the celebrity the better is the impact.
Instead of hiring smaller models at a lower price, they prefer to splurge on high-
paid models. Signing Shah Rukh Khan over Milind Soman makes better business
sense, they feel. For instance, when the Rajasthan-based textile manufacturer BSL
Ltd. found that its sales graph was not moving upwards, it decided to sign up
model-turned-actress Sonali Bendre. "Our previous campaigns lacked glamour.
Now that short-coming has been set right." Says BSL Marketing Manager R.P.
Jhanwar. The company is confident that the campaign will be able to boost sales
during the oncoming festive season.
When S.V. Products wanted to reposition its Chandrika brand of sandalwood soap
for the younger generation, it did the same. Instead of going in for female models
that would have reinforced the belief that Chandrika was used only by women, it
hired Broacha for its advertisement campaign. "Since we were targeting the youth,
we decided to bring in a youth icon. Broacha fitted the description perfectly," say
V.Krishnana, managing director of Asap advertising which handled the advertising
of Chandrika soap.
Broacha, who was paid over Rs. 50,000 for the campaign, was able to convince the
happening generation that the Chandrika brand was not merely something that
fuddy duddy housewives used. Sales have jumped 25 per cent since the
advertisements first appeared in July 1998.
Similarly, Manish Makhija a.k.a. Udham Singh it's trying to breathe life into the
Kanchan brand of home appliance. Jatland contribution to the world of pop must is
endorsing the low-priced range from the Mumbai-based Kanchan International.
But celebrities to do not come cheap. The sticker price can range from Rs. 10 lakh
for 10 second zapper to Rs. 5 crore for an extended tie-up.
Some big companies are also realizing the benefits of celebrity endorsements.
Computer education major NIIT has signed on chess grandmaster Vishwanathan
Anand for its ads. Till now the company was using only ordinary models.
With companies rushing to hire celebrities, the regular models are feeling the
pinch. Says Sohail Mohammed, a model who has worked on campaigns for
Lakhani shoes and Moov Ointment: "Previously we used to be called for tests.
Now even that has stopped." For this ilk the future is tense
Why do brands use celebrities?
Brand may use celebrities for a variety of reasons. Getting attention may be
one of the reasons to use a celebrity in a category, which is very "crowded"
or in a category where involvement levels are low. Cema, a brand of bulb
used a well-known celebrity to gain attention in a category where a number
of brands existed and where differentiation is hard to achieve. Attention
getting leads to recall especially when the consumer is in need of the
product. This recall may lead to trial especially in categories which are low
involvement and which have low unit cost (bulbs, commodities). Jams have
a low penetration in India and involvement levels have been low. NLL uses
a sport celebrity for its 'Jammy' TV commercial.
Brand may use celebrities to convey an upmarket image. Pataudi, the cricket
celebrity with the regal touch has endorsed Royale, an upmarket brand from
Asian Paints. This celebrity also endorsed Gold Café (an instant coffee
launched in the 80s), Gwalior suitings and Kohinoor rice. All these brands
have targeted upmarket consumers, not the masses. Currently the same
celebrity endorses Kohinoor brand of basmati rice along with his spouse, a
Brand may use celebrities to enhance the brand image in niche markets.
Omega is an upmarket brand of watches known for its classic appeal all over
the world it has only premium ranges. The Indian contest after the launch of
titan is currently in a phase is marked by the entry of a number of foreign
brands. The upper end is also getting crowded with brands like Rolex,
Cartier, Raymond Well etc. Titan has also entered the global market with its
premium offerings. It is interesting to observe Omega using the well known
and glamorous Cindy Crawford with gift proposition and a jingle similar to
the Mozart background score used all along by Titan. The background score
of Titan is almost its brand property. The Omega commercial is frequently
telecast on CNN, a niche channel, besides being flashed in a few upmarket
Indian magazines. Omega has a classic image nurtured over decades. Titan
advocated the gift proposition for a durable in India. It may be difficult to
make use of the proposition of Titan to become a brand for the masses. But a
well-entrenched proposition could be made use of by a very strong brand to
create an impression on a small niche of upmarket consumers. Is Omega
attempting to make use of the 'anchored perception" to compete with
formidable world-class brands (if not directly with titan)?
In low-involvement products, it has almost become a trend to use celebrity
appeals. This may be more effective if the brand pioneers celebrity usage.
Though consumers are getting use to the celebrity clutter, there is always a
novelty appeal that a celebrity could generate by being the first to be
associated with a brand in the category. But is a leader in instant coffee
(chicory-based) and all along it has been using the filter taste as its
proposition. BBIL's Gre
Objective of the study
To identify influence of celebrity endorsee on consumer buying behavior and
Type of research
The research was exclusively exploratory in nature. The research design was
characterized by flexibility in order to be sensitive to the unexpected and to
discover insight not previously recognized.
Secondary and Primary data was extensively analyzed. Secondary data was
essentially journals, magazines, academic books etc., to understand consumer
behavior and role of celebrity endorsee primary data was collected from jury
survey (Persons from Advertising Agencies) and directly through the customers.
Method of Conduct
Personal interviews were conducted, which included persons from advertising
agencies and customers.
The research instrument used for primary data collection was questionnaire.
The questionnaire was structured and most of the questions were closed ended.
The entire questionnaire was divided into three parts.
a. Ownership based
b. Buying behavior based
c. Role of celebrity endorsee based.
For the jury survey personal interviews were conducted.
Sampling Plan / Size
The entire study covered the following two respondent segments:
a. Persons from advertising agencies-10.
b. Customer - 40.
Total sample size was 50 and the sampling used is judgement.
The researcher used judgement sampling.
Time allotted to carry out the study was merely four weeks including
Some of the responses might be biased.
Most of the survey was carried out in and around Delhi only
It was not possible for the researcher to meet more creative directors of the
It was not possible to collect the opinion of the celebrities who are endorsing
Q1. What are the motivating factors when you plan to buy mobiles or
• Discounts and offers
• Fewer prices
• Latest models and trends
• Celebrity endorsing the product
Latest trend & model
Q2. Do you believe products specifically advertised by the celebrities
are of good quality?
• Not sure
Q3. What is the most persuading factor to purchase the following
a) MOTOR VEHCLE
• Brand Name
• Self Esteem
• Brand Name
c) FOOD PRODUCTS
Q4. Companies are investing large amounts of money for using
celebrities; do you think its helping them to increase their total
Q5. What type of celebrity endorsement persuades you personally to
• Film star
• Famous personalities
Q6. Does the presence of celebrities like Shahrukh Khan, Amitabh
Bachan or Aishwariya Rai in an advertisement encourages you to
purchase the product or service?
Q7. Do you believe the celebrities also use those products which they
Q8. Please rate the following celebrities as a brand endorser:-
a) Aishwariya Rai for L’Oreal
b) Amir Khan for coca cola
c) Sushmita Sen for Olay creams
Q9. What do you value the most when purchasing a product?
Price of the product•
Quality of the product•
Value for money•
Price of product
value for money
Q10. Does celebrity endorsement help in brand promotion?
Q11. What means of advertisements persuades you the most to
purchase a product?
Q12. What do you think is the reason for the companies to choose
celebrity endorsement for promoting their products?
Easy recognition of product•
Can’t generate new ideas•
to be able to increase sales and profit•
To compete strongly•
can't generate new ideas
increase sales & profit
Celebrity spokespersons in advertising to endorse brands. A brief assessment of
the current market situation indicates, that celebrity endorsement advertising
strategies can under the right circumstances indeed justify the high costs associated
with this form of advertising. However, as several failures show, it is essential for
advertisers to be aware of the complex processes underlying celebrity
Endorsement, by gaining an understanding of the described concepts of source
credibility and attractiveness, match-up hypothesis, meaning transfer model,
multiple product and celebrity endorsement. While these concepts can help to
answer the question if and when celebrity advertising investments pay off, it has to
be the goal of further research efforts to develop an extensive, consistent and user-
friendly tool to avoid arbitrary decisions and enhance the strategic character of
celebrity sponsorship decisions.Understanding buying behavior of customer is the
toughest task for a marker, we can identify the factors, which influence purchase
decisions, but it is next to impossible to know which factor influence when. We
have countless permutation and combination for it, each individual has different
behavior and different influencing factors. Marketers spend millions of dollars on
advertising and especially on celebrities. Hoping that the stars will bring their
magic to the products and services they endorse and make them more appealing a
successful. But, all that celebrity glitter is not gold, but it can be. It appropriately
used celebrity advertising has pay off and definite influenced the purchase
decision. Celebrity endorsement does a premium in term of impact and
memorability. There is also a position influence on persuasion, though less strong.
It is not enough that the celebrity is the
advertising be remembered, more important, the brand must be. In using celebrities
as endorsed, advertisers need to understand not only how to choose celebrities but
also how to use them in advertising. The strategy and creative execution should
reinforce strongly and consistently the celebrity brand association. And the
celebrity should not only evoke positive retains, but helps focus attention on the
brand in the advertising. Thus the product will be made more desirable because of
its association with the star.
Email address :
• 50 and Above
• Service Business
Others (Please Specify) _________
Q1. What are the motivating factors when you plan to buy mobiles or cars?
• Discounts and offers
• Fewer prices
• Latest models and trends
• Celebrity endorsing the product
Q2. Do you believe products specifically advertised by the celebrities are of
• Not sure
Q3. What is the most persuading factor to purchase the following products?
a) Motor vehicle?
• Brand Name
• Self Esteem
• Brand Name
c) Food Products
Q4. Companies are investing large amounts of money for using celebrities;
do you think its helping them to increase their total revenue?
Q5. Does the presence of celebrities like Shahrukh Khan, Amitabh
Bachan or Aishwariya Rai in an advertisement encourages you to purchase
the product or service?
Q6. Do you believe the celebrities also use those products which they
9. What type of celebrity endorsement persuades you personally to
• Film star
• Famous personalities
Q7. Please rate the following celebrities as a brand endorser:-
a) Aishwariya Rai for L’Oreal
b) Amir Khan for coca cola
c) Sushmita Sen for Olay creams
Q8. What do you value the most when purchasing a product?
Price of the product•
Quality of the product•
Value for money•
Q9. Does celebrity endorsement help in brand promotion?
Q10. What means of advertisements persuades you the most to purchase
Q11. What do you think is the reason for the companies to choose celebrity
endorsement for promoting their products?
Easy recognition of product•
Can’t generate new ideas•
to be able to increase sales and profit•
To compete strongly•
Brand Equity (Economic Times)
Advertising and Sales Promotion strategy by Gerard J. Thellis.
Advertising Excellence by Bovee, Thill Dovel and Wood.
Advertising Principles and Practice, 2nd Edition by Williom wells, Vohn
Burnett, Sandra Muriarty.
Advertising Promotion and supplemental Aspect of Integrate marketing
Communication, 4th edition, by Shimp.
Brand management by YLR Moorthi
Building strong brands by David A. Aaker.
Consumer behavior by Robert East
Consumer Behavior, 6th Edition, by Lean G. Sehiffman and Leslic lazan
Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.
Managing Brand Equity -by David a Aaker
Marketing management ,3rd Edition by V.S. Ramaswami and S. Nama
Marketing management by S.A. Sherlekar
Marketing Management 9th Edition by Philip Kotler
Marketing Nuggets by Dr. S. Ramesh Kumar
Strategic marketing -July-August 1999
What's in a Brand by Johm Philip Jones