SYNOPSIS

ON

“IMPACT OF CELEBRITY ENDORSEMENT BEHAVIOR ON

CUSTOMER’S.”

A Report Submitted To G.B. Technical University For The Partial

Fulfillment Of Master Of Business Administration
(2009-2011)

UNDER THE GUIDENCE OF: Submitted By:

Mr. ISHAN KAUSHIK ASHUTOSH SRIVASTAVA
FACULTY, DMS MBA – IV Sem
Roll NO.-0909970024

HARLAL INSTITUTE OF
MANAGEMENT & TECHNOLOGY
8 Institutional Area, Knowledge Park-I, Greater Noida
 EXECUTIVE SUMMARY

This study raises three questions and attempts to provide tentative explanations for them. The first

two questions relate to locating, in the consumer's perceptual space, the relative position of Indian

celebrities and brands on a set of personality attributes. The third question relates to determining

the fit between the celebrity and the brands endorsed by her/him. The results suggest that

consumers differentially rank both celebrities and brands. Specifically, Amitabh Bachchan ranks

high on five personality attributes, and brands such as Pepsi and Coke rank high on four personality

attributes. The study further shows that although celebrities may endorse several brands, their

personality does not fit well with the personality of the brand they endorse. Evidence offered here

supports the basic assumptions of the celebrity–product congruence model.

At the outset, a number of topics and questions were identified as being of particular interest for

investigation. These are grouped and summarized briefly below.

 • Market and consumer segmentation

(frequency of goods and use; multiplicity of purchase and use)

• The shopping experience

(where goods are purchased; the role of the internet)

• Purchase motivators

(goods purchase drivers; the influence of sampling)

In the end an analysis of the questionnaire is being done to find out the impact of celebrity

endorsed advertisements on the buying behavior of consumers.

INTRODUCTION

“American Express has a long and proud history of communicating the values of our brand by
using heroes and personalities who hold a significant place in the hearts and spirits of people

around the world. In Tiger Woods we have a representative who captures the imagination of many

different types of consumers. His participation helps us communicate messages that our Do More

campaign supports: American Express has a family of products that is relevant to a wide variety of

consumers.” (Kenneth I. Chenault, President and COO American Express)

The billions of dollars spent per year on celebrity endorsement contracts show that celebrities, like

Liz Hurley, Britney Spears and Tiger Woods, play an important role for the advertising industry.

Female athlete Venus Williams, tennis player and Wimbledon championship winner in 2002, for

example, has signed a five-year $40 million contract with sportswear manufacturer Reebok

International Inc. Theory and practice prove that the use of super stars inadvertising generates a lot

of publicity and attention from the public. The underlying question is, if and how the lively interest

of the public in ‘the rich and famous’ can be effectively used by companies to promote their brands

and consequently increase revenues.

A Definition of ‘Celebrity’

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.

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, David1 Bowie) – but also for less obvious

groups like businessmen (e.g. Donald Trump, BillGates) or politicians. 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. Last but not least, celebrities act as spokespeople in advertising to

promote products and services.

RESEARCH METHODOLOGY

OBJECTIVE

This study raises three questions and attempts to provide tentative explanations for them. The first

two questions relate to locating, in the consumer's perceptual space, the relative position of Indian
celebrities and brands on a set of personality attributes. The third question relates to determining

the fit between the celebrity and the brands endorsed by her/him. The results suggest that

consumers differentially rank both celebrities and brands. Specifically, Amitabh Bachchan ranks

high on five personality attributes, and brands such as Pepsi and Coke rank high on four personality

attributes. The study further shows that although celebrities may endorse several brands, their

personality does not fit well with the personality of the brand they endorse. Evidence offered here

supports the basic assumptions of the celebrity–product congruence model.

GAP

• To understand the difference in buying behavior of consumers belonging to different

age groups.

• To understand the direct relationship between “brand name” and consumer behavior.

• To understand the impact of endorsements on the retailer’s point of view.

MOTIVATION OF RESEARCH:

• As it is a class project that carries internal marks for our course we were motivated to

finish this project in time.

• The desire to learn more about the subject “Marketing Research & Report

Presentation”.

TYPE OF RESEARCH

Descriptive- Our research includes a questionnaire survey and it is a fact finding enquiry. And we

are focusing on giving description on the changes in consumer buying behavior due to celebrity
endorsements.

SAMPLE DESIGN

• SAMPLE UNIT: Delhi and NCR region

• SAMPLE SIZE: 340
• SAMPLE SELECTION: Random, convenient.

DATA COLLECTION TOOLS

• Primary Data : Questionnaire

• Secondary Data: magazines, journals, website etc.

VARIABLES INVOLVED

• Age of the respondents.

• Retailer’s perception for celebrity endorsements.

• Consumer perception for celebrity endorsements.

SCALING TECHNIQUES USED IN QUESTIONNAIRE

 SCALING TECHNIQUES QUESTIONS IN WHICH THE
TECHNIQUE IS USED
1) Nominal 1,2,4,5,6,7,8,9,10,11,12,13

2) Ordinal 3,14

PROBLEMS IDENTIFIE
Sample size was not adequate enough to represent the whole population.

Biases and non cooperation of the respondents while filling up the questionnaires.

Some people just ignore or straight away say a ‘no’ to fill up the questionnaires.

Financial constraint was also a problem lot of field work is involved while conducting the surveys
and requires a huge investment for conducting the market research.

Geographical selectivity in getting questionnaires filled because whole region of Delhi and Noida

is not possible to cover so it was difficult to select selected areas for conducting our survey.

People are not interested in giving personal opinion and they don’t disclose their right choices for

the questions being asked to them. Certain questions also remain unanswered by the

respondents which becomes difficult to record for conducting the analysis.

SUGGESTIONS / RECOMMENDATIONS

• Customers

– Choice of celebrities from:

• Entertainment

• Sports

• Corporate
 – go for quality, brand name and product features.

• Retailers (existing & upcoming entrants)

– Target demographics

• Mostly endorsements affect semi luxurious goods.

• 25 – 40 years old are mostly affected by the endorsements.

• 46.67% of retailer’s stock volumes are affected by endorsements.

• 52% of retailer’s has trades affected by company schemes and only 20% is

being affected by celebrity endorsements.

CONCLUSION

• RANKING of age groups.

• 1- youth

• 2- teenager

• 3- middle

• 4-old age.

• Products mostly affected by endorsements.

• semi luxurious

• Luxurious

• economical
 APPENDIX

QUESTIONNAIRE
CONSUMER

RATIONALE OF STUDY
TO STUDY THE IMPACT OF CELEBRITY ENDORSEMENTS ON THE BUYING
BEHAVIOR OF CONSUMERS

A CASE STUDY ON SOME SELECTED GARMENTS, JEWELLERY AND FOOTWEAR

PRODUCTS

Dear Sir/Madam,
As the students of HIMT we are doing a research on “TO STUDY THE IMPACT OF

CELEBRITY ENDORSEMENTS ON THE BUYING BEHAVIOR OF CONSUMERS”. We

would be grateful for the valuable inputs you give to the following questions. Your responses

shall be kept completely confidential, will be merged with other responses and used only for

statistical purposes.

Questionnaire:

Name (Mr. /Ms. /Mrs.):

Age : 15-25 yrs. 25-40 yrs. 40 yrs. & above

Sex : male female

Address :

Profession : service, business, others (…………….)

Qualification :

Please mark your choice:

1. Which of the following brands do you usually prefer?

a. provogue b. allensolly

c. peter england d. van heusen

e. others (……………..)

2. While outing what do you usually prefer?

a. suits b. sweatshirts

c. jackets d. woolens

e. others (……………..)

3. While shopping which of the following characteristic you look for.(please rank them)

a. price b. quality

c. brand d. celebrity endorsement e. traditional

4. How do you come to know about the new product?

a. print media b. electronic media

c. friends d. others (……………..)

5. Does advertisements affect your buying behavior?

a. always b sometimes

c. never d. others
6. Which features of advertisement attracts you the most?

a. presentation b. facts

7. Which type of advertisements attracts you the most?

a. animation based b. celebrity based

c. message based d. any other

If any other, please mention _________________

8. Do you prefer such brands/products which are advertised by celebrities?

a. always b. sometimes

c. never d. others

9. Do you think expenditure on celebrities for advertisements by companies is worth?

a. always b. sometimes

c. never d. others

10. Which is the most important feature of the product that tempts you to buy the

product?

a. advertisement b. product feature

c. brand name d. celebrities

11. Products advertised by celebrities of which field would you prefer?

a. sports b. entertainment

c. corporate d. any other

 If any other, please mention the name_____________

12. What according to you is the most effective reason for consumer to get attracted

towards a brand?

a. quality b. price

c. advertisements d. any other

13. Which price range of goods is mostly affected by endorsements?

a. luxurious b. semi luxurious

c. economical d. any other (……………)

14. Which age group according to you is mostly affected by celebrity endorsements?(please rank

them)….

a. teenagers b. youth

c. middle aged d. old age

15. May I know which brand right now you are wearing?

………….………..THANK YOU……………………..