DISSERTATION REPORT ON STUDY ON CONSUMER PERCEPTION OF CELEBRITY ENDORSEMENT AND ITS IMPACT ON BRAND RECALL IN FMCG SECTOR.

Report submitted for partial fulfilment of The requirement of the course Post Graduate Diploma Program in Business Management (PGDM) (SESSION: 2010-12) SUBMITTED TO: PROF. SARIKA TOMAR SUBMITTED BY: MANSHUL KATARIA

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DECLARATION

I, hereby declare that I have completed Dissertation on Consumer Perception of Celebrity Endorsement and its impact on brand recall in FMCG Sector As per the course requirement.

I further declare that the information presented in this project is true and original to the best of my knowledge.

Date: ____________
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Place: ____________

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CERTIFICATE

This is to certify that the work incorporated in this project report entitled STUDY ON CONSUMER PERCEPTION OF CELEBRITY ENDORSEMENT AND ITS IMPACT ON BRAND RECALL IN FMCG SECTOR Submitted by Mr. Manshul Kataria, Roll no 2010078 of PGDM 2010-12 is his original work and completed under the kind supervision. All the material obtained from other sources as like as secondary sources and this information is relevant in fulfilment of the PGDM program.

SIGNATURE OF STUDENT

SIGNATURE OF GUIDE

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(MANSHUL KATARIA)

(SARIKA TOMAR)

Date: ______________ Place: ______________

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ACKNOWLEDGEMENT

I would like to thank my Faculty mentor PROF. SARIKA TOMAR for their valuable guidance and support at all time.

I am thankful to all those people who provided me all the necessary information directly or indirectly throughout this project report completed at time

MANSHUL KATARIA 2010078

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NIILM-CMS PGDM 2010-12

Table of Contents Declaration Certificate Acknowledgement Abstract 1. Introduction 1.1 Why Celebrity? 1.2 An insight into Indian FMCG Advertising. 1.3 Brand awareness 1.4 Successful celebrity endorsements for a brand An Indian perspective 2. 3. Literature Review Research Methodology 3.1 Objectives 3.2 Hypothesis 3.3 Research Design 3.4 Sampling Plan 3.5 Questionnaire 3.6 Analytical Techniques 4. 5. Results Conclusion 20 22-28 29-31 30 30 31 31 31 31 32-43 44-47
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2 3 4 8 11-21 12 13 18

References Appendix 1 & 2

52-53 54-60

List of Tables Table No. 4.1 4.2 4.3 4.4 4.5 Figure Page No 34 34 35 35

Aishwariya Rai for L'Oreal * Gender Crosstabulation Saif Ali Khan for Lays * Gender Crosstabulation MS Dhoni for Lays * Gender Juhi Chawla for Kurkure * Gender Crosstabulation What type of celebrity endorsement persuades you personally to purchase products? Vs. Gender (Chi Square)

36

4.6

Do you believe that celebrity endorsement on advertisement motivate you to purchase? * Gender Crosstabulation 36 37 37

4.7 4.8 4.9

Brand Recognition for Sports Celebrity vs Gender (Chi Square) Brand Recognition for T.V. Actor vs Gender (Chi Square) Gender * Attention seeker while watching TV for Sports Celebrity (Chi Square) 38

4.10

Gender * Attention seeker while watching TV for Actor (Chi Square) 38

4.11

Do you believe that celebrity endorsement on advertisement motivate you to purchase? * Gender 38

4.12

Do you think that, celebrity give a true picture of products through advertisement? * Gender Cross tabulation 38

4.13

Do you purchase celebrity endorsed brands to improve your

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social status? * Gender Cross tabulation

39

List of Charts S.No. Figure 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 4.1 Top Categories in Celebrity Endorsement on TV during 2011 Share of Celebrity Endorsements on TV by Profession Celebrities with maximum number of Advertisers endorsed on TV Top brands in Celebrity Endorsements on TV Volume growth of FMCG sector on TV Share of FMCG sub sectors on TV Fastest growing FMCG sub sectors on TV during 2011 Celebrity endorsement of FMCG brands on TV Top new brands of FMCG sector on TV What do you think is the reason for the companies to choose celebrity endorsement for promoting their products? 4.2 Do you believe that celebrity endorsement on advertisement motivate you to purchase? * Gender 4.3 Do you think that, celebrity give a true picture of products through advertisement? * Gender Cross tabulation 4.4 Do you purchase celebrity endorsed brands to improve your social 40 39 33 15 15 16 16 17 17 Page No. 13 14 14

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status? * Gender Crosstabulation

41

Abstract
Today, the use of celebrity endorsement has increased drastically. It has become an integral part of almost every brands promotional campaign and a big marketing trend. Due to high channel surfing, it is very difficult to keep the viewers attention for a long time and to focus in a productive way. While studying the rationale behind the increasing trend of celebrity endorsements across the globe, researchers explore several dimensions of the celebrity endorsement technique. The literature that was reviewed revealed that instant and better recall is one of the most important benefits. Leading film and sports personalities are the preferred choice of the Indian marketers for a better recall. Need of research has been felt as there are conflicting views regarding the role of gender on celebrity endorsement. There was no research found in the area of Delhi NCR in FMCG sector. This paper tries to explore various dimensions of celebrity endorsements. The purpose of this study is to get an insight of the celebrity advertisements in FMCG sector because it is contributing nearly 50% to T.V. advertisements in past few years. This study emphasizes on the association between gender of respondent and his/her preference of celebrity and to compare the sports celebrity with film stars. The research design adopted in the study is Descriptive Research. Data for the objective is collected through secondary and primary data sources. Secondary data is through journals, websites. The primary data is collected through structured questionnaires and the sample unit comprises of Consumers mostly of the age group 18-40, both males and females.

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CONSUMER PERCEPTION OF CELEBRITY ENDORSEMENT AND ITS IMPACT ON BRAND RECALL IN FMCG SECTOR

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Chapter - 1 Introduction

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Introduction Celebrity endorsements pull in hundreds of crores every year, and are widely preferred by marketers to promote their products. Using celebrities for endorsing brands has become a trend for building the brands as well as the company's image. Who are these celebrities? And what does celebrity endorsement mean? A celebrity is a person who is well recognized by the public, and has a reputation for his/her expertise in his/her chosen silos. Sports persons and film stars fit the bill perfectly. Promotion of a company's products through these celebrities is termed as celebrity endorsement. The company makes use of the celebrity's characteristics and qualities to establish an analogy with the products specialties with an aim to position them in the minds of the target consumers. Celebrity endorsement, thus, is one of the powerful tools adopted by companies/marketers to consolidate their brand(s) in the crowded marketplace. Consumers prefer to own a brand that has a good reputation, and when someone like a famous film star or a sport star is associated with that particular brand, it is obvious that the consumers will get attracted to it, because the consumer wants to maintain some status, and feels that using a brand promoted by a star can satisfy that longing. 1.1 Why Celebrity There is a myth that celebrity endorsement is used to give a brand advantage over its competitors. However, choosing a celebrity for this purpose requires considerable amount of calculations. There should be something common between the brand and the celebrity promoting it. Let us come to the main question as to why marketers use celebrities to promote their brands. Is there a real need to associate a celebrity with the product? Yes seems to be the resounding answer. This is because a company needs to create awareness and interest in the consumers mind when it unveils a new brand or product. To be successful, brands need to convince consumers that they carry a different image and value from other competing products. In other words, brands have to show their true personality to the potential consumer(s).

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An effective way to do this is through celebrity endorsements. As MG Parmeswaran, executive director of FCB Ulka says, "As advertising professionals, we recommend celebrity endorsements when the case is justified. There are many cases where you need to use the celebrity to break out of a category clutter. At times, celebrity endorsement is used to build credibility to the brand offer." People always wish to see their favorite stars and marketers, and advertisers are quick to capitalize on such ideas. Endorsement of a product/service by a celebrity gives out the message that it is as authentic and credible as the celebrity is. The urge that people have of enjoying the same recognition and status like their favorite stars is often the main reason for the increasing use of celebrities for products/services endorsement.

1.2 An insight into India FMCG advertising Figure 1.1 Top Categories in Celebrity Endorsement on TV during 2010

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Figure 1.2 Share of Celebrity Endorsements on TV by Profession

During 2010,'Film Actress' led with 44 per cent share of 'Celebrity' endorsements on TV followed by 'Film Actor' and 'Sports Person' with 41 per cent and 12 per cent share respectively. Figure 1.3 Celebrities with maximum number of Advertisers endorsed on TV

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'M S Dhoni' leads among the Celebrities in terms of endorsing number of advertisers on TV during 2010. 'Shahrukh Khan' and 'Sachin Tendulkar' were at the 2nd and 3rd place endorsing for 23 and 18 advertisers respectively during 2010.

Figure 1.4 Top brands in Celebrity Endorsements on TV

Figure 1.5 Volume growth of FMCG sector on TV

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Figure 1.6 Share of FMCG sub sectors on TV

Figure 1.7 Fastest growing FMCG sub sectors on TV during 2009

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Figure 1.8 Celebrity endorsement of FMCG brands on TV

Figure 1.9 Top new brands of FMCG sector on TV

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1.3 Brand Awareness

Brand recall is often referred to as a top-of-mind brand awareness or unaided recall (De Pelsmacker et al., 2001). Top-of-mind brand awareness can be used as just the first brand mentioned, which is similar to recall and referred to as possibly a poor mans market share audit (Gruber, 1969) . One might also use a shortlist of top-of mind brands, giving the place of the brand on the list a certain amount of salience. Brand recognition is also referred to as aided recall or aided awareness (De Pelsmacker et al., 2001).

Consumer decision Making Process

Celebrity endorsements are impelled by virtue of the following motives:

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Instant Brand Awareness and Recall. Celebrity values define, and refresh the brand image. Celebrities add new dimensions to the brand image. Instant credibility or aspiration PR coverage. Lack of ideas. Convincing clients.

The scope of a celebrity on the incumbent brand: Simply stating, a brand is a differentiated product and helps in identifying your product and making it stand out due to its name, design, style, symbol, color combination, or usually a mix of all these. Before we can scrutinize the effects of celebrity endorsement on the overall brand, we have to ferret the implicit nuances that act as sources of strong brand images or values:

Experience of use: This encapsulates familiarity and proven reliability. User associations: Brands acquire images from the type of people who are seen using them. Images of prestige or success are imbibed when brands are associated with glamorous personalities.

Belief in efficiency: Ranking from consumer associations, newspaper editorials etc. Brand appearance: Design of brand offers clues to quality and affects preferences.

Manufacturers name & reputation: A prominent brand name (Sony, Kelloggs, Bajaj, Tata) transfers positive associations.

1.4 Successful celebrity endorsements for a brand- An Indian perspective

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The latter part of the '80s saw the burgeoning of a new trend in India brands started being endorsed by celebrities. Hindi film and TV stars as well as sportspersons were roped in to endorse prominent brands. Advertisements, featuring stars like Tabassum (Prestige pressure cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings) became common. Probably, the first ad to cash in on star power in a strategic, long-term, mission statement kind of way was Lux soap. This brand has, perhaps as a result of this, been among the top three in the country for much of its lifetime. In recent times, we had the Shah Rukh-Santro campaign with the objective of mitigating the impediment that an unknown Korean brand faced in the Indian market. The objective was to garner faster brand recognition, association and emotional unity with the target group. Star power in India can be gauged by the successful endorsement done by Sharukh for three honchos- Pepsi, Clinic All Clear and Santro. Similarly, when S Kumars used Hrithik Roshan, then the hottest advertising icon for their launch advertising for Tamarind, they reckoned they spent 40 - 50 per cent less on media due to the sheer impact of using Hrithik. Ad recall was as high as 70 per cent, and even the normally conservative trade got interested. In the Indian context, it would not be presumptuous to state that the celebrity can overall endorsements aggrandize

brand. We have numerous examples exemplifying this claim. A standard example here is Coke, which, till recently, didn't use stars at all internationally. In fact, India was a first for them. The result was a ubiquitously appealing Aamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatra advertising is only due to the sensuous Aishwarya. The Parker pen brand, which by itself commands equity, used Amitabh Bachchan to revitalize the brand in India. According to

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Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL), post Bachchan, Parker's sales have increased by about 30 per cent. India is one country, which has always idolized the stars of the celluloid world. Therefore it makes tremendous sense for a brand to procure a celebrity for its endorsement. In India there is an exponential potential for a celebrity endorsement to be perceived as genuinely relevant, thereby motivating consumers to go in for the product. This would especially prove true if the endorser and the category are a natural lifestyle fit like sportspersons and footwear, Kapil-Sachin and Boost or film stars and beauty products. Rationale of proposed investigation FMCG sector contributed 40% for T.V. advertising during 2010 & grew at 50 % from 2009 to 2010. Today, the use of celebrity endorsement has increased drastically in FMCG. FMCG companies, which generally spend an average 10 per cent of revenues on promotions. It has become an integral part of almost every brands promotional campaign and a big marketing trend. Celebrities are seen endorsing almost every product meant for selling. Due to high channel surfing, it is very difficult to keep the viewers attention for a long time and to focus in a productive way. Celebrities can bring quick memorability, recall and recognition, and direct client connection with the audience. This will help to explore various dimensions of celebrity endorsements in FMCG

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Chapter 2 Review of Literature

Literature Review

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Endorsement is a technique where a well-known or respected individual such as a celebrity or an expert in the product or service area speaks on behalf of the company or the brand. The endorser in an advertisement is the person, celebrity, spokesman, announcer and so on who endorses and/or demonstrates the product. Celebrities can be any famous, popular public figure or respected personality in the society from any field. Mostly celebrities are from the world of films, television or sports. Though Indian marketers heavily rely on film stars and cricketers, in other countries endorsements are done by many celebrities which include authors, chefs, musicians, athletes, directors, anchor persons, models, comedians, business personalities, politicians, consumer advocates, etc. This is evident from a list of Top 100 global celebrities3 which includes Oprah Winfrey (talking head/talk show anchor), Tiger Woods (golf player), Madonna (musician), Rolling Stones (musician), Brad Pitt (actor), etc. In order to establish the necessity of doing research in the current area an extensive literature was reviewed and the results are summarized as follows: One of the earliest studies on television advertising by Bauer & Greyser (1968) asked respondents to count the advertisements that struck them as being offensive, annoying, enjoyable or informative. Only 15% of the advertisements evoked positive reaction. About 72% of the advertisements were either considered enjoyable or informative. About 23% of advertisements were perceived as being annoying and 4% were offensive. The study included some 524 commercials. Responses were subjected to a Factor Analysis which revealed that advertisements were (1) entertaining (2) personal relevance (3) disliked and (4) warmth. Schlinger (1979) developed a rating instrument, popularly called the VRP (Viewer Response Profile) that looked at ad responses and classified them as entertaining, relevant, alienating, empathetic, familiar, confusing and brand reinforcing. All the above mentioned response profiles were built in an exploratory fashion, using principal components analysis as the data reduction technique.

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McCracken (1989) believes that some celebrity endorsers work better than others due to the better match or congruency between celebrity and product. Many researchers acknowledge match-up or fit between the product and the endorser as an important factor in determining celebrity advertising effectiveness (Kahle and Homer, 1985; Misra and Beatty, 1990; and Till and Busler, 1998). According to Atkin and Block (1983), celebrity endorsers have been found to produce more positive responses towards advertising and greater purchase intentions. Freiden (1984) in his study quotes that celebrities are perceived to be more trustworthy, believable, persuasive and likeable. Hence, they are more influential and effective than anyone else.

In a study by Biel and Bridgwaters (1990) it was found that for consumer products like foods and beverages the commercials had high scores on the meaningful and relevant likeable scale. For non-food products the most important attribute for a successful commercial was meaningfulness. For consumer durables warmth was an important criterion to get noticed. Add to this, viewer involvement and perceived relevance too was important if the commercials were to create the persuasion. The type of product advertised too created an impact with food and beverage products having high likeability scores. Many organizations take advertising testing very seriously. Since advertising is an expensive proposition, the manner in which it works and the results it produces become critical. In a quest to identify measures to predict or study the effectiveness of television advertising (commercials) researchers have been trying to build relevant and reliable measurement instruments that capture audience response to television advertising. A study by Johar and Sirgy (1991) found that for consumers who are highly involved with a product, utilitarian information was found to be more effective, and for consumers who were not involved with the product, value expressive advertisements were found to be more persuasive. Ohanian (1991) reported that there were no significant main effects of gender in her study of the impact of gender on consumers perceptions of a celebritys attractiveness, trustworthiness, or expertise, nor on the likelihood of purchasing a product that was
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endorsed by a celebrity. In that study, no effort was made to match the celebrities used, in terms of the domains with which they were associated (for example, matching male sport celebrity and female sport celebrity; matching male entertainment celebrity and female entertainment celebrity). As per Jagdish Agrawal & Wagner A. Kamakura (1995) a research on The Economic worth of Celebrity Endorsers: An Event Study Analysis has typically focused on theories explaining how celebrity endorsements influence consumers attitudes and intentions. The authors assess the impact of celebrity endorsement contracts on the expected profitability of a firm by using event study methodology. Announcements of 110 celebrity endorsement contracts were analyzed. Findings of the study indicate that, on average, the impact of these announcements on stock returns is positive and suggest that celebrity endorsement contracts are generally viewed as a worthwhile investment in advertising. Till and Shimp (1998) suggested that repeated pairings of the brand endorser with the brand should facilitate the celebrity and the brand becoming part of each others association set. It was concluded that celebrity endorsement is not an easy option but needs careful consideration of different dimension of advertising and promotional campaign. Goldsmith (2000) suggested that celebrity credibility could be defined as the extent to which a celebrity is perceived as having expertise relevant to the communication topic and can be trusted to give an objective opinion on the subject. Boyd and Shank (2004) investigated the effects of gender matching between consumers and sports celebrity endorsers in an effort to determine whether this would affect consumers perceptions of the attractiveness, trustworthiness, and expertise of the celebrity. They found no significant effect on attractiveness or expertise, but a significant interaction on trustworthiness; women rated female endorsers more favorably than male endorsers, and men were more favorable in their evaluations of male endorsers. However, Boyd and Shank (2004) opined that there should be replication of their study before any kind of generalizations can be made, given certain shortcomings of that study. For example, they lament: While we attempted to find ads that were similar, it is likely that the ads
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themselves and the endorsers used varied enough to create effects. In the case of the endorsers used, the female endorser was a Caucasian swimmer, Amy Van Dyken, while the male celebrity was Hispanic-American boxer Oscar de la Hoya. The authors recommend the minimization of the potential for alternative explanations to gender of celebrity as the factor generating the observed effects. Peetz, Parks, and Spencer (2004) reported on a study in which they showed participants pictures of certain athletes (Lance Armstrong, Mia Hamm, Michael Jordan, and Jackie Joyner-Kersee) and asked these participants to identify and describe the athletes. They then asked the participants whether they considered the athletes experts on products related to the athletes sports, and whether the athletes could influence their purchase intentions. Their study yielded some gender-based results: odds of identifying male athletes were greater than those for identifying female athletes (4 times greater); male athletes were perceived as being more influential on purchase intentions than female athletes; and male respondents were more favorable toward the less well-known male athlete. A study conducted by Tandon Mala & Sudeep Mehrotra (2005) on Impact of celebrity endorsement on overall brand was aimed at providing the marketers with a quantitative method for selection of the right celebrities to optimize the outcome for their advertising campaigns. They developed three matrices in their paper Celebrity Positioning Matrix, which gives the popularity and image details of a personality in the market Product Positioning Matrix, which is the direct consequence of the brands competitive strategy Area Correlation Matrix, which is the overall measure of match of brand and celebrity. Choi & Rifon (2007) The credibility components are interconnected with other traits of the celebrity and the image dimension which reflects good qualities e.g. pleasant, wise, educated etc. produce sincere and positive perception of the celebrity in consumer minds. Farida Saleem (2008) while studying celebrity endorsement in their article Impact of gender and age on single and multiple celebrities endorsements believe that there is no significant difference between male and female toward single or multiple celebrities ads
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similarly age is also not significantly associated with attitude toward ad, attitude toward brand and purchase intentions for both single and multiple celebrities ads. JUNG-GYO LEE (2008) studied how consumer characteristics, namely an individual's own levels of enduring involvement with a product category, moderate schema congruity effects. Two experiments were conducted to test these issues using two types of match-up factors: physical attractiveness and expertise of a celebrity endorser. The results show that celebrity endorsements are evaluated more favorably in terms of purchase intention when there is a moderate mismatch than when there is either a complete match or an extreme mismatch. According to Meenakshi Aggarwal & Priya Jha Dang (2009) showed that an expert celebrity was effective m creating more favorable responses on attitude towards the ad for an expertise related product but had no effect on attitude towards the brand and purchase intention. The impact of the expert celebrity on ad attitude was mediated by the perceived expertise of the endorser. Results of the study provide support for the product match up hypothesis developed m the West.

According to B. Raja Shekhar & N. Udaya Bhaskar (2009) indicated that celebrity endorsements generated higher purchase intentions and positive attitudes toward the advertisement in urban area compared to semi urban.

Gap Areas Need of research has been felt as there are conflicting views regarding the role of gender on celebrity endorsement. There was no research found in the area of Delhi NCR in FMCG sector. Little work has been done in FMCG sector and the literature emphasizes on the need of research in the area as well.
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Because celebrities and brands have numerous characteristics, it stands to reason that there might exist matches on certain dimensions and mismatches on other ones.

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Chapter 3 Research Methodology

Research Methodology Data for the objective is collected through secondary data source and primary data sources. Secondary data is collected through journals, websites. The primary data is collected through structured questionnaires and the sample unit comprises of Consumers of different age groups both males and females.

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3.1 Objective Major research objectives are given below:

To analyze the effectiveness of celebrity endorsement in context to gender. To study the association between gender of respondent and his/her preference of celebrity.

3.2 Major Hypothesis (s) The aim of this investigation is to assess the impact of gender both gender of the consumer and gender of the endorser- on consumers attitudes and perceptions of celebrity athlete endorsements. To what extent does gender of a target audience member influence his/her response to an ad that uses a celebrity? Is there any effect of gender of celebrity and gender of target audience member on response to celebrity endorsements? This section seeks to develop testable hypotheses to help answer these questions. Based on the above objectives the following hypothesis has been proposed: H0: Respondents gender and his/her preference of celebrity type are independent. H0: Respondents gender and celebrity type, i.e., sports or film personalities are independent.

3.3 Research Design The research design adopted in the study is Descriptive Research. The research is conducted using a questionnaire designed to understand consumers views on celebrity endorsement, measuring their attitude toward ad, attitude toward brand and their intentions to purchase, brand recall.

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3.4 Sample In order to collect primary data, self-administered questionnaire was used (Appendix 1) Primary data is collected from 120 respondents from Delhi NCR region. The sampling technique used in the research process is convenience sampling. The links of the online questionnaire was posted on social networks, was sent through mail to contacts and others. 3.5 Questionnaire In questionnaire few generic questions about source of information i.e. from where did the respondents get the information about new FMCG products. To know which gender/age group gives more time to T.V. Further questions were asked to know what are the reasons the respondents think that companies choose celebrity endorsement for promoting their products. Question was asked to rank few celebrities along with the brand they endorse to know whether genders responses are inclined towards a particular gender. 3.6 Analytical Techniques The analysis part of the research is done with the help of bar graphs, and cross tabulation, Chi square-test. While Graphs and charts would give a better representation of the data collected, tests and cross tabs would help in analyzing a data to come to a conclusion.

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Chapter 4 Analysis

Analysis Graph no. 4.1 Q 3 What do you think is the reason for the companies to choose celebrity endorsement for promoting their products?

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This shows maximum

graph that

respondents 49% and 48 Easy of and %replied recognition products products. H0: Respondents gender and his/her preference of celebrity type are independent. (Gender of celebrity)

Brand Recall was the main reason for companies to choose celebrities to endorse their

Table 4.1 Aishwariya Rai for L'Oreal * Gender of celebrity

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Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 4.244a 4.560 .163 120 df 4 4 1 Asymp. Sig. (2sided) .374 .335 .686

As it is clearly shown in the table that value is 0.374 which is greater than 0.05, which means that there is no association between gender of respondent and his/her preference for gender of celebrity

Table 4.2 Saif Ali Khan for Lays * Gender of celebrity Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 1.925a 1.911 .006 120 df 4 4 1 Asymp. Sig. (2-sided) .750 .752 .940

The value here is 0.750 which is greater than 0.05, this means that there is no association between gender of respondent and his/her preference for gender of celebrity.

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Table 4.3 MS Dhoni for Lays * Gender Gender Male MS Dhoni for Lays Very Good Good Average Poor very Poor Total 16 30 17 10 2 75 Female 9 12 17 5 2 45 Total 25 42 34 15 4 120

In this table also around 20% of male and female said that MS Dhoni is very good as brand endorser for Lays. This table shows that gender is independent in choosing type of celebrity. Table 4.4 Juhi Chawla for Kurkure * Gender Crosstabulation
Gender Male Juhi Chawla for Kurkure Very Good Good Average Poor very Poor Total 26 24 13 8 4 75 Female 20 15 3 5 2 45 Total 46 39 16 13 6 120

33% male have responded that Juhi Chawla is very good for Kurkure and 40% female said that she is very good.

Table 4.5

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What type of celebrity endorsement persuades you personally to purchase products? Vs. Gender
Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 3.074a 3.051 .749 120 Df 3 3 1 sided) .380 .384 .387

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.88.

As the value is more than 0.05 so it can be said that there is no association between purchase decisions being influenced by celebrity and the gender of the respondents. . Table 4.6 Do you believe that celebrity endorsement on advertisement motivate you to purchase? * Gender Crosstabulation Gender Male
Do you believe that celebrity endorsement on advertisement motivate you to purchase? Stongly Agree Agree Neutral Disagree Strongly Disagree Total 9 28 19 13 6 75

Female
4 16 12 9 4 45

Total
13 44 31 22 10 120

49% males and 44% females believe that they are motivated to purchase FMCG products which is not much associated with gender of the respondent. H0: Respondents gender and celebrity type, i.e., sports or film personalities are independent.
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Table 4.7 Brand Recognition for Sports Celebrity vs Gender

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7.930a 8.877 .123 120 Df 4 4 1 sided) .094 .064 .726

As the value of Pearson Chi-Square is 0.094 which is greater than 0.05This proves that their does not exist relationship between Brand recognition for Sports celebrity and gender of the respondents. Table 4.8 Brand Recognition for T.V. Actor vs Gender
Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 1.373a 1.407 .931 120

Df 4 4 1

Asymp. Sig. (2-sided) .849 .843 .334

a. 4 cells (40.0%) have expected count less than 5. The minimum expected count is 2.25.

As Pearson Chi-squares value is 0.849 which is greater than 0.05 and this means that their exist no relationship between Brand recognition for T.V. actor and gender of the respondents. Table 4.9 Gender * Attention seeker while watching TV for Sports Celebrity
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Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 2.784a 2.801 1.900 120

Df 4 4 1

Asymp. Sig. (2-sided) .595 .592 .168

a. 2 cells (20.0%) have expected count less than 5. The minimum expected count is 1.88.

Their exist no relationship between Gender and their responses for Sports celebrity as attention seeker while watching TV as the value here is 0.595

Table 4.10 Gender * Attention seeker while watching TV for Actor

Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7.506a 7.687 5.024 120

Df 4 4 1

Asymp. Sig. (2-sided) .111 .104 .025

a. 3 cells (30.0%) have expected count less than 5. The minimum expected count is 2.63.

Their exist no relationship between Gender and their responses for Actors as attention seeker while watching TV as the value here is 0.111

Objective Wise Analysis To analyze the effectiveness of celebrity endorsement in context to gender. Table 4.11
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Do you believe that celebrity endorsement on advertisement motivate you to purchase? * Gender
Gender Male Do you believe that celebrity endorsement on advertisement motivate you to purchase? Stongly Agree Agree Neutral Disagree Strongly Disagree Total 9 28 19 13 6 75 Female 4 16 12 9 4 45 Total 13 44 31 22 10 120

Chart

4.2

According to this table it can be interpreted that 49% males and 44%females believe that Celebrity endorsement motivates them to purchase the products endorsed.

Table 4.12 Do you think that, celebrity give a true picture of products through advertisement? * Gender Crosstabulation

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Gender Male Do you think that, celebrity give Stongly Agree a true picture of products through Agree advertisement? Neutral Disagree Strongly Disagree Total 7 10 23 23 12 75 Female 5 10 7 15 8 45 Total 12 20 30 38 20 120

Chart 4.3 22% males and 33% females believe that the celebrity gives them the true picture of the Products endorsed, which means that advertisers have to take care that they choose the celebrity which fits the products attributes and also they provide necessary information about the products. Table 4.13 Do you purchase celebrity endorsed brands to improve your social status? * Gender Crosstabulation

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Gender Male Do you purchase celebrity Stongly Agree 9 18 18 24 6 75 Female 6 11 15 7 6 45 Total 15 29 33 31 12 120

endorsed brands to improve your Agree social status? Neutral Disagree Strongly Disagree Total

Chart 4.4 37%females and 36% males responded that they purchase celebrity endorsed brands to Improve their social status.

To study the association between gender of respondent and his/her preference of celebrity. (Gender) Aishwariya Rai for L'Oreal * Gender
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Crosstab Gender Male Aishwariya Rai for L'Oreal Very Good 25 Good Average Poor very Poor Total 40 9 0 1 75 Female 18 17 8 1 1 45 Total 43 57 17 1 2 120

Juhi Chawla for Kurkure * Gender

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Crosstab Gender Male Female 26 20 24 15 13 3 8 5 4 2 75 45 Total 46 39 16 13 6 120

Juhi Chawla for Kurkure Very Good Good Average Poor very Poor Total

Saif Ali Khan vs M.S. Dhoni Report Saif Ali Khan MS Dhoni for Gender for Lays Lays Male Mean 2.01 2.36 N 75 75 Std. Deviation .908 1.048 Female Mean 2.00 2.53 N 45 45 Std. Deviation 1.000 1.079 Total Mean 2.01 2.43 N 120 120 Std. Deviation .939 1.058

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Chapter 5 Results and Discussions

Demographic Data Amongst the total 120 respondents, 62.5% are male and 37.5% are female respondents. Average age of respondents is 18-25 years. (80%)

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57% respondents are graduates and 22% are others. Maximum respondents (49.2%) watch TV every day for 1-3 h, followed by 45% respondents who watch TV for less than 1 h and only 6% respondents watch TV for more than 3 h.

67.5 % of respondent are Student and 32.5% of respondent are Service/Business.

Listed below are the media types through which the respondents come to know about FMCG products
o o o o

Print Media 36% Electronic Media 66% Word of Mouth 31% Others (Radio, Bill Board, Banner, Hoardings) 23%

Listed below are the reasons that the respondents thought is the reason for the companies to choose celebrity endorsement for promoting their products.
o o o o o

Easy recognition of products 48%. Brand Recall 39%. Cannot generate new ideas 13%. To be able to increase sales and profit 24%. To compete strongly 12%.

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When Brand recognition, Brand recall and Attention seeker was compared between Sports and T.V. actor it was found that:
o

Brand recognition for brands endorsed by T.V. actors are more than sports celebrity.

o o

Brand Recall for T.V. actor and sports celebrity are more or less equal. Attention seeker while watching T.V. for both actors and sports celebrity are more or less same.

Objective Wise Results To study the association between gender of respondent and his/her preference of celebrity. (Gender)

Two female celebrities were compared endorsing different brands, and it was found that the results do not vary much. In both the cases 33% male and around 40% female said that the female celebrity that endorsed the product is very good.

According to analysis 49% males and 44% females believe that they are motivated to purchase FMCG products which are not much associated with gender of the respondent.

To analyze the effectiveness of celebrity endorsement in context to gender. 22.6% males and 33% females agree that celebrity give a true picture of the products/brands they endorse.

36% male and 37% female agree that they purchase brands endorsed by celebrities to increase their social status.

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49% male and 44%female agree that in some point of time they are motivated to buy products endorsed by celebrities.

H0: Respondents gender and celebrity type, i.e., sports or film personalities are independent. Null hypothesis is accepted that their exist no relationship between gender and celebrity type, i.e. sports or film personalities are independent. (Table 4.7 4.10)

H0: Respondents gender and his/her preference of celebrity type are independent. (Gender of celebrity) Null Hypothesis is accepted that their exist no relationship between gender of respondent and the preference of celebrity type. (Table 4.1 4.6)

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Chapter - 6 Conclusion

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Conclusion Today TV is overcrowded by hundreds of private channels. Viewers thus have ample options. In India, a large portion of population is passionate about films and cricket. Cricket seems the only sports activity in the country looking at the patronage it gets from the public. Obviously there are huge numbers of fan followers for both cricketers and film stars. However, when it comes to the comparison of film and sports personalities, field performance seems more critical for sports personalities (cricketers) as it is immediately reflected in their endorsement contracts. Research findings also reveal that film personalities at least in India, are preferred over the sports personalities. Through research it has been revealed that Saif Ali Khan has been ranked above MS Dhoni, this supports the literature that celebrities are still preferred over sports person. Electronic media is being considered as the most common source through which the respondents got their information about new products in FMCG sector. Film stars have the highest likability with 33.3% of responses followed by famous personality and then sports person. Majority of the respondents responded that they are motivated by celebrities to purchase products and there is a positive impact of celebrity endorsement, but still 53 % are in the neutral and disagreeing stage. Their exist no relationship between gender of respondent and the celebrities gender. Also from this research it was revealed that the gender of respondent and choice of celebrity type are independent.
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Limitations and Future Scope The primary limitations are related to the generalization of the research results. First generalization issue is related to area of research i.e. Delhi NCR similar studies can be conducted in other cities, towns of India to find out if there is any change in the perception of the customers. Second issue is related to sample, as student sample has limited external validity which limits the generalization of the results, since these students are graduate students with greater levels of awareness and analytical thinking, it is possible that these students are less influenced by celebrity endorsement as. Third generalization issue is related to the stimulus, ads which were used as a stimulus were both male celebrity ads featuring Saif Ali Khan and M.S. Dhoni to compare T.V. actors with sports celebrity, no female sports celebrity was used to compare with T.V. actress.

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Recommendations Because celebrities and brands have numerous characteristics, it stands to reason that there might exist matches on certain dimensions and mismatches on other ones. As a consequence, in selecting a celebrity endorser, advertisers should take into account not only the attributes that are to be established as a primary link, but also assess the broader meanings associated with an endorser. Electronic media was preferred the most but print media is gaining popularity very fast, so marketers must also concentrate a bit more on print media. Public still cannot recall the brands to the extent it must be because of media clutter, which must be taken care while designing advertisements, innovative ways of advertisement must be taken care. Both T.V. actors and sports celebrity have a high score on attention seeker while watching T.V. which means that somewhere in the mind of consumers sports celebrities are being able to make space as a brand endorser, which must be capitalized, and as was shown in literature that in India cricketers and only a few other sports players are endorsing brands which can be increased in coming periods because level of sports activity going up in India. 22% males and 33% females believe that the celebrity gives them the true picture of the products endorsed, which means that advertisers have to take care that they choose the celebrity which fits the products attributes and also they provide necessary information about the products.

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Majority of the respondents responded that they are motivated by celebrities to purchase products and there is a positive impact of celebrity endorsement, but still 53 % are in neutral and disagreeing stage, which is a huge opportunity for marketers.

References

Atkin C and Block M (1983), Effectiveness of Celebrity Endorsers, Journal of Advertising Research, Vol. 23, No. 1, pp. 57-61. B. Raja Shekhar & N. Udaya Bhaskar , A Comparative Study Of Celebrity Impact On Consumer Behavior With Reference To Prepaid Mobile Service Providers In Select Urban And Semi Urban Areas, INTERNATIONAL JOURNAL OF BUSINESS RESEARCH, Volume 9, Number 1, 2009. Bauer, Raymond A. and Greyer, Stephen A. (1968) Advertising in America: The Consumer View: Boston, Massachusetts, Harvard University Press. Biel, A.L & C. Bridgwater (1990), Attributes of Likeable Television Commercials, Journal of Advertising Research, 30, 3, pp. 38 44. Boyd, T.C. and M. D. Shank. 2004. Athletes as product endorsers: The effect of gender and product relatedness. Sport Marketing Quarterly 13(2): 82-93. Freiden J (1984), Advertising Spokesperson Effects: An Examination of Endorser Type and Gender on Two Audiences, Journal of Advertising Research Vol. 24, No. 5, pp. 33-41. Goldsmith R E, Lafferty B A and Newell S J, The impact of Corporate Credibility and Celebrity credibility on Consumer reaction to Advertisements and Brands, Journal of Advertising, (2000), Vol. 29(3), 43-54. Jagdish Agrawal & Wagner A. Kamakura, The Economic Worth of Celebrity Endorsers: An Event Study Analysis, Journal of Marketing, July 1995 Vol. 59, 56-62 Johan, J. S. and J. Sirgy (1991), Value- Expressive Versus Utilitarian Advertising Appeals: When and Why to Use which Appeal, Journal of Advertising,20,3, pp.
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23 33. Kahle, L., & Homer, P., M. Physical attractiveness of the celebrity endorser: A social adaptation perspective. Journal of Consumer Research, 1985, Vol.11, 954-962. Mala Tandon & Sudeep Mehrotra Impact of Celebrity Endorsements on Overall Brand http://www.coolavenues.com/know/mktg/sudeep1.php (Accessed on 15.1.2009) McCracken G (1989), Who is the Celebrity Endorser? Cultural Foundations of the Endorsement Process, Journal of Consumer Research, Vol. 16, No. 3, pp. 310-21. Meenakshi Aggarwal & Priya Jha Dang, Examining Celebrity Expertise and Advertising Effectiveness in India, South Asian Journal of Management. Ohanian, R. 1991. The impact of celebrity spokespersons perceived image on consumers intention to purchase. Journal of Advertising Research 31(1): 46-54. Peetz, T. B., J. B. Parks, and N. E. Spencer. 2004. Sport heroes as sport product endorsers: The role of gender in the transfer of meaning process for selected undergraduate students. Sport Marketing Quarterly 13(3):141-150. Till B D and Shimp T A, Endorsers in Advertising: The Case of Negative Celebrity Information, Journal of Advertising, 1998 Vol. 27(1), 67-81. Schlinger, Mary Jane (1979), A Profile of Responses to Commercials Journal of Advertising Research, Vol 19, No.2.

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Appendix 1 Questionnaire A survey for analyzing effectiveness and factors affecting preference of male, female & Sports celebrity in FMCG sector. 1. Through which media do you come to know about new FMCG products? a) Print Media. b) Electronic Media. c) Word of Mouth. d) Others (Radio, Bill Board, Banner, Hoardings) 2. Generally how many hours do you watch TV every day? a) Less than 1 hour b) 1-3 hours c) More than 3 hours 3. What do you think is the reason for the companies to choose celebrity endorsement for promoting their products? (Multiple choices) a) Easy recognition of products b) Brand Recall c) Cannot generate new ideas d) To be able to increase sales and profit e) To compete strongly 4. Please select the most suitable point according to you: Strongly Strongly Agree Neutral Disagree Agree Disagree

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Do you purchase a brand because your favorite celebrity is endorsing it? Do you think that, celebrity give a true picture of products through advertisement? Companies are investing large amount of money for using celebrities; do you think its helping them to increase their total revenue? Do you believe that celebrity endorsement on advertisement motivate you to purchase? Do you purchase celebrity endorsed brands to improve your social status? Male endorser is more effective as compared to female endorser.

5. What type of celebrity endorsement persuades you personally to purchase products? a) Film star. b) Famous personalities. c) Sports Person. d) Common person. 6. Among the following sub-categories in FMCG which type of celebrity influences you more? Sports Celebrity Energy Drinks Soft Drinks Biscuits Soap Shampoo Snacks 7. Do you believe that the celebrities also use the products which they endorse?
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T.V. Actors

Movie Stars

a) Yes b) No c) Not sure 8. Please rate the following celebrities as a brand endorser:Celebrity Brand/Product Very Good Good Average Poor Very Poor

1 Aishwariya Rai LOreal 2 Amir Khan Coca Cola 3 Saif Ali Khan Lays 4 MS Dhoni Lays 5 Juhi Chawla Kurkure 9. Please rate the following factors (1 being most favorable and 5 being least favorable) Sports Person Brand recognition Brand Recall Attention seeker while watching TV Name: (Optional) ________________________ Gender: Male Female Age: a) b) c) d) 0-18 18-25 25-40 Above 40 Actor

Education: a) Intermediate. b) Undergraduate c) Graduate d) Any Other

Occupation a) Student b) Business/service c) Housewife d) Other

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Appendix 2 Dissertation Title of the Research Consumer Perception of Celebrity Endorsement and its impact on brand recall in FMCG Sector. Rationale of proposed investigation FMCG sector contributed 40% for T.V. advertising during 2010 & grew at 50 % from 2009 to 2010. Today, the use of celebrity endorsement has increased drastically in FMCG. FMCG companies, which generally spend an average 10 per cent of revenues on promotions. It has become an integral part of almost every brands promotional campaign and a big marketing trend. Celebrities are seen endorsing almost every product meant for selling. Due to high channel surfing, it is very difficult to keep the viewers attention for a long time and to focus in a productive way. Celebrities can bring quick memorability, recall and recognition, and direct client connection with the audience. This will help to explore various dimensions of celebrity endorsements in FMCG Review of Literature
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In order to establish the necessity of doing research in the current area an extensive literature was reviewed and the results are summarized as follows: Kahle & Homer (1985) Physical attractiveness of the endorser may be central in context with change in attitude of the customer. McCracken (1989) believes that some celebrity endorsers work better than others due to the better match or congruency between celebrity and product. Many researchers acknowledge match-up or fit between the product and the endorser as an important factor in determining celebrity advertising effectiveness (Kahle and Homer, 1985; Misra and Beatty, 1990; and Till and Busler, 1998). According to Atkin and Block (1983), celebrity endorsers have been found to produce more positive responses towards advertising and greater purchase intentions. Freiden (1984) in his study quotes that celebrities are perceived to be more trustworthy, believable, persuasive and likeable. Hence, they are more influential and effective than anyone else. As per Jagdish Agrawal & Wagner A. Kamakura (1995) a research on The Economic Worth of Celebrity Endorsers: An Event Study Analysis, has typically focused on theories explaining how celebrity endorsements influence consumers attitudes and intentions. The authors assess the impact of celebrity endorsement contracts on the expected profitability of a firm by using event study methodology. Announcements of 110 celebrity endorsement contracts were analyzed. Findings of the study indicate that, on average, the impact of these announcements on stock returns is positive and suggest that celebrity endorsement contracts are generally viewed as a worthwhile investment in advertising. Till and Shimp (1998) suggested that repeated pairings of the brand endorser with the brand should facilitate the celebrity and the brand becoming part of each others association set. It was concluded that celebrity endorsement is not an easy option but needs careful consideration of different dimension of advertising and promotional campaign. Goldsmith (2000) suggested that celebrity credibility could be defined as the extent to which a celebrity is perceived as having expertise relevant to the communication topic and can be trusted to give an objective opinion on the subject. A study conducted by Tandon Mala & Sudeep Mehrotra (2005) on Impact of celebrity endorsement on overall brand was aimed at providing the marketers with a quantitative method for selection of the right celebrities to optimize the outcome for their advertising
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campaigns. They developed three matrices in their paper Celebrity Positioning Matrix, which gives the popularity and image details of a personality in the market Product Positioning Matrix, which is the direct consequence of the brands competitive strategy Area Correlation Matrix, which is the overall measure of match of brand and celebrity. Choi & Rifon (2007) The credibility components are interconnected with other traits of the celebrity and the image dimension which reflects good qualities e.g. pleasant, wise, educated etc. produce sincere and positive perception of the celebrity in consumer minds. Farida Saleem (2008) while studying celebrity endorsement in their article IMPACT OF
GENDER AND AGE ON SINGLE AND MULTIPLE CELEBRITIES ENDORSEMENTS

believe that

there is no significant difference between male and female toward single or multiple celebrities ads similarly age is also not significantly associated with attitude toward ad, attitude toward brand and purchase intentions for both single and multiple celebrities ads. According to JUNG-GYO LEE (2008) studied how consumer characteristics, namely an individual's own levels of enduring involvement with a product category, moderate schema congruity effects. Two experiments were conducted to test these issues using two types of match-up factors: physical attractiveness and expertise of a celebrity endorser. The results show that celebrity endorsements are evaluated more favorably in terms of purchase intention when there is a moderate mismatch than when there is either a complete match or an extreme mismatch. According to Meenakshi Aggarwal & Priya Jha Dang (2009) showed that an expert celebrity was effective m creating more favorable responses on attitude towards the ad for an expertise related product but had no effect on attitude towards the brand and purchase intention. The impact of the expert celebrity on ad attitude was mediated by the perceived expertise of the endorser. Results of the study provide support for the product match up hypothesis developed m the West. According to B. Raja Shekhar & N. Udaya Bhaskar (2009) indicated that celebrity endorsements generated higher purchase intentions and positive attitudes toward the advertisement in urban area compared to semi urban. Gap Areas

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Need of research has been felt as there are conflicting views regarding the role of gender on celebrity endorsement. There was no research found in the area of Delhi NCR in FMCG sector. Little work has been done in FMCG sector and the literature emphasizes on the need of research in the area as well. Because celebrities and brands have numerous characteristics, it stands to reason that there might exist matches on certain dimensions and mismatches on other ones.

Objective(s) Major research objectives are given below: To analyze the effectiveness of celebrity endorsement in context to gender. To study the association between gender of respondent and his/her preference of celebrity.

Major Hypothesis (s) Based on the above objectives the following hypothesis has been proposed: H0: Respondents gender and his/her preference of celebrity type are independent. H0: Respondents gender and celebrity type, i.e., sports or film personalities are independent. Materials and Methods 1. The research design adopted in the study would be Descriptive Research. 2. Data for the objective would be collected through secondary data source and primary data sources. Secondary data would be through journals, websites. The primary data would be collected through structured questionnaires and the sample unit would comprise of Consumers of the age group 18-40, both males and females.
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3. The data analysis would be done using SPSS 17.

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