Synopsis

SPECIALIZATION PROJECT REPORT

on

A EMPIRICAL STUDY ON “IMPACT OF CELEBRITY

ENDORSEMENT ON CONSUMER BUYING BEHAVIOUR”

(Report submitted in partial fulfillment of the requirement for the award of

Post-Graduation Diploma in Management)

G.S.S. Harsha Vardhan

(2018-20 Batch)
PGDM- 27-078

Name & Designation of Faculty Guide

Mr. T. Tirumal Reddy, Asst., Prof., Marketing

Signature of Faculty Guide

Siva Sivani Institute of Management

Kompally, Secunderabad-500014

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 Content
Chapter No Content Page No

Chapter I Introduction 3-5

Chapter II Review of Literature 6-11

Chapter III Research Methodology 12-14

Chapter IV Questionnaire 15-19

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 CHAPTER-1

INTRODUCTION

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 CELEBRITY

As per Oxford dictionary, the celebrity is a famous individual and person who
performs in his field of action/work. In daily routine, we execute lot of works at
home, work place, sports & social life. All the actions are daily routine and
actions. If persons perform, an act which gives amazing results is noticed by
people. This means individual had done something extra ordinary which the
normal public cannot perform. They are considered special person with different
extra edge given by god. People have feeling that these actors are great. A person
celebrates his all actions that produce success. Success rates of the individual are
high to give good results; hence he is a "CELEBRITY". They are in field of
cinema, sports, science, and politics which gives these personality edges to
perform in this field.

CONSUMER BEHAVIOUR

To Study, why would a consumer became a customer, what customer buys, what
selection he uses to purchase, why his buying behaviour become repeated & not
if then which patterns they follow the activities that sounds interesting part of
consumer behaviors. In order to study these activities need to analyse the norm
on the basis of sociology, anthropology and economics. Consumer behaviour
focuses on decision of customer who followed by a product they would have
taken individually or would also come in group. To work on case, we need study
behavioural, psychographic & demographic variable. We know that this case of
buying a product, friend, society puts pressure & therefore it tried to cover all the
aspect from the data and Why to study this consumer behaviours? It is quite clear
for firms do wonders when they understands the consumer purchasing patterns.
It helps to organize firms marketing strategy and helps to present good product
benefits.

 The alternatives behind buying personal care products which refers to

psychology behind choosing products
 The role of environment in deciding products, whether they also influences
buying behaviours.
 What is behaviour showed by the consumers when they decide to shop.
 Knowledge or information gaps in buying products.
 Also we could find the motivations in picking up different brands & level
of importance for these strategies.
 What can marketers do in order to target right customers and reach them
more effectively.
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 WHAT IS NEED OF CELEBRITY ENDORSEMENT

A marketer works very hard in order to make product /brands very popular which
they can monetize by leveraging the brand essence. They spend huge amount of
money so that brand values can be communicated to the customers and the
product/brands can be sold hence increasing the revenue of the company. For
making the product/brand get more traction the companies uses celebrity for the
product endorsement which not only increase the brand value but also increases
the brand popularity for the product. This strategy can be used by organization to
make brand more popular. This practise is used by company to make the brand
more popular which is employed by organization across different industry
verticals. Reynolds told that celebrity endorsement make brand act like a
glamour.

Companies prefer celebrity for their brand endorsement in various fields like
cricket, film actors and other personalities. Marketers have view that spending
huge amount of money on celebrity will help increase their brand equity and also
increase their share revenue/sales figures. There are some examples like Cadbury
appointed Amitabh Bachhan for their brand endorsement during the time they
were in bad phase and which has helped Cadbury to again gain trust in customer
for Cadbury brand and increased its sales. Santro car sales sky rocketed by
employing shahrukh khan to endorse its brand.

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 CHAPTER-2

REVIEW OF LITERATURE

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Naveen Rai, in his paper titled “Impact of advertising on consumer behaviour and
attitude with reference to consumer durables products” focuses on advertising as
a plan adopted by various brands for promotion of their products. The objectives
for the examine the advertising influence on consumer buying behaviour and also
to determine of advertising on customer attitude formation patterns. The paper
studies the Indian demographics which influence the buying behaviour types
through mass mediums like television, newspaper etc. Indian customers buys
home electronics durables like television, Refrigerator, air conditioner etc. The
study findings are that advertisement worldwide influence the buying behaviour
of customers which is seen as case of India. Purchase attitude and behaviour is
influenced by variety of ads which focuses on brand and product evaluation.
tresses on the factors which make celebrity endorsed brand popular by assessing
different celebrity and consumer intentions to buy the product and find the impact
created on consumer to buy the product. This study also aims to understand why
companies/brands choose the celebrity for endorsing their brands. The research
focuses on various factors like the price vs profit, multiple endorsement vs
celebrity endorsed brand and other factors impacting the brand sales. Also, based
on the celebrity endorsing the brand which age group and gender gets affected
and hence results in overall increase in sales for the celebrity endorsed products.
The paper uses secondary and primary data for coming to the conclusion of
product endorsed by celebrity affects customer 12 buying patterns. She found that
there should be proper linkage between celebrity and product endorser.

Dr.Giridhar K.V. (2012) in his paper titled “Effect of celebrity endorsement on

consumer buying behaviour and branding” examines the effects of the
endorsement by celebrity creates on customer buying behavior in Indian context
which helps the companies in order to understand the promotional strategies
needs to employ for effective sales of a particular brand. This study focuses on
three prospective like marketer, celebrity and consumer. It also covers the
celebrity endorsement of durable products with special emphasis on Shimoga city
where the survey is conducted. Primary data is collected through questionnaire
collected different sources like journals, textbooks, magazines and internet
Finding from the study are the celebrity endorsement enhances the product appeal
and create awareness among the customers. The customers can be targeted based
on quality and price which is purchase attitude defined by celebrity endorsements.

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Impact of Celebrity Endorsement on Consumer Buying Behaviour and
Brand Building

Author: Dinesh Kumar Gupta

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
marketing."

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.

Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1203322

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Celebrity Endorsements and Its Impact on Consumer Buying Behavior - In
Context to India

Authors: Amit Kumar

The practice of celebrity endorsements has proliferated over time. Now days it
has become a pervasive element of advertising industry especially in India.
Celebrity endorsement business has become a multi-million industry in India.
Marketers use celebrity endorsers to influence the purchase decision of
consumers in order to increase their sales and extend their market shares. This
made the author curious to explore the impact of celebrity endorsements on
consumer buying behaviour.

This dissertation focuses on examining the perception of Indian consumers about

celebrity endorsements, examining the celebrity attributes likely to influence
consumer purchase intentions and finally the impact of celebrity endorsements
on their purchase intention.

Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1655423

Effects of multiple endorsements and consumer–celebrity attachment on

attitude and purchase intention

Authors: Jasmina, Cynthia M. Webster

This study examines consumer–celebrity attachment within multiple

endorsement situations. A 2 × 2 factorial design manipulates attachment strength
to the celebrity and endorsement situation while controlling for celebrity
attractiveness, familiarity and match-up. Results show strong attachment to a
celebrity encourages positive attitude towards the advertisement and brand
regardless of the number of endorsements. A significant interaction effect is
found for purchase intention, suggesting that both attachment and the number of
endorsements influence likelihood of purchase. When consumers are more
attached to a celebrity and view that celebrity endorsing multiple brands, this
negatively impacts their purchase intention. Yet, when consumers have a weak
attachment, their purchase intention is increased with multiple endorsements.

Source: https://www.sciencedirect.com/science/article/abs/pii/S1441358211000632

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The effect of celebrity endorsement on consumer behaviour: Case of the
Lebanese jewellery industry

Authors: Safi Hani, Azouri Marwan And Azouri Andre

This paper tends to the effect of celebrity support to jewelry advertisements on

the conduct of consumers, in particular on Lebanese females. The investigation
is drawn closer from the point of view of the customer. It studies celebrity
endorsement from pristine idea, speculations, efficiency, and presence in the
jewelry industry. It additionally looks at customer perception, decision making
process, and demeanour as all influenced by celebrity support. Underlying
explicative models relating the latter factors are exhibited. Attractiveness of
celebrity endorser infers advertisement recall and is sought to be associated to the
consumer's intention to purchase. The relationship between the credibility of
celebrity endorser and both consumer mark inclination and mentality is also
examined. impact on customer's behaviour relevant to advertisement recall and
intention to buy. Mark inclination and mentality of the consumer are found to be
negatively influenced by celebrity endorsement.

Source: https://www.sciencedirect.com/science/article/pii/S2214462518300586

Impact of celebrity endorsement on consumer buying behaviour in beauty

soap industry

Authors: J. D. T. Madhusanka

All of us are consumers. We consume various product and services to fulfil our
daily requirements and every time we have to decide what we buy, how we buy,
where and when we buy. There are a large number of factors, which influence
consumer buying behaviour. But today the firms and marketers are using
celebrity endorsement as a major marketing strategy to affect the consumer
buying behaviour. Researcher has been taken celebrity endorsement,
attractiveness, expertise and the trust worth to measure whether those factors
affect for the consumer buying behaviour or not. Hence the purpose of this
research is to study the impact of celebrity endorsement on consumers buying
behaviour. Furthermore, this study focuses on examining the perception of
consumers about celebrity endorsements, examining the celebrity attributes likely

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to influence consumer purchase intentions and finally the impact of celebrity
endorsements on their Consumer Buying Behaviour. The researcher has
identified that there is a huge effect on celebrity endorsement towards the
consumer buying behaviour while celebrity trustworthiness, expertise and
attractiveness has a positive impact on consumer buying behaviour. Today most
of the marketers use celebrity endorsement as a strategy to promote their bands
therefore, through this research the researcher’s scope is to understand the
consumers mind set towards the FMCG sector due to celebrity endorsement.

Source: https://kjm.sljol.info/articles/abstract/10.4038/kjm.v6i1.7526/

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 CHAPTER 3

RESEARCH METHODOLOGY

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OBJECTIVES OF THE STUDY:

 To analyze the influence of brand over celebrity endorsement

 To study the brand endorser change the impact on product
 To analyze that which factor of celebrity attracts more to the public

SAMPLE SIZE:

The sample size consists of 60 respondents. The sample consists of employees,

students etc., While analyzing an interpretation of data sample statistical
techniques like average, percentage have been used. For graphical
representations simple pie diagrams have been used.

Sampling Techniques:

The sample design provides information on the target information and find
sample sizes. I used Convenient sampling surveyed in research

Primary data:

Collected the primary data and used convenience sampling.

Limitations:

 If celebrities have faced any social issues personally or professionally in

the society. It impacts on sales of the product whether it is directly or
indirectly.
 Cost is very high for celebrity endorsements.
 Changing of endorsers would negatively impact on sales.
 Celebrity can overshadow the brands.
 Celebrities become overexposed. At the height of Tiger Woods’
popularity, he endorsed over ten companies at once. When a celebrity
works with so many companies, the celebrity’s credibility may suffer.
People may feel that the celebrity will endorse anything to make a buck.

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SCOPE OF THE STUDY

This study has been done on the effects of celebrity endorsement on consumer
buying behaviour for specific for three prospects: marketer, celebrities and
consumers. This study also focuses on celebrity endorsement for personal
healthcare category which carried out for the customers of pune area. Customer
behavioural patterns is analysed and their impact is assessed on consumer
behaviour for celebrity endorsement.

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 CHAPTER-4

QUESTIONNAIRE

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1.Name
2.Occupation
a) Business b) Students c) Service Class d) Others
3. Age
a) Below 25
b) 26-35
c) 36-45
d) 46 above
4. Gender
a) Male
b) Female
c) Others
5. Factors considered while purchasing personal care products?
a) price
b) Benefits
c) Brand
d) celebrity endorsement
6. Purchase of celebrity endorsed products?
a) Yes
b) No
c) something

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7. Types of celebrity endorse preferred?
a) Film stars b) Sports personality c) Models d) Politician

8. Preferred Media?
a) TV b) Radio c) Mobile d) Others
9. Impact of frequent change in the celebrity Endorse?
a) Good impact
b) Bad impact
c) No Impact
10. Celebrity endorsement advertisement creates more important than
other advertisement?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strong disagree
11. Multiple Celebrity endorsement for a product create confusion?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strong disagree
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12. Brand gets affected when celebrity who is endorsing gets into a
controversy?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strong disagree
13. Factors increasing the spending while buying celebrity endorsed
products?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strong disagree
14. Buying behaviour differs when celebrity endorsing a product
change frequently?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strong disagree

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15. Celebrity endorsement advertisement helps in creating a desire for
a product?
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strong disagree

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