Professional Documents
Culture Documents
Impact of Celebrity Endorsement
Impact of Celebrity Endorsement
Amit Kumar Msc Management with Marketing, 2010 The Executive Business School,
Bournemouth University
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Acknowledgement
First of all, I would like to express my gratitude to Bournemouth University for
giving me an opportunity to pursue Masters in my field of studies. I am heartily
thankful to my supervisor, Dr. Lukman Aroean, whose encouragement, guidance and
support from the initial to the final level enabled me to develop an understanding
of the subject. Furthermore, I would like to thank all academics and administration
staff at Bournemouth University for their kind cooperation and efforts to assist us
in the every helpful way they can. I must admit that this year I had the best
studying experience and will always cherish this year of my academic life.
Finally, I thank my family: my parents, Mrs. Shail Kumar and Shri Ashok Kumar, for
giving me an opportunity to in the first place, for unconditional support and
encouragement to pursue my interests and progress in my further degree. My brother,
Vineet Kumar for his love and support.
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Electronic copy available at: http://ssrn.com/abstract=1802531
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1. I hereby give permission for my Research Project to be placed in the library for
reference purposes. Signed ………………………………………………………….
OR
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Abstract
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. This project begins with the review of existing
literature available on celebrity endorsements, which provides an insight into the
research topic and clarifies many important aspects related to the subject. A
quantitative method is used for this research project to investigate the
perceptions of the consumer, attributes and its subsequent impact on purchase
intention. The data is collected through a questionnaire and later analysed using
the data analysis software program SPSS. It was proven in this research that
consumers find celebrity endorsements more attractive and influential as compared
to non-celebrity endorsements. Moreover, the tested attributes show positive
relationship with purchase intention. In other terms, celebrity attributes do
impact the purchase intention of consumers. Finally, the results of the study prove
that celebrity endorsements positively impact the purchase intention of the
consumers.
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Table of Contents
Acknowledgement ...................................................................
....................................................................... ii Abstract
...................................................................................
............................................................................ v List
of
Tables ............................................................................
........................................................................ ix List of
Figures ...........................................................................
....................................................................... xi
1 1.1
INTRODUCTION ......................................................................
............................................................. 1 Background to the
topic: An Insight to the Celebrity Endorsements ............................. 1
Research
Justification .....................................................................
...............................................2 Academic
Justification .....................................................................
.....................................2 Business
Justification .....................................................................
.......................................2 Personal
Justification .....................................................................
.......................................2 Research
Aim ...............................................................................
..................................................... 3 Research
Objectives ........................................................................
............................................... 3 Research
Questions .........................................................................
............................................... 3 Outline of the
Dissertation ......................................................................
.................................... 4 1.2.1 1.2.2 1.2.3 1.3 1.4 1.5 1.6 1.2
LITERATURE
REVIEW ............................................................................
........................................... 5 2.1 2.1.1 2.1.2 2.1.3 2.2 2.3 2.4 2.5
2.6 2.7 2.8 2.9 2.10 2.11 Concept and
Meaning............................................................................
........................................ 5
Celebrity .........................................................................
........................................................... 5 Celebrity
Endorser ..........................................................................
....................................... 5 Celebrity
Endorsement .......................................................................
..................................6 Celebrities as a form of Aspirational Reference
Group ........................................................ 7 Celebrity versus
Non-Celebrity
Endorsements .....................................................................
8 Celebrity Endorsement as a Marketing Communication
tool ...........................................9 Positive aspects of Celebrity
Endorsement .......................................................................
.... 10 Negative aspects of Celebrity
Endorsement .......................................................................
... 11 Multiple Celebrity
Endorsements ......................................................................
...................... 13 Consumer Buying
Behaviour..........................................................................
............................ 15 Types of Consumer Buying
Behaviour .........................................................................
........... 15 Consumer Buying Behaviour in
India .............................................................................
......... 17 Celebrity Endorsement
Effectiveness .....................................................................
................ 19 Source credibility
model .............................................................................
........................ 19
2.11.1
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Source attractiveness
model .............................................................................
................. 21 Product Match-up
model .............................................................................
..................... 22 Meaning transfer
model .............................................................................
........................ 24
2.13.1
METHODOLOGY .......................................................................
..........................................................35 3.1 3.2 3.3 3.4 3.5
3.6 3.7 3.7.1 3.7.2 3.7.3 3.7.4 3.7.5 3.8 3.8.1 3.8.2 3.9 3.10 3.11 3.12 Research
Philosophy ........................................................................
............................................35 Research
Approach ..........................................................................
............................................. 37 Quantitative Versus Qualitative
Research ..........................................................................
..38 Research
Purpose ...........................................................................
.............................................. 39 Research
Design.............................................................................
............................................... 39 Research
Strategy ..........................................................................
............................................... 40 Data
Collection ........................................................................
..................................................... 40 Secondary
Data ..............................................................................
........................................ 41 Primary
Data ..............................................................................
............................................ 41
Questionnaire .....................................................................
.................................................. 42 Questionnaire
Design ............................................................................
............................. 42 Pilot
Test ..............................................................................
.................................................. 43
Sampling ..........................................................................
............................................................... 43 Sampling
Technique .........................................................................
.................................. 45 Sampling
Size...............................................................................
......................................... 45 Data Quality
Issues ............................................................................
.......................................... 46 Data
Analysis ..........................................................................
....................................................... 47 Limitations of the
Research ..........................................................................
............................ 48 Methodology
Framework .........................................................................
................................. 49
ANALYSIS AND
FINDINGS ..........................................................................
................................... 50 4.1 4.1.1 4.2 Research Question
1: ................................................................................
................................... 50 Testing the
Hypothesis ........................................................................
.............................. 58 Research Question 2: Hypotheses
Testing ...........................................................................
59
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Research Question
3 .................................................................................
................................... 84
DISCUSSION ........................................................................
................................................................. 88 5.1 5.2 5.3
Current State of Consumer Perception about Celebrity
Endorsements ..................... 88 Relationship of Celebrity Attributes with
Purchase Intention ...................................... 89 Impact of Celebrity
Endorsements on Consumers Purchase Intention ....................... 92
CONCLUSION.........................................................................
............................................................. 94 6.1 6.2 6.3 6.4
Limitations of the
study .............................................................................
................................ 95 Theoretical
Implications ......................................................................
...................................... 96 Managerial
Implications ......................................................................
.......................................97 Further
Research ..........................................................................
.................................................97
REFERENCES ........................................................................
........................................................................ 98
APPENDICES ........................................................................
......................................................................... 111
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List of Tables
Table 1: Pros and Cons of Celebrity Endorsement Strategy Table 2: Examples of
Multiple Product Endorsements in India Table 3: Source Credibility Scale Table 4:
Models explaining Celebrity Endorsements Table 5: Frequency Table for
Attractiveness Table 6: Age * More attractive Cross-tabulation Table 7: Statistical
Analysis of Recognise and Recall rate Table 8: Recognise & Recall rate of celebrity
endorsed advertisements Table 9: Age * Recognise/Recall Cross-tabulation Table 10:
Descriptive Statistical Analysis of Influential Table 11: Summary of Influential
Table 12: Age * Influential Cross-tabulation Table 13: Correlation Matrix Table 14:
Descriptive Statistics of Attributes Table 15: Model Summary of Expertise Table 16:
Coefficients of Expertise Table 17: Model Summary of Trustworthiness Table 18:
Coefficients of Trustworthiness Table 19: Model Summary of Similarity Table 20:
Coefficients of Similarity Table 21: Model Summary of Familiarity Table 22:
Coefficients of Familiarity Table 23: Model Summary of Likeability Table 24:
Coefficients of Likeability Table 25: Model Summary of Matchup Table 26:
Coefficients of Matchup
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Table 27: Model Summary of Meaning Transfer Table 28: Coefficients of Meaning
Transfer Table 29: Descriptive Statistical Analysis of Expertise Table 30:
Expertise of Celebrity and Purchase Intention Table 31: Descriptive Statistical
Analysis of Trustworthiness Table 32: Trustworthiness of Celebrity and Purchase
Intention Table 33: Descriptive Statistical Analysis of Similarity Table 34:
Similarity of Celebrity and Purchase Intention Table 35: Descriptive Statistical
Analysis of Familiarity Table 36: Familiarity of Celebrity and Purchase Intention
Table 37: Descriptive Statistical Analysis of Likeability Table 38: Likeability of
Celebrity and Purchase Intention Table 39: Descriptive Statistical Analysis of
Matchup Table 40: Matchup of Celebrity and Purchase Intention Table 41: Descriptive
Statistical Analysis of Meaning Transfer Table 42: Meaning Transfer of Celebrity
and Purchase Intention Table 43: Descriptive Statistical Analysis of Each Attribute
Table 44: Reliability test for Purchase Intention Table 45: Statistical Analysis
―Purchase Intention 01‖ Table 46: Statistical Analysis ―Purchase Intention 02‖
Table 47: Statistical Analysis ―Purchase Intention 03‖ Table 48: Overall Purchase
Intention Table 49: Descriptive Statistics Overall Purchase Intention
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List of Figures
Figure 1: Classical Conditioning Paradigm in Marketing Communications Context
Figure 2: Meaning Movement and Endorsement Process Figure 3: Trend of Celebrity
Endorsements in India Figure 4: Broad Framework designed to Study Celebrity
Endorsements Figure 5: Theoretical Framework designed to Study Celebrity
Endorsements Figure 6: Types of Sampling Techniques Figure 7: Methodology framework
Figure 8: Attractiveness (Celebrity vs. Non-celebrity advertisements) Figure 9:
Attractiveness (Age group analysis) Figure 10: Attractiveness (Gender analysis)
Figure 11: Recognise and Recall rate of celebrity endorsed advertisements Figure
12: Age * Recognise/Recall rate of celebrity endorsements cross-tabulation Figure
13: Influential (Celebrity vs. Non-celebrity advertisements) Figure 14:
Age*Influential celebrity endorsements cross-tabulation Figure 15: Residual Plots
of Hypothesized Relationships Figure 16: Expertise of Celebrity and Purchase
Intention Figure 17: Trustworthiness of Celebrity and Purchase Intention Figure 18:
Similarity of Celebrity and Purchase Intention Figure 19: Familiarity of Celebrity
and Purchase Intention Figure 20: Likeability of Celebrity and Purchase Intention
Figure 21: Matchup of Celebrity and Purchase Intention Figure 22: Meaning Transfer
of Celebrity and Purchase Intention Figure 23: Graphical Representation of
Importance of Each Attribute Figure 24: Overall Purchase Intention of Consumers for
Celebrity Endorsements
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INTRODUCTION
This introductory chapter provides the reader with an insight into the topic of the
research area. The chapter begins with title of the research followed by a brief
background to the research topic with further emphasising on the aims and
objectives of the research project. Finally, it explains the overall structure of
the research project.
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influence the customers emotionally and make them buy products. The author, in his
school days was under the same influence of celebrity magnetism. Later after
reading and studying marketing, the author came to know about the theoretical and
practical underpinnings of celebrity endorsements which increased author‘s
eagerness to towards the topic. Additionally, author believes that conducting this
research project will enhance the valuable personal knowledge about the subject and
experience for future career applications.
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LITERATURE REVIEW
This chapter aims to comprehensively review the existing research done in the area
of celebrity endorsements in order to get the better understanding of the research
subject. The content of the chapter includes concepts and meaning of celebrity,
celebrity endorser, celebrity endorsements, celebrity versus non-celebrity
endorsements, positive and negative aspects of celebrity endorsements, consumer
buying behaviour, models for celebrity endorsements, celebrity endorsement – an
Indian perspective and theoretical model for the research.
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and emotional reactions (Kanungo and Pang, 1973) than a non-celebrity endorser
(Atkin & Block, 1983; Petty and Cacioppo 1983). Therefore celebrities who are
placed as models and are seen as in support of the product and / or its claim are
known as endorsers (Tellis, 1998). In order to be effective a celebrity endorser
should have the credibility to attract attention Miciak and Shanklin 1994) increase
awareness of the endorsed product (Wilson, 1997) and influence the purchase
decision of the targeted audience (Ohanian, 1991).
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Agrawal and Kamakura (1995) and Mathur, Mathur and Rangan (1997) conducted two
different studies to assess the economic worth of celebrity endorsement contracts
on the expected profitability of a firm. The authors used Event Study Methodology,
which is used to identify the valuation effects of marketing decisions (Mathur, et
al. 1997). Surprisingly, outcomes from both of the studies emphasised on the
effectiveness of use of celebrity endorsers (Erdogan 1999).
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sword, which may create and destroy a brand. Therefore, we will explore the
positive and negative aspects of celebrity endorsement.
Table 1: Pros and Cons of Celebrity Endorsement Strategy (Source: Erdogan 1999)
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For most of the multi-national companies while expanding to different countries may
face some issues like cultural 'roadblocks' such as time, space, language,
relationships, power, risk masculinity, femininity and many others (Mooij 1994;
Hofstede 1984). Celebrity endorsements can be a powerful device to enter foreign
markets. Hiring a world famous celebrity or a celebrity from the expanding country
may help companies to overcome many such issues. For Instance, Pepsi Co
Intemational increased its market share in India by Endorsing through famous
celebrities and crickets such as Shahrukh Khan, MS Dhoni, Kareena Kapoor etc. It is
been experienced that the products endorsed by celebrities help them to standout
and take more notice while shopping due to their improved level of product recall
(Bowman 2002). Advertisements featuring a celebrity make a strong impact on the
learning style and memory of a consumer which is an important aspect of marketing
communication success. Celebrities often make the ad more memorable in the mind of
the consumer even if there is no immediate need of the advertised product.
Marketers use this advantage of information storage in the minds of the consumers
which can be readily retrieved at the time of shopping or when the need arises
(Schultz & Barnes, 1995). All these arguments lead to the conclusion that celebrity
endorsements likely to have a positive effect on consumer buying behaviour
(Goldsmith, Lafferty and Newell 2000; Mathur, Mathur & Rangan 1997)
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celebrities - Mike Tyson, Madonna, and Michael Jackson (Katyal 2007). Companies
have faced serious embarrassment when their spokesperson or celebrity endorsers
were deeply involved in a controversy (Erdogan 1999). Sometimes in an
advertisement, consumers fail to focus on the product being endorsed due to the
glamour and popularity of the celebrity, hence fails to promote the brand (Rossiter
and Fercy 1987). As Cooper (1984) said "the product not the celebrity must be the
star." Overshadowing or commonly termed as the ‗vampire effect‘ occurs ‗‘when the
celebrity endorser occurs in the presence of multiple other stimuli which all
competes to form a link with the celebrity endorser.‖ (Till 1996). It leads to lack
of clarity for the consumer. (Evans 1998). The major issue arises out of this
problem is that consumers fail to notice the brand being endorsed because they are
more focussed over the celebrity (Erdogan 1999). Overexposure is a common issue
among highly demanded and well recognized celebrity endorsers because every major
company wants to hire them to endorse their brands which ultimately leads to making
the consumer more confused and unable to recall correctly as to which brand the
celebrity stands for. (Tripp et.al. 1994). Another important issue concerning the
celebrity endorsement is that sometimes most famous celebrities often indulge in
endorsing much different type of products and services just for the sake of their
greed for money. For example Shahrukh khan endorses more than 20 different brands
from hair oil to automobiles. Solomon et al. (2002) referred this as the ―hired
gun‖ problem, where the spokesperson is perceived as endorsing the product only for
the sake of money. If a celebrity lends his image to various brands by appearing in
advertisements it also has less impact on the consumers mind and the message being
delivered since the relationship between the celebrity and the endorsed brand is
not distinctive (Mowen and Brown 1981). This may not also disappoint the celebrity
fans (Graham 1989) but also make the consumers aware of the real fact of
endorsements that celebrities are endorsing the products just for the huge amount
of money they get and has nothing to do with the product attributes or product
being endorsed (Cooper 1984; Tripp, et al. 1994). Many researchers have also
proposed that negative information about a celebrity not only influences consumers'
perception for the celebrity, but also the product endorsed by him (Klebba and
Unger 1982; Till and Shimp 1995).
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There are some other new limitations being faced these days called Celebrity Trap,
Celebrity Credibility and Celebrity Clutter. Celebrity trap is when it becomes
difficult for marketers to separate the role of the message and the role of the
celebrity in selling the brand and when celebrity becomes an addiction for the
marketing team. It becomes more and more difficult to find the substitute.
Celebrity credibility has become questionable these days. Consumers have now become
aware of the fact that celebrities are endorsing brands just for the sake of money.
The credibility which celebrities used to possess in the past is bound to decrease
if a celebrity begins to appear and endorses a brand in every possible category
(Patel 2009). Celebrity Clutter is when each celebrity endorses multiple products
and multi-brands in a category, make the customer more confused. It make consumer
to make comparisons such as ‗whether this celebrity is bigger or that one‘ to make
product choices. — Pepsi is endorsed by Shahrukh Khan and Coca Cola by Amir Khan.
Celebrity endorsers have now become a liability to the brand they endorse (Till and
Shimp,1998) as there are decreasing returns associated with celebrities (Agrawal
and Kamakura 1995). Some researchers also referred celebrities as a ‗puppet‘ in the
hands of marketers implying that they perceive the celebrities to be fake and
lying, while endorsing certain brands (Temperley & Tangen, 2006).
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Erdogan and Baker (1999) in their research argued that it is useful for the
marketers to use multiple celebrities for endorsing a particular brand because it
can reach out and appeal to its entire target audience. However, the use of
multiple celebrities might create a confusion about the brand‘s identity in the
consumers mind and therefore it should be assured that ―each and every celebrity
possesses compatible meanings that are sought for brands‖ (Erdogan and Baker, 1999
p. 13). For instance L‘Oreal endorses its product line according to the celebrity
attributes and the meanings associated with them (Redenbach, 2005). The greatest
fear for marketers while using multiple celebrities is that today consumers are
more aware, educated and knowledgeable about the use of celebrity endorsements. It
may lead them to think that celebrities are endorsing the brands just for the sake
of money and doesn‘t really care about the product, which might negatively affect
the consumers buying behaviour (Belch and Belch, 2001). In a research by Redenbach
(2005) argued that endorsing four different brands/products influences the
celebrity‘s trustworthiness, expertise and likeability. Because the celebrity
instead of focusing on one brand, endorses multiple brands and which eventually
lacks distinctiveness (Redenbach, 2005). There is also a possibility that using so
many different celebrities might overshadow the brand and lead to ―Vampire effect‖.
People might just remember the celebrities but not the brand/product being
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Complex buying behaviour: It usually takes place when the customer is highly
involved
in the product purchase decision. The high product involvement occurs when product
to be bought is expensive, infrequently bought, and highly expressive. Since, these
types of products are not bought frequently the consumer doesn‘t know much about
the products and observes substantial differences among the brands available for
instance buying a luxury sedan. Consumers make this type of buying decisions very
carefully after collecting a lot of information about the product features, quality
and performance. According to Assael (1981), Consumers tend to experience cognitive
dissonance while making such complex product decisions due to increased risk
perception in this type of buying behaviour. There are certain risks also involved
while making such decisions for example high may result in monetary loss, highly
expressive product nature may lead to psycho-social loss and lack of product
knowledge will result in increased uncertainty. From a marketing perspective,
marketers need to make sure that they use the effective differentiation strategies
to stand out the product from other brands available. And also, try to educate the
customers about the importance, application and features of the product offered.
Habitual buying behaviour: In occurs when the consumer buy the same product on
regular basis over a period of time. Under habitual buying behaviour consumer –
product involvement is low and there is little difference between the brands
available, for instance buying salt, sugar etc. The consumers buy these products
out of their habit or due to their trust or brand loyalty. According to Scott
(2007) consumers don‘t go through the process of belief, attitude and purchase
decision nor look for deep information and compare the available products. Consumer
buy the brands they have used and aware of.
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national income. Hence, the recent emergence and development of the rural market is
an opportunity for marketers in India (Matrade 2005). There has been a drastic
change noticed in Indian consumer behaviour to what it used to be few decades back.
Today Indian consumer wants to lead a life full of luxury and comfort. Indian
consumers don‘t just want the availability of products; they also want better
service and ambience. Purchasing power of people in India is rising very sharply.
As a result, the market for luxury products in India is also climbing at a
surprising rate (Shukla and Devi 2010). The Indian consumers are noted for the high
degree of value and family orientation (Hofstede 1980). This value orientation has
labelled Indians as one of the most sensitive consumers in the world. Even, big
brands in India design a unique pricing strategy in order to grab a share of the
Indian market. This family orientation extends not only to family but to friends as
well and also influences the decision making. It is also been noticed that brands
those tend to support family values are popular and easily accepted in the Indian
market. Due its culture, Indian consumers possess high priority for values of
nurturing, care and affection (Matrade 2005). Hence, people easily get influenced
by the brands communicating through the feelings and emotions. In a study by
Hofstede (1980), India has a high power distance (77) as compared to United States
(40) and United Kingdom (35). Indian consumers strictly follow their culture,
tradition and values, as a result foreign companies are forced to give an Indian
touch to their products and services offered in India. For instance McDonalds,
Pizza Hut, Pepsi, Coca Cola and many other brands changed their offerings in order
to expand in India (Shukla and Devi 2010). As a result of the increasing literacy
rate and increasing western exposure through satellite television, fashion
magazines and newspapers, there is a significant increase in consumer awareness.
This awareness has made the Indian consumers more selective for the quality of the
products/services by shopping in retail supermarkets Big Bazaar etc. The consumer
tends to purchase from a place where his/her feedback is more valued. The Indian
consumers are price sensitive and prefer to buy value for money products (Matrade
2005). Indian consumers consider price as an indicator for quality of a product as
they feel that the product is expensive due to its high quality. It‘s also been
noticed that Indian consumer buying behaviour is influenced by freebies. People
tend to buy the products if there is something given for free along with it
(Matrade 2005).
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Matrade (2005) divided Indian consumers in three different segments i.e. The
Socialites, The Conservatives and the Working women. Socialites are the people
belonging to the upper class of the society. They prefer to shop in expensive
specialty stores, and spending a good amount of money on leading a luxurious life.
They always try to differentiate themselves from others by purchasing expensive and
exclusive products. Socialites are observed to be very brand insistent and would
only opt for the best available in the market irrespective of money. On the
contrary, The conservatives are referred to the middle class people. The
conservative segment is said to be the true reflection of the Indian culture and
society. Middle class people are traditional and thoughtful in their towards their
purchase decisions. They spend more time with family and focus more on savings than
spending. They are slow decision makers because they refer to a lot of sources
before making any purchase and always look for durability and functionality of the
product. The working woman segment saw a tremendous growth in the late nineties.
They are independent and not bound to anything monetary wise. This segment has been
the target for the marketers. Working women have their own diverse perceptions in
purchase decision making and factors those appeal to them. Today, Indian market has
transformed from a seller‘s market to buyer‘s market. The increased consumer power
has fierce the competition in the market. This has led to the price war and has
forced the companies to maintain product quality to sustain in the highly
competitive market like India.
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in
terms
of
their
personal
attitude
and
value
structures
(Erdogan,
1999).
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Cohen and Golden (1972) applied this model in advertising suggested that the
―physical attractiveness‖ of source decides the effectiveness of persuasive
communication through a process called identification. It happens when the receiver
accepts the information from an attractive source as a wish to be identified with
endorser (Erdogan 1999). In further research about gender interaction between
source and respondent, it was found out that the source has a greater impact of
persuasion and intention to buy on the respondent of opposite sex. Debevec and
Kernan (1984) found that attractive female models trigger more positive attitude
and purchase intention than their male counterparts across both sexes especially
among males. Whereas, Caballero et al. (1989) opposed the statement by arguing that
source and respondent of the same sex lead to greater intentions to purchase, males
show greater purchase intention from male endorsers and vice versa. On the other
hand Petroshius and Crocker (1989) found that source‘s gender had no impact on
respondent‘s attitudes towards advertisements or on purchase intentions either. The
academic findings regarding gender or cross gender interactions between source and
respondent are superficious and doesn‘t provide any guidelines to marketers
(Erdogan 1999). The above arguments lead to the conclusion that attractive
celebrity endorsers may enhance the attitude towards a brand but not necessarily
result into actual behaviour, cognitive attitudes and purchase intention.
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(Kamins and Gupta 1994). Ohanian (1991) supported the argument by stating that it
is critical to employ celebrities who directly resemble to the brand and are
experts in their field. Bertrand (1992) argued that if a company can successfully
connect a link between its product and celebrity image or the field celebrity
specialises in, then it can bring fame and success to both. Previous research on
the subject states that customers also expect the compatibleness between the
endorsed product and the celebrity. In other words Customers make a perceived image
about the product by comparing the qualities of the product and celebrity (Ohanian
1991; Callcoat and Phillips 1996; O'Mahony and Meenaghan 1997). On the other hand
if there is not congruence between the endorsed product and the celebrity, it might
lead people to a conclusion that the celebrity is faking it since he is nicely paid
to endorse the brand (Erdogan 1999). From the above arguments it can be inferred
that congruence between the celebrity and brand is required for effective
advertising. Alternatively, if the endorsing celebrity and the endorsed brand have
nothing in common it might lead to ―Vampire effect‖ where celebrity overshadow the
endorsed product and the targeted audience only remembers the celebrity not the
product (Evans 1988). The product match-up model suggests that attractive
celebrities especially attractive female celebrities are more effective at
endorsing beauty products, the products used to enhance ones attractiveness (Kamins
1990). For instance, Aishwarya Rai Bachhan is a renowned celebrity endorsing
L'Oréal beauty products and Sachin Tendulkar, the famous cricketer endorsing adidas
products in India. As Friedman and Friedman (1978) and Atkin and Block (1983) in
their research argued that that the use celebrity endorsers is suitable where
product purchases involve high social and psychological risk. Supporting the
argument, Packard (1957) proposed that celebrity endorsement strategy is more
effective for luxury products positioned and sold in the niche market segment
because the featured celebrities are people from the high status and therefore it
becomes easy for marketers to attract consumers to buy their products. Callcoat and
Phillips (1996) opposed the argument by saying that consumers are generally
influenced by celebrities if products are inexpensive and low involving. After
considering the findings and opinions, it becomes obvious that the Match-up between
the celebrity and the endorsed brand is important in order to attract the targeted
audience and to make the message more effective.
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Figure 2: Meaning Movement and Endorsement Process (Source: McCracken 1989) The
meaning transfer model illustrates a three stage process. It starts when the
advertiser identifies the cultural meanings intended for the product and decides
what he/she wants the product to say. After that, the advertiser looks for the
objects, persons, and contexts that can give voice to these meanings for instance
celebrities. In other words, in the first stage the meanings associated with the
celebrities moves from the endorser to the product or the brand, and this meaning
is drawn out of the celebrity‘s public image. In the second stage, this meaning is
transferred from the endorser to the product and the process of creating a product
personality takes place (Tom, et al. 1992). This process is based on the symbolic
properties conveyed by the endorser. Once meanings have been moved into goods, they
must also be transferred to consumers. Finally in the last stage called consumption
process, the brand meaning is achieved by the consumer. Consumers recognise the
symbolic properties of products and transfer them into meanings for themselves by
putting them to work in the construction of their self-image. When this is done,
the movement of the meaning is complete. The third and the final stage of the model
demonstrates the importance of the consumer in the endorsement process. (McCraken
1989) McCracken‘s (1989) meaning transfer model first merely seemed to be a
theoretical concept but its practicality to real life was proved by two studies by
Langmeyer and Walker (1991a and 1991b). In (1991a) they used a response elicitation
format with a celebrity endorser Cher endorsing Scandinavian Health Spas and in
(1991b) used celebrity endorsers - Madonna and Christie Brinkley and products -
bath towels. VCRs, and blue jeans. The study results revealed that when celebrities
combined with products, these perceived differences affected meanings perceived in
products. Langmeyer and Walker's findings empirically supported the
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argument by McCracken (1989) that celebrities exemplify various meanings and these
meanings are passed on to products through endorsements (Erdogan 1999).
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celebrity endorsements (Kulkarni and Gaulkar, 2005). Procter & Gamble promoted its
‗Rejoice‘ brand in India featuring an ordinary woman in their advertisement which
helped them to reach the common people. Their belief that ordinary or common
consumers, especially housewives, are more likely to be influenced by a lay person
than a celebrity. There are some other examples include ParleG, Lifebuoy, Maruti
800, Close Up, Fevicol etc. According to the the latest report by TAM Adex, a
division of TAM Media Research Priyanka Chopra is the India‘s top brand endorser
for the year 2009. She has edged past endorsement giants like Shahrukh Khan, Indian
skipper MS Dhoni and Amitabh Bachchan. However Shahrukh khan has still the highest
number of brands endorsed by him. He currently endorses 39 brands, including Pepsi,
Hyundai, Airtel, Videocon, Sun Feast, Tag Heuer, Dish TV and Mayur Suitings. He is
closely followed by India's cricket captain, Mahendra Singh Dhoni endorsing around
19 brands and reaping upto Rs 50 Cr an year. Katyal (2007) asserts that there is
the presence of great potential for celebrity endorsement in India to be seen as
truly relevant, thereby inducing customer to buy the product.
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Positive perception of ad, celebrity and brand when expertise and trustworthiness
high Positive perception of ad, celebrity and brand when celebrity is familiar and
likeable Positive perception of ad, celebrity, and brand
Source Credibility Model (Hovland and Weiss 1951 ) Match-up hypothesis (Kamins and
Gupta 1994) Meaning transfer model (McCracken 1986)
The higher the perceived match between symbolic properties of the product and
celebrities meanings drawn from his/her assumed roles, the higher the likelihood of
consumer‘s consumption and appropriation of product‘s meanings.
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CONSUMER
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2.13.1 Hypotheses
To summarise the above discussion, it can be concluded that the attributes
discussed above are the personal characteristics of a celebrity that marketers use
in order to influence consumer buying behaviour. The main purpose of this study is
to find out how these attributes affect consumers buying behaviour. To be able to
fulfil the purpose of this research and answer research questions the author find
it appropriate to test the relationship between consumer purchase intention and
attributes discussed above. This led into generating the following hypotheses to
test accordingly. H1: Celebrity endorsed advertisements are more attractive and
influential than noncelebrity advertisements H2: The celebrity-product combination
of attributes positively affects the purchase intention to buy a product or
service. H2a: Expertise of the celebrity positively affects the purchase intention
of the consumer. H2b: Trustworthiness of the celebrity positively affects the
purchase intention of the consumer. H2c: Similarity between the celebrity and
consumer positively affects the purchase intention of the consumer. H2d:
Familiarity among the consumers positively affects the purchase intention of the
consumer. H2e: Likeability among the consumers positively affects the purchase
intention of the consumer. H2f: Product Fit/Match with the celebrity positively
affects the purchase intention of the consumer. H2g: Meaning transfer from the
celebrity to the product positively affects the purchase intention of the consumer.
H3: Celebrity endorsers produce greater purchase intentions to buy a product than a
noncelebrity endorser.
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2.14 Conclusion
The literature review discussed the main and relevant concepts regarding celebrity
endorsements. The author first made the concept clear by differentiating between
Celebrity and Non-celebrity endorsements and how celebrities form aspirational
reference groups. The author has explained how marketers use celebrity endorsement
strategy as a marketing tool to influence consumers buying behaviour. Further the
author has shed some light on Pros and Cons of using celebrities as endorsers. The
author has defined some other prevalent factors like use of multiple celebrities
and its effects etc. It was noteworthy to highlight various different types of
consumer buying behaviours. Furthermore the author has narrowed this additionally
by specially focusing on consumer buying behaviour in India. The author has
structured, organised and analysed many earlier empirical studies conducted by
different authors on celebrity endorsements. Many of the researchers have shown
that how the consumers get affected by celebrities (Soderlund 2003; McCraken 1989;
Silvera and Austad 2004; Belch and Belch 2001). The author has used four different
models namely ―Source Attractiveness Model‖ (McGuire 1985), ―Source Credibility
Model‖, (Hovland and Weiss 1951 ), ―Match-up hypothesis‖ (Kamins and Gupta 1994),
―Meaning transfer model‖ (McCracken 1986) regarding celebrity endorsements in order
to check their impact on consumer buying behaviour. Alongside this, the last
section of the chapter focussed on the prevalence of celebrity endorsement business
in India. The author has based and focussed this study on India because given the
current and future economic condition this business is expected to grow by leaps
and bounds in India. As it is already been stated that celebrities hold a distinct
status and position in Indian culture and treated with high regards. Moreover,
availability of little research on account of understanding Indian consumer‘s
perception towards celebrity endorsements has enforced the author to conduct this
research.
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METHODOLOGY
This chapter explains and justify the methodology used for conducting this research
project. It begins with explaining the adopted research philosophy, research
approach and design. Further it explains the data collection method, sampling
technique and sample size, data analysis method and data quality issues. Finally,
this chapter acknowledges the limitations and ethical issues of the research.
―It is a capital mistake to theorise before one has data‖ Arthur Conan Doyle
The term research philosophy relates to the development of knowledge and its nature
(Saunders et al 2009). While conducting a research, an understanding of the
philosophical principles is important as it may influence the choice of research
strategy in the development of new knowledge (Saunders et al. 2009). Selected
research philosophy contains important assumptions about the way one looks at the
world (Saunders et al. 2009) and it guides the process of the research (Hussey and
Hussey 1997). According to Johnson and Clark (2006) while conducting a research it
is important to be aware of the philosophical commitments we make through our
choice of research strategy as it has significant impact not only on what we do but
we understand what is we are investigating. The understanding of philosophical
issues is useful in three different ways (Easterby-Smith et al 2009). a) It helps
to clarify research design; b) It helps the researcher to recognise which design
will work and which will not; c) It may help the researcher identify and even
create designs and also suggest how to adapt research designs according to
constraints of different subjects or knowledge structures. There are two main
philosophies associated with development of knowledge in social science research
i.e. Positivism and Interpretivism or Phenomenology (Saunders et al, 2003). The
doctrine of Positivism was first encapsulated by the French philosopher, Auguste
Comte (1853), as he said ―All good intellects have repeated, since Bacon‘s time,
that there can be no real knowledge but that which is based on observed facts‖. The
statement comprises two
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From the above discussion and considering research questions, the author decides to
adapt the quantitative research. Quantitative approach would help the author to
collect large amount of data to answer the research questions and further leading
to generalisation. Further the use of quantitative method is justified if the area
of research topic is large and when there is a need to deduce casual relations
between variables (Gordon and Langmaid 1988).
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data in a manner that aims to combine relevance to the research purpose with
economy in procedure‖. Therefore, for this dissertation the author has justified
the research design on the basis of research questions and objectives as well as by
being consistent to the research philosophy as suggested by Saunders et al. (2009).
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primary data is a central source for this study. Thus the author has adopted survey
strategy using Self-administered questionnaire technique in order to collect
primary data for this study. The survey strategy allows the researcher to collect
which can be analysed quantitatively using descriptive and inferential statistics.
The data collected through survey strategy is easy to explain and understand
(Saunders et al. 2009). Moreover, it can be used to suggest possible reasons for
relationships between variables and to produce models of these relationships
(Saunders et al. 2009).
3.7.3 Questionnaire
Within business and management research, the questionnaire is one of the most
commonly used data collection technique within the survey strategy (Saunders et al.
2009). According to deVaus (2002) (cited in Saunders et al. 2009 pp. 360) generally
questionnaire includes all the data collection techniques in which ―each respondent
is asked to respond to the same set of questions in a predetermined order‖. Using
questionnaire is an efficient way of collecting responses from a large number of
people because every respondent is asked to respond to the same set of questions.
Moreover it can avoid bias in data collection process (Saunders et al. 2009). As a
result, questionnaire tends to be the most reasonable and appropriate method in
collecting data from large number of people in order to fulfil the aims and
objectives of the research study.
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Section two comprises questions to explore and examine the current state of
consumer perception about celebrity endorsements. Section three deals with
evaluating the impact of each celebrity attribute on the purchase intention of
consumers. Finally the section four is aimed at evaluating the overall impact of
celebrity endorsements on consumer purchase intention. All the three sections were
made coherent so that respondents can understand them easily and take the correct
meaning of them. Moreover, the business jargons or complicated terms are made easy
by providing a small definition at the end of the questions. The author used 5
point likert scale for evaluating the degree of agreement for each question. Likert
scale questions are relatively easy to complete (Robson 1993). The author promised
to keep the confidentiality of demographic profile of the respondents. In order to
get the high response rate the author pre contacted the friends and colleagues
through email, telephone, SMS etc. The questionnaire was designed and distributed
using the link provided by website (www.surveymonkwey.com). The questionnaire was
distributed through email, social networking websites etc. The copy of online
questionnaire is attached in (Appendix 3).
3.8 Sampling
Determining an appropriate research population and proper sampling procedure is an
important aspect for a researcher in order to answer research questions. According
to
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sampling (Saunders et al. 2007 pp. 170). There are many advantages of non-
probability sampling: Non-probability sampling is relatively cheaper and is used
when sampling frame is not available (Saunders et al. 2003). It is also useful in a
research where the researcher wants to investigate the attitude and perceptions of
people (Churchill 1995). Based on the above discussion, the author will use non-
probability sampling for this research. The main argument for this is limited time
and resources. Secondly, non-probability sampling is associated with recognising
and questioning the respondents on the basis of their background and past
experience (Jankowicz 2005).
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3.9.1 Reliability
―Reliability refers to the extent to which your data collection techniques or
analysis procedures will yield consistent findings‖ (Saunders et al. 2009 pp. 156).
Further, Cooper and Schindler (2003) stated that reliability involves supplying
consistent findings. Reliability of the research refers to the ability of the
research to generate same findings to the same questions if the research is
repeated or conducted again (Hussey and Hussey 1997). According to Easterby-Smith
et al (2008) Reliability of the research can be tested by posing the following
three questions (Cited in Saunders et al. 2009): Do the measures produce the
same findings on other occasions? Did other authors reached the same findings? Is
there a transparency in the sense raw data was analysed?
3.9.2 Validity
According to Hussey and Hussey (1997) Validity is concerned with ―the extent to
which the research findings accurately represent what is really happening in the
situation‖. Reliability is concerned with the fact whether the findings are really
about what they seem to be about (Saunders et al. 2009). Silverman (2000) made is
more simple to define by stating that Validity is a synonym for truth. Furthermore
Janskowicz (2000) revealed that validity deals with the accuracy of the
measurements used for data collection and analysis, the data is valid if other
researcher can reach to the same conclusion using other methods. The author has
maintained the validity of the research by conducting a pilot test before
conducting the main research in order to avoid any confusion and amendments were
made
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thereafter. Moreover, the author has tried to explain each and every step during
the research before arriving to the conclusion.
3.9.3 Generalizability
Generalisability can also be referred to as external validity (Saunders et al.
2009). It refers to the extent to which the research findings are generalisable:
i.e. whether the findings are equally applicable to other research settings, for
instance organisations (Saunders et al. 2009). Further Hussey and Hussey (1997)
suggested that there is a relationship between sample population and research
findings by stating that greater the sample size, greater the generalisability.
Since different people have different ideas and views selecting smaller sample size
might not represent the wider population. Moreover it is virtually impossible to
sample the whole representative population. Additionally use of convenience
sampling makes it more difficult to analyse sample as a whole population. However,
in order to improve the generalisability of the research only relevant questions
intended to examine the impact of celebrity endorsement on consumer behaviour
(purchase decision) are being asked.
Correlation Analysis
Correlation is one the most important statistical analysis tool. It helps to
describe the degree of relationship between two variables. Correlation determines
the extent to which changes in the value of an attribute are associated with
changes in another attribute. The author will use correlation analysis technique to
measure the relationship between different attributes of celebrities and purchase
intention and testing the hypotheses.
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Regression Analysis
Regression analysis is used for modelling and analysing several variables. It is
used to examine the relationship between a dependent variable and one or more
independent variables. In this research dependent variable is purchase intention
and independent variables are the various attributes of celebrity endorsers.
Correlation analysis will help the author to examine and understand how the value
of dependent variable changes when any one of the independent variable changes,
while other variables are constant. For this research the author will use simple
linear regression analysis.
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suggested for future research. Future research can be conducted on a broader scale
on the basis of sex, disposable income and product categories.
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This chapter provides results obtained from the survey, which have been examined
and evaluated through data analysis techniques. Findings are subjected to
hypotheses testing. This chapter evaluates the relationship between celebrities
attributes and consumes’ intention to purchase and later overall impact of
celebrity endorsements on consumer purchase intention.
In the first research question, the author tried to evaluate the common perception
of Indian consumers about celebrity endorsed advertisement as compared to non-
celebrity advertisements. Accordingly a number of questions were asked to the
respondents to evaluate celebrity endorsed advertisements on different basis for
instance: attractiveness, Influential etc. By getting answers to these questions
the author can illustrate the clear picture of their perception and attitude
towards celebrity endorsements.
Firstly the respondents were asked to rate what attracts them more, an
advertisement featuring a celebrity or non-celebrity advertisement. The results
show that celebrity endorsed advertisements are more effective at attracting people
as compared to non-celebrity advertisements. The descriptive frequency analysis of
the data shows that 83.6% of the respondents‘ favoured celebrity endorsed
advertisements whereas non-celebrity
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| Celebrity endorsed
advertisements Non-celebrity advertisements Total
87 17 104
Later using the descriptive statistical analysis, the data was analysed on the
basis of age groups. The respondents under the age of 18, categorised as
(teenagers) showed significant results. They are most attracted by celebrity
endorsed advertisements. The results show that 91.7 % of the teenagers‘ find
celebrity endorsements more attractive. Comparatively, the people under the age
group of 18-30 (Youngsters) were a bit less attracted by celebrity advertisements
but were still high at 81%. Lastly, the people above the age group of 30
categorised as mature customers also came up with similar results. 83.6% of mature
customers find celebrity advertisements more attractive. The analysis of data shows
that celebrity endorsed advertisements has the potential to attract the consumers
across all age groups. However, teenagers are most attracted by celebrity endorsed
advertisements.
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Overall, from the above analysis it can be inferred that celebrity endorsed
advertisements are more attractive at drawing consumer attention across all age
groups and genders as compared to non-celebrity endorsements.
Does the presence of celebrities in the advertisement help you recognise and recall
the product more promptly?
Secondly, the respondents were asked whether celebrity endorsed advertisements help
them to recognise and recall the products more quickly. The frequency analysis
shows that majority of the respondents ―agree‖ (62.5%) that associating celebrities
with the product increases the recognition and recall rate for a certain product.
Some respondents also ―slightly agree‖ (25%) to the statement. On the other hand
only 5.8% of the respondents are ―Not sure‖ about the statement and only 6.7% of
the respondents are either ―slightly disagree‖ or ―disagree‖. Overall 87.5% of the
respondents ―agree‖ that they can more promptly recognise and recall a product if a
celebrity is associated or endorsing it. Moreover, statistical analysis of data
(Mean: 1.59, Mode: 1.00) also validates the statement that most of the people agree
that the presence of celebrities in the advertisement help recognising and
recalling the product more promptly.
Table 7: Statistical Analysis of Recognise and Recall rate Variable Recognise &
Recall Mean 1.59 Median 1.00 Mode 1.00 Std. Deviation .970
Table 8: Recognise & Recall rate Frequency Valid Agree Slightly agree Not sure
Slightly disagree Disagree Total 65 26 6 4 3 104 Percent 62.5 25.0 5.8 3.8 2.9
100.0 Valid Percent 62.5 25.0 5.8 3.8 2.9 100.0 Cumulative Percent 62.5 87.5 93.3
97.1 100.0
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Further analysis on the basis of age groups shows the similar trend. The
respondents across all the age groups mostly ―agree‖ or ―slightly agree‖ only a few
respondents either ―slightly disagree‖ or ―disagree‖ with the statement.
Consequently it can be inferred that associating celebrities with products helps
consumers recognising and recalling the product more promptly.
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The results from the descriptive analysis of the data shows that people consider
celebrity endorsements as an influential factor in prompting purchase intention.
The analysis shows that 24% of the respondents believe that celebrity endorsement
is very influential and almost half of the respondents 48.1% consider it as an
influential factor. That means majority of the respondents believe that celebrities
can influence their purchase intention for a certain
product or service being endorsed by them. On the contrary, 25% of the respondents
believe that it is somewhat influential means celebrities may have a little
influence on their purchase
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The statistical analysis of the data (Mean:2.06) and (Mode:2.00) also validate the
statement that employing celebrity in an advertisement can influence the purchase
decision of the consumers.
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Table 12: Age * Influential Crosstabulation Count Very influential Influential
Influential Somewhat influential Not at all influential 1 1 1 3
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Total
Age
8 10 7 25
2 45 3 50
1 18 7 26
12 74 18 104
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non-celebrity advertisements
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The figure below represents the correlation among seven attributes namely
expertise, trustworthiness, similarity, familiarity, likeability, match-up and
meaning transfer with purchase intention.
EX
TW
SM
FM
LK
MU
MT
1.000 .370** .530** .431** .369** 1.000 .588** .543** .421** 1.000 .670** .382** .
309** 1.000 .509** .293** 1.000 .344** 1.000
Meaning transfer .200* .219* .343** .244** N = 104 **. Correlation is significant
at the 0.01 level (1-tailed). *. Correlation is significant at the 0.05 level (1-
tailed).
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Model
R Square
Change Statistics F Change 18.730 df1 1 df2 102 Sig. F Change .000
.394
.155
.155
Sum of Squares
df
Sig.
a
1 102 103
18.730
.000
Table 15: Model Summary of Expertise
The results show that the relationship between expertise and purchase intention is
quite reasonable (R=.394), only 14.7% variance (Adjusted R2). 14.7% of purchase
intention variability is explained by expertise. This means that 85.3% of the
variation in purchase intention cannot be explained by expertise alone. Therefore,
there must be other variables that may influence purchase intention. F=18.73, one
tailed p < .001. The regression equation for predicting the purchase intention on
the basis of expertise value is:
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Coefficients Model Unstandardized Coefficients B 1 (Constant) Expertise 1.507 .306
Std. Error .173 .071 .394
a
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Sig.
8.711 4.328
.000 .000
The result obtained through the regression analysis regarding direct relationship
between the two variables suggest that if the source is more expert then it may
have significant impact on consumers purchase intention (β coefficient of
―Expertise‖ = .306). 4.2.2.2 The Impact of “Trustworthiness” The second question
examines the impact of ―Trustworthiness‖ on the purchase intention of consumers.
The table below represents the results of simple linear regression analysis of
relationship between trustworthiness and purchase intention of consumers (H2b).
Model
R Square
Model Summary Std. Error of the R Square Estimate Change .89579 ANOVA
b
.379
.143
.143
17.059
1
102
Sum of Squares
df
Mean Square
Sig.
a
1 102 103
13.689 .802
17.059
.000
The results show that the relationship between trustworthiness and purchase
intention is quite reasonable (R=.379), only 13.5% variance (Adjusted R2). 13.5% of
purchase intention variability is explained by trustworthiness. The analysis once
again verifies the positive relationship between trustworthiness and purchase
intention. Overall, the regression model was quite good with (F=17.05), one tailed
p < .001.
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Sig.
.000 .000
The regression equation for predicting the purchase intention on the basis of
trustworthiness value is:
The regression analysis result state the direct proportional relationship between
the two variables. If the source is more trustworthy then it will have significant
impact on consumers purchase intention (β coefficient of ―trustworthiness‖ = .280).
Hence both hypotheses from source credibility model: H2a and H2b are analysed and
supported through empirical test. Both the variables ―Expertise‖ (14.7%) and
―Trustworthiness‖ (13.5%) show positive results on the purchase intention.
Therefore both the hypotheses are accepted.
H2a: Expertise of the celebrity affects the purchase intention of the consumer H2b:
Trustworthiness of the celebrity affects the purchase intention of the consumer
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Model
R Square
.453
.205
.205
26.358
102
Sum of Squares
df
Mean Square
Sig.
a
1 102 103
19.619 .744
26.358
.000
The results show that the relationship between similarity and purchase intention is
quite reasonable (R=.453), only 19.8% variance (Adjusted R2). 19.8% of purchase
intention variability is explained by similarity. The analysis derives the positive
relationship between similarity and purchase intention. (F=26.35) , one tailed p
< .001.
Coefficients Model Unstandardized Coefficients B 1 (Constant) Similarity 1.207 .389
Std. Error .203 .076 .453
a
Sig.
5.950 5.134
.000 .000
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The regression analysis result state the direct proportional relationship between
the two variables. If the source is more trustworthy then it will have significant
impact on consumers purchase intention (β coefficient of ―similarity‖ = .389).
Model
R Square
.479
.229
.229
30.336
102
Sum of Squares
df
Mean Square
Sig.
a
1 102 103
21.901 .722
30.336
.000
The results show that the relationship between familiarity and purchase intention
is quite reasonable (R=.479), only 22.2% variance (Adjusted R2). 22.2% of purchase
intention variability is explained by similarity. The analysis derives the positive
relationship between familiarity and purchase intention. (F=30.33) , one tailed p <
.001.
Coefficients Model Unstandardized Coefficients B 1 (Constant) Familiarity 1.259 .
371 Std. Error .183 .067 .479
a
Sig.
6.892 5.508
.000 .000
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The regression equation for predicting the purchase intention on the basis of
familiarity value is:
The regression analysis result state the direct proportional relationship between
the two variables. If the source is more familiar then it will have significant
impact on consumers purchase intention (β coefficient of ―similarity‖ = .371).
4.2.2.5 The Impact of “Likeability” Likeability is the next variable from source
attractiveness model. In this question we will analyse the impact of likeability on
the purchase intention of consumers. The table below
represents the results of simple linear regression analysis in order to test the
hypothesis (H2e).
Model
R Square
Adjusted R Square
Model Summary Std. Error of the R Square Estimate Change .89643 ANOVA
b
.377
a
.142
.134
.142
16.890
102
Sum of Squares
df
Mean Square
Sig.
a
1 102 103
13.572 .804
16.890
.000
The results show that the relationship between likeability and purchase intention
is quite reasonable (R=.142), only 13.4% variance (Adjusted R2). 13.4% of purchase
intention variability is explained by likeability. The analysis derives the
positive relationship between familiarity and purchase intention. (F=30.33) , one
tailed p < .001. Overall, the regression model was significant with
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Sig.
.000 .000
The regression equation for predicting the purchase intention on the basis of
likeability value is:
The regression analysis result state the direct proportional relationship between
the two variables. If the source is more familiar then it will have significant
impact on consumers purchase intention (β coefficient of ―similarity‖ = .315).
Hence all three hypotheses from source attractiveness model: H2c, H2d and H2e are
analysed and supported through empirical test. The variables ―Similarity‖ (20.5%)
and ―Familiarity‖ (22.9%) and ―Likeability‖ (14.2%) show positive results on the
purchase intention. Therefore all three of the hypotheses are accepted.
H2c: Similarity between the celebrity and consumer affects the purchase intention
of the consumer. H2d: Familiarity among the consumers affects the purchase
intention of the consumer. H2e: Likeability among the consumers affects the
purchase intention of the consumer.
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R Square
.257
.066
7.202
102
df 1 102 103
F 7.202
Sig. .008
a
Sig.
7.888 2.684
.000 .008
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The regression analysis result state the direct proportional relationship between
the two variables. If the attributes of source matches up more then it will have
positive impact on consumers purchase intention (β coefficient of ―Match-up‖ = .
240). On the basis of above regression analysis it is proved that ―Match-up‖ (5.7%)
show positive results on the purchase intention. Although the impact is considered
to be less but it lays positive impact on the purchase intention. Therefore the
hypothesis is accepted.
H2f: Product Fit/Match with the celebrity affects the purchase intention of the
consumer
Model Summaryb Model 1 R .200a R Square .040 Adjusted R Square .031 Std. Error of
the Estimate .94818 ANOVAb Model 1 Regression Residual Total
a. Predictors: (Constant), Credibility b. Dependent Variable: Purchase Intension
df 1 102 103
F 4.267
Sig. .041a
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The regression equation for predicting the purchase intention on the basis of
Meaning transfer is:
Sig.
8.676 2.066
.000 .041
The regression analysis result state the direct proportional relationship between
the two variables. If the source is capable of transferring the meaning to the
product then it will have positive impact on consumers purchase intention (β
coefficient of ―Meaning transfer‖ = .160). On the basis of above regression
analysis it is proved that ―Meaning transfer‖ (3.1%) show positive results on the
purchase intention. Although the impact is least as compared to other attributes
but it is represents the positive impact on the purchase intention. Therefore the
hypothesis is accepted.
H2g: Meaning Transfer from the celebrity to the product affects the purchase
intention of the consumer
4.2.3 Summary
The overall linear regression analysis proves the positive relationship between
purchase intention and seven different attributes namely expertise,
trustworthiness, similarity, familiarity, likeability, match-up and meaning
transfer. The figure () illustrates that linear regression assumptions are met and
therefore it can be stated that all these attributes have positive effect on
purchase intention of consumers.
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Table 30: Expertise of Celebrity and Purchase Intention Valid Agree Slightly agree
Not sure Slightly disagree Disagree Total Frequency 41 35 11 9 8 104 Percent 39.4
33.7 10.6 8.7 7.7 100.0 Valid Percent 39.4 33.7 10.6 8.7 7.7 100.0 Cumulative
Percent 39.4 73.1 83.7 92.3 100.0
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Table 32: Trustworthiness of Celebrity and Purchase Intention Valid Agree Slightly
agree Not sure Slightly disagree Disagree Total Frequency 29 43 8 13 11 104 Percent
27.9 41.3 7.7 12.5 10.6 100.0 Valid Percent 27.9 41.3 7.7 12.5 10.6 100.0
Cumulative Percent 27.9 69.2 76.9 89.4 100.0
As a consumer, do you think the sense of “Similarity” between you and the celebrity
endorser can influence your purchase decision for a certain product or service?
(Similarity refers to the sense of similarity a consumer feels with a celebrity)
The aim of this question is to evaluate the impact of ―Similarity‖ on the purchase
decision of consumers. Majority of the respondents (49%) slightly agree that sense
of similarity between the celebrity and them can influence their purchase decision.
Secondly, only 16.3% of the respondents strongly agree that means they feel
similarity as a factor to influence their purchase decision. On the other hand,
18.3% of the respondents are unsure about the sense of similarity on their purchase
decision. Only 7.7% of the respondents slightly disagree and
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8.7% completely disagree. Overall, using the descriptive analysis, it can be said
that ―Similarity‖ may influence the purchase intention of the consumers. Table 33:
Descriptive Statistical Analysis of Similarity Attribute Similarity Mean 2.43 Mode
2.00 Std. Dev 1.12
Table 34: Similarity of Celebrity and Purchase Intention Valid Agree Slightly agree
Not sure Slightly disagree Disagree Total Frequency 17 51 19 8 9 104 Percent 16.3
49.0 18.3 7.7 8.7 100.0 Valid Percent 16.3 49.0 18.3 7.7 8.7 100.0 Cumulative
Percent 16.3 65.4 83.7 91.3 100.0
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Table 36: Familiarity of Celebrity and Purchase Intention Valid Agree Slightly
agree Not sure Slightly disagree Disagree Total Frequency 23 48 11 11 11 104
Percent 22.1 46.2 10.6 10.6 10.6 100.0 Valid Percent 22.1 46.2 10.6 10.6 10.6 100.0
Cumulative Percent 22.1 68.3 78.8 89.4 100.0
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Table 38: Likeability of Celebrity and Purchase Intention Frequency Percent Valid
Percent Cumulative Percent 24 47 16 9 8 104 23.1 45.2 15.4 8.7 7.7 100.0 23.1 45.2
15.4 8.7 7.7 100.0 23.1 68.3 83.7 92.3 100.0
As a consumer, do you think the “Match” between the celebrity and the product can
an important attribute in influence your purchase decision for a certain product or
service? (Fit/Match refers to the level how well the fit between the celebrity and
the product is) This question aims at investigating if it is important to have
something in common between the celebrity and the product being endorsed in order
to influence consumers purchase intention. Majority, nearly half of the respondents
(46.2%) slightly agree that Product-
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celebrity match-up can influence their purchase intention. Another 28.8% of the
respondents strongly agree that they look for commonness between the celebrity and
the product. 15.4% of the respondents are unsure while only 4.8% slightly disagree
and 4.8% completely disagree to the product-celebrity match up phenomena. Overall,
it was found that 75% of respondents consider product-celebrity match-up as a
factor to influence their purchase intention while only rest 25% are either not
sure, slightly disagree or completely disagree. Therefore it can be said that its
important the attributes of product should match with the celebrity in order to
influence their purchase intention. Table39: Descriptive Statistical Analysis of
Matchup Attribute Matchup Mean 2.10 Mode 2 Std. Dev 1
Table 40: Matchup of Celebrity and Purchase Intention Valid Agree Slightly agree
Not sure Slightly disagree Disagree Total Frequency 30 48 16 5 5 104 Percent 28.8
46.2 15.4 4.8 4.8 100.0 Valid Percent 28.8 46.2 15.4 4.8 4.8 100.0 Cumulative
Percent 28.8 75.0 90.4 95.2 100.0
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Do you think celebrities can provide or transfer meaning to the product and
influence your purchase intentions based on celebrity’s age, gender and lifestyle?
(Meaning Transfer refers to the meaning a celebrity brings or transfers to a
certain product with the help of their personality and lifestyle) This question is
asked to the respondents to check whether associating a celebrity can bring meaning
to the product or service being endorsed by him thereby influencing consumer
purchase intention. The majority of the respondents (35.6%) slightly agree that
celebrities can transfer meaning to a product that can influence their purchase
intention. Another 26.9% of the respondents strongly agree that their purchase
intention is affected through the meaning transfer from celebrity to the product.
However, considerably more 21.2% of respondents are unsure. On the other hand 7.7%
of the respondents slightly disagree and 8.7% completely disagree with influence of
meaning transfer process. Overall, it was found that 62.5% of respondents see
meaning transfer as a factor to influence their purchase intention while 37.5% are
either not sure, slightly disagree or completely disagree. Therefore it can be said
that meaning transfer process is likely to influence the purchase intention of most
of the consumers. Table 41: Descriptive Statistical Analysis of Meaning Transfer
Attribute Meaning Transfer Mean 2.35 Mode 2 Std. Dev 1.20
Table 42: Meaning Transfer of Celebrity and Purchase Intention Valid Agree Slightly
agree Not sure Slightly disagree Disagree Total Frequency 28 37 22 8 9 104 Percent
26.9 35.6 21.2 7.7 8.7 100.0 Valid Percent 26.9 35.6 21.2 7.7 8.7 100.0 Cumulative
Percent 26.9 62.5 83.7 91.3 100.0
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In this section, the respondents were asked to rate the self-perceived importance
of each attribute as a factor to influence their purchase decision. Each of the six
attributes was evaluated on a scale ranging from 1, Not at all important, to 5,
extremely important. The results were analysed using the descriptive frequency
analysis through SPSS. The results of respondents‘ perceived importance are
averaged and represented in the table below.
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The three questions asked to the respondents in the questionnaire are as follows:
PI 01 I’m likely to purchase products or services that have been endorsed by
celebrities. PI02 I do purchase products and services endorsed by celebrities. PI03
In overall, I’m happy with purchasing products or services advertised by
celebrities. The respondents were asked to rate each of these questions on the
likert scale ranging 1 (Agree) to 5 (strongly disagree). Table 45: Statistical
Analysis “Purchase Intention 01” Frequency Agree Slightly agree Not sure Slightly
disagree Disagree Total 46 27 18 8 5 104 Percent 44.2 26.0 17.3 7.7 4.8 100.0 Valid
Percent 44.2 26.0 17.3 7.7 4.8 100.0 Cum. Percent 44.2 70.2 87.5 95.2 100.0
The results from the descriptive frequency analysis for question 1 states that
majority of the respondents (44.2%) are likely to purchase products endorsed by
celebrities. 26% of
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The analysis results from question 2 suggests that majority of the respondents
(35.6%) do actually purchase products under the influence of celebrities. 25% of
respondents slightly agree that means they do sometimes buy the endorsed products
as well. However, a major number of respondents 30.8% are not sure whether they
purchase the products under the influence by celebrities or not. Relatively high
degree of unsure respondents 30.8% might bias the results. On the other hand, only
very less number 4.8% of respondents disagree and 3.8% disagree about the influence
of celebrities on their purchase decision. However, overall 60.6% of respondents
show positive response by stating that they buy products and services endorsed by
celebrities. Table 47: Statistical Analysis “Purchase Intention 03” Frequency Agree
Slightly agree Not sure Slightly disagree Disagree Total 40 31 24 3 6 104 Percent
38.5 29.8 23.1 2.9 5.8 100.0 Valid Percent 38.5 29.8 23.1 2.9 5.8 100.0 Cum.
Percent 38.5 68.3 91.3 94.2 100.0
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Valid 1 (Agree) 1.333 1.666 2 (Slightly agree) 2.333 2.666 3 (Not Sure) 3.333 3.666
4 (Slightly disagree) 4.333 4.666 5 (Disagree) Total
Cum. Percent 30.8 38.5 45.2 51.9 65.4 76.0 87.5 92.3 94.2 96.2 97.1 98.1 100.0
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The overall results for purchase intention shows that celebrities can influence the
purchase decision of the people by appearing with a product in an advertisement.
The results show that most of the consumers are likely to buy or buy the products
endorsed by celebrities. Moreover many of the customers are happy or satisfied with
the purchases they have done under the influence of celebrity that is a positive
sign. The level of after purchase satisfaction builds the trust on the part of the
celebrity and the product and influences future purchase decisions. The results
also show that there are low numbers of people who are actually not influenced or
satisfied with their purchase decisions under celebrity influence.
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DISCUSSION
This chapter provides the reader with clear justification of the results and direct
answers to the research questions. The results will be discussed and compared with
the existing empirical research available.
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celebrity endorsed advertisements enables them to recall and recognise the products
more promptly. Celebrity endorsed advertisement have the potential to influence the
cognitive processes of consumers (Wilkes and Valencia 1989). Interestingly the
findings state that 72.1% of respondents said that they find celebrity endorsed
advertisements more influential as compared to non-celebrity advertisements. Thus
it can be said that employing a celebrity in an advertisement can influence the
customers to buy the product or service endorsed by him. The findings support the
fact that ―the power of the celebrities lies in their ability to influence the
consumers, even if they are physically and socially far from a common consumer
(Choi & Rifon, 2007).
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5.2.1.3 Similarity Similarity with the celebrity endorser positively affects the
consumers’ intention to purchase products or services endorsed by him The result
from the study proves that being similar or feeling some similarity with the
celebrity positively influences the purchase intention of the consumers. Regression
analysis supports the positive relationship between trustworthiness and purchase
intention (R = .453). It states that 19.5% of purchase intention variability is
defined by similarity. The result states that if the celebrity looks more similar
or if the consumers feel something common in between them then they are more likely
to purchase the product. The descriptive frequency analysis results state that
16.3% of respondents agreed that they consider trustworthiness of the celebrity as
a factor to influence their purchase intention. Evaluating independently,
respondents ranked ―Similarity‖ as 4th (Mean 3.06) influential attribute to
influence their purchase decision (Appendix). The results support that perceived
resemblance between the source and the respondent influences their intention to
purchase (Erdogan 1999).
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the research state that 76% of people agree that they buy the products endorsed by
celebrities. Respondents were asked to rate celebrities on three different
questions. Overall the result from the research approves the relationship between
celebrity endorsements and consumer purchase intention. The results state that
majority of the people are likely to purchase (70.2%), do purchase (60.6%) and are
overall happy with their purchases (68.3%) done under the influence of celebrity
endorsers. Therefore, it can be said that celebrity endorsers are likely to have a
positive effect on consumer purchase intention (Goldsmith, Lafferty and Newell
2000; Mathur, Mathur & Rangan 1997). Despite the various benefits, there are still
many potential risks involved in using celebrities as endorsers. Negative publicity
concerning the celebrity is one of the major risks associated with the celebrity
endorsement. Negative publicity about a celebrity endorser not only impacts
consumers' perception about the celebrity, but also the endorsed product (Klebba
and Unger 1982; Till and Shimp 1995) Therefore, the respondents were asked to state
if the negative publicity of a celebrity endorser can influence their intention to
purchase the products endorsed by them. The respondents gave very complicated
results. Majority of the respondents were unsure about the effect of negative
publicity on their purchase decision while some of them agreed and vice versa.
Therefore the author used the (Mean: 2.73) to come up to the conclusion. The
descriptive statistical results state that negative publicity about a celebrity
slightly affects their purchase intention (Appendix 7).
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CONCLUSION
This chapter articulates the main outcomes of the research project, examining the
extent to which the objectives are met and contribution to the existing literature
on celebrity endorsements. Managerial and theoretical implications of the research
are outlined. Finally the limitation of the current study is acknowledged and
directions for the further research are suggested.
Celebrity endorsements has changed the way advertising used to be few decades ago.
It is been accepted to be a ―ubiquitous feature of modern day marketing‖ (McCracken
1989). Celebrity endorsements business has become a multi-million dollar industry
in India (Malhotra 2005). As a result, a greater understanding of consumers‘
reactions towards celebrity endorsements can help the marketers to use it more
effectively. This research project explored the current state of Indian consumers‘
perception about celebrity endorsements. Empirically identified and tested the
celebrity attributes specific to influence purchase intention and finally examined
the impact of celebrity endorsements on purchase intention of consumers. In
accordance with the study objectives, the following conclusions are drawn. Firstly,
the research project examined and explored the current state of consumers‘
perception about celebrity endorsements. Research outcomes reveal extremely high
degree of familiarity across all age groups. Results reveal that people find
celebrity endorsements more attractive, particularly young people and teenagers.
Further, on the basis of attractiveness people find actors and actresses from
bollywood and films more influential as endorsers. Results reveal that using a
celebrity in an advertisement increases the recognition and recall rate of the
endorsed product. Overall the people believe that celebrity endorsements are more
attractive, and effective at influencing their purchase decision. Interestingly,
people know and agree that celebrities don‘t really use the products endorsed by
them. Even though, celebrity endorsements have a very positive impact on consumers‘
perceptions and attitudes towards the endorsed product. Secondly, the positive
relationship of different celebrity attributes and purchase intention of the
consumers demonstrates the effectiveness of celebrities as successful endorsers.
Although some attributes are very effective at influencing purchase intention of
consumers some are relatively low or moderate. For instance, ―familiarity‖ of the
celebrity has the highest impact on purchase intention followed by ―similarity‖,
―expertise‖, ―trustworthiness‖ and
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APPENDICES
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Sample Demographics Overall Gender: -Male -Female Age: <18 18-30 >30 Part of
Country: -Urban -Rural Occupation: -Student -Professional/Business -Unemployed
-Others
93 (89.4%) 11 (10.6%)
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Questionnaire Demographic Profile 1. What is your age? a. Less than 18 years b. 18-
30 c. 30 and above What is your gender? a. Male b. Female What is your profession
a. Student b. Professional/Business c. Unemployed d. Others (Please Specify) Which
part of country do you live? a. Urban b. Rural
2.
3.
4.
6.
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15. As a consumer, do you think the sense of ―Similarity‖ between you and the
celebrity endorser can influence your purchase decision for a certain product or
service? (Similarity refers to the sense of similarity a consumer feels with a
celebrity) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree
16. As a consumer, do you consider the ―Familiarity‖ of the celebrity as an
attribute that can influence your purchase decision for a certain product or
service? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree
17. As a consumer, do you consider the ―Likeability‖ of the celebrity as an
attribute that can influence your purchase decision for a certain product or
service? (Likeability refers to the level of celebrity‘s fame in the public opinion
and how popular the celebrity is) a. Agree b. Slightly agree c. Not sure d.
Slightly disagree e. Disagree 18. As a consumer, do you think the ―Match‖ between
the celebrity and the product can an important attribute in influence your purchase
decision for a certain product or service? (Fit/Match refers to the level how well
the fit between the celebrity and the product is) a. Agree b. Slightly agree c. Not
sure d. Slightly disagree e. Disagree 19. Do you think celebrities can provide or
transfer meaning to the product and influence your purchase intentions based on
celebrity‘s age, gender and lifestyle? (Meaning Transfer refers to the meaning a
celebrity brings or transfers to a certain product with the help of their
personality and lifestyle) a. Agree b. Slightly agree c. Not sure d. Slightly
disagree e. Disagree 20. Please rate these factors according to their importance
and effectiveness in order to influence your purchase decision. (1 being the lowest
and 5 being the highest) a. Expertise 1 2 3 4 5 b. Trustworthiness 1 2 3 4 5 c.
Similarity 1 2 3 4 5 d. Likeability 1 2 3 4 5 e. Product-celebrity match 1 2 3 4 5
f. Meaning transfer 1 2 3 4 5
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21. Which of the below given factors influence you the most to buy a product or
service endorsed by a celebrity? a. Expertise of the celebrity in the given field/
product endorsed. b. Trustworthiness of the celebrity c. Similarity between the
celebrity endorser and yourself. d. Likeability of the celebrity e. Match between
the Product and the celebrity. Celebrity Endorsements and Purchase Intention 22. Do
you feel that ―Negative Publicity‖ about a celebrity endorser can influence your
purchase decision? (For example Salman Khan is facing trial in 3 cases for killing
black bucks and chinkaras and illegal possession of arms.) a. Yes b. No c.
Sometimes d. Can‘t say 23. I‘m likely to purchase products or services that have
been endorsed by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly
disagree e. Disagree 24. I do purchase products and services endorsed by
celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e.
Disagree 25. In overall, I‘m happy with purchasing products or services advertised
by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e.
Disagree
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Appendix 4:
Appendix 5
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Appendix 6
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Appendix 7 Do you feel that Negative Publicity about a celebrity endorser can
influence your purchase intention? In this research question, the author tried to
identify how do celebrities impact the purchase intention of the customer by
appearing with a product in an advertisement. There can be many factors associated
with the effectiveness of a celebrity as an endorser. For instance negative
publicity about the celebrity may spoil the public image of celebrity that may turn
him ineffective as an endorser. Accordingly two questions were asked to the
respondents to check the hypothesis.
Firstly the respondents were asked to rate if the negative publicity about a
celebrity endorser can influence their purchase decision. The descriptive frequency
analysis of results show that majority of the respondents slightly agree (38.5%)
that negative publicity about a celebrity is likely to influence their purchase
decision. 18.3% of the respondents also strongly agree to the statement. While
10.6% of respondents are unsure, 17.3% slightly disagree and 15.4% strongly
disagree. The results don‘t show any concrete results. Overall results (Mean 2.73)
show that respondents either slightly agree or unsure about the impact of negative
publicity on their purchase intention. However the cumulative percentage suggests
that more than half 56.7% respondents observe that negative publicity may influence
their purchase decision (See table below).
Mean 2.73
Median 2
Mode 2
Frequency 19 40 11 18 16 104
Negative Publicity Percent Valid Percent 18.3 18.3 38.5 38.5 10.6 10.6 17.3 17.3
15.4 15.4 100.0 100.0
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Further analysis on basis of age showed that 83.3% respondents under the age of
―slightly agree‖ that negative publicity about a celebrity can influence their
purchase decision. Respondents between the age group of 18-30 gave mixed results.
The analysis of data suggests that the youngsters are unsure about the negative
publicity‘s influence on their purchase decision. However, 94% of respondents above
the age of 30 years came up with some significant results that negative publicity
about a celebrity influences their purchase decision. Overall, the analysis on the
basis of age group suggest that people under the age of 18 and above 30 years are
more sensitive to negative information and it influences their purchase intention.
On the other hand people between the age of18-30 are either unsure or slightly
agree to the statement.
Age group cross-tabulation Count Negative Agree Publicity Slightly agree Not sure
Slightly disagree Disagree Total less than 18 years 0 10 1 0 1 12 Age 18-30 14 18
10 17 15 74 30 and above 5 12 0 1 0 18 Total 19 40 11 18 16 104
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