celebrity endorsement in television advertising
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Endorsement is a channel of communication where celebrities act as spokesperson of the
brand and by extending their popularity and personality they certifies the brand’s claim and
position. The term Celebrity refers to an individual who is known to the public (actor, sports
figure, entertainer, etc.) for his or her achievements in areas other than that of the product class
endorsed (Friedman and Friedman, 1979).
The basic assumption underlying celebrity endorsement is that the value associated with the
celebrity is transferred to the brand and therefore it helps in creating an image that can be easily
referred by consumers. As a result by association, the brand can very quickly establish the
creditability, it can get immediate identification and thus can improve sales.
Research studies have proven that known products and names are sold more than
unknown ones. Therefore, a known brand or an optimally exposed brand will find more
recognition and buyers in the market in comparison to completely unknown or
unexposed brand. And that’s why marketers make use of celebrities to influence
consumers and sell products. They openly acknowledge the power of celebrity in
influencing buyer's purchase decision. Marketers pay millions of dollars to celebrity
endorsee hoping that the stars will bring their magic to brand they endorse and make
them more appealing and successful. More or less every consumer has a brand
preference and given the affordability and societal norms, each buyer would like to buy
and consume one of the highly acceptable, recognizable, and reputed brands.
Celebrity endorsement is more likely to be observed for those products having a high price-
production cost margin and on a large customer base. In short, celebrity endorsements are
more typical for nationally marketed products then for local or niche market products and for
products such as running shoes, soft drinks and the like for which the price cost margins are
apparently large.
Previous studies had revealed that consumers positively value the use of celebrity endorsers in
the advertisements. The ads which use celebrities are easy to recall by the viewers and helps to
retain brands but today's dynamic market conditions may not always give a positive return on
this expectation and thus making investments on celebrities is not always a good idea.
Literature Review
How celebrity endorsements affect consumer purchase decision is studied extensively by
marketing and social psychology researches. Various hypothesis have been put forward
including celebrity endorsement have recall of the product, celebrities have credibility on
expertise that makes the product more desirable or enhances perceptions of quality, the
celebrity endorser’s image is transferred to the product so that those who use the product are
associated with the image. Experiments suggest that in certain situations, celebrity
endorsement can enhance recall and consume assessment of the products. (Clark &
Horstman, 2003).
McCracken (1989); Silvera and Austad (2004), defined Celebrities are people who enjoy
public recognition and who often have distinctive attributes such as attractiveness and
trustworthiness.
Ohanian(1991) finds that in a market where advertising plays a vital role in coordinating
consumer purchases, it becomes pertinent for companies to induct all possible measures to
influence motivate and inculcate desire to purchase, in the customer through an effective
advertising campaign. Theory and practice proves that the use of superstars in advertising
generates lot of publicity and attention.
Khatri (2006) studied that celebrity endorser is a panacea for all marketing woes. It is today a
frequently used approach in marketing for all brands building exercises. The star appeal
however needs to be perfectly blended intelligently and strategically to reap the benefits and
make brands .It serves as an aid to expedite recall and influence purchase. But can also be a
nightmare unless accompanied by a powerful idea, effective and impeccable positioning.
A study by Sharma (2007) finds that nowadays consumer is not easily swayed by a celebrity in
an ad but he needs full fledge information about the product also, followed by brand name,
overall appeal, and music/jingle. Advertisements being endorsed by celebrities are found to be
less attractive and that the use of celebrities may not change the buying behavior of consumers
significantly.
Linda Orlando (2005) accordingly many companies are beginning to shy away from big names
and get rid of celebrity endorsements altogether, not only because endorsement fees continue
to skyrocket, but more importantly because high-powered marketing execs say their brands are
being overshadowed by the high-profile celebrities who promote them. Sometimes the
celebrities get more mileage from the endorsement than the product does.
Gary Harwood (2004), Research conducted by Bates in India that tracked consumer opinion on
the 'relevance and effectiveness of celebrity advertising in building brands', urged brands to 'de-
celebritise' and focus on ideas. Concluding that ideas, and not celebrities, build brands, the
study identified the optimum celebrity 'fits' and the cases where celebrities overshadowed
brand-building performance.
Mishra and Beauty (1990) Petty et al (1983) and Menon et al (2001) indicate that celebrity
endorsements enhance brain recall. The use of celebrity for endorsements creates a very
favorable impact on the consumer and it forces a consumer to purchase a product.
Joshi & Ahluwalia (2008) finds that the use of celebrity for endorsements create a very
favorable impact on the consumer and it creates a connect which forces a consumer to
purchase a product.
Dasgupta (2008), according to a research conducted by IMRB, an international research
agency, across Mumbai, Delhi, Kolkata and Chennai, Indore and Lucknow, Ajmer, Madurai,
Ranchi and Cuttack, reveals that the most prominent ad are those with celebrities in it and it
doesn’t influence consumer’s purchase pattern at any point of time, it rather creates confusion
for the consumer on the recall.
According to Agrawal & Kamakura (1995), the use of celebrities in advertising has proven to
be profitable in the past since the announcement of a celebrity endorsement contract has been
shown to actually increase the value of a company’s stock portfolio.
Kamins (1990) found that attitudes toward ads and products became favorable as celebrity
endorser’s attractiveness increased.
Till and Busler (1998), Till and Shimp (1998) found that although a number of celebrity
endorsements turned out to be very successful, other attractive celebrities did not.
Becker and Murphy (1993), according to them, intended influence of any advertisement
(especially those using endorsers) on the purchase or the increase in the purchases of the
product should be treated as a change in demand rather than a change in consumer tastes or
preferences. This is because a change in tastes and preferences tend to take time, while the
impact of advertisements is of a short term nature
TABLE OF CONTENT
1. Introduction
2. Literature Review
3. Research Objectives
4. Research Hypotheses
5. Result and Discussion
Preferred Celebrities for Retail Brands
Comparison of Actors with Sportspersons
Preferred Product Category for Celebrities for Retail brands
6. Research Methodology
7. Limitation and Scope for Future Research
8. References
Celebrity Endorsement in Television Advertising: A Study On Viewer’s
Perception
Introduction:- Celebrity endorsement in advertisements started its journey with
the endorsement of pears soap, in 1893, by a British actress, Lillie Langtry
(Bergstrong and Skarfstad, 2004).
In India, the FMCG giant Hindustan Unilever Ltd. (HUL), then known as
Hindustan Lever Limited, applied this strategy in the early 1950s, for their beauty
soap, Lux. In recent years, the use of celebrity-endorsed advertisement has become
a common tool among the advertisers. It is often seen as an integral part of the
integrated marketing communication. It is perceived as a winning formula for
building corporate and brand image. To make product visible, to develop a
prepurchase, positive attitude towards the brand, and to generate new demand,
almost every company, now-a-days, runs after popular celebrities. Cinema and
television have particularly extended the scope of endorsement as an advertising
technique.
Marketers overtly acknowledge the power of celebrities in influencing consumer-
purchasing decisions. It is a ubiquitously accepted fact that celebrity endorsement
can bestow special attributes upon a product that it may have lacked otherwise. But
everything is not hunky-dory; celebrities are after all mere mortals made of flesh
and blood like us. If a celebrity can aggrandize the merits of a brand, he or she can
also exacerbate the image of a brand.
Celebritie’s word-of-mouth helps in positioning and repositioning a brand by
extending their personality, popularity, social status, and/or expertise in the field of
the brand.
Research has shown that, in general celebrity endorsement influences the consumer
percetion and attitude towards the advertisement and the brand, which heightens
the purchase intention and consequently, increase the sale. Scholars have also
argued that celebrity-endorsers are more effective than non-celebrity-endorsers in
terms of arousing the intension to purchase and creating the actual sales (Erdogan,
1999).
Literature Review :
A study by Balakrishnan and Kumar (2011) focused on identifying the influence of
celebrity endorsements on the purchase attitude of the consumers. The study finds
that ………………………….
A study by Pughazhendi ( 2011) aimed at investigating celebrity based
advertisements on the purchase attitude of consumers towards durable products in
reference to the city of Coimbatore. The study finds that ……………………
Y. Madhuri Srinivas(2011) studied the extent of changes in brand preferences of
people due to one exposure to a television advertisement. Finding of the study
showed that some of the selected advertisement could bring about a significant
changes in the brand preferences of people through just one exposure to the
advertisements which all the more emphasizes the importance of the design of an
advertisement and the cost-effective selection of media.
Majumder(2010) Studied celebrity endorsement has become popular among
advertisers all over the world. They try to use the fame of celebrities in the field of
film, sports and televion to promote their products and services. The celebrity used
in various ads are mostly film stars and sports persons. The present study seeks to
examine the demografic aspects of popular celebrities and the effectiveness of the
celebrity-endorsed TV ads.
The study has revealed that the advertisers should develop celebrity-endorsement
strategies for TV ads, with a clear demografic perspective of the target audience. It
surely brings the brand increased media exposure, if designed with a clear
understanding of the target audience.
Jain and Sudha(2009) The retail sector is one of the fastest moving sectors in
India. Its target audience is mainly youth who constitute 50% of the Indian
population. Retail brands need to be positioned for this segment, and one of the
strategies used is celebrity endorsement. Television Audience Measurement
(TAM) Media Research found a 49% growth in celebrity advertising in 2007.
There are many studies that have been conducted on celebrity endorsements, but
there is no study which has been done exclusively to understand the perception of
consumers about celebrity advertising for retail brands. The present study aims to
mitigate this gap in the existing literature. For the present study, the survey
method, using a structured questionnaire, was employed on a sample of 186
respondents.
Aarzoo Daswani(2008), The findings of the study revealed that customers prefer
female celebrities over male celebrities. The preference for celebrities was more
for sensory products than cerebral products. Customers want celebrities to entertain
them as well as give information pertaining to the products in the advertisements.
The factors that customers perceived to be important in selecting the celebrities for
retail brands were proficiency, reliability, pleasantness, elegance, distinctiveness,
approachability and non-controversial.
sanyukta A.Kulkarni Sahir U.Gaulkar PGDBM12005-07 Welingkar Institute of
Management Development & Research
L. Napoo Road, Matunga (CR), Mumbai–400 019 Studied, Today 'Celebrity
Endorsement' has attracted immense debate on whether it really contributes to the
brand building process or whether it is just another lazy tool to make the brand
more visible in the minds of the consumers. Although it has been observed that the
presence of a well-known personality helps in solving the problem of over
communication that is becoming more prominent these days, there are few
undesirable impacts of this practice on the brand. The theories like 'Source
Credibility Theory, Source Attractiveness Theory and Meaning Transfer Theory'
provide a basis on which the methodology of celebrity endorsement works and also
explains how the process of the celebrity endorsement influences the minds of the
consumers. Firms invest huge amounts as advertising expenditure for hiring the
right celebrity. However there lies uncertainty with respect to the returns that the
company might be able to garner for the brand. The issue of matching the values of
the celebrity with the brand values is also very important, i.e. getting the right
celebrity to endorse the right brand. Consumers perceive the brand as having
superior quality because it has been endorsed by a credible source. This makes
endorsement as one of the indictors of quality for any brand. Corporate credibility
along with endorser credibility plays a significant role in the attitude of the
consumer towards the brand and the advertisement respectively. On the other hand,
the over popularity of the celebrity sometimes overshadows the brand. If the
celebrity is involved in multiple endorsements, it tends to create confusion among
consumers and hence negatively affects the perception of the advertisement and the
brand. Hence, to say clearly whether the practice of celebrity endorsement impacts
positively or negatively to the brand still remains a debate.
Research Objectives :
The objective of this study are to reveal the impact of
celebrity endorsement in TV advertisement on brand image and to find out the
most prominient factors that play a key role in the success of a celebrity
endorsement. This study explores the link between brand and the consumer psyche
and finally comes up with a model which can help any brand to identify the key
areas to concentrate on while going for any celebrity endorsement. The newly
evolved model should lead any brand towards the success of strategic branding
from an endorsement aspect.
The Study has on the following key issues:
1. The attitude of consumers towards celebrity endorsed ads;
2. The demographic factores behind the attitude development;
3. The role of celebrity-endorsed add in the consumer’s decision-making
process; and
4. The major characteristics of celebrity endorser
RESEARCH METHODOLOGY
The project titled “ A Study of Relation of Emotional Intelligence to Job
Satisfaction among Corporate Executives” shall be the result of exploratory
research
UNIVERSE, SAMPLING FRAME: All the corporate executive of service
sector of Indore city.
SAMPLING METHOD: The present research is to be conducted on a sample
of 100 respondents from service sector . The respondents will be selected by
purposive sampling and convenience sampling method
SAMPLE SIZE: Sample size of 100 employees is taken in study.
DATA COLECTITON:
The task of data collection begins after a research problem has been defined and
research design chalked out. There are two types of data primary as well as
secondary data, as follows:
Sources of primary data-
1) Observation
2) Self Design questionnaire which would be designed with the help of
mentor shall be administrated on foresaid employees. The scale would
be developed on liker scale having employees option on summated
scale between the score of 1 to 5.
Sources of secondary data-
1) Magazines
2) websites
3) Books
4) Journals
DATA ANALYSIS: The data will be analyzed using appropriate
statistics. Hypotheses shall be tested by using t test, and Chi-Square test and
correlation.
Limitation and Scope for Future Research: One of the limitations of the study is
that it is carried out in only one city of India. Similar studies can be conducted in
other cities, towns and villages of India to find out if there is any change in the
perception of the customers. This study has used only one media for the research
work, i.e., television. Print media can also be used for conducting a similar study.
References : (Should be in alphabetical order and in proper format)
Y. Madhuri Srinivas*,Indrani Majumdar* and Debiprasad Mukhrjee*
Varsha Jain*, Mari Sudha** and Aarzoo Daswani***
http://www.wbiaus.org/8.%20Shalini.pdf
http://www.indianmba.com/occasional_papers/op88/op88.html
Lalitha Balakrishnan* and C.Shalini Kumar**( World Review of Business
Research Vol. 1. No. 2. May 2011 Pp. 98 - 112)
The IUP Journal of Brand Management, Vol. VI, Nos. 3 & 4, 2009
Agrawal and Kamakura, Wagner A., (1995), "The economic worth of celebrity endorsers: An
event study analysis," Journal of Marketing, Chicago, Vol. 59, Iss. 3; pg. 56-63.
Becker, Gary S. and Murphy, Kevin M. (1993), "A simple theory of advertising as a good or
bad," The Quarterly Journal of Economics, Vol. 108, Iss. 4, pg. 941-965.
Clark, C.R. & Horstmann, I.J. (2003). Celebrity endorsements. Unpublished manuscript
[http://www.rotman.utoronto.ca/ihorstmann/JEMS.2005-07-07.clark.pdf].
Dasgupta (2008), “Celebrities aid brand recall, but may not influence buying: A Study”, from
The Financial Express.htm
Friedman, Hershey H. and Linda Friedman (1979), "Endorser Effectiveness by Product Type,"
Journal of Advertising Research, 19 (5), 63-71.
Gary Harwood(2004), “Do celebrity endorsements build brands”, Article from
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Consumer Brand Preferences”, from www.indianmba.com/FacultyColumn
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When Beauty May be Only Skin Deep”, Journal of Advertising, 19, (1) 4-13.
Khatri (2006), “Celebrity Endorsement: A Strategic Promotion Perspective”, Indian Media
Studies Journal • Vol.1 • No.1. July-Dec. 2006
McCracken, G., (1989), “Who is the Celebrity Endorser? Cultural Foundations of the
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Misra,S and S,. Beatty, “Celebrity spokesperson and Brand Congruence”. Journal of
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Ohanian, Roobina (1991), “The Impact of Celebrity spokespersons” Perceived Image on
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Sharma Sandhir (2007), “Celebrities don't affect consumer decision making, says study”, from
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Till, Brian D and Terence A.Shimp (1998) “Endorsers in the case of Negative Celebrity
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