RESEARCH METHODOLOGY

CELEBRITY BRAND ENDORSEMENT INFLUENCES CONSUMER

PREFERENCE

contents

• Introduction• Celebrity brand endorsement• Objectives• Methodology• Questionnaire• Findings• Analysis• Celebrity interview• Conclusion

Introduction

• use of celebrity for advertising in companies has become a trend .

• 'celebrity endorsement' has attracted immense debate.

• Indian advertisement has been placing a vital amount of importance

• can create a positive and favourable image of the company and helps in building brand image

The celeb power

Who is a celebrity• A person who does not require any

introduction, whose recognition is widespread and gets regular attention of media as well as people and always remain in headlines.

Need for celeb endorsement• Act as best spokesperson for the products and

making it a brand

OBJECTIVES OFTHE RESEARCH

• To understand the impact of celebrity brand endorsement on buyers purchasing decision

• To understand the various celebrity types and means of advertisement affecting consumers.

• To understand the various age groups and their relation with brand endorsement

RESEARCH METHODOOGY

• Sample design• A primary research was conducted by

communicating with 100 respondents through a self designed questionnaire

• Sample Size- A sample size of 100 respondents, both male and female in the age group between 18-60 years belonging to different occupations was taken from different parts of Mumbai city.

• QUESTIONNAIRE

FINDINGSGENDER

Do the celebs actually use the product they endorse?

Hypothesis

• H₀ = Both the variables i.e. Age and buying a product due to a celebrity using are independent of each other.

Chi-square test

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 7.095a 12 .851

Likelihood Ratio 7.957 12 .788

N of Valid Cases 100

a. 12 cells (60.0%) have expected count less than 5. The minimum expected count is 2.56.

INTERPRETATION

At 5% level of significanceAlpha value = 0.05P value = 0.851P value > Alpha valueHence, we accept the null hypothesis and

conclude that Age and buying a product due to a celebrity using are independent of each other.

Chi-square test

• H₀ = Both the variables i.e. Gender and products endorsed by celebrities are of good quality are independent to each other.

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 4.271a 8 .832

Likelihood Ratio 4.453 8 .814

N of Valid Cases 100

INTERPRETATION

At 5% level of significanceAlpha value = 0.05P value = 0.832P value > Alpha valueHence, we accept the null hypothesis and

conclude that Gender and products endorsed by celebrities are independent of each other.

Chi-square test

• H₀ = Both the variables i.e. Age group & brand recognition are independent to each other.

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 52.727a 12 .000

Likelihood Ratio 66.029 12 .000

Linear-by-Linear Association .452 1 .501

N of Valid Cases 100

INTERPRETATION

At 5% level of significanceAlpha value = 0.05P value = 0.000P value < Alpha valueHence, we reject the null hypothesis and

conclude that purchase intent depends on variable age

PAIRED T TEST

• Ho- there is no significant difference in the mean ratings towards the perception of the brand before and after the celebrity endorsing a product has been involved in a scandal

PAIRED T TEST

Paired Samples Test

Paired Differences t df Sig. (2-tailed)

Mean Std. Deviation

Std. Error Mean

95% Confidence Interval of the Difference

Lower Upper

Pair 1

Q2 - Q3

-.08000 2.03842 .20384 -.48447 .32447 -.392 99 .696

INTERPRETATION

At 5% level of significanceAlpha value = 0.05P value = 0.696P value > Alpha valueHence, we accept the null hypothesis that there is

no significant difference in the mean ratings towards the perception of the brand before and after the celebrity endorsing a product has been involved in a scandal

FACTORIAL DESIGN WITH TWO OR MORE FACTORS

• H₀ = Different types of celebrity endorsement does not create a significant difference in brand recognition.

• H₁ = Different means of advertisement does not create a significant difference in brand recognition.

• H₂ = Combination of different types of celebrity endorsement and advertisement does not create any significant difference in brand recognition.

FACTORIAL DESIGN OUTPUT

Between-Subjects Factors

Value Label N

Q8

1.00 filmstar 55

2.00 politician 10

3.00 cricketer 15

4.00 famous personality 20

Q10

1.00 television 20

2.00 radio 25

3.00 magazine 15

4.00 newspaper 30

5.00 internet 10

FACTORIAL DESIGN OUTPUTTests of Between-Subjects Effects

Dependent Variable: Q1

Source Type III Sum of Squares

df Mean Square F Sig.

InterceptHypothesis 231.746 1 231.746 58.485 .005

Error 11.802 2.978 3.963a

Q8Hypothesis 38.911 3 12.970 2.652 .157

Error 25.161 5.145 4.890b

Q10Hypothesis 20.334 4 5.084 .807 .573

Error 29.435 4.675 6.297c

Q8 * Q10Hypothesis 26.168 5 5.234 5.939 .000

Error 76.667 87 .881d

INTERPRETATION

At 5% level of significanceAlpha value = 0.05P value = 0.157P value > Alpha valueHence, we accept the null hypothesis that Different types of celebrity endorsement does not create a significant difference in brand recognition

INTERPRETATION

At 5% level of significanceAlpha value = 0.05P value = 0.573P value > Alpha valueHence, we accept the null hypothesis that different means of advertisement does not create a significant difference in brand recognition.

INTERPRETATION

At 5% level of significanceAlpha value = 0.05P value = 0.000P value < Alpha valueHence, we reject the null hypothesis that

combination of different types of celebrity endorsement and advertisement does not create any significant difference in brand recognition.

CONCLUSION

• From the above analysis we conclude that celebrity brand endorsements does not have an impact on consumer preference

• It is irrespective of what the medium of ad is and the type of celebrity