Impact of Celebrity Endorsements on Consumer Buying Behaviour

Introduction
As we know, the promotion plays an important role in achieving the organization's goals and strategies, especially in the market field .The biggest improvement in this field is the celebrity involvement as a promotional technique, which enhances the buying decision and loyalty. Advertisers believe that using celebrity endorser will foster, in the mind of the consumer, a match or connection between the celebrity endorser and endorse brand. Billions of dollars spent per year on celebrity endorsement. Nowadays many companies choose celebrities as an endorser for their advertising campaigns. Use of super stars in advertising campaigns attracts a lot of attention from the public.

RESEARCH OBJECTIVES
1- To study the various factors affecting Consumer Buying Behaviour through celebrity endorsements.
2- To examine the effectiveness of Celebrity Endorsements.

NEED OF THE STUDY

India is a country where celebrities are worshipped and possess demo-god status. Marketers take advantage of this opportunity to influence the customers emotionally and make them buy products. The main reason for choosing this topic is based on the fact that so far very less study has been conducted in order to understand the impact of celebrity endorsements on consumer buying behaviour with reference to India. Therefore it will be interesting to investigate the impact of celebrity endorsements on consumers buying behaviour in India. This research project would be useful in understanding the attitude and perceptions of Indian consumers towards celebrity endorsements.

REVIEW OF LITERATURE

Angela Byrne, Maureen Whitehead, Steven Breen (2003), They study that the process of transference of celebrity images to the products image by examining the usage of celebrity endorsement in the formation of the retail image of a leading European grocery distribution group and the extent to which consumers associate themselves with the image of a celebrity endorser is explored. Paul Chao, Gerhard Whrer and Thomas Werani (2005), This study examined the moderating effects of celebrity, foreign brand and COO on consumer product evaluations.

Bahram Ranjbarian, Zahra Shekarchizade ,Zahra Momeni (2010), this study aims to analyze the celebrity endorser influence on attitude toward advertisements and brands. The findings show that attitude toward celebrity endorser can influence on attitude toward brand directly or indirectly. Kalliny, Morris; Beydoun, Abdul-Rahman; Saran, Anshu; Gentry, Lance (2009), The outcome of this research was that, it substantiated the fact that celebrity endorsements do have an impact in the Indian scenario. The research findings also laid stress on the fact that the association of the celebrity with any type of controversy or ill- behaviour, did have a negative impact on the endorsement.

Kumar, Amit (2010), It was proven in this research that consumers find celebrity endorsements more attractive and influential as compared to non-celebrity endorsements. Finally, the results of the study prove that celebrity endorsements positively impact the purchase intention of the consumers. Gupta, DK, (2007), This study states that celebrity endorsee influence consumer buying behavior and brand building but while using celebrity endorsee, marketer has to take care of all the aspect that whether the brought personality and image of celebrity matches or not, whether celebrity endorsee has deep penetration among the masses or not, whether he is considered as credible source or not etc.

RESEARCH METHODOLOGY

Data Collection The main focus on the study is to examine the impact of celebrity endorsements on consumer buying behaviour, apart from other factors influencing buying behaviour like cultural, social, age, income, occupation etc which have been probed extensively by earlier studies. Primary dataQuestionnaire. Information is collected through the

Secondary data- The secondary data is collected from:Internet Books Magazines Journals and Other research books, etc.

Geographical Area- Agra Sample size- 50 respondents Sampling Technique- Random Sampling Statistical Tool- Weighted Average

ANALYSIS AND FINDINGS

Gender of the Respondents

42% Male Female 58%

In this project sample size of 50 respondents is taken. Out of which 58% of the respondents are males and 42% of the respondents are females.

Which of the following medium do you think is more likely to convey celebrity endorsed advertisements?
Effective medium of celebrity endorsements

6% 10%

6%

TV advertisement Magazines Internet New spapers

78%

PREFERENCES ON THE BASIS OF GENDER

100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% TV advertisement Magazines Internet Newspapers 0% 14.30% 14.30% 6.90% 6.90%4.74% 66.66% Male Female 86.20%

How frequently do consumers come across advertisements using celebrity endorsements?

Response %

4% 22%

0% 28% Very frequently Often Ocassionally Rarely Never

46%

PREFERENCES ON THE BASIS OF GENDER

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Very frequently 19% 34.48%

61.80%

34.48% 27.58% 14.20% 3.46% 5% Often Ocassionally Rarely

Male Female

0% 0% Never

What attracts consumers more: celebrity endorsed advertisements or non-celebrity advertisements?

Frequency

26%

Celebrity Endorsed advertisements Non Celebrity Endorsed Advertisements

74%

PREFERENCES ON THE BASIS OF GENDER

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Celebrity Endorsed advertisements Non Celebrity Endorsed Advertisements 27.59% 24% Male Female 72.41% 76%

What type of celebrities do consumers think is more influential as endorsers?

Frequency

10% 4%

2%

a Actors from Movies b Sport Stars 18% c Politicians d Business Persons 66% e Others

PREFERENCES ON THE BASIS OF GENDER

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Actors from Movies Sport Stars Politicians Business Persons Others 4.76% 6.90% 0% 27.58% 10.34% 9.52% 0% 55.18% Male Female 80.95%

4.77%

Does the presence of celebrities in the advertisements help consumers to recognise and recall product more promptly?
Response % 70% 60% 50% 40% 30% 20% 10% 0% Agree Slightly agree Not sure Slightly disagree Disagree 2% 2% 0% 38% Response % 58%

PREFERENCES ON THE BASIS OF GENDER

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 3.45% 3.45% 37.93% 38% Male Female 62% 55.17%

0%

0%

0% 0%

Do consumers think celebrities really use the product endorsed by them in real life?
Response % 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 46%

32% Response % 14% 6% 2% Agree Slightly agree Not sure Slightly disagree Disagree

PREFERENCES ON THE BASIS OF GENDER

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Agree a Slightly agree b Not sure c Slightly disagree d Disagree e 3.45% 6.90% 0% 5% 5% Male 24.14% 20.70% Female 43% 48% 44.81%

How do consumers perceive celebrity endorsements?

Response % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Very Effective Somewhat Effective Not at all Effective 6% 10% Response % 84%

PREFERENCES ON THE BASIS OF GENDER

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Very Effective a Effective b Not at all Effective c 3.45% 10% 13.80% 5% Male Female 82.75% 85%

How influential do consumers think is celebrity endorsements?

Response % 80% 70% 60% 50% 40% 30% 20% 10% 0% Very influential Somewhat Influential Not at all Influential 18% 6% Response % 76%

PREFERENCES ON THE BASIS OF GENDER

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Very influential Influential Not at all Influential 10.30% 28.60% Male Female 66.70%

82.70%

7%

4.70%

As a consumer, do they consider the level of knowledge, experience of the celebrity in particular field can influence their purchase decision?
Response % 60% 50% 40% 30% 20% 10% 0% Agree Slightly agree Not sure Slightly disagree Disagree 14% 16% 8% 10% Response %

52%

PREFERENCES ON THE BASIS OF GENDER

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 14.28% 13.80% 19.05% 13.80% 14.28% 3.45% Male Female 13.80% 4.76%

55.15% 47.63%

As a consumer, do they consider Trustworthiness of the celebrity can influence their purchase decision?
Response % 40% 35% 30% 25% 20% 15% 10% 5% 0% Agree Slightly agree Not sure Slightly disagree Disagree 12% 8% 24% 18% Response % 38%

PREFERENCES ON THE BASIS OF GENDER

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 13.80% 9.52% 9.52% 6.90% 28.57% 20.70% Male 19.05% 17.24% Female 33% 41.36%

As a consumer, do they consider the popularity of the celebrity can influence their purchase decision for a certain product or service?
Response % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 42%

22% 14% 6% 16% Response %

Agree

Slightly agree

Not sure

Slightly disagree

Disagree

PREFERENCES ON THE BASIS OF GENDER

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 0% 10.34% 23.81% 20.70% 17.24% 9.53% 10.34% 23.81% Male Female 43% 41.38%

As a consumer, do they think the Match between the celebrity and the product can an important attribute in influence their purchase decision for a certain product or service?
Response % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40%

28% Response % 10% 10% 12%

Agree

Slightly agree

Not sure

Slightly disagree

Disagree

PREFERENCES ON THE BASIS OF GENDER

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 19.05% 13.80% 4.76% 6.90% 3.45% 19.05% 19.05% Male Female 34.50% 41.35% 38%

Do consumers think celebrities can provide or transfer meaning to the product and influence their purchase decisions based on celebritys age, gender and lifestyle?
Response % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40%

22% 18% 14% 6% Response %

Agree

Slightly agree

Not sure

Slightly disagree

Disagree

PREFERENCES ON THE BASIS OF GENDER

50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 13.80% 14.28% 13.80% 6.90% 4.77% 20.68% 14.28% 33.33% 33% Male Female

44.82%

a. Expertise of the celebrity in the given field/ product endorsed

Response %

Which of the below given factors influence consumers the most to buy a product or service endorsed by a celebrity, rate these factors according to the importance and effectiveness? (1 being the lowest and 5 being the highest)

12%

14% 1 2 3 4

18%

32%

5 24%

b.Trustworthiness of the celebrity

Response %

12% 14%

18% 1 2 3 4 26% 5

30%

c. Similarity between the celebrity endorser and yourself

Response %

14%

16% 1 2 3 4 24% 5

20%

26%

d. Likeability of the celebrity

Response %

10% 22%

18% 1 2 3 14% 4 5 36%

Factors influencing Consumers the most to buy a product or service endorsed by a celebrity
Rank ( on the basis of influence)

30% 40% Expertise Trustworthiness Similarity Likeability 20% 10%

Do consumers feel that Negative Publicity about a celebrity endorser can influence their purchase decision?
Response % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Can't say 22% Response % 36% 42%

PREFERENCES ON THE BASIS OF GENDER

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Yes No Can't say 23.87% 20.70% Male Female 37.90% 33.33% 42.80%

41.40%

Do consumers are likely to purchase products or services that have been endorsed by celebrities.
Response % 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 44%

18%

20% 16%

Response %

2% Agree Slightly agree Not sure Slightly disagree Disagree

PREFERENCES ON THE BASIS OF GENDER

60.00% 52% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 19.05% 17.24% 20.69% 14.28% 9.52% 4.77% 0% 37.93% Male 24.14% Female

Do consumers always purchase products and services endorsed by celebrities.

Response % 35% 30% 25% 20% 15% 10% 5% 0% Agree Slightly agree Not sure Slightly disagree Disagree 14% 10% 16% Response % 32% 28%

PREFERENCES ON THE BASIS OF GENDER

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 10.34% 9.52% 17.24% 9.52% 17.24% 14.28% 34.48% 29% 20.70% Male Female 38.11%

In overall, whether consumers are happy with purchasing products or services advertised by celebrities.
Response % 60% 50% 40% 30% 20% 10% 0% Agree Slightly agree Not sure Slightly disagree Disagree 18% 6% 6% 16% Response % 54%

PREFERENCES ON THE BASIS OF GENDER

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0% 0.00% Agree Slightly agree Not sure Slightly disagree Disagree 0% 19.05% 17.24% 10.34% 10.34% 10.34% Male 23.81% Female 57% 51.74%

FINDINGS OF THE ANALYSIS

People come across celebrity endorsed advertisement in everyday life. Majority of the respondents (46%) stated that they come across celebrity endorsed advertisements often. Additionally, the respondents feel that TV advertisements (78%) is the more likely to carry celebrity endorsed advertisements. The competition between brands has encouraged marketers to use celebrities as endorsers in order to attract more consumer attention. Undoubtedly the findings prove that celebrities are very successful at attracting more consumer attention towards the product they are endorsing. When asked 74% of respondents agreed that celebrity endorsed advertisement are more effective at attracting their attention as compared to non-celebrity advertisements.

Additionally, the respondents state that they find bollywood actors and actresses (66%) more influential as celebrity endorsers followed by sport stars including cricketers, business persons and other personalities.The results state that celebrity endorsements are more attractive that means celebrities attracts the attention of consumers towards the product by appearing with them or endorsing them in an advertisement. Attracting the consumer attention is the first step to influence him to buy the product. Moreover, Celebrity endorsed advertisement deliver higher degree of appeal, attention and recall rate as compared to the non-celebrity advertisements.

The research findings proves this by stating that 90.4% of the respondents either agree or slightly agree that celebrity endorsed advertisements enables them to recall and recognise the products more promptly. Celebrity endorsed advertisement have the potential to influence the consumers. The findings state that 70.67% of respondents said that they find celebrity endorsed advertisements more influential as compared to noncelebrity 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 result of the study proves that expertise of the celebrity endorser slightly influences the purchase decision of the consumers. The result states that the more expert the celebrity is in the category of product being endorsed by him, it is more likely that endorsed product will be purchased by the consumers. The result from the study proves that trustworthiness of the celebrity not surely influences the purchase decision of the consumers The result from the study proves that being similar or feeling some similarity with the celebrity slightly influences the purchase decision of the consumers.

The results of the study have found positive relationship between likeability and purchase decision of the consumer. The results of the research states that respondents are slightly agree with the point that they likely to purchased the product endorsed by celebrities and in overall are happy with their purchases 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.

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. Therefore, the respondents were asked to state if the negative publicity of a celebrity endorser can influence their decision to purchase the products. The respondents gave very complicated results. Majority of the respondents (42%) say that negative publicity do not affect their purchase decision and 36% said that negative publicity influence their buying behavior and 22% are not sure about it.

RECOMMENDATIONS & CONCLUSION

According to the results, it can be recommend that: 1. Celebrities must be used in an advertisements, because they are influential as well as effective medium which can help the customers to remember the brand during shopping, and using celebrities can get more attention than the advertisements that don't.

2. Try to use those celebrities whose expertise in the particular field match up with the product as it influence the customers more.
3. More popular celebrities are more influential, so it can be suggest that the company need to use those celebrities who are more popular.

4. As a celebrity endorser Actors from the movies are more influential compare to sports personalities and females are more attracted towards actors and actresses, so it is recommended that using bollywood celebrities in products of the female segment can be a success for a brand. 5. Whereas males are more attracted towards actors as well as sports stars including cricketers, so company can use both of them as endorsers for male segment products. 6. There is a less impact of negative publicity of the celebrity on the buying behaviour of consumers, so those celebrity can be taken as endorsers who are more popular beside the fact that there is any negative publicity about that celebrity.

CONCLUSION
Understanding buying behavior of customer is the toughest task for a marker, we can identify the factors, which influence purchase decisions, but it is next to impossible to know which factor influence when. The literature review discussed the main and relevant concepts regarding celebrity endorsements. The previous authors first made the concept clear by differentiating between Celebrity and Non-celebrity endorsements and how celebrities form aspirational reference groups. The authors has explained how marketers use celebrity endorsement strategy as a marketing tool to influence consumers buying behaviour. Further the authors has shed some light on Pros and Cons of using celebrities as endorsers. The authors 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. It is found in the previous studies that there is a great effect of celebrities on consumers and the males are more attracted towards celebrity endorsers compare to females. But beside the fact that the celebrity endorsements is a effective medium, it is also found that there is some negative sides of it which may create a negative image of brand in the minds of the consumers due to the image of celebrity in the market or the goodwill of celebrity which has a great effect on the buying behaviour of the consumers towards the brand. But still due to vast advantages still the celebrity endorsement is taken as a better medium to influence the buying behaviour of consumers.