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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                                 Vol. 2 No.2, April 2012
   The impact of Celebrity endorsed tv commercials on demographic dynamics of attitude:
                                                 AN INDIAN CONTEXT


                 Dr. Saroj Kumar Dash                                                 Mr. Deepti Ranjan Sabat
                   Associate Professor                                            Assistant Professor in Management
          Department of Management Studies,                                      MITS Engineering College, Rayagada
    Skyline Institute of Engineering and Technology,                                         Odisha, India.
      Greater Noida, Uttar Pradesh, India-201308



Abstract— Our country is a place where people not only love           services and so on. The celebrities used are most movie stars
the celebrities, but they worship celebrities. Whether it is a        and sports persons. The purpose of this study is to gain a
Bollywood sensation like Salman Khan, Amitabh Bahchan,                deeper understanding of demographic aspects behind a
Juhi Chawla or a sportsperson like Sachin Tendulkar, MS               company’s choice of celebrity endorsement as part of its
Dhoni, Sania Mirza and Saina Nehwal. For the common man               promotional strategy while positioning its brand to a
they are just like dreams. The marketers are well aware of this       particular segment of whole consumer set.
fact and that’s why they use the celebrities to not only to target    To properly achieve the purpose face to face to interviews with
and retain their existing customers but the potential ones too.       the customers in five towns of Ganjam District of the State of
Celebrity endorsement has gained great importance since last          Odisha in India were conducted. The gathered data from the
decade. Every organization now depends on celebrity                   survey is discussed, analyzed and then used to draw
advertising upto a great extent for their brand promotion             conclusions. The overall conclusions from this study are that
rather adding value to their brand. The right combination of          the organizations should go for celebrity as endorser in TV
celebrity and product is very essential. If properly executed, it     ads with a clear demographic perspective of the target
can do wonders for the brand but the mismatch can be                  audiences. Obviously it brings the brand more media exposure
disastrous too, not only for the brand but for the celebrity as       than other forms of endorsements but subject to the
well. The success of a celebrity determines the number of             considerations of the demographic factors of the prospects.
products they endorse. Celebrity endorsements have great              Key Words: Celebrity Endorsement, Brand Recall.
impact on the audiences’ purchase decisions and guide them
                                                                                             I.    INTRODUCTION
to take the decision. The Indian market is witnessing dynamic
                                                                      In the world of advertisement ‘Celebrity Endorsement’ has turn
changes every day but one thing that remains throughout the
                                                                      out to be an additional name. Today, the use of celebrity
time span is the changing impact of celebrities with their
                                                                      advertising for companies has become a trend and a perceived
success and popularity.
                                                                      winning formula of corporate image building and product
Today companies choose to utilize celebrities as endorsers in
                                                                      marketing. Almost every company, nowadays, is mooring in
their marketing campaigns to survive and moreover to reach
                                                                      famous celebrities in order to create customer and thus to
at excellence in competitive "shake-out". This strategy has
                                                                      increase the market share. Marketers now seek to adopt 360
grown more popular than ever. Celebrity endorsements span
                                                                      degree brand stewardship. With this perspective a brand sees
across different product categories like food and beverages,
                                                                      no limits on the number of contact points possible with a target
paints, appliances, readymade garments, hotels, banking
                                                                      consumer to position it with an objective of long term inflow.



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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                                 Vol. 2 No.2, April 2012
Advertising ideas, thus, revolve around this approach, and the        from is all about the consumers’ association towards a celebrity
celebrity endorsement decisions are made through these                endorsed product. Is really celebrity endorsement beneficial for
strategic motives.                                                    the organization in long term perspective or it is just to play a
Three of humankind's greatest inventions— cinema, radio, and          game for once in the field is another question that subsequently
television, have extended the scope of endorsement as an              arise.   Is really it increases the purchase intention of the
advertising technique. At the time period of 80s, the rationale       prospects? The question is that which factors guide the
behind using celebrities was "the spirit of emulation" (Fox,          customers to make a decision regarding a good or a service
1984, p.90). Today, use of celebrities as part of marketing           when the organization is rendering the messages through
communications strategy is fairly common practice for major           different media by the word of mouth of big celebrities of time.
firms in supporting corporate or brand imagery. Experts’              The study will try to give a focus on these aspects on the basis
opinion in this aspect is that celebrity endorsement provides a       of a very short sample study. It will try to make a link between
distinct differentiation in a market with a very high propagation     the Celebrity Endorsement and the consumer perception and
of local, regional and international brands in the perspective of     attitude towards the endorsement and ultimately the endorsed
the fact that celebrity’s word-of-mouth helps to certify the          product. The study will try to explore whether celebrity
brand’s claim. It helps to position the product into the target       endorsement help to build a positive belief and attitude towards
market by extending his/her personality, popularity, status in        the product?
the society or expertise in the field to the brand. Moreover the
expert view is that it helps to increase the recall value of the               II.   CONNOISSEURS’ VIEW OF CELEBRITY
                                                                                               ENDORSEMENT
brand and truly sincere endorsement by a ‘celebrity’ carries
                                                                      Giving a brand a 'face' is more than just a marketing strategy
enormous weight within many sectors of society. The health of
                                                                      to increase sales or gain market share. A truly designed
a brand can definitely be improved up to some extent by
                                                                      celebrity endorsed commercial can change the future of the
celebrity endorsement if one can remember that endorsing a
                                                                      brand forever (Blazey & Ganti, 2005) and as celebrities enjoy
celebrity is a means to an end and not an end in itself.
                                                                      public recognition a company can bank on this while this face
A whole new celebrity endorsement opportunity has cropped in
                                                                      opens his/her mouth on behalf of the company produced
the backdrop of ‘Shining India’. In India Hindustan Unilever
                                                                      consumer product by appearing with it in an advertisement
Ltd has roped in Bollywood stars to endorse their beauty soap
                                                                      (McCracken 1989). Specific image, high profile and
Lux since 1950s. Vimal, Thums-Up and Gwalior are some of
                                                                      familiarity of a celebrity endorser make the advertisement
the other brands that have used star appeal during their early
                                                                      distinctive and thus improve the communicative ability (Atkin
days of mass advertising. British actress Lillie Langtry became
                                                                      and Block, 1983; Sherman, 1985). The use of celebrity
the world’s first celebrity endorser when was appeared on a
                                                                      spokespersons help advertisers to stand out from the crowd
package of Pears Soap in 1893 (Bergstrom, Sharfstad, 2004).
                                                                      and get attention (Kaikati, 1987). Research has shown that in
In US 20 per cent of all TV commercials feature famous
                                                                      general celebrity endorsement influences the feelings of the
personalities and close to 10 per cent of television advertising
                                                                      consumers and can also influence the attitude the consumers
budget in the US goes for celebrity endorsements1.
                                                                      have towards the advertisement and attitude towards the
   Celebrity endorsement is about endorsing products with
                                                                      brands, which can increase the purchase intentions and,
help from a celebrity. The obvious question that arise here-
                                                                      consequently, increase sales. Academic findings and company
                                                                      reports safely argue that celebrity endorsers are more effective
                                                                      than non-celebrity endorsers when it comes to generating all



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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                                Vol. 2 No.2, April 2012
desirable outcomes e.g. attitude towards advertising and             million; Tiger Woods for Nike’s golf advertisements $18
endorsed brand, intensions to purchase and actual sales              million).
(Erdogan, 1999). Celebrity deliver meaning of extra subtlety,        But Tom et al. (1992) found that created endorsers were more
depth and power (McCracken, 1989). Jagdish and Wagner                effective in creating a link to the product than celebrity
(1995) state that celebrities make advertisements believable         endorsers. Non-celebrity endorsed advertisements can also
and enhance message recall. One market research findings             gain positive ‘attitudes towards the advertisement’, ‘attitude
focused on the fact that 8 out of 10 TV commercials scoring          towards the brand’ that was being advertised and ‘intentions to
the highest recall are those with celebrities' appearances           purchase endorsed brands’ (Mehta, 1994). When brazen out
(Media, Nov. 14, 1997). Celebrities aid in the recognition of        with non-celebrity endorsers, consumers were significantly
brand names, create positive attitudes towards the brand and         more focused on the brand and its features, whereas with
create a distinct personality for the endorsed brand. A major        celebrity endorsers the subjects were significantly more
celebrity endorser has the potential to influence the                concentrated on the celebrity in the advertisement (Tom et al.,
profitability of the product he or she endorses (Mathur et al        1992). In general, potential hazards of celebrity endorsement
1997). Potential advantages of utilizing celebrity endorsers are     are the costs and that the possibility that the celebrity
that it can increase attention, polish the image of the brand,       overshadows the brand, or that it can change the image, that
especially when a brand is going to be introduced in the             overexposure of the celebrity takes place, especially when a
market or a repositioning of a brand will take place (De             celebrity become an endorser for many different products
Pelsmacker, 2004). A celebrity endorser used in an                   (Zafer Erdogan, 1999). Moreover, companies have limited
advertisement can be interpreted as aspirational reference           control over the celebrity's personality which can also result in
group that serves as a point of comparison or reference for an       high risk and “no gain” situations (e.g. the “scandals”
individual by communicating values, attitudes and providing a        surrounding celebrities like Michael Jackson, Kate Moss,
specific guide for behavior (Schiffman and Kanuk, 2004).             Britney Spears, Paris Hilton). When negative information is
Though the consumer does not belong to the group but is              spread about a celebrity, it influences not only the consumer’s
willing to be ‘associated’ with this group and are willing to        view of the celebrity, but also the endorsed product (Klebba
behave like members of the aspiration group (De Pelsmacker           and Unger, 1982). Moreover in the case of multiple
et al. 2004).                                                        endorsements, both in terms of a single brand hiring multiple
Companies invest large sums of money to align their brands           celebrities and that of a single celebrity endorsing multiple
with celebrity endorsers. Research has shown that      the fame      brands, consumers do get confused about the brand endorsed.
of celebrities create and maintain attention of the consumers        When a single celebrity endorses numerous brands, the recall
and additionally also achieve high message recall (Ohanian,          then gets reduced and reduces the popularity of the brand. Not
1991; O'Mahony and Meenaghan, 1997). And today inspired              many people can remember all the brands that a celebrity
by the declining effectiveness of the different marketing            endorses and the chances of losing brand recall increases if the
communications (Blondé and Roozen, 2006) - the advertising           celebrity endorses multiple brands (Taleja, 2005). However,
industry is willing to pay the increasing rewards the celebrities    Atkin and Block (1983) and Petty et al. (1983) have found the
are asking (the costs of the spot with Nicole Kidman for             opposite results of Mehta (1994). De Pelsmacker’s view in this
Chanel V amount to 7.5 million Euro; David Beckham for               regard is that, pre-testing and careful planning is very
Adidas $160 million; Gilette $68 million and Pepsi $25.5             important and the life-cycle stage of the celebrity has also
                                                                     been taken into account (De Pelsmacker, 2004).



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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                                Vol. 2 No.2, April 2012
The theories like ‘Source Credibility Theory’, ‘Source               eminent in lifestyle products like clothes, perfumes, cell
Attractiveness Theory’ and ‘Meaning Transfer Theory’                 phones etc.
provide a basis on which the methodology of celebrity
                                                                         III. PORTRAYAL OF RECENT TIME CELEBRITY
endorsement works and also explains how the process of the            ENDORSEMENT SCENARIO FOR BRANDS IN INDIA IN
celebrity endorsement influences the minds of the consumers:                         TV COMMERCIALS
                                                                     India is one country, which has always idolized the stars of the
Source Credibility Theory (by Tellis): This theory tells that
                                                                     celluloid world. There is a big deal about Celebrity
acceptance of the ad message depends on 'Expertness'
                                                                     Endorsements in India. In the battle for mindshare and market
(perceived ability of the source to make valid assertions) and
                                                                     share, companies in India have gone out of their way and
Trustworthiness' (perceived willingness of the source to make
                                                                     hired celebrities to endorse their brands. It makes tremendous
valid assertions) of the source. Audience acceptance increases
                                                                     sense for a brand to procure a celebrity for its endorsement.
with the expertness of the source and the ability of the
                                                                     Around 130 television channels in India are broadcasting over
audience to evaluate the product.
                                                                     3 million television commercials each year in India. This is
Source Attractiveness Theory (based on social psychological
                                                                     perhaps enough to demonstrate the media-explosion scenario.
research): the acceptance of the message depends on
                                                                     According to the report of AdEx India, a division of TAM
familiarity (audience's knowledge of the source through
                                                                     Media Research, in the 1st quarter of the year 2008 60% of all
exposure), likeability (the affection for the source's physical
                                                                     advertising dollars were spent on ads carrying celebrities
appearance and behavior) and similarity (resemblance
                                                                     which were just 25% in the year. 49% growth was experienced
between source and receiver). This theory explains the
                                                                     in celebrity endorsement advertising volumes on TV during
message    acceptance    in    two ways: Identification and
                                                                     the year 2007 as compared to the previous year. There were in
Conditioning.
                                                                     total 745 celebrity endorsements in 2007 as against 499 in
Meaning Transfer Theory (by Grant McCracken):               The
                                                                     2006.Television ads with film stars or cricketers as models
theory explains that a celebrity encodes a unique set of
                                                                     have notched up 60% more airtime in 2006 over the previous
meanings which if well used can be transferred to the endorsed
                                                                     year, with 53 brands using cricketers and 191 film stars,
product. Such a transfer takes place in three stages:
                                                                     according to a study by Adex India. Today, the celebrity
I. Encoding Meanings: Each celebrity has a unique set of
                                                                     endorsement industry is worth Rs.550 crore and is growing at
meanings such as age, gender, race, wealth, personality or
                                                                     high double digit growth rate ranging between 60- 80%.
lifestyle. In this way, the celebrities encode a set of meanings
                                                                     Experts predict the growth rate to touch even triple digits,
in their image. For example Preity Zinta can be seen as a
                                                                     soon. 2
lively, charming, bubbly, witty and enthusiastic.
                                                                     Indian ad industry saw the swelling of a new trend in the latter
II. Meaning Transfer: This stage transfers those meanings to
                                                                     part of the '80s. Hindi film and TV stars as well as
the product. When skillfully portrayed, celebrities can
                                                                     sportspersons were roped in to endorse prominent brands. One
communicate this image more powerfully than lay endorsers.
                                                                     of the first sports endorsements in India was when Farokh
III. Meaning Capture: This assumes that consumers purchase
                                                                     Engineer became the first Indian cricketer to model for Bryl
products not merely for their functional value but also for their
                                                                     cream. The Indian cricket team now earns roughly Rs. 100
cultural and symbolic value.
The theory says that consumers buy the endorsed product with
the intention of capturing some of the desirable meanings with
which celebrities have passed on to the product. This is more



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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                                 Vol. 2 No.2, April 2012
crore through endorsements (Kulkarni & Gaulkar, 2005).                2007 compared to 2006 and in fact, it has grown six times in
Advertisements, featuring stars like Tabassum (Prestige               volume terms between 2003 and 2007 (Figure 1(a)). It is of
pressure cookers), Jalal Agha (Pan Parag), Kapil Dev                  worth mentioning in this context that celebrities from the film
(Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh                  industry accounted for 81 per cent share of the overall
Suitings) became common. When Palmolive used Kapil Dev                celebrity endorsement ad pie on TV during the year 2007 and
in the '80s, his line 'Palmolive da jawaab nahin' became              2008, while male actors accounting a greater share than the
famous -- it is remembered even today. Pataudi gave Gwalior           actress. Sports and TV personalities followed the film
suitings a strong competitive edge and pushed it to Number 2          celebrities in the endorsements race (Figure1 (b) & 1(c)).
in perceptions in the suitings market. Even Sridevi made Cema         Shahrukh Khan remains in no.1 position for the year 2007 and
bulbs and tubes memorable by dancing in a bulb! Probably,             2008 with respect to the no. of endorsement.
the first advertisement to cash in on star power in a strategic,      The celebrity endorsed scenario of TV commercials revealed
long-term, mission statement kind of way was Lux soap. And            the fact that the FMCG producers mostly roped into the
experts’ comment in this regard is that this strategic decision       celebrities’ fame, status, recognition, and image. In summer
of celebrity endorsement has helped to make this brand the top        cool product category ‘Pepsi Mycan' leads with maximum
three in the country for much of its lifetime.                        share of 33 per cent of overall advertising volumes of
In India there is an exponential potential for a celebrity            Celebrity endorsement on TV during January - April 2008 and
endorsement to be perceived as genuinely relevant, thereby            'Thums Up' and 'Coca Cola' followed the number one (Pepsi
motivating consumers to go in for the product. This was               Mycan) with 19 per cent and 9 per cent share respectively
proved true when the endorser and the category are a natural          during January - April 2008. 'Shahrukh Khan' led the Celebrity
lifestyle fit like sportspersons and footwear or health drinks        endorsement chart of Summer Cool categories on TV closely
like Kapil-Sachin and Boost or film stars and beauty products         followed by 'Akshay Kumar' and 'Ranbir Kapoor' during
like Aishwarya and Nakshtra or Lux. It is a fact that the best        January – April 2008. In cellular phone category also the Khan
endorsements achieve an eclectic balance between the product          also plays the role of king. But in cellular phone service
(brand) and the celebrity. (Blazey & Ganti, 2005). People             category R Madhavan has snatched the position.
forget 80% of the information in just 24 hours! And this is           In the Indian context, numerous examples can be uttered to
pinpointing none other than the plight of the marketer to make        establish the hypothesis that celebrity endorsements can
his brand shout over the deafening clutter of all the brands!         embellish the overall brand. A standard example is Coke,
Somewhere in the 80’s, the Indian marketer found the                  which, till recently, didn't use stars at all internationally. In
solution, 'Celebrity Endorsement’ for the brand. A piece of           fact, India was a first for them. The result was a ubiquitously
research states that the target audience age group of 15-30 gets      appealing Aamir cheekily stating Thanda matlab Coca Cola.
influenced first by cricketers, then Bollywood stars and only         Study reveals that the recall value for Nakshatra advertising is
then music, festivals and food (Kulkarni, Gaulkar, 2005).             only due to the sensuous Aishwarya. The Parker pen brand
Following section is portraying a recent scenario of celebrity        used Amitabh Bachchan to revitalize the brand in India.
endorsement of commercials on TV in India as studied by               According to Pooja Jain, Director, Luxor Writing Instruments
AdEx India, a division of TAM Media Research. Their study             Ltd (LWIL), post Bachchan, Parker's sales have increased by
finds that celebrity endorsement on TV has been on a growth           about 30 per cent. Star power in India can be gauged by the
curve. As already mentioned there has been 49 per cent                successful endorsement done by Sharukh for three honchos-
growth in celebrity endorsement ad volumes on TV during               Pepsi, Clinic All Clear and Santro. Irfan Pathan endorsing



                                                                                                                                    196
IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                                Vol. 2 No.2, April 2012
Hero Cycles has gained the brand immense recall and                  suggests that the use of anonymous models or even no
embarked through the positive association between the                celebrity is still an option that should be investigated seriously.
consumer and the brand. Richard Gere's endorsement for               The review of the literature has also shown that the match
VISA in India has gained acclaim. Compatible celebrity               between the brand and or product and the celebrity has to be
product match in which celebrity brand attributes get                optimal. When a brand and/or product is endorsed by a
transferred to the brand and increases the brand equity is of        celebrity endorser, the perceived celebrity image and the
Mallaika Arora & Freshizza from Pizza Hut, Govinda &                 perceived brand image will interact with each other and
Navratan Tel, Sanjay Dutt & Elf Oil, Sunny Deol & Lux                images will be transferred from the endorsed brand to the
Undergarments, Aishwarya Rai & Nakshatra, etc.                       celebrity endorser and vice versa.            MG Parmeswaran,
Celebrity branding is all about the transfer of the value from       executive director of FCB Ulka, says “As advertising
the person to the product he endorses or stands for. Tabu            professionals, we recommend celebrity endorsements when
endorsing Tetra Packed Milk, Shabana Azmi campaigning for            the case is justified. There are many cases where the
AIDS Awareness, Amitabh Bachchan & Shahrukh Khan                     companies need to use the celebrity to break out of a category
campaigning for Pulse Polio or Aishwarya Rai appearing in            clutter. At times, celebrity endorsement is used to build
the Donate Eyes campaign are the examples, which reflect the         credibility to the brand offer. In this light the objective of my
transfer of celebrity values to the brand, creating an impact        study will be give a focus on the following issues:
that generates recall.                                                           To what extent the effect of celebrity endorsement
Celebrity branding is all about the transfer of the value from       vary across different product categories?
the person to the product he endorses or stands for. Tabu
                                                                                 Is the liking of celebrity endorsement gender
endorsing Tetra Packed Milk, Shabana Azmi campaigning for
                                                                     specific?
AIDS Awareness, Amitabh Bachchan & Shahrukh Khan
                                                                                 Most desirable characteristics of celebrity endorser.
campaigning for Pulse Polio or Aishwarya Rai appearing in
the Donate Eyes campaign are the examples, which reflect the                     Is the liking of celebrity endorsement occupation

transfer of celebrity values to the brand, creating an impact        specific?

that generates recall.                                                           Is the liking of celebrity endorsement age specific?
OBJECTIVES OF THE STUDY                                                          Is the liking of celebrity endorsement occupation
There is a myth that celebrity endorsement is used to give a         specific?
brand advantage over its competitors. Research has shown that                                METHODOLOGY
the use of celebrities in advertisements can have a positive                                   Data Collection:
influence on the credibility, message recall, memory and             The study is based on the primary data collected by
likeability of the advertisements and finally on purchase            interviewing the sample buyers personally. A detailed
intentions (Menon, 2001; Pornpitakpan, 2003; Pringle and             questionnaire embracing the objectives laid down was
Binet, 2005; Roy, 2006). The company makes use of the                designed and canvassed to the sample. In order to judge the
celebrity's characteristics and qualities to establish an analogy    role of celebrity endorsed advertisement in the decision
with the products specialties with an aim to position them in        making process of the consumers, products like refrigerator,
the minds of the target consumers. But the opposite view also        TV, two wheeler, 4 wheeler, washing-machine and like was
exist that there is a risk that the celebrity and or his/her         chosen from durable category and hair-oil, tooth-paste, cold
unexpected behavior overshadows the product and this                 drinks, health drinks, dress material, jewelries etc from FMCG



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                                                                                                                                                Vol. 2 No.2, April 2012
     category was considered and from service category banking
     insurance, cell-phone services were chosen.                                                             Thurstone Case V scaling model has been used in order to find
     To study the message recalling scenario of the celebrity                                                out the most important celebrity endorser attribute.
     endorsed advertisements the name of the following 15                                                    Area of Study:
     celebrity endorsers has been mentioned:                                                                 To accomplish the objective of the study the survey was
                     Amitabh          Shahr        Sachin                                        Kareen
                                                                                                             conducted in five towns of Ganjam district of the state of
         Saif Ali       Bachcha        ukh         Tendu       Aamir        Salman   Aishwar       a
          Khan            n           Khan          lkar       Khan         Khan     ya Rai      Kapoor      Odisha. The towns selected are Berhampur, Chatrapur, Aska,
                                                   Aksha       Mahe
                                                     y         ndra
                                                                                                             Digapahandi and Khallikote.
         Hrithik         Juhi         Katrin       Kuma        Singh        Sonali   Preity
                                                                                                             Sample Size:
         Roshan         Chawla        a Kaif         r         Dhoni        Bendre    Zinta
                                                                                                             The size of the sample in each town was 40 that constituted

     A set of 10 statements that were being used to judge the                                                200 respondents in total from all towns. The selection of the

     negativity or the positivity of the attitude of the consumers                                           sample respondent in each and every area was little bit

     towards the celebrity endorsed advertisement are as follows:                                            purposive so that they can represent each income, occupation
1. Celebrity can communicate benefit of the product clearly.                                                 group and belong to different age categories.
2. Celebrity endorsed (CE) ads are more attractive than others.                                              Tools for Analysis:
3. CE ads reflect the status of the brand.
                                                                                                             Chi-square analysis was used to study the significance of the
4. CE ads do not interfere too much with enjoying TV programme that the others do.
5. Celebrities do not use the endorsed products.
                                                                                                             demographic factors like age, income class, occupation and
6. It distracts the attention from the brand.                                                                gender on attitude towards celebrity endorsement commercials
7.
     Celebrities don’t use to convey their own opinion rather they are being purchased to on positively.
                                                                                          say TV commercials.                           Correlation coefficient has been
8. The commercials do not convince me to buy the products                                                    computed to reveal the degree of association of age factor,
9. I’m tired of celebrity endorsed ads.                                                                      gender and the other demographic factors as mentioned with
10 The commercials are much more attractive.
                                                                                                             attitude towards celebrity endorsed TV ads.
     A 7-point Likert-summated scale, the range of which is stated
                                                                                                             Hypothesis:
     in the following table, has been used to rate the
                                                                                                             The following is the replication hypothesis based on
     abovementioned statements related to the measurement of
                                                                                                             Connoisseurs’ views that were tested on the basis of collected
     attitude towards celebrity endorsed advertisements:
                                                                                                              data:
           1               2                   3               4               5          6            7
                                                                                                              These entire null hypotheses were being tested against the
     STRONGLY       DISAGREE          SOMEWHAT              NEITHER     SOMEWHAT      AGREE      STRONGLY
     DISAGREE                          DISAGREE              AGREE           AGREE                AGREE

                                                              NOR                                            1st Null Hypothesis    :   H10 = attitude towards celebrity endorsed ads
                                                            DISAGREE                                                                    are sex independent.
                                                                                                              nd
     In order to avoid the complexity of the signs the positive nos.                                         2 Null Hypothesis      :   H20 = attitude towards celebrity endorsed ads
                                                                                                                                        are age independent.
     from 1 to 7 has been selected where 4 is the neutral point.
                                                                                                              rd
                                                                                                             3 Null Hypothesis      :   H30 = attitude towards celebrity endorsed ads
     Another 7-point scale is used to determine the role of the
                                                                                                                                        are income class independent.
     celebrity endorsed ads in decision making process (at any                                               following corresponding alternative hypothesis:
     stage from need recognition to brand selection). The detail of
     the scale is as follows:

     1              2             3                  4                  5             6           7
     TOTAL          NEGAT         SOMEWHA            NEITHER            SOMEWHAT      POSITIVE    TOTAL

     NEGATIVE       IVE           T                  NEGATIVE           POSITIVE      ROLE        POSITIVE

     ROLE           ROLE          NEGATIVE           ROLE       NOR     ROLE                      ROLE

                                  ROLE               POSITIVE

                                                     ROLE
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                                                                  Vol. 2 No.2, April 2012
            1stAlternative                :        H11 = attitude towards celebrity endorsed ads are sex    The visibility scenario of the celebrity endorsed ads were
            Hypothesis                             dependent.
                                                                                                            such that only 16 respondents out of total 200 could not tell
            2nd         Alternative       :        H21 = attitude towards celebrity endorsed ads are
                                                                                                            about a single ad endorsed by the celebrities that was being
            Hypothesis                             age dependent.
            3rd         Alternative       :        H31 = attitude towards celebrity endorsed ads are        selected.     A   weight    ‘1’   was   given   to     the   right
            Hypothesis                             income class dependent.                                  commemoration of the advertisement endorsed by the
            FINDINGS & ANALYSIS OF DATA PERTAINING TO                                                      abovementioned celebrities. If one can remember 2 or 3 or
            CELEBRITY ENDORSEMENT                                                                          more ad endorsed by that particular celebrity then the
                                                                                                           weightage corresponding to that respondent and corresponding
Table A: RESPONDENT’S DEMOGRAPHIC PROFILE                                                                  to that celebrity was given. i.e. if one can remember 5 ads
• AGE DISTRIBUTION OF THE • INCOME WISE DISTRIBUTION OF THE                                                endorsed by Amitbh Bacchan then it was counted as 5. The
                  RESPONDENTS                             RESPONDENTS
                                                                                                           average was estimated just by dividing such summed up
Age               Fre    M      F         %         Per-           Fre     Ma    Fem     %
                  qu                                capita*        que     le    ale
                                                                                                           numerical by 15 (the no. of celebrities). The ultimate result
                  enc                               Income         ncy                                     that was got is that the ‘Correlation-Coefficient’ between age
                  y                                 Level                                                  and average recall scenario, as computed, is (-0.230340054),
                                                    (in     ‘000
                                                                                                           where average recall scenario is nothing but the summation of
                                                    Rs)
                                                                                                           the score of the commemoration divided by 15 (the no. of
below                    8      16        12                               8     0
20                24                                <1             8                     4                 celebrities selected). The negative symbol is an indication of
20-30             136    76     60        68        1-3            128     70    58      64                the fact that the persons at a lower age are fond of this kind of
30-40             20     12     8         10        3-5            28      12    16      14                ads and vice versa. Another interesting result revealed the fact
Above                    16     4         10                               20    16
                                                                                                           that commemoration and income is positively related and the
40                20                                5-10           36                    18
                                                                                                           ‘Correlation-Coefficient’ between income & average recall
                                                    >10            8       8     0       4
TOTA              200    11     88        10        TOTAL          200     112   88      100               rate is (+0.06582), though the degree is not so high.
L                        2                0                                                                HYPOTHESIS TESTING
*note: per capita income=HH income/no. of family members. The objective                                        1) Influencing role of SEX to attitude towards
behind taking this per-capita income was to consider the income status
                                                                                                                    Celebrity endorsed ad:
orientation of the financially dependent respondents.
                                                                                                               H10 = attitude towards celebrity endorsed ads are sex
        •         OCCUPATIONAL STATUS OF THE RESPONDENTS
CATEGORY                 Freq        M         F           Percent (%)                                     independent.
                         uenc                                                                                  H11 = attitude towards celebrity endorsed ads are sex
                         y                                                                                 dependent.
Unemployed               132         52        80          66
Blue-collar              12          8         4           6
                                                                                                           Data table B1 is revealing the sex based attitude scenario of
Employee
White-collar             32          28        4           16                                              celebrity endorsed TV ads.
Employee
Business                 24          24        0           12
person
Total                    200         11        88          100
                                     2




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                                                                                                                                                      Vol. 2 No.2, April 2012
  Table B1: Observed frequencies of SEX BASED Attitude                      Table B2: Expected frequencies
                                                                                                                         hypothesis. So age factor plays a significant role in developing
  towards celebrity endorsed TV commercials
                                       Freq.                                                                  Freq.      attitude towards celebrity endorsed ads. And correlation-
          Freq.        Freq.                                                         Freq.         Freq.
                                       of                       %     of                                      of
  SEX
          of +ve       of -ve
                                       neutral
                                                    ROW
                                                                positive    SEX
                                                                                     of +ve        of -ve
                                                                                                              neutral
                                                                                                                         coefficient figure is revealing a negative relationship and the
          attitude     attitude                     SUM                              attitude      attitude
          to CE        to CE
                                       attitude                 attitude
                                                                                     to CE         to CE
                                                                                                              attitude   degree is as follows:
                                       to CE                                                                  to CE
  M       64           40              8            112         57          M        56            49.28      6.72       Correl (age, attitude) = - (0.114657354),
  F       36           48              4            88          41          F        44            38.72      5.28
                                                                                                                         So we can conclude here-from that aged persons are not so
  COL.                                                                      ESTIMATED χ2 =7.124
          100          88              12           200
  SUM                                                                       d. f.= (Row-1)(Column-1)= 2                  prone towards these types of advertisements.
                                                                            Table χ2 (at 95% level of significance)
  %       50%          44%             6%           100%                                                                           3) Influencing role of INCOME-CLASS to attitude
                                                                            = 5.99

                                                                                                                                          towards Celebrity endorsed ad:
           The Chi-square analysis to the above dataset is rejecting the                                                           H30 = attitude towards celebrity endorsed ads are income
           null-hypothesis and divulging the fact that there is a                                                                          class independent.
           significant difference between the attitude of male and female                                                          H31 = attitude towards celebrity endorsed ads are income
           customers towards the celebrity endorsed TV advertisements.                                                   class dependent.
           The percentage analysis is depicting the picture that males are                                               Table D1: Observed frequencies of INCOME-      Table D2: Expected frequencies
                                                                                                                         CLASS BASED Attitude towards celebrity
           much more inclined towards celebrity endorsed ads.                                                            endorsed TV commercials

                                                                                                                                                        Freq.                                                    Freq.
                     2) Influencing role of AGE to attitude towards
                                                                                                                                      Freq.             of                                                       of
                            Celebrity endorsed ad:                                                                                    of       Freq.    neutra                                       Freq.       neutra
                                                                                                                           Inco       +ve      of -ve   l         RO      Inco       Freq.      of   of -ve      l
                     H20 = attitude towards celebrity endorsed ads are age                                                 me         attitu   attitu   attitu    W       me         +ve             attitud     attitu
                                                                                                                           class      de to    de to    de to     SU      class      attitude        e      to   de to
           independent.
                                                                                                                           (,000)     CE       CE       CE        M       (,000)     to CE           CE          CE
                     H21 = attitude towards celebrity endorsed ads are age                                                 <1         0        4        4         8
                                                                                                                                                                          <1         3.84            3.68        0.48
                                                                                                                           1-3        64       52       8         124
           dependent.                                                                                                                                                     1-3        59.52           57.04       7.44
                                                                                                                           3-5        12       16       0         28
                                                                                                                                                                          3-5        13.44           12.88       1.68
Table C1: Observed frequencies of AGE BASED                                Table C2: Expected frequencies                  5-10       20       16       0         36
                                                                                                                                                                          5-10       17.28           16.56       2.16
Attitude towards celebrity endorsed TV commercials                                                                         >10        0        4        0         4
                                                                                                                                                                          >10        1.92            1.84        0.24
  AGE       Freq. of           Freq.           Freq.       RO               AGE           Freq.      Freq     Freq.        COL.
                                                                                                                                                                        ESTIMATED χ2 = 40.399
            +ve                of              of          W                              of         . of     of           SUM        96       92       12        200
                                                                                                                                                                        d. f.= (Row-1)(Column-1)= 8
            attitude           -ve             neutral     SU                             +ve        -ve      neutr                                                     Table χ2 (at 99% level of significance) = 20.09
            to                 attitud         attitud     M                              attitu     attit    al
            CE                 e     to        e    to                                    de to      ude      attitu
                               CE              CE                                         CE         to       de to      So the data set is rejecting the null hypothesis and at the same
  below                                                                                              CE       CE         time establishing the alternative hypothesis as the fact. Thus
  20        16                 4               4           24               below                    11.5
                                                                            20            11.52      2        0.96
                                                                                                                         income class is a significant guidance to develop an attitude
  20-30     60                 72              4           136
  30-40     12                 8               0           20                                        65.2                towards celebrity endorsed TV commercials. And exactly
  40                                                                        20-30         65.28      8        5.44
                                                                                                                         there exists a negative relationship among these two, though
  above     8                  12              0           20               30-40         9.6        9.6      0.8
  Colu
                                                                                                                         the degree is not so high:
                                                                            40
  mn                                                                        above         9.6        9.6      0.8        Correl (Income, CE attitude) = - (0.11568531)
  Sum       96                 96              8           200
ESTIMATED χ2 = 21.1
d. f. = (Row-1)(Column-1) = 6                                                                                            4)               Influencing            role    of          OCCUPATIONAL
Table χ2 (at 99% level of significance) = 16.81                                                                          CATEGORY to attitude towards Celebrity endorsed ad:


           The outcome of the above chi-square analysis is the rejection
           of null-hypothesis and obviously acceptance of alternative



                                                                                                                                                                                                                      200
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                                                                                                                                      Vol. 2 No.2, April 2012
Table      E1:       Observed     frequencies    of   Table           E2:        Expected    (Either need recognition or BRAND DECISION MAKING:
OCCUPATION based Attitude towards                     frequencies
                                                                                             Using 7-point scale that ranges from 1 to 7, as stated earlier):
celebrity endorsed TV commercials
                                                                                             The mean scores (on a 7-point scale) for different product
                            Freq
                            . of                                  Freq.     Freq.            category are as follows:
                            -ve                                   of        of     -
                 Freq. of   attit                     Occupa      +ve       ve                            Table F: Mean Score of role of CE ads in decision making
Occupati         +ve        ude       ne    RO        tion        attitu    attitu     ne                                         process
on               attitude   to        utr   W         categor     de to     de to      utr
                                                                                                                                                         AVERAGE
category         to CE      CE        al    SUM       y           CE        CE         al
                                                                                                                                                           (for all
unemplo                                               unempl                58.0       7.9                                                                 product
yed              68         56        8     132       oyed        66        8          2                          DURABLE        FMCG       SERVICE       category)
blue                                                  blue                             0.7             Mean
collar           4          8         0     12        collar      6         5.28       2               Score        4.32093     4.763566     4.658915     4.581137
white                                                 white                 14.0       1.9            Rounded
collar           12         20        0     32        collar      16        8          2               figures        4.00          5           5             5
                                                      busines
business                                              s                     10.5       1.4
                                                                                             The above table is depicting the picture that though in the case
person           16         4         4     24        person      12        6          4
                                                                                             of FMCG products and services this kind of ads have a
COL.
SUM              100        88        12    200                                              positive role, in the case of durable commodities the picture is
ESTIMATED χ2 = 18.29247                                                                      neutral. And the extent of positive role in the case of FMCG
d. f.= (Row-1)(Column-1)= 6                                                                  and services is not so greater. But overall scenario is a positive
Table χ2 (at 99% level of significance) = 16.81
                                                                                             one. Somewhat these ads play a role in the decision making,
           The above chi square result is rejecting the null hypothesis and
                                                                                             either in the case of need recognition or in the case of brand
           makes the alternative hypothesis established. And Table E3 is
                                                                                             selection. Likewise the other non-celebrity endorsed ads they
           revealing another scenario that the positiveness of the attitude
                                                                                             sometimes make the customers aware about the availability
           towards the kind of advertisements is more in unemployed and
                                                                                             and so on.
           business persons. The reason may be the fact of the
           comparatively plenty time for entertainment and conversely
                                                                                             CELEBRITY ENDORSER’S ATTRIBUTES BEHIND
           the busy schedule of the employees.
                                                                                             THE SUCCESS OF THE ADS
                       Table E3 : % of positive attitude of different
                                                                                             The dataset of Table G1 is being used to determine the
                       occupational category
                                                                                             preferred celebrity endorsers attributes – viz. physical
                                            BLUE      WHITE            BUSINESS
                                                                                             attractiveness (PA), trustworthiness (T), similarity (S), respect
                       UNEMPLOYED           COLLAR    COLLAR           PERSON
                                                                                             (R) and expertise (E). The numbers in each cell is depicting
                       51.5152              33.3333   37.5             66.6667               the number of respondents preferring the column attributes
                                                                                             than the row attributes.


           ROLE OF CELEBRITY ENDORSED AD IN any state of
           DECISION MAKING PROCESS




                                                                                                                                                                  201
IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                                                         Vol. 2 No.2, April 2012
                                                                                                           purchase intentions. But the success of the use of celebrity
Table G1: Observed frequencies of                   Table G2: Observed proportions of respondents
respondents preferring row attributes               preferring row attributes than column attributes       endorsers varies across different products. More significantly
than column attributes
                                                                                                           the success of the use of the celebrity endorsers in the
               Preferred Attributes                              Preferred Attributes


           P
                                                         PA         T            R         S        E      commercials depends on the fact that for which demographic
           A   T         R       S      E
                                                P                 0.574         0.340    0.4468   0.5744
  P            11                      11                                                                  segment the ad was meant—is it meant for the males or else;
                                                A         0        468          426       08       68
  A        0   5     68          89     5
                                 11    10
                                                        0.425                   0.340    0.5957   0.5106   is it for the teenagers; is it for the white collar workers; is it
                                                T        532        0           426       45       38
  T     85     0     68          9      2
                                                        0.659     0.659                  0.3617   0.6382
                                                                                                           for the housewives or for the students, i.e. for the financially
        13     13                      12
  R        2   2         0       72     8
                                                R        574       574           0        02       98
                                                                                                           dependents; or it is for the business personnel, for the reason
                                                        0.553     0.404         0.638             0.6382
        11           12                12
                                                S        192       255          298        0       98      that demography make a significant difference of the psyche
  S        1   81        8       0      8
                                                        0.425     0.489         0.361    0.3617
                                                                                                           of the consumers. So the marketers should go thoroughly
  E     85     98    72          72     0       E        532       362          702       02        0
                                                                                                           about the psyche of the different demographic segment before
                                                                                                           finalizing the strategies with a long term perspective. Then
                                                                                                           only the marketing organizations can become able to satisfy
                Z values related to preference proportion
                                                                                                           their esteem need; fame, prestige in the consumers’ society
                         PA                 T            R                S              E
      PA                     0          0.19           -0.41            -0.23           0.19               can be gained. And this is the only way to reach at the top of
       T             -0.19                  0          -0.41             0.24           0.03               Self-actualization Mountain—the ultimate destination of
      R              0.41               0.41              0             -0.34           0.35               individual human being as an organization of different
       S             0.23              -0.24            0.34              0             0.35               activities, the ultimate destination of a group of individuals
       E             -0.19             -0.03           -0.35            -0.35             0
                                                                                                           with a rational perspective.
   Column
                                                                                                           BIBLIOGRAPHY:
      Sum            0.26               0.33           -0.83            -0.68           0.92
                                                                                                               1.   Atkin, C. and Block, M. (1983), “Effectiveness of
   MEAN              0.052             0.066           -0.166           -0.136          0.184
   RANK              0.218             0.232            0.00            0.006           0.35                        Celebrity   Endorsers”,     Journal      of     Advertising
                                                                                                                    Research, Feb/Mar, Vol. 23 (1), 57-61.
So the attribute preference pattern of celebrity endorser for the                                              2.   Belch, G. E. and Belch, M. A. (2001), “Advertising
sample is as follows:                                                                                               and    Promotion:     An    integrated        marketing     c
                                      E > T > PA > S > R                                                            communications perspective”, 5th ed. New York:
That is the respondents’ attitude towards celebrity endorsed                                                        McGraw-Hill. ISBN 0-07-231445-1.
ads is first of all guided by the expertise of the celebrities, then                                           3.   Bergstrom, C. and Skarfstad, R. (2004), “Celebrity
trustworthiness. Physical attractiveness is the third important                                                     Endorsement,      Social    Science      and      Business
factor of this attitude development.                                                                                Administration Programmes”, Dept. of Busi Admn
CONCLUSION                                                                                                          and Social Sciences, Division of Industrial Marketing
Companies frequently use celebrity as spokespersons to                                                              and e-Commerce, Lulea University of technology,
deliver their ad message and to persuade and to convince                                                            2004:193                                        SHU.ISSN:
consumers of their brands. A billion of dollars spent per year                                                      1404_5508/ISRN:KTU_SHU—04/193—SE.
on celebrity endorsement. This research result suggests                                                        4.   Blazey, N. & Ganti, S. K.          (2005), “Impact of
tentatively that the use of celebrity endorsers in TV                                                               Celebrity Endorsement on Overall Brand”, Marketing
commercials could be effective in influencing attitudes and                                                         @ Knowledge Zone.



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5.   Blondé, K. and Roozen, I (2007), “An Explorative                      process”, Journal of Consumer Research, 16(12),
     Study of Testing the Effectiveness of Product                         310-321.
     Placement compared to 30-second TV-Commercials”                   15. McCracken, G. (1989), "Who is the Celebrity
     for the 6th International Marketing Trends Congress,                  Endorser?" Journal of Consumer Research, 16
     Paris 26-27 January 2007.                                             (December), 310-321.
6.   Pelsmacker, P. D., Geuens, M. and Bergh, J. V. D.                 16. Mehta, A. (1994), “How Advertising Response
     (2004), “Marketing Communications, A European                         Modelling (ARM) Can Increase Ad Effectiveness” ,
     Perspective”, second edition, Prentice Hall.                          Journal of Advertising Research, 34, no. 3, pp. 62-74.
7.   Erdogan, B. Z. (1999), “Celebrity endorsement: A                  17. Menon, K. (2001), Celebrity Advertising: An
     literature review”. Journal Marketing Management,                     Assessment of Its Relative Effectiveness.
     15 (4), 291-315.                                                  18. Ohanian, R.        (1991), “The Impact of Celebrity
8.   Jagdish, A., and Wagner, K. A. (1995). The                            Spokespersons' Perceived Image on Consumers'
     Economic Worth of Celebrity Endorsers: An event                       Intention to Purchase”. Journal of Advertising
     study analysis, Jolurnal of marketing, 56(3), 56-62.                  Research. February/March (1991): 46-54.
     ISSN 0022-2429.                                                   19. Patel, S. (2008), “Of celebrity branding, brand
9.   Kaikati, J. G. (1987), "Celebrity Advertising: A                      marketers, and India”,       Monday - Sep 15, 2008
     Review and Synthesis," International Journal of                       Televisionpoint.com
     advertising, 6, 93.                                               20. Pringle, H & Binet, L (2005), “How marketers can
10. Kulkarni, S. A. and Gaulkar, S. U.( 2005), “Impact of                  use celebrities to sell more effectively” Journal of
     Celebrity     Endorsements   on    Overall     Brand”   ,             Consumer Behaviour, Mar2005, Vol. 4 Issue 3, p201-
     Marketing@Knowledge                               Zone,               214.
     http://www.indianmba.com/Occasional_Papers/OP88                   21. Pornpitakpan, C. (2003), “The Effect of Celebrity
     /op88.html.                                                           Endorsers' Perceived Credibility on Product Purchase
11. Klebba, J. M. and Unger, L.S. (1982), “The Impact of                   Intention: The Case of Singaporeans”, Journal of
     Negative and Positive Information on Source                           International Consumer Marketing, 2003, Vol. 16
     Credibility in a Field Setting” Advances in Consumer                  Issue 2, p55-74.
     Research, 10(1), 45-48.                                           22. Roy, S. (2006), “An exploratory study in celebrity
12. Rajesh S Lalwani, “India media news marketing                          Endorsements. Journal of creative communications
     India   advertising   Indian      brands     TV   media               1:2 (2006) Sage Publications New Delhi.
     newspapers”,                                                      23. Schiffman, L. G.and Kanuk, L. L. (2004), Consumer
     http://www.exchange4media.com/Viewpoint/viewpoi                       Behaviour, Prentice-HBall of India Private Limited,
     nt.asp?view_id=40.                                                    New Delhi.
13. Marhue, L. K. and Mathur, I. (1997), “The wealth                   24. Sherman, S. P. (1985), "When You Wish upon a
     effects associated with a celebrity endorser. The                     Star", Fortune Vol. 112.
     Michael Jordan phenomenon”, Journal of advertising                25. Shimp, T. A. (2000), “Advertising, promotion:
     research, 37(3), 67-73.                                               Supplemental       aspects   of   integrated   marketing
                                                                                                 th
14. McCracken, G. (1989), “Who is the Celebrity                            communication”, 5 ed. Forth worth, Tex.: Dryden.
     Endorser? Cultural foundations of the Endorsement                     ISBN 0-03-021113-1.



                                                                                                                                203
IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
                                                                                                           Vol. 2 No.2, April 2012
26. Taleja,    N.   (2005),   “   Impact      of   Celebrity         Technology, Greater Noida. He has consistently a
    Endorsements on Overall Brand”,           Marketing @            brilliant academic career. Dr. Dash has considerable
    Knowledge                                         Zone,          research work to his credit and published several
    http://www.coolavenues.com/know/mktg/neha_taleja
                                                                     research paeprs in national and international
    1.php
                                                                     journals. He has authored two edited books on
27. Gail, T., Rebecca, C., Laura, E., Edward, G., Joseph,
                                                                     “Innovations      in        Management         Science”     and
    M., and Harmona. S. (1992), “The Use of Created
                                                                     “Contemporary          issues    in   Services     Marketing-
    versus Celebrity Spokesperson in Advertisement”,
                                                                                            st
    The Journal of Consumer Research, 20, no; 4 pp.                  Challenges for 21 century” with Global Research
    535-547.                                                         Publications,New Delhi. Besides this he has
28. The Hindu Business Line, “Celebrity endorsement                  authored     a   reference       book     on     “Relationship
    ads on TV up 49% during 2007”, Bureau, , Business                Marketing” with Serials publications, New Delhi.
    Daily from THE HINDU group of publications,
    Wednesday,            Apr           09,           2008,
                                                                     Mr.Deepti Ranjan Sabat has completed his MBA
    http://www.blonnet.com/2008/04/09/stories/2008040
                                                                     in    Marketing        and      finance   from     Sambalpur
    950750500.htm
                                                                     University, Orissa. Presently he is working as
               AUTHORS PROFILE
                                                                     Assistant professor in Management at MITS
Dr. Saroj Kumar Dash obtained his M.Sc, MBA,
                                                                     Engineering      college        Rayagada,Odisha.       He    is
PGDCA and PhD (Management) degree from
                                                                     actively engaged in teaching marketing related
Berhampur University, Orissa. He is currently
                                                                     subjects. He is havig a brilliant academic career. His
working as Associate Professor and Head of MBA
                                                                     core area of research is Services Marketing.
Programme of Skyline Insitute of Engineering and




                                                                                                                                 204

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  • 1. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 The impact of Celebrity endorsed tv commercials on demographic dynamics of attitude: AN INDIAN CONTEXT Dr. Saroj Kumar Dash Mr. Deepti Ranjan Sabat Associate Professor Assistant Professor in Management Department of Management Studies, MITS Engineering College, Rayagada Skyline Institute of Engineering and Technology, Odisha, India. Greater Noida, Uttar Pradesh, India-201308 Abstract— Our country is a place where people not only love services and so on. The celebrities used are most movie stars the celebrities, but they worship celebrities. Whether it is a and sports persons. The purpose of this study is to gain a Bollywood sensation like Salman Khan, Amitabh Bahchan, deeper understanding of demographic aspects behind a Juhi Chawla or a sportsperson like Sachin Tendulkar, MS company’s choice of celebrity endorsement as part of its Dhoni, Sania Mirza and Saina Nehwal. For the common man promotional strategy while positioning its brand to a they are just like dreams. The marketers are well aware of this particular segment of whole consumer set. fact and that’s why they use the celebrities to not only to target To properly achieve the purpose face to face to interviews with and retain their existing customers but the potential ones too. the customers in five towns of Ganjam District of the State of Celebrity endorsement has gained great importance since last Odisha in India were conducted. The gathered data from the decade. Every organization now depends on celebrity survey is discussed, analyzed and then used to draw advertising upto a great extent for their brand promotion conclusions. The overall conclusions from this study are that rather adding value to their brand. The right combination of the organizations should go for celebrity as endorser in TV celebrity and product is very essential. If properly executed, it ads with a clear demographic perspective of the target can do wonders for the brand but the mismatch can be audiences. Obviously it brings the brand more media exposure disastrous too, not only for the brand but for the celebrity as than other forms of endorsements but subject to the well. The success of a celebrity determines the number of considerations of the demographic factors of the prospects. products they endorse. Celebrity endorsements have great Key Words: Celebrity Endorsement, Brand Recall. impact on the audiences’ purchase decisions and guide them I. INTRODUCTION to take the decision. The Indian market is witnessing dynamic In the world of advertisement ‘Celebrity Endorsement’ has turn changes every day but one thing that remains throughout the out to be an additional name. Today, the use of celebrity time span is the changing impact of celebrities with their advertising for companies has become a trend and a perceived success and popularity. winning formula of corporate image building and product Today companies choose to utilize celebrities as endorsers in marketing. Almost every company, nowadays, is mooring in their marketing campaigns to survive and moreover to reach famous celebrities in order to create customer and thus to at excellence in competitive "shake-out". This strategy has increase the market share. Marketers now seek to adopt 360 grown more popular than ever. Celebrity endorsements span degree brand stewardship. With this perspective a brand sees across different product categories like food and beverages, no limits on the number of contact points possible with a target paints, appliances, readymade garments, hotels, banking consumer to position it with an objective of long term inflow. 192
  • 2. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 Advertising ideas, thus, revolve around this approach, and the from is all about the consumers’ association towards a celebrity celebrity endorsement decisions are made through these endorsed product. Is really celebrity endorsement beneficial for strategic motives. the organization in long term perspective or it is just to play a Three of humankind's greatest inventions— cinema, radio, and game for once in the field is another question that subsequently television, have extended the scope of endorsement as an arise. Is really it increases the purchase intention of the advertising technique. At the time period of 80s, the rationale prospects? The question is that which factors guide the behind using celebrities was "the spirit of emulation" (Fox, customers to make a decision regarding a good or a service 1984, p.90). Today, use of celebrities as part of marketing when the organization is rendering the messages through communications strategy is fairly common practice for major different media by the word of mouth of big celebrities of time. firms in supporting corporate or brand imagery. Experts’ The study will try to give a focus on these aspects on the basis opinion in this aspect is that celebrity endorsement provides a of a very short sample study. It will try to make a link between distinct differentiation in a market with a very high propagation the Celebrity Endorsement and the consumer perception and of local, regional and international brands in the perspective of attitude towards the endorsement and ultimately the endorsed the fact that celebrity’s word-of-mouth helps to certify the product. The study will try to explore whether celebrity brand’s claim. It helps to position the product into the target endorsement help to build a positive belief and attitude towards market by extending his/her personality, popularity, status in the product? the society or expertise in the field to the brand. Moreover the expert view is that it helps to increase the recall value of the II. CONNOISSEURS’ VIEW OF CELEBRITY ENDORSEMENT brand and truly sincere endorsement by a ‘celebrity’ carries Giving a brand a 'face' is more than just a marketing strategy enormous weight within many sectors of society. The health of to increase sales or gain market share. A truly designed a brand can definitely be improved up to some extent by celebrity endorsed commercial can change the future of the celebrity endorsement if one can remember that endorsing a brand forever (Blazey & Ganti, 2005) and as celebrities enjoy celebrity is a means to an end and not an end in itself. public recognition a company can bank on this while this face A whole new celebrity endorsement opportunity has cropped in opens his/her mouth on behalf of the company produced the backdrop of ‘Shining India’. In India Hindustan Unilever consumer product by appearing with it in an advertisement Ltd has roped in Bollywood stars to endorse their beauty soap (McCracken 1989). Specific image, high profile and Lux since 1950s. Vimal, Thums-Up and Gwalior are some of familiarity of a celebrity endorser make the advertisement the other brands that have used star appeal during their early distinctive and thus improve the communicative ability (Atkin days of mass advertising. British actress Lillie Langtry became and Block, 1983; Sherman, 1985). The use of celebrity the world’s first celebrity endorser when was appeared on a spokespersons help advertisers to stand out from the crowd package of Pears Soap in 1893 (Bergstrom, Sharfstad, 2004). and get attention (Kaikati, 1987). Research has shown that in In US 20 per cent of all TV commercials feature famous general celebrity endorsement influences the feelings of the personalities and close to 10 per cent of television advertising consumers and can also influence the attitude the consumers budget in the US goes for celebrity endorsements1. have towards the advertisement and attitude towards the Celebrity endorsement is about endorsing products with brands, which can increase the purchase intentions and, help from a celebrity. The obvious question that arise here- consequently, increase sales. Academic findings and company reports safely argue that celebrity endorsers are more effective than non-celebrity endorsers when it comes to generating all 193
  • 3. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 desirable outcomes e.g. attitude towards advertising and million; Tiger Woods for Nike’s golf advertisements $18 endorsed brand, intensions to purchase and actual sales million). (Erdogan, 1999). Celebrity deliver meaning of extra subtlety, But Tom et al. (1992) found that created endorsers were more depth and power (McCracken, 1989). Jagdish and Wagner effective in creating a link to the product than celebrity (1995) state that celebrities make advertisements believable endorsers. Non-celebrity endorsed advertisements can also and enhance message recall. One market research findings gain positive ‘attitudes towards the advertisement’, ‘attitude focused on the fact that 8 out of 10 TV commercials scoring towards the brand’ that was being advertised and ‘intentions to the highest recall are those with celebrities' appearances purchase endorsed brands’ (Mehta, 1994). When brazen out (Media, Nov. 14, 1997). Celebrities aid in the recognition of with non-celebrity endorsers, consumers were significantly brand names, create positive attitudes towards the brand and more focused on the brand and its features, whereas with create a distinct personality for the endorsed brand. A major celebrity endorsers the subjects were significantly more celebrity endorser has the potential to influence the concentrated on the celebrity in the advertisement (Tom et al., profitability of the product he or she endorses (Mathur et al 1992). In general, potential hazards of celebrity endorsement 1997). Potential advantages of utilizing celebrity endorsers are are the costs and that the possibility that the celebrity that it can increase attention, polish the image of the brand, overshadows the brand, or that it can change the image, that especially when a brand is going to be introduced in the overexposure of the celebrity takes place, especially when a market or a repositioning of a brand will take place (De celebrity become an endorser for many different products Pelsmacker, 2004). A celebrity endorser used in an (Zafer Erdogan, 1999). Moreover, companies have limited advertisement can be interpreted as aspirational reference control over the celebrity's personality which can also result in group that serves as a point of comparison or reference for an high risk and “no gain” situations (e.g. the “scandals” individual by communicating values, attitudes and providing a surrounding celebrities like Michael Jackson, Kate Moss, specific guide for behavior (Schiffman and Kanuk, 2004). Britney Spears, Paris Hilton). When negative information is Though the consumer does not belong to the group but is spread about a celebrity, it influences not only the consumer’s willing to be ‘associated’ with this group and are willing to view of the celebrity, but also the endorsed product (Klebba behave like members of the aspiration group (De Pelsmacker and Unger, 1982). Moreover in the case of multiple et al. 2004). endorsements, both in terms of a single brand hiring multiple Companies invest large sums of money to align their brands celebrities and that of a single celebrity endorsing multiple with celebrity endorsers. Research has shown that the fame brands, consumers do get confused about the brand endorsed. of celebrities create and maintain attention of the consumers When a single celebrity endorses numerous brands, the recall and additionally also achieve high message recall (Ohanian, then gets reduced and reduces the popularity of the brand. Not 1991; O'Mahony and Meenaghan, 1997). And today inspired many people can remember all the brands that a celebrity by the declining effectiveness of the different marketing endorses and the chances of losing brand recall increases if the communications (Blondé and Roozen, 2006) - the advertising celebrity endorses multiple brands (Taleja, 2005). However, industry is willing to pay the increasing rewards the celebrities Atkin and Block (1983) and Petty et al. (1983) have found the are asking (the costs of the spot with Nicole Kidman for opposite results of Mehta (1994). De Pelsmacker’s view in this Chanel V amount to 7.5 million Euro; David Beckham for regard is that, pre-testing and careful planning is very Adidas $160 million; Gilette $68 million and Pepsi $25.5 important and the life-cycle stage of the celebrity has also been taken into account (De Pelsmacker, 2004). 194
  • 4. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 The theories like ‘Source Credibility Theory’, ‘Source eminent in lifestyle products like clothes, perfumes, cell Attractiveness Theory’ and ‘Meaning Transfer Theory’ phones etc. provide a basis on which the methodology of celebrity III. PORTRAYAL OF RECENT TIME CELEBRITY endorsement works and also explains how the process of the ENDORSEMENT SCENARIO FOR BRANDS IN INDIA IN celebrity endorsement influences the minds of the consumers: TV COMMERCIALS India is one country, which has always idolized the stars of the Source Credibility Theory (by Tellis): This theory tells that celluloid world. There is a big deal about Celebrity acceptance of the ad message depends on 'Expertness' Endorsements in India. In the battle for mindshare and market (perceived ability of the source to make valid assertions) and share, companies in India have gone out of their way and Trustworthiness' (perceived willingness of the source to make hired celebrities to endorse their brands. It makes tremendous valid assertions) of the source. Audience acceptance increases sense for a brand to procure a celebrity for its endorsement. with the expertness of the source and the ability of the Around 130 television channels in India are broadcasting over audience to evaluate the product. 3 million television commercials each year in India. This is Source Attractiveness Theory (based on social psychological perhaps enough to demonstrate the media-explosion scenario. research): the acceptance of the message depends on According to the report of AdEx India, a division of TAM familiarity (audience's knowledge of the source through Media Research, in the 1st quarter of the year 2008 60% of all exposure), likeability (the affection for the source's physical advertising dollars were spent on ads carrying celebrities appearance and behavior) and similarity (resemblance which were just 25% in the year. 49% growth was experienced between source and receiver). This theory explains the in celebrity endorsement advertising volumes on TV during message acceptance in two ways: Identification and the year 2007 as compared to the previous year. There were in Conditioning. total 745 celebrity endorsements in 2007 as against 499 in Meaning Transfer Theory (by Grant McCracken): The 2006.Television ads with film stars or cricketers as models theory explains that a celebrity encodes a unique set of have notched up 60% more airtime in 2006 over the previous meanings which if well used can be transferred to the endorsed year, with 53 brands using cricketers and 191 film stars, product. Such a transfer takes place in three stages: according to a study by Adex India. Today, the celebrity I. Encoding Meanings: Each celebrity has a unique set of endorsement industry is worth Rs.550 crore and is growing at meanings such as age, gender, race, wealth, personality or high double digit growth rate ranging between 60- 80%. lifestyle. In this way, the celebrities encode a set of meanings Experts predict the growth rate to touch even triple digits, in their image. For example Preity Zinta can be seen as a soon. 2 lively, charming, bubbly, witty and enthusiastic. Indian ad industry saw the swelling of a new trend in the latter II. Meaning Transfer: This stage transfers those meanings to part of the '80s. Hindi film and TV stars as well as the product. When skillfully portrayed, celebrities can sportspersons were roped in to endorse prominent brands. One communicate this image more powerfully than lay endorsers. of the first sports endorsements in India was when Farokh III. Meaning Capture: This assumes that consumers purchase Engineer became the first Indian cricketer to model for Bryl products not merely for their functional value but also for their cream. The Indian cricket team now earns roughly Rs. 100 cultural and symbolic value. The theory says that consumers buy the endorsed product with the intention of capturing some of the desirable meanings with which celebrities have passed on to the product. This is more 195
  • 5. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 crore through endorsements (Kulkarni & Gaulkar, 2005). 2007 compared to 2006 and in fact, it has grown six times in Advertisements, featuring stars like Tabassum (Prestige volume terms between 2003 and 2007 (Figure 1(a)). It is of pressure cookers), Jalal Agha (Pan Parag), Kapil Dev worth mentioning in this context that celebrities from the film (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh industry accounted for 81 per cent share of the overall Suitings) became common. When Palmolive used Kapil Dev celebrity endorsement ad pie on TV during the year 2007 and in the '80s, his line 'Palmolive da jawaab nahin' became 2008, while male actors accounting a greater share than the famous -- it is remembered even today. Pataudi gave Gwalior actress. Sports and TV personalities followed the film suitings a strong competitive edge and pushed it to Number 2 celebrities in the endorsements race (Figure1 (b) & 1(c)). in perceptions in the suitings market. Even Sridevi made Cema Shahrukh Khan remains in no.1 position for the year 2007 and bulbs and tubes memorable by dancing in a bulb! Probably, 2008 with respect to the no. of endorsement. the first advertisement to cash in on star power in a strategic, The celebrity endorsed scenario of TV commercials revealed long-term, mission statement kind of way was Lux soap. And the fact that the FMCG producers mostly roped into the experts’ comment in this regard is that this strategic decision celebrities’ fame, status, recognition, and image. In summer of celebrity endorsement has helped to make this brand the top cool product category ‘Pepsi Mycan' leads with maximum three in the country for much of its lifetime. share of 33 per cent of overall advertising volumes of In India there is an exponential potential for a celebrity Celebrity endorsement on TV during January - April 2008 and endorsement to be perceived as genuinely relevant, thereby 'Thums Up' and 'Coca Cola' followed the number one (Pepsi motivating consumers to go in for the product. This was Mycan) with 19 per cent and 9 per cent share respectively proved true when the endorser and the category are a natural during January - April 2008. 'Shahrukh Khan' led the Celebrity lifestyle fit like sportspersons and footwear or health drinks endorsement chart of Summer Cool categories on TV closely like Kapil-Sachin and Boost or film stars and beauty products followed by 'Akshay Kumar' and 'Ranbir Kapoor' during like Aishwarya and Nakshtra or Lux. It is a fact that the best January – April 2008. In cellular phone category also the Khan endorsements achieve an eclectic balance between the product also plays the role of king. But in cellular phone service (brand) and the celebrity. (Blazey & Ganti, 2005). People category R Madhavan has snatched the position. forget 80% of the information in just 24 hours! And this is In the Indian context, numerous examples can be uttered to pinpointing none other than the plight of the marketer to make establish the hypothesis that celebrity endorsements can his brand shout over the deafening clutter of all the brands! embellish the overall brand. A standard example is Coke, Somewhere in the 80’s, the Indian marketer found the which, till recently, didn't use stars at all internationally. In solution, 'Celebrity Endorsement’ for the brand. A piece of fact, India was a first for them. The result was a ubiquitously research states that the target audience age group of 15-30 gets appealing Aamir cheekily stating Thanda matlab Coca Cola. influenced first by cricketers, then Bollywood stars and only Study reveals that the recall value for Nakshatra advertising is then music, festivals and food (Kulkarni, Gaulkar, 2005). only due to the sensuous Aishwarya. The Parker pen brand Following section is portraying a recent scenario of celebrity used Amitabh Bachchan to revitalize the brand in India. endorsement of commercials on TV in India as studied by According to Pooja Jain, Director, Luxor Writing Instruments AdEx India, a division of TAM Media Research. Their study Ltd (LWIL), post Bachchan, Parker's sales have increased by finds that celebrity endorsement on TV has been on a growth about 30 per cent. Star power in India can be gauged by the curve. As already mentioned there has been 49 per cent successful endorsement done by Sharukh for three honchos- growth in celebrity endorsement ad volumes on TV during Pepsi, Clinic All Clear and Santro. Irfan Pathan endorsing 196
  • 6. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 Hero Cycles has gained the brand immense recall and suggests that the use of anonymous models or even no embarked through the positive association between the celebrity is still an option that should be investigated seriously. consumer and the brand. Richard Gere's endorsement for The review of the literature has also shown that the match VISA in India has gained acclaim. Compatible celebrity between the brand and or product and the celebrity has to be product match in which celebrity brand attributes get optimal. When a brand and/or product is endorsed by a transferred to the brand and increases the brand equity is of celebrity endorser, the perceived celebrity image and the Mallaika Arora & Freshizza from Pizza Hut, Govinda & perceived brand image will interact with each other and Navratan Tel, Sanjay Dutt & Elf Oil, Sunny Deol & Lux images will be transferred from the endorsed brand to the Undergarments, Aishwarya Rai & Nakshatra, etc. celebrity endorser and vice versa. MG Parmeswaran, Celebrity branding is all about the transfer of the value from executive director of FCB Ulka, says “As advertising the person to the product he endorses or stands for. Tabu professionals, we recommend celebrity endorsements when endorsing Tetra Packed Milk, Shabana Azmi campaigning for the case is justified. There are many cases where the AIDS Awareness, Amitabh Bachchan & Shahrukh Khan companies need to use the celebrity to break out of a category campaigning for Pulse Polio or Aishwarya Rai appearing in clutter. At times, celebrity endorsement is used to build the Donate Eyes campaign are the examples, which reflect the credibility to the brand offer. In this light the objective of my transfer of celebrity values to the brand, creating an impact study will be give a focus on the following issues: that generates recall. To what extent the effect of celebrity endorsement Celebrity branding is all about the transfer of the value from vary across different product categories? the person to the product he endorses or stands for. Tabu Is the liking of celebrity endorsement gender endorsing Tetra Packed Milk, Shabana Azmi campaigning for specific? AIDS Awareness, Amitabh Bachchan & Shahrukh Khan Most desirable characteristics of celebrity endorser. campaigning for Pulse Polio or Aishwarya Rai appearing in the Donate Eyes campaign are the examples, which reflect the Is the liking of celebrity endorsement occupation transfer of celebrity values to the brand, creating an impact specific? that generates recall. Is the liking of celebrity endorsement age specific? OBJECTIVES OF THE STUDY Is the liking of celebrity endorsement occupation There is a myth that celebrity endorsement is used to give a specific? brand advantage over its competitors. Research has shown that METHODOLOGY the use of celebrities in advertisements can have a positive Data Collection: influence on the credibility, message recall, memory and The study is based on the primary data collected by likeability of the advertisements and finally on purchase interviewing the sample buyers personally. A detailed intentions (Menon, 2001; Pornpitakpan, 2003; Pringle and questionnaire embracing the objectives laid down was Binet, 2005; Roy, 2006). The company makes use of the designed and canvassed to the sample. In order to judge the celebrity's characteristics and qualities to establish an analogy role of celebrity endorsed advertisement in the decision with the products specialties with an aim to position them in making process of the consumers, products like refrigerator, the minds of the target consumers. But the opposite view also TV, two wheeler, 4 wheeler, washing-machine and like was exist that there is a risk that the celebrity and or his/her chosen from durable category and hair-oil, tooth-paste, cold unexpected behavior overshadows the product and this drinks, health drinks, dress material, jewelries etc from FMCG 197
  • 7. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 category was considered and from service category banking insurance, cell-phone services were chosen. Thurstone Case V scaling model has been used in order to find To study the message recalling scenario of the celebrity out the most important celebrity endorser attribute. endorsed advertisements the name of the following 15 Area of Study: celebrity endorsers has been mentioned: To accomplish the objective of the study the survey was Amitabh Shahr Sachin Kareen conducted in five towns of Ganjam district of the state of Saif Ali Bachcha ukh Tendu Aamir Salman Aishwar a Khan n Khan lkar Khan Khan ya Rai Kapoor Odisha. The towns selected are Berhampur, Chatrapur, Aska, Aksha Mahe y ndra Digapahandi and Khallikote. Hrithik Juhi Katrin Kuma Singh Sonali Preity Sample Size: Roshan Chawla a Kaif r Dhoni Bendre Zinta The size of the sample in each town was 40 that constituted A set of 10 statements that were being used to judge the 200 respondents in total from all towns. The selection of the negativity or the positivity of the attitude of the consumers sample respondent in each and every area was little bit towards the celebrity endorsed advertisement are as follows: purposive so that they can represent each income, occupation 1. Celebrity can communicate benefit of the product clearly. group and belong to different age categories. 2. Celebrity endorsed (CE) ads are more attractive than others. Tools for Analysis: 3. CE ads reflect the status of the brand. Chi-square analysis was used to study the significance of the 4. CE ads do not interfere too much with enjoying TV programme that the others do. 5. Celebrities do not use the endorsed products. demographic factors like age, income class, occupation and 6. It distracts the attention from the brand. gender on attitude towards celebrity endorsement commercials 7. Celebrities don’t use to convey their own opinion rather they are being purchased to on positively. say TV commercials. Correlation coefficient has been 8. The commercials do not convince me to buy the products computed to reveal the degree of association of age factor, 9. I’m tired of celebrity endorsed ads. gender and the other demographic factors as mentioned with 10 The commercials are much more attractive. attitude towards celebrity endorsed TV ads. A 7-point Likert-summated scale, the range of which is stated Hypothesis: in the following table, has been used to rate the The following is the replication hypothesis based on abovementioned statements related to the measurement of Connoisseurs’ views that were tested on the basis of collected attitude towards celebrity endorsed advertisements: data: 1 2 3 4 5 6 7 These entire null hypotheses were being tested against the STRONGLY DISAGREE SOMEWHAT NEITHER SOMEWHAT AGREE STRONGLY DISAGREE DISAGREE AGREE AGREE AGREE NOR 1st Null Hypothesis : H10 = attitude towards celebrity endorsed ads DISAGREE are sex independent. nd In order to avoid the complexity of the signs the positive nos. 2 Null Hypothesis : H20 = attitude towards celebrity endorsed ads are age independent. from 1 to 7 has been selected where 4 is the neutral point. rd 3 Null Hypothesis : H30 = attitude towards celebrity endorsed ads Another 7-point scale is used to determine the role of the are income class independent. celebrity endorsed ads in decision making process (at any following corresponding alternative hypothesis: stage from need recognition to brand selection). The detail of the scale is as follows: 1 2 3 4 5 6 7 TOTAL NEGAT SOMEWHA NEITHER SOMEWHAT POSITIVE TOTAL NEGATIVE IVE T NEGATIVE POSITIVE ROLE POSITIVE ROLE ROLE NEGATIVE ROLE NOR ROLE ROLE ROLE POSITIVE ROLE 198
  • 8. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 1stAlternative : H11 = attitude towards celebrity endorsed ads are sex The visibility scenario of the celebrity endorsed ads were Hypothesis dependent. such that only 16 respondents out of total 200 could not tell 2nd Alternative : H21 = attitude towards celebrity endorsed ads are about a single ad endorsed by the celebrities that was being Hypothesis age dependent. 3rd Alternative : H31 = attitude towards celebrity endorsed ads are selected. A weight ‘1’ was given to the right Hypothesis income class dependent. commemoration of the advertisement endorsed by the FINDINGS & ANALYSIS OF DATA PERTAINING TO abovementioned celebrities. If one can remember 2 or 3 or CELEBRITY ENDORSEMENT more ad endorsed by that particular celebrity then the weightage corresponding to that respondent and corresponding Table A: RESPONDENT’S DEMOGRAPHIC PROFILE to that celebrity was given. i.e. if one can remember 5 ads • AGE DISTRIBUTION OF THE • INCOME WISE DISTRIBUTION OF THE endorsed by Amitbh Bacchan then it was counted as 5. The RESPONDENTS RESPONDENTS average was estimated just by dividing such summed up Age Fre M F % Per- Fre Ma Fem % qu capita* que le ale numerical by 15 (the no. of celebrities). The ultimate result enc Income ncy that was got is that the ‘Correlation-Coefficient’ between age y Level and average recall scenario, as computed, is (-0.230340054), (in ‘000 where average recall scenario is nothing but the summation of Rs) the score of the commemoration divided by 15 (the no. of below 8 16 12 8 0 20 24 <1 8 4 celebrities selected). The negative symbol is an indication of 20-30 136 76 60 68 1-3 128 70 58 64 the fact that the persons at a lower age are fond of this kind of 30-40 20 12 8 10 3-5 28 12 16 14 ads and vice versa. Another interesting result revealed the fact Above 16 4 10 20 16 that commemoration and income is positively related and the 40 20 5-10 36 18 ‘Correlation-Coefficient’ between income & average recall >10 8 8 0 4 TOTA 200 11 88 10 TOTAL 200 112 88 100 rate is (+0.06582), though the degree is not so high. L 2 0 HYPOTHESIS TESTING *note: per capita income=HH income/no. of family members. The objective 1) Influencing role of SEX to attitude towards behind taking this per-capita income was to consider the income status Celebrity endorsed ad: orientation of the financially dependent respondents. H10 = attitude towards celebrity endorsed ads are sex • OCCUPATIONAL STATUS OF THE RESPONDENTS CATEGORY Freq M F Percent (%) independent. uenc H11 = attitude towards celebrity endorsed ads are sex y dependent. Unemployed 132 52 80 66 Blue-collar 12 8 4 6 Data table B1 is revealing the sex based attitude scenario of Employee White-collar 32 28 4 16 celebrity endorsed TV ads. Employee Business 24 24 0 12 person Total 200 11 88 100 2 199
  • 9. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 Table B1: Observed frequencies of SEX BASED Attitude Table B2: Expected frequencies hypothesis. So age factor plays a significant role in developing towards celebrity endorsed TV commercials Freq. Freq. attitude towards celebrity endorsed ads. And correlation- Freq. Freq. Freq. Freq. of % of of SEX of +ve of -ve neutral ROW positive SEX of +ve of -ve neutral coefficient figure is revealing a negative relationship and the attitude attitude SUM attitude attitude to CE to CE attitude attitude to CE to CE attitude degree is as follows: to CE to CE M 64 40 8 112 57 M 56 49.28 6.72 Correl (age, attitude) = - (0.114657354), F 36 48 4 88 41 F 44 38.72 5.28 So we can conclude here-from that aged persons are not so COL. ESTIMATED χ2 =7.124 100 88 12 200 SUM d. f.= (Row-1)(Column-1)= 2 prone towards these types of advertisements. Table χ2 (at 95% level of significance) % 50% 44% 6% 100% 3) Influencing role of INCOME-CLASS to attitude = 5.99 towards Celebrity endorsed ad: The Chi-square analysis to the above dataset is rejecting the H30 = attitude towards celebrity endorsed ads are income null-hypothesis and divulging the fact that there is a class independent. significant difference between the attitude of male and female H31 = attitude towards celebrity endorsed ads are income customers towards the celebrity endorsed TV advertisements. class dependent. The percentage analysis is depicting the picture that males are Table D1: Observed frequencies of INCOME- Table D2: Expected frequencies CLASS BASED Attitude towards celebrity much more inclined towards celebrity endorsed ads. endorsed TV commercials Freq. Freq. 2) Influencing role of AGE to attitude towards Freq. of of Celebrity endorsed ad: of Freq. neutra Freq. neutra Inco +ve of -ve l RO Inco Freq. of of -ve l H20 = attitude towards celebrity endorsed ads are age me attitu attitu attitu W me +ve attitud attitu class de to de to de to SU class attitude e to de to independent. (,000) CE CE CE M (,000) to CE CE CE H21 = attitude towards celebrity endorsed ads are age <1 0 4 4 8 <1 3.84 3.68 0.48 1-3 64 52 8 124 dependent. 1-3 59.52 57.04 7.44 3-5 12 16 0 28 3-5 13.44 12.88 1.68 Table C1: Observed frequencies of AGE BASED Table C2: Expected frequencies 5-10 20 16 0 36 5-10 17.28 16.56 2.16 Attitude towards celebrity endorsed TV commercials >10 0 4 0 4 >10 1.92 1.84 0.24 AGE Freq. of Freq. Freq. RO AGE Freq. Freq Freq. COL. ESTIMATED χ2 = 40.399 +ve of of W of . of of SUM 96 92 12 200 d. f.= (Row-1)(Column-1)= 8 attitude -ve neutral SU +ve -ve neutr Table χ2 (at 99% level of significance) = 20.09 to attitud attitud M attitu attit al CE e to e to de to ude attitu CE CE CE to de to So the data set is rejecting the null hypothesis and at the same below CE CE time establishing the alternative hypothesis as the fact. Thus 20 16 4 4 24 below 11.5 20 11.52 2 0.96 income class is a significant guidance to develop an attitude 20-30 60 72 4 136 30-40 12 8 0 20 65.2 towards celebrity endorsed TV commercials. And exactly 40 20-30 65.28 8 5.44 there exists a negative relationship among these two, though above 8 12 0 20 30-40 9.6 9.6 0.8 Colu the degree is not so high: 40 mn above 9.6 9.6 0.8 Correl (Income, CE attitude) = - (0.11568531) Sum 96 96 8 200 ESTIMATED χ2 = 21.1 d. f. = (Row-1)(Column-1) = 6 4) Influencing role of OCCUPATIONAL Table χ2 (at 99% level of significance) = 16.81 CATEGORY to attitude towards Celebrity endorsed ad: The outcome of the above chi-square analysis is the rejection of null-hypothesis and obviously acceptance of alternative 200
  • 10. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 Table E1: Observed frequencies of Table E2: Expected (Either need recognition or BRAND DECISION MAKING: OCCUPATION based Attitude towards frequencies Using 7-point scale that ranges from 1 to 7, as stated earlier): celebrity endorsed TV commercials The mean scores (on a 7-point scale) for different product Freq . of Freq. Freq. category are as follows: -ve of of - Freq. of attit Occupa +ve ve Table F: Mean Score of role of CE ads in decision making Occupati +ve ude ne RO tion attitu attitu ne process on attitude to utr W categor de to de to utr AVERAGE category to CE CE al SUM y CE CE al (for all unemplo unempl 58.0 7.9 product yed 68 56 8 132 oyed 66 8 2 DURABLE FMCG SERVICE category) blue blue 0.7 Mean collar 4 8 0 12 collar 6 5.28 2 Score 4.32093 4.763566 4.658915 4.581137 white white 14.0 1.9 Rounded collar 12 20 0 32 collar 16 8 2 figures 4.00 5 5 5 busines business s 10.5 1.4 The above table is depicting the picture that though in the case person 16 4 4 24 person 12 6 4 of FMCG products and services this kind of ads have a COL. SUM 100 88 12 200 positive role, in the case of durable commodities the picture is ESTIMATED χ2 = 18.29247 neutral. And the extent of positive role in the case of FMCG d. f.= (Row-1)(Column-1)= 6 and services is not so greater. But overall scenario is a positive Table χ2 (at 99% level of significance) = 16.81 one. Somewhat these ads play a role in the decision making, The above chi square result is rejecting the null hypothesis and either in the case of need recognition or in the case of brand makes the alternative hypothesis established. And Table E3 is selection. Likewise the other non-celebrity endorsed ads they revealing another scenario that the positiveness of the attitude sometimes make the customers aware about the availability towards the kind of advertisements is more in unemployed and and so on. business persons. The reason may be the fact of the comparatively plenty time for entertainment and conversely CELEBRITY ENDORSER’S ATTRIBUTES BEHIND the busy schedule of the employees. THE SUCCESS OF THE ADS Table E3 : % of positive attitude of different The dataset of Table G1 is being used to determine the occupational category preferred celebrity endorsers attributes – viz. physical BLUE WHITE BUSINESS attractiveness (PA), trustworthiness (T), similarity (S), respect UNEMPLOYED COLLAR COLLAR PERSON (R) and expertise (E). The numbers in each cell is depicting 51.5152 33.3333 37.5 66.6667 the number of respondents preferring the column attributes than the row attributes. ROLE OF CELEBRITY ENDORSED AD IN any state of DECISION MAKING PROCESS 201
  • 11. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 purchase intentions. But the success of the use of celebrity Table G1: Observed frequencies of Table G2: Observed proportions of respondents respondents preferring row attributes preferring row attributes than column attributes endorsers varies across different products. More significantly than column attributes the success of the use of the celebrity endorsers in the Preferred Attributes Preferred Attributes P PA T R S E commercials depends on the fact that for which demographic A T R S E P 0.574 0.340 0.4468 0.5744 P 11 11 segment the ad was meant—is it meant for the males or else; A 0 468 426 08 68 A 0 5 68 89 5 11 10 0.425 0.340 0.5957 0.5106 is it for the teenagers; is it for the white collar workers; is it T 532 0 426 45 38 T 85 0 68 9 2 0.659 0.659 0.3617 0.6382 for the housewives or for the students, i.e. for the financially 13 13 12 R 2 2 0 72 8 R 574 574 0 02 98 dependents; or it is for the business personnel, for the reason 0.553 0.404 0.638 0.6382 11 12 12 S 192 255 298 0 98 that demography make a significant difference of the psyche S 1 81 8 0 8 0.425 0.489 0.361 0.3617 of the consumers. So the marketers should go thoroughly E 85 98 72 72 0 E 532 362 702 02 0 about the psyche of the different demographic segment before finalizing the strategies with a long term perspective. Then only the marketing organizations can become able to satisfy Z values related to preference proportion their esteem need; fame, prestige in the consumers’ society PA T R S E PA 0 0.19 -0.41 -0.23 0.19 can be gained. And this is the only way to reach at the top of T -0.19 0 -0.41 0.24 0.03 Self-actualization Mountain—the ultimate destination of R 0.41 0.41 0 -0.34 0.35 individual human being as an organization of different S 0.23 -0.24 0.34 0 0.35 activities, the ultimate destination of a group of individuals E -0.19 -0.03 -0.35 -0.35 0 with a rational perspective. Column BIBLIOGRAPHY: Sum 0.26 0.33 -0.83 -0.68 0.92 1. Atkin, C. and Block, M. (1983), “Effectiveness of MEAN 0.052 0.066 -0.166 -0.136 0.184 RANK 0.218 0.232 0.00 0.006 0.35 Celebrity Endorsers”, Journal of Advertising Research, Feb/Mar, Vol. 23 (1), 57-61. So the attribute preference pattern of celebrity endorser for the 2. Belch, G. E. and Belch, M. A. (2001), “Advertising sample is as follows: and Promotion: An integrated marketing c E > T > PA > S > R communications perspective”, 5th ed. New York: That is the respondents’ attitude towards celebrity endorsed McGraw-Hill. ISBN 0-07-231445-1. ads is first of all guided by the expertise of the celebrities, then 3. Bergstrom, C. and Skarfstad, R. (2004), “Celebrity trustworthiness. Physical attractiveness is the third important Endorsement, Social Science and Business factor of this attitude development. Administration Programmes”, Dept. of Busi Admn CONCLUSION and Social Sciences, Division of Industrial Marketing Companies frequently use celebrity as spokespersons to and e-Commerce, Lulea University of technology, deliver their ad message and to persuade and to convince 2004:193 SHU.ISSN: consumers of their brands. A billion of dollars spent per year 1404_5508/ISRN:KTU_SHU—04/193—SE. on celebrity endorsement. This research result suggests 4. Blazey, N. & Ganti, S. K. (2005), “Impact of tentatively that the use of celebrity endorsers in TV Celebrity Endorsement on Overall Brand”, Marketing commercials could be effective in influencing attitudes and @ Knowledge Zone. 202
  • 12. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 5. Blondé, K. and Roozen, I (2007), “An Explorative process”, Journal of Consumer Research, 16(12), Study of Testing the Effectiveness of Product 310-321. Placement compared to 30-second TV-Commercials” 15. McCracken, G. (1989), "Who is the Celebrity for the 6th International Marketing Trends Congress, Endorser?" Journal of Consumer Research, 16 Paris 26-27 January 2007. (December), 310-321. 6. Pelsmacker, P. D., Geuens, M. and Bergh, J. V. D. 16. Mehta, A. (1994), “How Advertising Response (2004), “Marketing Communications, A European Modelling (ARM) Can Increase Ad Effectiveness” , Perspective”, second edition, Prentice Hall. Journal of Advertising Research, 34, no. 3, pp. 62-74. 7. Erdogan, B. Z. (1999), “Celebrity endorsement: A 17. Menon, K. (2001), Celebrity Advertising: An literature review”. Journal Marketing Management, Assessment of Its Relative Effectiveness. 15 (4), 291-315. 18. Ohanian, R. (1991), “The Impact of Celebrity 8. Jagdish, A., and Wagner, K. A. (1995). The Spokespersons' Perceived Image on Consumers' Economic Worth of Celebrity Endorsers: An event Intention to Purchase”. Journal of Advertising study analysis, Jolurnal of marketing, 56(3), 56-62. Research. February/March (1991): 46-54. ISSN 0022-2429. 19. Patel, S. (2008), “Of celebrity branding, brand 9. Kaikati, J. G. (1987), "Celebrity Advertising: A marketers, and India”, Monday - Sep 15, 2008 Review and Synthesis," International Journal of Televisionpoint.com advertising, 6, 93. 20. Pringle, H & Binet, L (2005), “How marketers can 10. Kulkarni, S. A. and Gaulkar, S. U.( 2005), “Impact of use celebrities to sell more effectively” Journal of Celebrity Endorsements on Overall Brand” , Consumer Behaviour, Mar2005, Vol. 4 Issue 3, p201- Marketing@Knowledge Zone, 214. http://www.indianmba.com/Occasional_Papers/OP88 21. Pornpitakpan, C. (2003), “The Effect of Celebrity /op88.html. Endorsers' Perceived Credibility on Product Purchase 11. Klebba, J. M. and Unger, L.S. (1982), “The Impact of Intention: The Case of Singaporeans”, Journal of Negative and Positive Information on Source International Consumer Marketing, 2003, Vol. 16 Credibility in a Field Setting” Advances in Consumer Issue 2, p55-74. Research, 10(1), 45-48. 22. Roy, S. (2006), “An exploratory study in celebrity 12. Rajesh S Lalwani, “India media news marketing Endorsements. Journal of creative communications India advertising Indian brands TV media 1:2 (2006) Sage Publications New Delhi. newspapers”, 23. Schiffman, L. G.and Kanuk, L. L. (2004), Consumer http://www.exchange4media.com/Viewpoint/viewpoi Behaviour, Prentice-HBall of India Private Limited, nt.asp?view_id=40. New Delhi. 13. Marhue, L. K. and Mathur, I. (1997), “The wealth 24. Sherman, S. P. (1985), "When You Wish upon a effects associated with a celebrity endorser. The Star", Fortune Vol. 112. Michael Jordan phenomenon”, Journal of advertising 25. Shimp, T. A. (2000), “Advertising, promotion: research, 37(3), 67-73. Supplemental aspects of integrated marketing th 14. McCracken, G. (1989), “Who is the Celebrity communication”, 5 ed. Forth worth, Tex.: Dryden. Endorser? Cultural foundations of the Endorsement ISBN 0-03-021113-1. 203
  • 13. IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563 Vol. 2 No.2, April 2012 26. Taleja, N. (2005), “ Impact of Celebrity Technology, Greater Noida. He has consistently a Endorsements on Overall Brand”, Marketing @ brilliant academic career. Dr. Dash has considerable Knowledge Zone, research work to his credit and published several http://www.coolavenues.com/know/mktg/neha_taleja research paeprs in national and international 1.php journals. He has authored two edited books on 27. Gail, T., Rebecca, C., Laura, E., Edward, G., Joseph, “Innovations in Management Science” and M., and Harmona. S. (1992), “The Use of Created “Contemporary issues in Services Marketing- versus Celebrity Spokesperson in Advertisement”, st The Journal of Consumer Research, 20, no; 4 pp. Challenges for 21 century” with Global Research 535-547. Publications,New Delhi. Besides this he has 28. The Hindu Business Line, “Celebrity endorsement authored a reference book on “Relationship ads on TV up 49% during 2007”, Bureau, , Business Marketing” with Serials publications, New Delhi. Daily from THE HINDU group of publications, Wednesday, Apr 09, 2008, Mr.Deepti Ranjan Sabat has completed his MBA http://www.blonnet.com/2008/04/09/stories/2008040 in Marketing and finance from Sambalpur 950750500.htm University, Orissa. Presently he is working as AUTHORS PROFILE Assistant professor in Management at MITS Dr. Saroj Kumar Dash obtained his M.Sc, MBA, Engineering college Rayagada,Odisha. He is PGDCA and PhD (Management) degree from actively engaged in teaching marketing related Berhampur University, Orissa. He is currently subjects. He is havig a brilliant academic career. His working as Associate Professor and Head of MBA core area of research is Services Marketing. Programme of Skyline Insitute of Engineering and 204