Research carried out to see how celebrity endorsements affect customer's buying habits

1. Celebrity Endorsement &
Its Effect on Consumers

2. What is Celebrity Endorsements
• A form of brand or advertising campaign that
involves a well known person using their fame to
help promote a product or service.
• Social media such as Twitter have become
increasingly popular mediums for celebrities to
endorse brands and influence purchasing behaviour.

4. NEED FOR CELEBRITY ENDORSEMENT
• It increases the sale
• Attract more attention of
consumers
• Celebrity add new
dimension to the brand

5. The Benefits of Celebrity
Endorsements
• Build brand equity
• Help people remember ads

6. • Make people believe the product
contributes to superstar status
• Stand out

7. The Risks of Celebrity
Endorsement
• Images change
• Celebrities become overexposed
• Celebrities can overshadow brands

8. Why are advertisers ready to pay crores for
endorsements?
The reason is “Install Recall” which ensures
immediate focus to the brand.

9. Why do brands, during losses, sign celebrities to
endorse?
Companies use celebrities to come out of losses,
basically when a brand needs to lift itself to come
out of losses.

10. Objectives of the research
• To understand how does celebrity endorsements
have an impact on customers buying habits
• To understand what makes the company or ad
agency select a particular celebrity for their product
• To understand what makes a celebrity take a
particular brand for endorsing

11. Methodology Part 1
Primary Survey
The primary survey was carried out in three different
sections:
• Consumers
• Celebrity
• Advertisement agencies - Ogilvy & Mather
Lowe Lintas
FCB ULKA

12. Consumers
QUESTIONNAIRE
1. Gender
•Male
•Female
2. What is your age?
•Below 20 years
•Between 20 to 49 years
•Above 50 years
3. Which of the following influences you to buy a product?
•Celebrity endorsement
•Price
•Quality

13. 4. Rate the media that affects your buying power for the product-
Very Effective
1
Effective
2
Neutral
3
Average
4
Ineffective
5
TV and/or Radio
Print media
On the shelf
Word of mouth
5. Rate the impact of the celebrity endorsing the product-
Strong Impact Weak Impact
1 2 3 4 5
6. Would you stop buying the product if your favourite celebrity stops endorsing it?
+2 - Definitely
+1
0 - Maybe
-1
-2 - Never
7. Did it affect your buying decision for the SAME PRODUCT, when -
Celebrity WASN’T Endorsing Celebrity STARTED Endorsing
3 2 1 0 1 2

14. 8. Rate if negative publicity about your preferred celebrity influences your purchasing
decision-
+2 - Doesn’t influence at all
+1
0 - Neutral
-1
-2 - Influences heavily
9. Do you believe that the celebrities also use the products which they endorse?
•Yes
•Not Sure
•No
10. How does your preferred celebrity and a specific brand they endorse affect the buying
decision of the product
Strongly Agree
1
Agree
2
Neutral
3
Disagree
4
Strongly Disagree
5
He/She has a positive impact on the
product
He/She can relate to consumers
He/She suits the brand image
He/She has knowledge about the
product and brand

15. Ad Company

16. Questionnaire
Q1. What is the primary reason to choose a particular celebrity/model for endorsing
a product?
0
0.5
1
1.5
2
2.5
3
Requirement of
the script
Budget Brand Popularity Any Other
2
0
3
0
Attributes

17. Q2. How do you judge if the celebrity is worth the money?
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Popularity Acting Skills Connection with
the target
audience
Any Other
1 1 1
0
Celebrity Worth

19. Q3. What market research tool does your company use before framing an
Advertisement?
0
0.5
1
1.5
2
2.5
3
Qualitative
Technique
Questionnaire +
CG Method
Account
Planning
Any Other
Market Research Tool

20. Q4. Do you think the celebrity/model influences the consumers’ purchasing
decision?
0
0.5
1
1.5
2
2.5
3
Yes Partially, to some
extent
No
Celebrity Influence

21. Q5. Do you feel that selecting high-profile celebrities creates more impact than
general advertisement models?
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Yes Partially, to some
extent
No
Impact of High Profile Celeb over Regular Model

22. Celebrity
• Sunil Vishrani a.k.a. Chattri Man of TIDE Washing Powder
Advertisement.
• He was interviewed on aspects like how
does an advertisement affect the
celebrity/model (himself), on what basis
does the company select the
celebrity/model for an advertisement
and many more.

23. Methodology Part 2
Research Analysis through
SPSS

24. Which of the following
influences you to buy a
product-
Quality
Celebrity
endorsement
Price
PURCHASE INFLUENCE

25. Rate the media that affects
your buying power for the
product
75
3
31
17
22 24
33
23
3
29
15
21
0
20
12
22
0
24
9
17
0
10
20
30
40
50
60
70
80
TV and/or Radio Print Media On the Shelf Word of Mouth
Media Channels
Very Effective Effective Neutral Average Ineffective

26. One Sample T-Test
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Celebrity_Impact 100 2.1100 1.03372 .10337
One-Sample Test
Test Value = 2
t df Sig. (2-
tailed)
Mean
Difference
95% Confidence Interval of the
Difference
Lower Upper
Celebrity_Impact 1.0
64 99 .290 .11000 -.0951 .3151
Ho= The mean rating given for the celebrity impact on the product is
2 (i.e. Good Impact)
Ha= The mean rating given for the celebrity impact is not equal to 2.
At 5% level of significance, the α value is 0.05 & the significant value is 0.290. Since the
significant value is higher than the α value, we accept our null hypothesis & conclude that the
mean rating given for the celebrity impact on the product is 2, i.e. the celebrity has a good
impact on the product.

27. Paired Sample T-Test
Paired Samples Test
Paired Differences t df Sig. (2-
tailed)
Mean Std.
Deviation
Std.
Error
Mean
95% Confidence
Interval of the
Difference
Lower Upper
Pair 1 Before_Endorsing
- After_Endorsing .6400 1.03005 .10301 -.84438 -.43562 -6.213 99 .000
Ho= There is no significant difference between the buying decision of the customer
before & after the celebrity endorsed the product.
Ha= There is a significant difference between the buying decision of the customer
before & after the celebrity endorsed the product
At 5% level of significance, the α value is 0.05 & the significant value is 0.000. Since, the
significant value is less than the α value, we reject our null hypothesis & conclude that there is a
significant difference between the purchase intention of the customer before & after the
celebrity endorsed the product

28. Descriptive Statistics
Mean Std. Deviation N
Loyalty 1.0200 .99473 100
Negative_Publicity 1.1200 .89081 100
Correlations
Loyalty Negative_Publicity
Loyalty
Pearson Correlation 1 .225*
Sig. (2-tailed) .024
N 100 100
Negative_Publicity
Pearson Correlation .225* 1
Sig. (2-tailed) .024
N 100 100
*Correlation is significant at the 0.05 level (2-tailed).
There is a weak correlation between loyalty of the customer & negative publicity of
the celebrity which means that the loyalty of the customer towards the product is not
affected by the negative publicity of the celebrity.
Correlation

29. Conclusion
• Primary Reason by Ad company to chose a celebrity is Requirement of the
script & Brand Popularity (relatable to the public)
• Celebrity is worth the money is decided by their Popularity (Mass appeal)
and Connection with the target audience
• Television/ Radio Ad and On-the-shelf are the most effective mode of
influencing for purchasing a product
• Customers find strong impact of the celebrity for the product they endorse
• Change in purchase intention of customers before & after the celebrity
endorsed the particular product
• Loyalty of the customer towards the product is not affected by the negative
publicity of the celebrity.

30. BIBLIOGRAPHY
• www.google.co.in
• www.ogilvy.com
• www.lowelintas.com
• www.fcbulka.com
• www.Wikipedia.com

31. PRESENTED BY:
• Abhishek Shinde
• Abhishek Bhatt
• Divya Gandhi
• Karen D’souza
• Ketaki Misra
• Kirk Coutinho