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Research Methodology on Effect of Celebrity Endorsements
Celebrity Endorsement &
Its Effect on Consumers
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.
NEED FOR CELEBRITY ENDORSEMENT
• It increases the sale
• Attract more attention of
• Celebrity add new
dimension to the brand
The Benefits of Celebrity
• Build brand equity
• Help people remember ads
• Make people believe the product
contributes to superstar status
• Stand out
The Risks of Celebrity
• Images change
• Celebrities become overexposed
• Celebrities can overshadow brands
Why are advertisers ready to pay crores for
The reason is “Install Recall” which ensures
immediate focus to the brand.
Why do brands, during losses, sign celebrities to
Companies use celebrities to come out of losses,
basically when a brand needs to lift itself to come
out of losses.
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
Methodology Part 1
The primary survey was carried out in three different
• Advertisement agencies - Ogilvy & Mather
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?
4. Rate the media that affects your buying power for the product-
TV and/or Radio
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
0 - Maybe
-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
8. Rate if negative publicity about your preferred celebrity influences your purchasing
+2 - Doesn’t influence at all
0 - Neutral
-2 - Influences heavily
9. Do you believe that the celebrities also use the products which they endorse?
10. How does your preferred celebrity and a specific brand they endorse affect the buying
decision of the product
He/She has a positive impact on the
He/She can relate to consumers
He/She suits the brand image
He/She has knowledge about the
product and brand
Q1. What is the primary reason to choose a particular celebrity/model for endorsing
Budget Brand Popularity Any Other
Q2. How do you judge if the celebrity is worth the money?
Popularity Acting Skills Connection with
1 1 1
Q3. What market research tool does your company use before framing an
Market Research Tool
Q4. Do you think the celebrity/model influences the consumers’ purchasing
Yes Partially, to some
Q5. Do you feel that selecting high-profile celebrities creates more impact than
general advertisement models?
Yes Partially, to some
Impact of High Profile Celeb over Regular Model
• Sunil Vishrani a.k.a. Chattri Man of TIDE Washing Powder
• 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.
Methodology Part 2
Research Analysis through
Which of the following
influences you to buy a
Rate the media that affects
your buying power for the
TV and/or Radio Print Media On the Shelf Word of Mouth
Very Effective Effective Neutral Average Ineffective
One Sample T-Test
N Mean Std. Deviation Std. Error Mean
Celebrity_Impact 100 2.1100 1.03372 .10337
Test Value = 2
t df Sig. (2-
95% Confidence Interval of the
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.
Paired Sample T-Test
Paired Samples Test
Paired Differences t df Sig. (2-
Interval of the
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
Mean Std. Deviation N
Loyalty 1.0200 .99473 100
Negative_Publicity 1.1200 .89081 100
Pearson Correlation 1 .225*
Sig. (2-tailed) .024
N 100 100
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.
• 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.