Impact Of Celebrity Endorsement 5r2jw

CELEBRITY ENDORSEMENTS AND ITS IMPACT ON CONSUMER BUYING BEHAVIOUR (In context to India)

Amit Kumar Msc Management with Marketing, 2010 The Executive Business School, Bournemouth University

Electronic copy available at: http://ssrn.com/abstract=1802531

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Acknowledgement First of all, I would like to express my gratitude to Bournemouth University for giving me an opportunity to pursue Masters in my field of studies. I am heartily thankful to my supervisor, Dr. Lukman Aroean, whose encouragement, guidance and from the initial to the final level enabled me to develop an understanding of the subject. Furthermore, I would like to thank all academics and istration staff at Bournemouth University for their kind cooperation and efforts to assist us in the every helpful way they can. I must it that this year I had the best studying experience and will always cherish this year of my academic life.

Finally, I thank my family: my parents, Mrs. Shail Kumar and Shri Ashok Kumar, for giving me an opportunity to in the first place, for unconditional and encouragement to pursue my interests and progress in my further degree. My brother, Vineet Kumar for his love and .

ii Electronic copy available at: http://ssrn.com/abstract=1802531

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THE BUSINESS SCHOOL PERMISSION TO PLACE COMPLETED RESEARCH PROJECT IN THE LIBRARY Name (please print clearly): Amit Kumar

Programme: MSC MANAGEMENT WITH MARKETING

Student Reference Number: 4243123

Please sign one of the following two declarations.

1. I hereby give permission for my Research Project to be placed in the library for reference purposes. Signed ………………………………………………………….

OR

2. I do not wish my Research Project to be placed in the library for reference purposes. Signed …………………………………………………………. Title of Research Project: Celebrity Endorsements and its Impact on Consumer Buying Behaviour

Submission Date: 1 June 2010

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RESEARCH PROJECT DECLARATION I agree that, should the University wish to retain it for reference purposes, a copy of my Research Project may be held by Bournemouth University normally for a period of 3 academic years. I understand that once the retention period has expired my Research Project will be destroyed. Confidentiality I confirm that this Research Project does not contain information of a commercial or confidential nature or include personal information other than that which would normally be in the public domain unless the relevant permissions have been obtained. In particular any information which identifies a particular individual‗s religious or political beliefs, information relating to their health, ethnicity, criminal history or sex life has been anonymised unless permission has been granted for its publication from the person to whom it relates. Copyright The copyright for this Research Project remains with me. Requests for Information I agree that this Research Project may be made available as the result of a request for information under the Freedom of Information Act. Signed: Name: Amit Kumar Date: 1 June 2010 Programme: MSC Management with Marketing. Originality Declaration I declare that this Research Project is all my own work and the sources of information and material I have used (including the Internet) have been fully identified and properly acknowledged as required in the guidelines given in the Programme Handbook which I have received. Signed: Name: Amit Kumar Date: 1 June 2010

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Abstract The practice of celebrity endorsements has proliferated over time. Now days it has become a pervasive element of advertising industry especially in India. Celebrity endorsement business has become a multi-million industry in India. Marketers use celebrity endorsers to influence the purchase decision of consumers in order to increase their sales and extend their market shares. This made the author curious to explore the impact of celebrity endorsements on consumer buying behaviour. This dissertation focuses on examining the perception of Indian consumers about celebrity endorsements, examining the celebrity attributes likely to influence consumer purchase intentions and finally the impact of celebrity endorsements on their purchase intention. This project begins with the review of existing literature available on celebrity endorsements, which provides an insight into the research topic and clarifies many important aspects related to the subject. A quantitative method is used for this research project to investigate the perceptions of the consumer, attributes and its subsequent impact on purchase intention. The data is collected through a questionnaire and later analysed using the data analysis software program SPSS. It was proven in this research that consumers find celebrity endorsements more attractive and influential as compared to non-celebrity endorsements. Moreover, the tested attributes show positive relationship with purchase intention. In other , celebrity attributes do impact the purchase intention of consumers. Finally, the results of the study prove that celebrity endorsements positively impact the purchase intention of the consumers.

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Table of Contents Acknowledgement .......................................................................................................................................... ii Abstract ............................................................................................................................................................... v List of Tables .................................................................................................................................................... ix List of Figures .................................................................................................................................................. xi

1

2

INTRODUCTION ................................................................................................................................... 1 1.1

Background to the topic: An Insight to the Celebrity Endorsements ............................. 1

1.2

Research Justification ....................................................................................................................2

1.2.1

Academic Justification ..........................................................................................................2

1.2.2

Business Justification ............................................................................................................2

1.2.3

Personal Justification ............................................................................................................2

1.3

Research Aim .................................................................................................................................... 3

1.4

Research Objectives ....................................................................................................................... 3

1.5

Research Questions ........................................................................................................................ 3

1.6

Outline of the Dissertation .......................................................................................................... 4

LITERATURE REVIEW ....................................................................................................................... 5 2.1

Concept and Meaning.................................................................................................................... 5

2.1.1

Celebrity .................................................................................................................................... 5

2.1.2

Celebrity Endorser ................................................................................................................. 5

2.1.3

Celebrity Endorsement .........................................................................................................6

2.2

Celebrities as a form of Aspirational Reference Group ........................................................ 7

2.3

Celebrity versus Non-Celebrity Endorsements ..................................................................... 8

2.4

Celebrity Endorsement as a Marketing Communication tool ...........................................9

2.5

Positive aspects of Celebrity Endorsement ........................................................................... 10

2.6

Negative aspects of Celebrity Endorsement .......................................................................... 11

2.7

Multiple Celebrity Endorsements ............................................................................................ 13

2.8

Consumer Buying Behaviour...................................................................................................... 15

2.9

Types of Consumer Buying Behaviour .................................................................................... 15

2.10

Consumer Buying Behaviour in India ...................................................................................... 17

2.11

Celebrity Endorsement Effectiveness ..................................................................................... 19

2.11.1

Source credibility model ..................................................................................................... 19

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2.11.2

Source attractiveness model .............................................................................................. 21

2.11.3

Product Match-up model .................................................................................................. 22

2.11.4

Meaning transfer model ..................................................................................................... 24

2.12

Celebrity Endorsement – An Indian Perspective ................................................................ 26

2.13

Theoretical Framework .............................................................................................................. 29

2.13.1 2.14

3

Hypotheses .............................................................................................................................33

Conclusion ..................................................................................................................................... 34

METHODOLOGY .................................................................................................................................35 3.1

Research Philosophy ....................................................................................................................35

3.2

Research Approach ....................................................................................................................... 37

3.3

Quantitative Versus Qualitative Research ............................................................................38

3.4

Research Purpose ......................................................................................................................... 39

3.5

Research Design............................................................................................................................ 39

3.6

Research Strategy ......................................................................................................................... 40

3.7

Data Collection ............................................................................................................................. 40

3.7.1

Secondary Data ...................................................................................................................... 41

3.7.2

Primary Data .......................................................................................................................... 41

3.7.3

Questionnaire ....................................................................................................................... 42

3.7.4

Questionnaire Design ......................................................................................................... 42

3.7.5

Pilot Test ................................................................................................................................ 43

3.8

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Sampling ......................................................................................................................................... 43

3.8.1

Sampling Technique ........................................................................................................... 45

3.8.2

Sampling Size........................................................................................................................ 45

3.9

Data Quality Issues ...................................................................................................................... 46

3.10

Data Analysis ................................................................................................................................. 47

3.11

Limitations of the Research ...................................................................................................... 48

3.12

Methodology Framework .......................................................................................................... 49

ANALYSIS AND FINDINGS ............................................................................................................. 50 4.1 4.1.1 4.2

Research Question 1: ................................................................................................................... 50 Testing the Hypothesis ...................................................................................................... 58 Research Question 2: Hypotheses Testing ........................................................................... 59

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Degree of correspondence between variables ............................................................. 59

4.2.2

Regression Models ............................................................................................................... 61

4.2.3

Summary ................................................................................................................................ 70

4.2.4

Descriptive statistical Analysis of Attributes .............................................................. 73

4.3.1

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4.2.1

4.3

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Research Question 3 .................................................................................................................... 84 Testing the Hypothesis ...................................................................................................... 86

DISCUSSION ......................................................................................................................................... 88 5.1

Current State of Consumer Perception about Celebrity Endorsements ..................... 88

5.2

Relationship of Celebrity Attributes with Purchase Intention ...................................... 89

5.3

Impact of Celebrity Endorsements on Consumers Purchase Intention ....................... 92

CONCLUSION...................................................................................................................................... 94 6.1

Limitations of the study ............................................................................................................. 95

6.2

Theoretical Implications ............................................................................................................ 96

6.3

Managerial Implications .............................................................................................................97

6.4

Further Research ...........................................................................................................................97

REFERENCES ................................................................................................................................................ 98 APPENDICES ................................................................................................................................................. 111

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List of Tables Table 1: Pros and Cons of Celebrity Endorsement Strategy Table 2: Examples of Multiple Product Endorsements in India Table 3: Source Credibility Scale Table 4: Models explaining Celebrity Endorsements Table 5: Frequency Table for Attractiveness Table 6: Age * More attractive Cross-tabulation Table 7: Statistical Analysis of Recognise and Recall rate Table 8: Recognise & Recall rate of celebrity endorsed ments Table 9: Age * Recognise/Recall Cross-tabulation Table 10: Descriptive Statistical Analysis of Influential Table 11: Summary of Influential Table 12: Age * Influential Cross-tabulation Table 13: Correlation Matrix Table 14: Descriptive Statistics of Attributes Table 15: Model Summary of Expertise Table 16: Coefficients of Expertise Table 17: Model Summary of Trustworthiness Table 18: Coefficients of Trustworthiness Table 19: Model Summary of Similarity Table 20: Coefficients of Similarity Table 21: Model Summary of Familiarity Table 22: Coefficients of Familiarity Table 23: Model Summary of Likeability Table 24: Coefficients of Likeability Table 25: Model Summary of Matchup Table 26: Coefficients of Matchup

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Table 27: Model Summary of Meaning Transfer Table 28: Coefficients of Meaning Transfer Table 29: Descriptive Statistical Analysis of Expertise Table 30: Expertise of Celebrity and Purchase Intention Table 31: Descriptive Statistical Analysis of Trustworthiness Table 32: Trustworthiness of Celebrity and Purchase Intention Table 33: Descriptive Statistical Analysis of Similarity Table 34: Similarity of Celebrity and Purchase Intention Table 35: Descriptive Statistical Analysis of Familiarity Table 36: Familiarity of Celebrity and Purchase Intention Table 37: Descriptive Statistical Analysis of Likeability Table 38: Likeability of Celebrity and Purchase Intention Table 39: Descriptive Statistical Analysis of Matchup Table 40: Matchup of Celebrity and Purchase Intention Table 41: Descriptive Statistical Analysis of Meaning Transfer Table 42: Meaning Transfer of Celebrity and Purchase Intention Table 43: Descriptive Statistical Analysis of Each Attribute Table 44: Reliability test for Purchase Intention Table 45: Statistical Analysis ―Purchase Intention 01‖ Table 46: Statistical Analysis ―Purchase Intention 02‖ Table 47: Statistical Analysis ―Purchase Intention 03‖ Table 48: Overall Purchase Intention Table 49: Descriptive Statistics Overall Purchase Intention

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List of Figures Figure 1: Classical Conditioning Paradigm in Marketing Communications Context Figure 2: Meaning Movement and Endorsement Process Figure 3: Trend of Celebrity Endorsements in India Figure 4: Broad Framework designed to Study Celebrity Endorsements Figure 5: Theoretical Framework designed to Study Celebrity Endorsements Figure 6: Types of Sampling Techniques Figure 7: Methodology framework Figure 8: Attractiveness (Celebrity vs. Non-celebrity ments) Figure 9: Attractiveness (Age group analysis) Figure 10: Attractiveness (Gender analysis) Figure 11: Recognise and Recall rate of celebrity endorsed ments Figure 12: Age * Recognise/Recall rate of celebrity endorsements cross-tabulation Figure 13: Influential (Celebrity vs. Non-celebrity ments) Figure 14: Age*Influential celebrity endorsements cross-tabulation Figure 15: Residual Plots of Hypothesized Relationships Figure 16: Expertise of Celebrity and Purchase Intention Figure 17: Trustworthiness of Celebrity and Purchase Intention Figure 18: Similarity of Celebrity and Purchase Intention Figure 19: Familiarity of Celebrity and Purchase Intention Figure 20: Likeability of Celebrity and Purchase Intention Figure 21: Matchup of Celebrity and Purchase Intention Figure 22: Meaning Transfer of Celebrity and Purchase Intention Figure 23: Graphical Representation of Importance of Each Attribute Figure 24: Overall Purchase Intention of Consumers for Celebrity Endorsements

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INTRODUCTION

This introductory chapter provides the reader with an insight into the topic of the research area. The chapter begins with title of the research followed by a brief background to the research topic with further emphasising on the aims and objectives of the research project. Finally, it explains the overall structure of the research project.

1.1 Background to the topic: An Insight to the Celebrity Endorsements The use of advertising went through a major phase of change over the past 150 years, from classical to modern view. In the modern days, marketers are developing strategies using various appeals including sexual, emotional, humour etc. (Belch and Belch 2001). The motive behind formulating such strategies is to gain high brand exposure, attention, interest, desire and action (Belch and Belch 2001). In order to do this, marketers employ well known and famous personalities in other word celebrities. As McCraken (1989) stated that celebrities tend to create greater effect on the consumers‘ buying behaviour. McCraken (1989) further states that celebrity endorsement advertising is a ubiquitous feature of modern marketing. According to Silvera and Austad (2004) Celebrities are people who enjoy public recognition among a large group of people and possess distinctive qualities like attractiveness and trustworthiness. Many big brands have recognised the importance of celebrity endorsements as marketing communication tool (Soderlund 2003). Celebrity Endorsements is a billion dollar industry in today‘s era. (Kambitsis et al, 2002). Marketers spend huge amount of money on celebrity endorsement contracts annually (Katyal, 2007) it shows that celebrities play an important role in the advertising industry. Recently, the famous golfer Tiger woods has refused a 75 million dollar endorsement offer from bookies Power Paddy saying ―the deal wasn‘t lucrative enough‖. Reportedly, Woods earned around 110 million dollar through endorsements, Nike being the largest contributor with the 30 million dollar (Celebriscoop 2010). Considering the prices companies are willing to pay and the effect it has on consumers buying behaviour, celebrity endorsements appears to be a very popular advertising tool in the modern day marketing (McCraken 1989; Belch 2001; Soderlund 2003).

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1.2 Research Justification 1.2.1 Academic Justification Over the past few decades, much research has already been done over the phenomena of celebrity endorsements (Bailey 2007). Researchers in academic journals have explored many new issues related to the celebrity endorsements for instance negative publicity of celebrity, effectiveness of endorsements etc. Moreover, there are many empirical studies already being conducted focussed on major markets like United States, United Kingdom, and China etc. but as far as author‘s review and knowledge none of the research is done in context to the Indian consumer market. The main reason for choosing this topic is based on the fact that so far no study has been conducted in order to understand the impact of celebrity endorsements on consumer buying behaviour with reference to India. Academically, this research project will be helpful in understanding the perception and attitude of Indian consumers towards celebrity endorsements which may reveal some interesting insights and directions for future research.

1.2.2 Business Justification Celebrity endorsement has become a common practice in order to differentiate the product from other competing brands in a highly competitive environment (Erdogan 1999). The final aim of every advertising strategy is to instigate the actual behaviour of the targeted audience, whether purchase intention or actual consumption (Sharma et al. 2008). If an advertising strategy fails to achieve the same, the million dollars spent are not worth it. Indian consumer market is booming at a great pace. According to a report by McKinsey Global Institute (MGI), India's consumer market will be the fifth largest (from twelfth) in the world by 2025 which is currently valued at US$ 511 billion. Additionally, consumers in India are exposed to several new products every other day followed by marketers‘ differentiation, positioning techniques. Therefore it will be interesting to investigate the impact of celebrity endorsements on consumers buying behaviour in India. From a business perspective this research project would be useful in understanding the attitude and perceptions of Indian consumers towards celebrity endorsements.

1.2.3 Personal Justification India is a country where celebrities are worshipped and possess demo-god status. People have always idolised celluloid stars (Katyal, 2007). Marketers take advantage of this opportunity to

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influence the customers emotionally and make them buy products. The author, in his school days was under the same influence of celebrity magnetism. Later after reading and studying marketing, the author came to know about the theoretical and practical underpinnings of celebrity endorsements which increased author‘s eagerness to towards the topic. Additionally, author believes that conducting this research project will enhance the valuable personal knowledge about the subject and experience for future career applications.

1.3 Research Aim The aim of this research is to empirically investigate the impact of celebrity endorsements on consumer buying behaviour (purchase intention) in context to India.

1.4 RESEARCH OBJECTIVES OBJECTIVE 1 Explore and examine the current state of consumer’s perception about celebrity endorsements. OBJECTIVE 2 Identify the key factors which may influence consumer’s buying behaviour through celebrity endorsements. OBJECTIVE 3 Examine the impact of celebrity endorsements on consumer’s purchase intentions.

1.5 Research Questions Question 1: How do Indian consumers perceive Celebrity endorsed ments as compared to non-celebrity ments? Question 2: Do the attributes from the literature review impact the consumer purchase intentions to buy a product when celebrities are used as endorsers? Question 3: How do celebrities impact the consumer purchase intention when are used as endorsers?

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1.6 Outline of the Dissertation The research projected is constructed in a logical order as follows: Chapter 1- The first chapter gives a brief introduction of the research topic specifying the aims and objectives to be achieved. Chapter 2- This chapter reviews the basics and theories relating to the concept of celebrity endorsement and consumer buying behaviour. It presents the critical evaluation of existing studies being done by various authors on celebrity endorsements. The Research framework identifies the hypotheses that are the basis for this research. Chapter 3- This chapter focuses on methodological considerations for this research, explaining the reason explaining each instrument adopted for instance research philosophy, research design, data collection methods etc. Chapter 4 and 5- These chapters present the research findings and statistical analysis of the primary data collected for the research and discussion of result obtained. Chapter 6- This chapter concludes the research giving recommendations for the celebrity endorsements and suggesting topics for the future research. The key outcomes of the research are summarised in this chapter.

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LITERATURE REVIEW

This chapter aims to comprehensively review the existing research done in the area of celebrity endorsements in order to get the better understanding of the research subject. The content of the chapter includes concepts and meaning of celebrity, celebrity endorser, celebrity endorsements, celebrity versus non-celebrity endorsements, positive and negative aspects of celebrity endorsements, consumer buying behaviour, models for celebrity endorsements, celebrity endorsement – an Indian perspective and theoretical model for the research.

2.1 Concept and Meaning 2.1.1 Celebrity "A sign of a celebrity is that his name is often worth more than his services.‖ Daniel J Boorstin Celebrities are people who enjoy public recognition and who often have distinctive attributes such as attractiveness and trustworthiness. (McCracken 1989; Silvera and Austad 2004). The term ―celebrity‖ refers to an ‗individual who is known to the public, such as actors, sport figures, entertainers‘ and others for their achievements in their respective areas other than the product endorsed by them (Friedman and Friedman, 1979:63). Boorstin in 1961 specified the most important quality of being a celebrity i.e. not being forgotten and known by people for their ―well-knowness‖. According to McCracken (1989), ―It can include people from movies, television, sports, politics, business, artists and persons from the military. Whereas, In this modern age of marketing, Celebrities may also be an animated character like Fred Flintstone, or an animal (Miciak and Shanklin, 1994).

2.1.2 Celebrity Endorser McCracken (1989) defined celebrity endorser as ―any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an ment (p.310).‖ Kamins (1989), defined celebrity endorser as ―an individual who is known to the public for his or her achievements in areas other than that of the product endorsed‖. While Stafford et al., 2003 gave a clear definition by defining celebrity endorser as, ―a famous person who uses public recognition to recommend or co-present with a product in an ad‖. Celebrities are often hired by rs to lend their personality to a product or brand (Kaikati, 1987). The use of celebrities has been widely used as it could provoke attitudinal

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and emotional reactions (Kanungo and Pang, 1973) than a non-celebrity endorser (Atkin & Block, 1983; Petty and Cacioppo 1983). Therefore celebrities who are placed as models and are seen as in of the product and / or its claim are known as endorsers (Tellis, 1998). In order to be effective a celebrity endorser should have the credibility to attract attention Miciak and Shanklin 1994) increase awareness of the endorsed product (Wilson, 1997) and influence the purchase decision of the targeted audience (Ohanian, 1991).

2.1.3 Celebrity Endorsement Celebrity endorsements is been accepted to be a ―ubiquitous feature of modern day marketing‖ (McCracken 1989). It has also been seen that one quarter of all ment use/feature a celebrity to endorse a product or brand. This validates the effectiveness of Celebrity endorsements as a means of persuasive communication. It has the potential to enhance audience attentiveness, make the ad more memorable, credible, and desirable and add glamour to the endorsed product (Spielman, 1981). Early Research has found that ―celebrities are more effective than other types of endorsers, such as ―the professional expert‖, ―the company manager‖, or ―the typical consumer‖ (Friedman and Friedman, 1979). Using celebrity endorsers, companies may easily crack into consumer‘s symbolic association to an aspirational reference groups, as celebrity endorsers are perceived as dynamic, attractive and likable (Assael, 1984; Atkins and Block, 1983; Kamins, 1990). The use of celebrities in ments is not a new phenomenon (Kaikati, 1987). Celebrity endorsement, as a marketing practice, has a very distinguished history. In the eighteenth century, a famous potter Josiah Wedgwood pioneered in using celebrities to his advantage. Once when Queen Charlotte began to use his products, Wedgwood capitalised on his new status by referring himself as the ―Potter to Her Majesty‖ (Dukcevich, 2004). For instance one of the early examples involves Queen Victoria associating with Cadbury Cocoa (Sherman, 1985). McCracken (1989) further conceptualised Endorsement process in different endorser roles and endorsement types. Celebrity Endorser can take the role as an expert, as a spokesperson associated with a product, or as an aspirational figure with no particular knowledge or relationship with, the product. There can be four types of Endorsement; Explicit (―I endorse this product‖), Implicit (―I use this product‖), Imperative (―You should use this product‖), or co-presentational mode (merely appearing with the product)‖.

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2.2 Celebrities as a form of Aspirational Reference Group From a theoretical perspective, Celebrities are classified in the category of heroes as reference groups and opinion leaders. They are recognised as effective endorsers due to their symbolic aspirational reference group associations (Assael 1984, Solomon and Assael 1987). Celebrities as heroes have the potential to influence the cognitive processes of consumers (Wilkes and Valencia 1989). The relationship between values and heroes can be bidirectional. Celebrities can shape and refine existing cultural meaning and encourage the reform of cultural values and categories (Biswas et al. 2009). Therefore by using celebrity endorsers, companies may tap into consumer‘s symbolic association to an aspirational reference groups, as they are perceived as dynamic, attractive and likable (Assael, 1984; Atkins and Block, 1983; Kamins, 1990). Celebrities, particularly movie stars, TV personalities, popular entertainers and sports legends, provide a very common type of reference group appeal (Schiffman and Kanuk 2004). Consumers tend to form an attachment to any object that strengthens one‘s self identity or desired image, renders feelings of connectedness to a group or a personality and perhaps the most common example of this form are the celebrities (O‘Mahony and Meenaghan, 1998). The power of the celebrities lies in their ability to influence the consumers, even though they are physically and socially far from a common consumer (Choi & Rifon, 2007). Based on the meaning transfer model by McCracken‘s (1989) that brands endorsed by celebrities are a source of symbolic brand meaning. It can be said that consumers connect the symbolism associated with the celebrity and the brands they endorse, transferring these meanings from the brand to themselves by actively using those brands (Escalas and Bettman 2005). Consumers are likely to accept meanings from the brands endorsed by a celebrity whom they perceive as similar to themselves or whom they aspire to be like. For instance, a consumer may consider himself to be athletic and fashionable, like David Beckham, who currently endorses many brands, including Adidas and Police. Due to his aspiration to look like Beckham he may choose to buy an Adidas gear and wear Police watches. As a result, he may form a self-brand connection to these brands endorsed by Beckham (Schiffman and Kanuk 2004).

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2.3 Celebrity versus Non-Celebrity Endorsements According to Seno & Lukas (2007), Celebrities are more effective than other type of endorsers such as the company manager, typical consumer and the professional expert etc. Companies possess great control over created spokespersons since they develop these characters. They can build characters which are consistent with their brands and target audiences, and ensure that these characters are exclusively endorsing only one particular product (Tom, et al. 1992). On the contrary, companies hold limited control over the celebrity endorsers, since they have created their public persona themselves over the years. Previous research on celebrity endorsement reveals that celebrity endorsers produced more positive attitudes towards advertising and greater purchase intentions than a non-celebrity endorser (Atkin and Block 1983; Petty et al. 1983; Ohanian 1991). On the contrary, Mehta (1994) argued that there were no statistically significant differences in attitudes towards advertising, brand and purchase intention on endorsed brand between celebrity and non-celebrity endorsements. However, differences were found in cognitive responses generated by respondents. In a research Tom et al.'s (1992) proved that created endorsers are more effective than celebrity endorsers on the classical conditioning paradigm. According to this paradigm, (see Figure-1), consumers learn the association between an unconditional stimulus (celebrity endorser) and a conditional stimulus (product) through repeated exposure. The association is much stronger with original material (created spokesperson) than with popular material because the popular material (celebrity endorser) is not just linked to a promoted product but with many other things as well. In other words, the bond between the created celebrity and the product is strong because it is unique and exclusively endorsing only one product. Whereas, the bond between the celebrity endorser and product is weak due to its multiple endorsements/associations (Erdogan 1999).

Figure 1: Classical Conditioning Paradigm in Marketing Communications Context

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Agrawal and Kamakura (1995) and Mathur, Mathur and Rangan (1997) conducted two different studies to assess the economic worth of celebrity endorsement contracts on the expected profitability of a firm. The authors used Event Study Methodology, which is used to identify the valuation effects of marketing decisions (Mathur, et al. 1997). Surprisingly, outcomes from both of the studies emphasised on the effectiveness of use of celebrity endorsers (Erdogan 1999).

2.4 Celebrity Endorsement as a Marketing Communication tool From marketing communication perspective, it has become more important for firms to design strategies which provide competitive differential advantage to its products and services. It attempts to create positive effects in the mind of consumers. In order to achieve this, Celebrity endorsement is a commonly used marketing communication strategy (Erdogan, 1999). Companies spend large amount of money to endorse their brands through these celebrities. These celebrity endorsers are perceived and gifted with dynamic, attractive and likeable qualities (Atkin and Block 1983) and companies try to align these qualities to their products through marketing communication strategies. Many researchers believe that an ment featuring a celebrity delivers a higher degree of appeal, attention, recall rate and possibly purchase compared to the ads without celebrities (Cooper, 1984; Dean and Biswas, 2001) and thereby contributing substantial positive impact on financial returns for the companies (Farrell et al. 2000; Endorgan, 2001).. There is much research being done on celebrity endorsers both in the academic literature (Endorgan, 2001; Atkins and Block, 1983; Friedman et al., 1977) as well as trade journals (Anonymous, 1989, 1996). Most of the research revealed the efficiency of celebrity endorsements (Cooper, 1984; Dean and Biswas, 2001, Atkins and Block, 1983; Friedman et al., 1977) but in some cases, celebrity endorsements just don‘t work everytime (Misra and Beatty, 1990). In fact, many commercials using such celebrity endorsers do not live up to the rs‘ expectations (Miciak and Shanklin, 1994). Initially, implementing this strategy came out to be a no-risk/all-gain or win-win situation, but like another marketing communication strategy, there are potential hazards involved too. There are various potential risks also involved while implementing this strategy which can also lead to severe results. In other words, celebrity endorsement strategy can be a two-edged

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sword, which may create and destroy a brand. Therefore, we will explore the positive and negative aspects of celebrity endorsement.

Table 1: Pros and Cons of Celebrity Endorsement Strategy (Source: Erdogan 1999)

2.5 Positive aspects of Celebrity Endorsement The increasing competition between firms in order to attract more consumers towards their products has encouraged marketers to use celebrities to endorse their products. Moreover, recent technological advances in the media such as DTH, video control systems, cable and satellite television has increased consumer power over programmed ment and made advertising more challenging (Croft et al. 1999). It is also perceived that the featuring a renowned celebrity helps in solving the problem of over communication that is becoming more and more prevalent these days (Kulkarni & Gaulakar, 2005). Marketers to ease this threat and attract more consumer attention towards their products and ments use celebrity endorsement strategy. Due their well knowness, celebrities help ments to stand out from the surrounding clutter by appearing in them, increasing the communicative ability by cutting through excess noise in a communication process (Sherman 1985). Hiring a famous celebrity as their brand endorser may also help improving the image for a tarnished company. Celebrity Endorsement may also help in restoring or polishing a company‘s image (Erdogan, 1999).

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For most of the multi-national companies while expanding to different countries may face some issues like cultural 'roadblocks' such as time, space, language, relationships, power, risk masculinity, femininity and many others (Mooij 1994; Hofstede 1984). Celebrity endorsements can be a powerful device to enter foreign markets. Hiring a world famous celebrity or a celebrity from the expanding country may help companies to overcome many such issues. For Instance, Pepsi Co Intemational increased its market share in India by Endorsing through famous celebrities and crickets such as Shahrukh Khan, MS Dhoni, Kareena Kapoor etc. It is been experienced that the products endorsed by celebrities help them to standout and take more notice while shopping due to their improved level of product recall (Bowman 2002). ments featuring a celebrity make a strong impact on the learning style and memory of a consumer which is an important aspect of marketing communication success. Celebrities often make the ad more memorable in the mind of the consumer even if there is no immediate need of the d product. Marketers use this advantage of information storage in the minds of the consumers which can be readily retrieved at the time of shopping or when the need arises (Schultz & Barnes, 1995). All these arguments lead to the conclusion that celebrity endorsements likely to have a positive effect on consumer buying behaviour (Goldsmith, Lafferty and Newell 2000; Mathur, Mathur & Rangan 1997)

2.6 Negative aspects of Celebrity Endorsement Despite the various benefits of celebrity endorsements, there are still many potential risks involved in using celebrities to endorse their products as a part of a marketing communication strategy for a company. Negative information and publicity concerning the celebrity is one of the major risks associated with the celebrity endorsement. There can be other factors as well which may lead to serious consequences for instance suddenly changed image, drop in popularity, moral issues, losing credibility by over endorsing, or overshadow endorsed products or vampire effect (Cooper 1984; Kaikati 1987). Negative information about a celebrity endorser not only impacts consumers' perception about the celebrity, but also the endorsed product (Klebba and Unger 1982; Till and Shimp 1995) and may also ruin the brand reputation (Till 1996). In fact many companies have paid a very big price over the celebrity‘s misdeeds. For instance PepsiCo suffered with three stained

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celebrities - Mike Tyson, Madonna, and Michael Jackson (Katyal 2007). Companies have faced serious embarrassment when their spokesperson or celebrity endorsers were deeply involved in a controversy (Erdogan 1999). Sometimes in an ment, consumers fail to focus on the product being endorsed due to the glamour and popularity of the celebrity, hence fails to promote the brand (Rossiter and Fercy 1987). As Cooper (1984) said "the product not the celebrity must be the star." Overshadowing or commonly termed as the ‗vampire effect‘ occurs ‗‘when the celebrity endorser occurs in the presence of multiple other stimuli which all competes to form a link with the celebrity endorser.‖ (Till 1996). It leads to lack of clarity for the consumer. (Evans 1998). The major issue arises out of this problem is that consumers fail to notice the brand being endorsed because they are more focussed over the celebrity (Erdogan 1999). Overexposure is a common issue among highly demanded and well recognized celebrity endorsers because every major company wants to hire them to endorse their brands which ultimately leads to making the consumer more confused and unable to recall correctly as to which brand the celebrity stands for. (Tripp et.al. 1994). Another important issue concerning the celebrity endorsement is that sometimes most famous celebrities often indulge in endorsing much different type of products and services just for the sake of their greed for money. For example Shahrukh khan endorses more than 20 different brands from hair oil to automobiles. Solomon et al. (2002) referred this as the ―hired gun‖ problem, where the spokesperson is perceived as endorsing the product only for the sake of money. If a celebrity lends his image to various brands by appearing in ments it also has less impact on the consumers mind and the message being delivered since the relationship between the celebrity and the endorsed brand is not distinctive (Mowen and Brown 1981). This may not also disappoint the celebrity fans (Graham 1989) but also make the consumers aware of the real fact of endorsements that celebrities are endorsing the products just for the huge amount of money they get and has nothing to do with the product attributes or product being endorsed (Cooper 1984; Tripp, et al. 1994). Many researchers have also proposed that negative information about a celebrity not only influences consumers' perception for the celebrity, but also the product endorsed by him (Klebba and Unger 1982; Till and Shimp 1995).

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There are some other new limitations being faced these days called Celebrity Trap, Celebrity Credibility and Celebrity Clutter. Celebrity trap is when it becomes difficult for marketers to separate the role of the message and the role of the celebrity in selling the brand and when celebrity becomes an addiction for the marketing team. It becomes more and more difficult to find the substitute. Celebrity credibility has become questionable these days. Consumers have now become aware of the fact that celebrities are endorsing brands just for the sake of money. The credibility which celebrities used to possess in the past is bound to decrease if a celebrity begins to appear and endorses a brand in every possible category (Patel 2009). Celebrity Clutter is when each celebrity endorses multiple products and multi-brands in a category, make the customer more confused. It make consumer to make comparisons such as ‗whether this celebrity is bigger or that one‘ to make product choices. — Pepsi is endorsed by Shahrukh Khan and Coca Cola by Amir Khan. Celebrity endorsers have now become a liability to the brand they endorse (Till and Shimp,1998) as there are decreasing returns associated with celebrities (Agrawal and Kamakura 1995). Some researchers also referred celebrities as a ‗puppet‘ in the hands of marketers implying that they perceive the celebrities to be fake and lying, while endorsing certain brands (Temperley & Tangen, 2006).

2.7 Multiple Celebrity Endorsements Hsu and McDonald (2002) defined multiple celebrity endorsement as the use of two or more celebrities in an advertising campaign. According to him, multiple celebrity endorsement can further be classified under two different parts based on how celebrities are featured in ads. First scenario is where two or more celebrities appear together in an ment to endorse a product. Secondly, different celebrities appear in a series of ment separately to endorse the same product. Multiple celebrity endorsement is not a new phenomenon for marketers in the advertising industry. Some of the big brands include Nike, Adidas and American Express. The milk mustache campaign is another major example featuring than 100 celebrities to promote milk consumption since 1995 (Hsu and McDonald 2002). In context to India, For instance, Pepsi has been endorsed by Sachin Tendulkar, Aamir Khan, Amitabh Bachchan, Rahul Dravid, Shahid kapoor, kareena kapoor, Ranbir Kapoor, Deepika Padukone etc (Khatri,2006). According to Hsu and McDonald (2002) p.25, "Multiple celebrity endorsement advertising may help the r to build a sense of consensus, avoid audience boredom and appeal to multiple audiences".

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Erdogan and Baker (1999) in their research argued that it is useful for the marketers to use multiple celebrities for endorsing a particular brand because it can reach out and appeal to its entire target audience. However, the use of multiple celebrities might create a confusion about the brand‘s identity in the consumers mind and therefore it should be assured that ―each and every celebrity possesses compatible meanings that are sought for brands‖ (Erdogan and Baker, 1999 p. 13). For instance L‘Oreal endorses its product line according to the celebrity attributes and the meanings associated with them (Redenbach, 2005). The greatest fear for marketers while using multiple celebrities is that today consumers are more aware, educated and knowledgeable about the use of celebrity endorsements. It may lead them to think that celebrities are endorsing the brands just for the sake of money and doesn‘t really care about the product, which might negatively affect the consumers buying behaviour (Belch and Belch, 2001). In a research by Redenbach (2005) argued that endorsing four different brands/products influences the celebrity‘s trustworthiness, expertise and likeability. Because the celebrity instead of focusing on one brand, endorses multiple brands and which eventually lacks distinctiveness (Redenbach, 2005). There is also a possibility that using so many different celebrities might overshadow the brand and lead to ―Vampire effect‖. People

might

just



the

celebrities

but

not

the

brand/product

endorsed/d (Hsu and McDonald, 2002).

Table 2: Examples of Multiple Product Endorsements in India

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2.8 Consumer Buying Behaviour In today‘s dynamic and competitive environment, customers are continuously exposed to various different brands through different marketing strategies. Consumer behaviour is an important and complex area for marketers as different people have different needs. As stated by Lancaster et al. (2005) that satisfaction of consumer needs is the ultimate goal for a business; thus the marketer‘s job is to accurately identify the customer needs and accordingly develop product that satisfies their wants. Therefore, it is very critical for marketers to have a proper understanding of consumer buying behaviour. Perner (2009) defined consumer behaviour as "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." According to Perner (2009) knowledge of consumer buying behaviour helps marketers in developing their marketing strategies by understanding the psychology of the consumers as how a) They think, feel, differentiate, and select between different brands or products. b) How the consumer is influenced by his or her environment (e.g., culture, family, signs, media); c) The behaviour of consumers while shopping or making purchase decisions; d) How consumer motivation and decision strategies differ between products that differ in their level of importance; and e) How marketers can adapt and improve their marketing campaigns and strategies to reach the consumer more effectively. Furthermore, it is not only important to identify and satisfy the customers need, but it is also critical to know that as to why customer needs that? It gives marketers a better understanding of consumer behaviour which ultimately helps them in satisfying customer needs efficiently and increasing customer loyalty towards their products and services (Zeithami 1985).

2.9 Types of Consumer Buying Behaviour According to Assael (1981), There are there are four type of consumer buying behaviours that can affect the purchase decision making of a consumer based on the level of consumerproduct involvement, interest in a product, situation and difference between the products available. The four type of models are explained as under:

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Complex buying behaviour: It usually takes place when the customer is highly involved in the product purchase decision. The high product involvement occurs when product to be bought is expensive, infrequently bought, and highly expressive. Since, these types of products are not bought frequently the consumer doesn‘t know much about the products and observes substantial differences among the brands available for instance buying a luxury sedan. Consumers make this type of buying decisions very carefully after collecting a lot of information about the product features, quality and performance. According to Assael (1981), Consumers tend to experience cognitive dissonance while making such complex product decisions due to increased risk perception in this type of buying behaviour. There are certain risks also involved while making such decisions for example high may result in monetary loss, highly expressive product nature may lead to psycho-social loss and lack of product knowledge will result in increased uncertainty. From a marketing perspective, marketers need to make sure that they use the effective differentiation strategies to stand out the product from other brands available. And also, try to educate the customers about the importance, application and features of the product offered.

Dissonance-reducing buying behaviour: It occurs when the buyer is highly involved with the product purchase and observes little difference among the options available. After buying the product, the consumer tends to gather the favourable information about the purchased product that assures and validates his product purchase decision. By doing this the customer tries to reduce the dissonance or losses involved in the purchase. This type of buying behaviour involves establishment of trust, belief and attitude towards a brand. However the customer may also end up with time loss, or more likely, psychological loss and social loss. It happens due to the difference between actual purchase performance and expected purchase performance of the product.

Habitual buying behaviour: In occurs when the consumer buy the same product on regular basis over a period of time. Under habitual buying behaviour consumer – product involvement is low and there is little difference between the brands available, for instance buying salt, sugar etc. The consumers buy these products out of their habit or due to their trust or brand loyalty. According to Scott (2007) consumers don‘t go through the process of belief, attitude and purchase decision nor look for deep information and compare the available products. Consumer buy the brands they have used and aware of.

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However, It is interesting to see marketers constantly trying to move these type of product especially (FMCG products) from a low involvement to a higher involvement status by differentiating them on various bases like health, safety etc. . For instance marketers are involved in developing ―low calorie sugar‖ ―cholesterol free oil‖ etc. and selling them at higher prices.

Variety seeking behaviour: This type of consumer behaviour originates if the customer is not happy with its earlier product purchase or out of the boredom. It specially happens with the consumers who like to shop around and try-out with different type of products. In this buying behaviour consumer–product involvement is low but the differences among the brands are significant. These types of consumers change their brand frequently, not due to dissatisfaction, but out of boredom. Variety seeking behaviour is identified as a key determinant factor for brand switching in consumer product category (Scott 2007). According to Assael (1981) consumers having variety seeking consumer behaviour purchase the brands which have higher degrees of perceived risk associated with them and are generally not perceived as brand loyal.

2.10 Consumer Buying Behaviour in India Since, India‘s economic liberalization policies were introduced in 1991; Eliminated import licensing restrictions and reduced tariffs has led many foreign companies to enter the Indian market. India has always been a lucrative and large market for US brands and advertising (Bellman 2007). One of the most challenging concepts in the marketing is to deal with understanding the consumer behaviour. ―Consumer behaviour is affected by a lot of variables, ranging from personal motivations, needs, attitudes and values, personality characteristics, socio-economic and cultural background, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as a whole‖ (Shukla and Devi 2010). The study on Indian consumer behaviour has helped marketers in formulating and implementing strategies to reach the Indian consumers effectively. India is a huge country comprising 28 states and population over one billion people. From the market perspective, Indian consumer market is divided under various segments based on class, status, and income of consumers. Three-fourths of India‘s population lives in rural areas, contributing around one-third of the

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national income. Hence, the recent emergence and development of the rural market is an opportunity for marketers in India (Matrade 2005). There has been a drastic change noticed in Indian consumer behaviour to what it used to be few decades back. Today Indian consumer wants to lead a life full of luxury and comfort. Indian consumers don‘t just want the availability of products; they also want better service and ambience. Purchasing power of people in India is rising very sharply. As a result, the market for luxury products in India is also climbing at a surprising rate (Shukla and Devi 2010). The Indian consumers are noted for the high degree of value and family orientation (Hofstede 1980). This value orientation has labelled Indians as one of the most sensitive consumers in the world. Even, big brands in India design a unique pricing strategy in order to grab a share of the Indian market. This family orientation extends not only to family but to friends as well and also influences the decision making. It is also been noticed that brands those tend to family values are popular and easily accepted in the Indian market. Due its culture, Indian consumers possess high priority for values of nurturing, care and affection (Matrade 2005). Hence, people easily get influenced by the brands communicating through the feelings and emotions. In a study by Hofstede (1980), India has a high power distance (77) as compared to United States (40) and United Kingdom (35). Indian consumers strictly follow their culture, tradition and values, as a result foreign companies are forced to give an Indian touch to their products and services offered in India. For instance McDonalds, Pizza Hut, Pepsi, Coca Cola and many other brands changed their offerings in order to expand in India (Shukla and Devi 2010). As a result of the increasing literacy rate and increasing western exposure through satellite television, fashion magazines and newspapers, there is a significant increase in consumer awareness. This awareness has made the Indian consumers more selective for the quality of the products/services by shopping in retail supermarkets Big Bazaar etc. The consumer tends to purchase from a place where his/her is more valued. The Indian consumers are price sensitive and prefer to buy value for money products (Matrade 2005). Indian consumers consider price as an indicator for quality of a product as they feel that the product is expensive due to its high quality. It‘s also been noticed that Indian consumer buying behaviour is influenced by freebies. People tend to buy the products if there is something given for free along with it (Matrade 2005).

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Matrade (2005) divided Indian consumers in three different segments i.e. The Socialites, The Conservatives and the Working women. Socialites are the people belonging to the upper class of the society. They prefer to shop in expensive specialty stores, and spending a good amount of money on leading a luxurious life. They always try to differentiate themselves from others by purchasing expensive and exclusive products. Socialites are observed to be very brand insistent and would only opt for the best available in the market irrespective of money. On the contrary, The conservatives are referred to the middle class people. The conservative segment is said to be the true reflection of the Indian culture and society. Middle class people are traditional and thoughtful in their towards their purchase decisions. They spend more time with family and focus more on savings than spending. They are slow decision makers because they refer to a lot of sources before making any purchase and always look for durability and functionality of the product. The working woman segment saw a tremendous growth in the late nineties. They are independent and not bound to anything monetary wise. This segment has been the target for the marketers. Working women have their own diverse perceptions in purchase decision making and factors those appeal to them. Today, Indian market has transformed from a seller‘s market to buyer‘s market. The increased consumer power has fierce the competition in the market. This has led to the price war and has forced the companies to maintain product quality to sustain in the highly competitive market like India.

2.11 Celebrity Endorsement Effectiveness Models for explaining celebrity endorsement effectiveness

2.11.1 Source credibility model Source credibility model was first proposed by Hovland and his colleagues. ―Source Credibility‖ in a broad sense, refers to a communicator‘s positive characteristics that affect the receiver‘s acceptance of a message‖ (Ohanian 1990, p. 41) and based on the research in social psychology (Hovland et al. 1953). The model suggests that the effectiveness of a message depends on the perceived level of expertise and trustworthiness of an endorser (Hovland, et al. 1953; Ohanian 1991; Dholakia and Stemthai 1977). According to Kelman (1961), Exchange of information through a credible source (eg. celebrity) has the potential to influence beliefs, opinions, attitudes and/or behaviour through a process called intemalisation. Internalisation occurs when source influence the receiver and is accepted by

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of

their

personal

attitude

and

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value

structures

(Erdogan,

1999).

Table 3: Source Credibility Scale Ohanian (1990) defined trustworthiness as "the listener's degree of confidence in, and level of acceptance of, the speaker and the message." Trustworthiness of an endorser is perceptual and depends on the target audience. It refers to the honesty, integrity and believability of an endorser. Marketers take the advantage of these set of values by employing celebrities those are most regarded as trustworthy, honest believable and dependable among their fans and people (Shimp 1997). Based on an experiment conducted by Miller and Baseheart (1969) it was found out that if the perceived trustworthiness of the source is high; attitude change is more likely to occur. Expertise can be defined as the perceived ability of an endorser to make or provide valid assertions. It includes the knowledge, experience and skills developed by the endorser while working in the same field. Some authors suggest that it is not important for an endorser to be an Expert; but it all depends how audience perceive him (Hovland, et al. 1953: Ohanian 1991). Ohanian (1990) argued that the perceived expertise of celebrity endorsers is more important than their attractiveness and trustworthiness in influencing purchase intentions. Expert celebrities are found to be more persuasive (Aaker and Myers 1987) and may influence the consumer buying decision (Ohanian 1991). Speck. Schumann and Thompson (1988) found that expert celebrities produce higher rate of recall of product information than non-expert celebrities (Erdogan 1999). The findings in the source credibility research are ambiguous. It refers endorsement process as uni-dimensional because it is still uncertain to say what factors construct the model and what factors are more important than others in different situations. Although the study has

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proved to have a significant and direct effect on attitudes and behavioural intentions, it may help marketers in selecting right endorsers however it is not the only factor that should be considered in selecting celebrity endorsers (Erdogan, 1999).

2.11.2 Source attractiveness model ―Beauty is a greater recommendation than any letter of introduction‖ – Aristotle As Patzer (1985) stated that "physical attractiveness is an informational cue involves effects that are subtle, pervasive, and inescapable‖ He advocated the use of attractive endorsers than average looking endorsers. According to him people try to increase their attractiveness and react positively to the endorsers who look like them (Erdogan 1999). Sometimes people tend to think that attractive people are much smarter and hence excel in other areas as well. This is also called as the ―halo effect‖. Source Attractiveness Model is considered to be a component of the ―source valance‖ model (McGuire 1985) and based on the research in social psychology (McCracken 1989). The source attractiveness model basically concentrates on four key areas; namely ―familiarity‖ (knowledge of source), ―likeability‖ (affection for source based on his/her physical appearance or behaviour), ―similarity‖ (resemblance between the source and the respondent), and ―attractiveness‖ (McCracken 1989 p. 311). It suggests that the effectiveness of a message depends on source‘s familiarity, likability, similarity, and attractiveness to the receiver of the message (Ohanian 1990). Marketers choose celebrity endorsers on the basis of their physical attractiveness to capitalise on their both attributes i.e. celebrity status and physical appeal (Singer 1983). Print ments portray the importance of physical attractiveness. Many researchers have found that attractive people are more effective that unattractive people at persuasion, changing beliefs (Baker and Churchill 1977; Chaiken 1979; Debevec and Keman 1984) and triggering purchase intentions (Friedman et al. 1976; Petty and Cacioppo 1980). Similarity can be defined as the perceived resemblance between the source and the respondent, familiarity as knowness of about the source through experience, and likability as the level of fondness, care and affection for the source in the respondent due to the source‘s physical attributes and behaviour. ―Attractiveness‖ of the source doesn‘t only arises due to the physical attributes, It may also include the various other characteristics like intellectual skill, lifestyle etc. (Erdogan 1999).

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Cohen and Golden (1972) applied this model in advertising suggested that the ―physical attractiveness‖ of source decides the effectiveness of persuasive communication through a process called identification. It happens when the receiver accepts the information from an attractive source as a wish to be identified with endorser (Erdogan 1999). In further research about gender interaction between source and respondent, it was found out that the source has a greater impact of persuasion and intention to buy on the respondent of opposite sex. Debevec and Kernan (1984) found that attractive female models trigger more positive attitude and purchase intention than their male counterparts across both sexes especially among males. Whereas, Caballero et al. (1989) opposed the statement by arguing that source and respondent of the same sex lead to greater intentions to purchase, males show greater purchase intention from male endorsers and vice versa. On the other hand Petroshius and Crocker (1989) found that source‘s gender had no impact on respondent‘s attitudes towards ments or on purchase intentions either. The academic findings regarding gender or cross gender interactions between source and respondent are superficious and doesn‘t provide any guidelines to marketers (Erdogan 1999). The above arguments lead to the conclusion that attractive celebrity endorsers may enhance the attitude towards a brand but not necessarily result into actual behaviour, cognitive attitudes and purchase intention.

2.11.3 Product Match-up model ―Celebrities are an unnecessary risk unless they are very logically related to products‖ Watkins (1989) The match-up hypothesis suggests that the effectiveness of an ment depends on the existence of a perceived 'fit' between the endorsing celebrity and the brand endorsed by him (Till and Busler 1998). The Product Match-up model suggests that the ―Celebrity‖ and ―Product‖ features should complement each other for effective advertising (Kamins 1990). The match between the product and celebrity depends on the common attributes between product features and celebrity image (Misra and Beatty 1990). Advertising through a celebrity with relatively high product compatibleness leads to effective advertising as compared to an ment featuring less compatible celebrity (Kamins and Gupta 1994; Erdogan 1999). If the qualities of a celebrity match up with the brand endorsed by him, it may also increase the celebrity believability and attractiveness among the targeted audience

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(Kamins and Gupta 1994). Ohanian (1991) ed the argument by stating that it is critical to employ celebrities who directly resemble to the brand and are experts in their field. Bertrand (1992) argued that if a company can successfully connect a link between its product and celebrity image or the field celebrity specialises in, then it can bring fame and success to both. Previous research on the subject states that customers also expect the compatibleness between the endorsed product and the celebrity. In other words Customers make a perceived image about the product by comparing the qualities of the product and celebrity (Ohanian 1991; Callcoat and Phillips 1996; O'Mahony and Meenaghan 1997). On the other hand if there is not congruence between the endorsed product and the celebrity, it might lead people to a conclusion that the celebrity is faking it since he is nicely paid to endorse the brand (Erdogan 1999). From the above arguments it can be inferred that congruence between the celebrity and brand is required for effective advertising. Alternatively, if the endorsing celebrity and the endorsed brand have nothing in common it might lead to ―Vampire effect‖ where celebrity overshadow the endorsed product and the targeted audience only re the celebrity not the product (Evans 1988). The product match-up model suggests that attractive celebrities especially attractive female celebrities are more effective at endorsing beauty products, the products used to enhance ones attractiveness (Kamins 1990). For instance, Aishwarya Rai Bachhan is a renowned celebrity endorsing L'Oréal beauty products and Sachin Tendulkar, the famous cricketer endorsing adidas products in India. As Friedman and Friedman (1978) and Atkin and Block (1983) in their research argued that that the use celebrity endorsers is suitable where product purchases involve high social and psychological risk. ing the argument, Packard (1957) proposed that celebrity endorsement strategy is more effective for luxury products positioned and sold in the niche market segment because the featured celebrities are people from the high status and therefore it becomes easy for marketers to attract consumers to buy their products. Callcoat and Phillips (1996) opposed the argument by saying that consumers are generally influenced by celebrities if products are inexpensive and low involving. After considering the findings and opinions, it becomes obvious that the Match-up between the celebrity and the endorsed brand is important in order to attract the targeted audience and to make the message more effective.

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2.11.4 Meaning transfer model According to McCraken (1989), the previous source models discussed above are not capable of capture the success factors of the endorsement process. DeSarbo and Harshman (1985) ed the argument by stating that neither of the source credibility, attractiveness or match-up hypotheses models provides a base for appropriate celebrity endorser selection. He stated three problems related to these models (Erdogan 1999); a) these models do not provide measures to cope up with multidimensionality of source effects. b) these approaches ignore overtone-meaning-interactions between a celebrity and the endorsed product. c) there is a lack of quantified empirical basis for purposed dimensions. Hence, McCracken proposed the meaning transfer model; the main idea of this model is to prove that celebrities possess unique sets of meanings which might be transferable to the products endorsed by them. The meaning transfer model suggests that the effectiveness of a celebrity endorser depends on his/her quality to bring the meanings to the endorsement process (McCraken 1989). A celebrity possesses a larger number of distinctive meanings. ―Distinctions of status, class, gender, and age, as well as personality and lifestyle types, are represented in the pool of available celebrities, putting an extraordinarily various and subtle pallet of meanings at the disposal of the marketing system‖ (McCraken 1989). For instance in India, Sonia Gandhi as regal women, Amitabh Bachhan as high class person, Aishwarya Rai for her glamorous lifestyle etc. Marketers employ celebrities in ments assuming that since people follow celebrities and try to look like them, they may also consume products associated with them (Fowles 1996). Celebrity endorsements are a unique example of, a more general process of meaning transfer (McCracken 1989). According to McCraken (1989) there is a systematic path for the transfer of cultural meaning in consumer societies. According to McCraken (1988) ―Meaning begins as something resident in the culturally constituted world, in the physical and social world constituted by the categories and principles of the prevailing culture‖. Advertising and the fashion system facilitate the meaning transfer from the culturally constituted world to consumer goods and from consumer goods to the individual consumer it is done through the own efforts of the consumer (McCracken 1989).

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Figure 2: Meaning Movement and Endorsement Process (Source: McCracken 1989) The meaning transfer model illustrates a three stage process. It starts when the r identifies the cultural meanings intended for the product and decides what he/she wants the product to say. After that, the r looks for the objects, persons, and contexts that can give voice to these meanings for instance celebrities. In other words, in the first stage the meanings associated with the celebrities moves from the endorser to the product or the brand, and this meaning is drawn out of the celebrity‘s public image. In the second stage, this meaning is transferred from the endorser to the product and the process of creating a product personality takes place (Tom, et al. 1992). This process is based on the symbolic properties conveyed by the endorser. Once meanings have been moved into goods, they must also be transferred to consumers. Finally in the last stage called consumption process, the brand meaning is achieved by the consumer. Consumers recognise the symbolic properties of products and transfer them into meanings for themselves by putting them to work in the construction of their self-image. When this is done, the movement of the meaning is complete. The third and the final stage of the model demonstrates the importance of the consumer in the endorsement process. (McCraken 1989) McCracken‘s (1989) meaning transfer model first merely seemed to be a theoretical concept but its practicality to real life was proved by two studies by Langmeyer and Walker (1991a and 1991b). In (1991a) they used a response elicitation format with a celebrity endorser Cher endorsing Scandinavian Health Spas and in (1991b) used celebrity endorsers - Madonna and Christie Brinkley and products - bath towels. VCRs, and blue jeans. The study results revealed that when celebrities combined with products, these perceived differences affected meanings perceived in products. Langmeyer and Walker's findings empirically ed the

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argument by McCracken (1989) that celebrities exemplify various meanings and these meanings are ed on to products through endorsements (Erdogan 1999).

2.12 Celebrity Endorsement – An Indian Perspective Today, India is one of the fastest growing economies in the world, growing at a steady pace every year. In a report, World Bank has projected that in 2010 the Indian economy will grow at 8%, making it the world‘s fastest-growing economy by suring China (BBC 2009). In today‘s dynamic and competitive environment, increasing consumer‘s expectations and demands force marketers to adopt more creative advertising practices such as celebrity endorsements to influence consumer buying behaviour (Alsmadi 2006). Hence, there was the potential for Advertising industry using celebrity brand endorsement to become a multimillion dollar industry in India (Malhotra 2005). The advertising industry in India is estimated to be worth around $2,585 million and a recent report in Business Standard estimated the brand endorsement business in India worth around $217 million. India is one of the most after sought market by major brands in advertising industry across the world. In a report by McKinsey Global Institute (MGI), India's consumer market will be the World‘s fifth largest (from twelfth) in the world by 2025 which is currently valued at US$ 511 billion. A C Nielsen (2007) reported strong advertising expenditures for the year 2000 in China and India suggest that the country will be an important destination for marketers and rs in the coming years.

Figure 3: Trend of Celebrity Endorsements in India (Source: Adex India)

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In India, the trend of Celebrity endorsements in advertising started in the latter part of the '80s (Katyal, 2007) when Bollywood and TV stars along with sportspersons made there breakthrough in the advertising world that was, until then, the exclusive domain of models (Kulkarni and Gaulkar, 2005). One of the first ments featuring celebrity in India was when Farokh Engineer became the first Indian cricketer to endorse a brand called Brylcream (Kulkarni and Gaulkar, 2005). Lux, the soap brand pioneered the expertise of celebrity endorsements in India and holds the record for the past 75 years to till date (Katyal, 2007). Early examples of celebrity endorsers include the famous actress Tabassum (Prestige Pressure Cookers), Jalal Agha (Pan Parag), famous cricketer Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings) (Roy, 2006). Status and/or position in the society are important cultural values in the Indian culture (Hofstede, 1984). According to LaFerle and Choi (2005) Consistent to the previous thought of importance of status and social acceptance in the Indian society, celebrities may have a greater impact on endorsements. Celebrities are often associated with a high status due to their wide recognition in the society as well as exposure given to them through media. Therefore, celebrity endorsements are perceived as genuinely relevant and successful, in motivating consumers to buy the product (Kulkarni and Gaulkar, 2005). India is a country, which has always idolized the celebrities from the bollywood world; thereby providing an opportunity for marketers to use celebrities for product endorsements (Katyal, 2007). The best example to this statement is the famous South Indian actor Rajnikanth, people have made temples dedicated to his glory (Dixit 2005). Indian film stars and celebrities have always provided lifestyle cues to youth in India. People get easily influenced and try to follow almost everything from a celebrity. Considering the popularity, size and reach of the celebrities in India it can be said that they have the power to influence the attitudes and behaviour of people, particularly youth (Malhotra 2005). Therefore, there is a race among the marketers to hire the most ired celebrity like Shahrukh Khan, Aamir Khan, Amitabh Bachchan and many others by paying huge pay packages to appear with the brand. Moreover, multiple celebrity endorsement is also not a new phenomenon in India. Many famous brands for example Coca-Cola is have more than one celebrity endorser. Coca-Cola is leading the chart by endorsing through 15 celebrities, followed Pepsi having 8 celebrity endorsers and around 3 for other related brands like Slice, Limca etc. On the contrary, there are few successful brands been established without using

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celebrity endorsements (Kulkarni and Gaulkar, 2005). Procter & Gamble promoted its ‗Rejoice‘ brand in India featuring an ordinary woman in their ment which helped them to reach the common people. Their belief that ordinary or common consumers, especially housewives, are more likely to be influenced by a lay person than a celebrity. There are some other examples include ParleG, Lifebuoy, Maruti 800, Close Up, Fevicol etc. According to the the latest report by TAM Adex, a division of TAM Media Research Priyanka Chopra is the India‘s top brand endorser for the year 2009. She has edged past endorsement giants like Shahrukh Khan, Indian skipper MS Dhoni and Amitabh Bachchan. However Shahrukh khan has still the highest number of brands endorsed by him. He currently endorses 39 brands, including Pepsi, Hyundai, Airtel, Videocon, Sun Feast, Tag Heuer, Dish TV and Mayur Suitings. He is closely followed by India's cricket captain, Mahendra Singh Dhoni endorsing around 19 brands and reaping upto Rs 50 Cr an year. Katyal (2007) asserts that there is the presence of great potential for celebrity endorsement in India to be seen as truly relevant, thereby inducing customer to buy the product.

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2.13 Theoretical Framework The figure below represents the framework for understanding the impact of celebrity endorsements on consumer buying behaviour. The framework has been adapted from the integrated model for understanding celebrity endorsements and consumers perception to study cross cultural consumer behaviour (Biswas et al. 2009). It represents how celebrities are used to influence consumers purchase decision. Marketers‘ actions serve as a medium to transfer meanings or values from the culturally constituted world to consumer goods (McCraken 1986). Models explaining Celebrity Endorsements

Basic Tenet

Source of influence on Consumers

Consumer Perceptions

Source Attractiveness Model (McGuire 1985)

Expertise, Trustworthiness of celebrity

Identification process (Kelman)

Positive perception of ad, celebrity and brand when expertise and trustworthiness high

Source Credibility Model

Familiarity, Likeability and Similarity of celebrity

Internalization process (Kelman) balance theory (Heider)

Positive perception of ad, celebrity and brand when celebrity is familiar and likeable

Celebrity image matches Product image

Social adaptation theory, attributional theory, correspondence theory

Positive perception of ad, celebrity, and brand

Process of transfer of meaning from celebrity to product and to consumer

Transfer process of meaning from celebrity to product to consumer

The higher the perceived match between symbolic properties of the product and celebrities meanings drawn from his/her assumed roles, the higher the likelihood of consumer‘s consumption and appropriation of product‘s meanings.

(Hovland and Weiss 1951 ) Match-up hypothesis (Kamins and Gupta 1994) Meaning transfer model (McCracken 1986)

Table 4: Models explaining Celebrity Endorsements (Source: Biswas et al. 2009)

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Celebrities are recognised as effective endorsers due to their symbolic aspirational reference group associations (Assael 1984; Solomon and Assael 1987). Taking the of India where celebrities are idolised (Katyal 2007) and considered as heroes and opinion leaders (Biswas et al 2009). Marketers very cleverly use celebrities to endorse products and services through them. As earlier discussed in the literature review, celebrities possess distinctive attributes such as attractiveness, trustworthiness etc. (McCracken 1989). Many researchers have designed and explained various models regarding celebrity endorsements (see figure). Some authors suggested that celebrities lend their image or attributes to the products by appearing together in an ment. In this research the author has tried to find out how the attributes defined in these models influence the consumers purchase decision. Marketing communication represented in the model act as a mediator to transfer the celebrity-product message in order to influence consumers purchase decision. Celebrity endorsement is no more a new phenomenon in this world almost every brand is using celebrities to endorse their products. Today Consumers are well aware of these marketing techniques used by marketers in order to influence their purchase decision. Moreover, due to its extremeness and aggressive approach consumers might change their attitudes and perceptions about celebrity endorsements. Instead of all these controversies celebrity endorsements is a pervasive part of advertising industry. With reference to this, in this model the author has tried to find out the impact of celebrity endorsements on consumers buying behaviour.

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Figure 4: Broad Framework designed to Study Celebrity Endorsements CONSUMER BEHAVIOUR Cognition Perceptions about celebrity Perceptions about celebrity endorsements Affect Attitude towards ments Attitude towards Product endorsed Behaviour Purchase Intention

SOURCE CREDIBILITY  

Trustworthiness Expertise

SOURCE ATTRACTIVENESS   

Similarity Familiarity Likeability PRODUCT

CELEBRITY PRODUCT MATCHUP 

MARKETING COMMUNICATIONS (Advertising)

Perceived fit between the product and celebrity.

MEANING TRANSFER PROCESS (Unique set of meanings)

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2.13.1 Hypotheses To summarise the above discussion, it can be concluded that the attributes discussed above are the personal characteristics of a celebrity that marketers use in order to influence consumer buying behaviour. The main purpose of this study is to find out how these attributes affect consumers buying behaviour. To be able to fulfil the purpose of this research and answer research questions the author find it appropriate to test the relationship between consumer purchase intention and attributes discussed above. This led into generating the following hypotheses to test accordingly. H1: Celebrity endorsed ments are more attractive and influential than noncelebrity ments H2: The celebrity-product combination of attributes positively affects the purchase intention to buy a product or service. H2a: Expertise of the celebrity positively affects the purchase intention of the consumer. H2b: Trustworthiness of the celebrity positively affects the purchase intention of the consumer. H2c: Similarity between the celebrity and consumer positively affects the purchase intention of the consumer. H2d: Familiarity among the consumers positively affects the purchase intention of the consumer. H2e: Likeability among the consumers positively affects the purchase intention of the consumer. H2f: Product Fit/Match with the celebrity positively affects the purchase intention of the consumer. H2g: Meaning transfer from the celebrity to the product positively affects the purchase intention of the consumer. H3: Celebrity endorsers produce greater purchase intentions to buy a product than a noncelebrity endorser.

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2.14 Conclusion The literature review discussed the main and relevant concepts regarding celebrity endorsements. The author first made the concept clear by differentiating between Celebrity and Non-celebrity endorsements and how celebrities form aspirational reference groups. The author has explained how marketers use celebrity endorsement strategy as a marketing tool to influence consumers buying behaviour. Further the author has shed some light on Pros and Cons of using celebrities as endorsers. The author has defined some other prevalent factors like use of multiple celebrities and its effects etc. It was noteworthy to highlight various different types of consumer buying behaviours. Furthermore the author has narrowed this additionally by specially focusing on consumer buying behaviour in India. The author has structured, organised and analysed many earlier empirical studies conducted by different authors on celebrity endorsements. Many of the researchers have shown that how the consumers get affected by celebrities (Soderlund 2003; McCraken 1989; Silvera and Austad 2004; Belch and Belch 2001). The author has used four different models namely ―Source Attractiveness Model‖ (McGuire 1985), ―Source Credibility Model‖, (Hovland and Weiss 1951 ), ―Match-up hypothesis‖ (Kamins and Gupta 1994), ―Meaning transfer model‖ (McCracken 1986) regarding celebrity endorsements in order to check their impact on consumer buying behaviour. Alongside this, the last section of the chapter focussed on the prevalence of celebrity endorsement business in India. The author has based and focussed this study on India because given the current and future economic condition this business is expected to grow by leaps and bounds in India. As it is already been stated that celebrities hold a distinct status and position in Indian culture and treated with high regards. Moreover, availability of little research on of understanding Indian consumer‘s perception towards celebrity endorsements has enforced the author to conduct this research.

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METHODOLOGY

This chapter explains and justify the methodology used for conducting this research project. It begins with explaining the adopted research philosophy, research approach and design. Further it explains the data collection method, sampling technique and sample size, data analysis method and data quality issues. Finally, this chapter acknowledges the limitations and ethical issues of the research.

3.1 Research Philosophy

―It is a capital mistake to theorise before one has data‖ Arthur Conan Doyle

The term research philosophy relates to the development of knowledge and its nature (Saunders et al 2009). While conducting a research, an understanding of the philosophical principles is important as it may influence the choice of research strategy in the development of new knowledge (Saunders et al. 2009). Selected research philosophy contains important assumptions about the way one looks at the world (Saunders et al. 2009) and it guides the process of the research (Hussey and Hussey 1997). According to Johnson and Clark (2006) while conducting a research it is important to be aware of the philosophical commitments we make through our choice of research strategy as it has significant impact not only on what we do but we understand what is we are investigating. The understanding of philosophical issues is useful in three different ways (Easterby-Smith et al 2009). a) It helps to clarify research design; b) It helps the researcher to recognise which design will work and which will not; c) It may help the researcher identify and even create designs and also suggest how to adapt research designs according to constraints of different subjects or knowledge structures. There are two main philosophies associated with development of knowledge in social science research i.e. Positivism and Interpretivism or Phenomenology (Saunders et al, 2003). The doctrine of Positivism was first encapsulated by the French philosopher, Auguste Comte (1853), as he said ―All good intellects have repeated, since Bacon‘s time, that there can be no real knowledge but that which is based on observed facts‖. The statement comprises two

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important assumptions: first, an ontological assumption, that reality is external and objective and second, an epistemological assumption, that knowledge is only significant if it is based on observable facts of reality (Easterby-Smith et al 2009). The key idea underlying the doctrine of positivism is that social world exists externally and its properties should only be measured by objective methods rather than by inferring subjectively through sensation, reflection or intuition (Easterby-Smith et al 2009). Positivist adopts the philosophical stance of the natural scientist (Saunders et al. 2009). According to Remenyi et al. (1998) Positivist work with an observable social reality that leads to resulting law like generalisations similar to those produced by the physical and natural scientist. This approach generates hypotheses that can be tested and that will thereby allow explanation of laws to be assessed (Bryman and Bell 2007). According to Aiken (1956) Positivism provides the best way for investigating human and social behaviour originated due to metaphysical speculation. This approach allows the researcher to conduct the research in a value-free way, and stay impartial to the subject of the research (Saunders et al. 2009). On the other hand, the term Interpretivism is derived from two intellectual traditions: phenomenology and symbolic interactionism. Phenomenology refers to the way we make sense of the world around us and Symbolic interactionism is a continual process of interpreting the social world around us (Saunders et al. 2009). It relates to understanding the rich insights of complex subjectivity of the lived experience (Saunders et al. 2009). Interpretivism states that it is important for the researcher to understand differences between human behaviour as social actors (Saunders et al. 2009). The researcher adopts an empathetic stance under interpretivist philosophy (Saunders et al. 2009). It is important for the researcher to understand and view the research subject from their point of view. Since business situations are complex and unique, many authors argued that an interpretivist approach is highly appropriate in the case of business and management research particularly for organisational behaviour, marketing and human resource management (Saunders et al. 2009). In consideration with above two mentioned philosophies, the author selects the positivism philosophy for the research. The decision is made in consideration with the research objectives i.e. examining the impact of celebrity endorsements on consumer buying behaviour. In order to achieve the intended aims and objectives of this research positivist approach seems to be most suitable for the research.

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3.2 Research Approach The aim behind conducting a research is to examine the existing theories, set up new theories or adding new knowledge to existing theories on the basis of latest findings (Saunders et al. 2009). Understanding of research approach is essential as it enables the researcher to focus and look at in-depth of the problem and make a decision on how to solve the problem, naming , and approaching the research topic (Saunders et al 2007). There are two kinds of research, namely deductive and inductive (Saunders, et al. 2009 and Hussey and Hussey 1997). Deduction owes much to scientific research. It involves developing a theory and hypotheses (or hypotheses) and design a research strategy to test the hypotheses, which can be explained as relationships between cause and effect variables (Saunders et al. 2000). Deduction approach has several important characteristics. It aims to search and explain the causal relationship between variables. Another important characteristic is that concepts need to be operationalised in a way that enables facts to be measured quantitatively. It also dictates that the author should be independent of what is being observed in order to pursue the principle of scientific rigour. The final characteristic of deduction approach is generalisation (Saunders et al. 2009) On the other hand, inductive approach involves a theory being developed on the basis of analysis of collected data (Saunders, et al 2000). According to Bryman (2001) Inductive approach begins with observations and thereafter conclusions are made that are sufficiently capable of explaining the research problem. Further Saunders et al (2003) states that inductive approach is concerned with the context in which events take place and theory are built subsequently under the light of research findings. An inductive approach seems to be less appropriate for this research because inductive approach is more concerned with the cause for the situation rather than the result (Deploy and Gitlin 2004). The logic of this study is deductive as the purpose of this study is to test the hypotheses, and draw conclusion on the basis of statistical analysis of the data with the ability to be generalised (Lee and Lings 2008). Moreover the application of deductive approach will help the researcher to explain the relationship between celebrity endorsement and consumer buying behaviour.

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3.3 Quantitative Versus Qualitative Research Qualitative and quantitative are the two main approaches to conduct a research. The former involves collecting data that is mainly in the form of words, and the latter involves data which is either in the form or can be expressed in numbers (Easterby-Smith et al 2009). However this simplified distinction may lead to confusion because both of these methods may be used by both Positivist and Interpretivist epistemologies and can be ed by both nominalist and realist ontologies (Easterby-Smith et al 2009). In fact, many researchers have ed the idea of using multi-method approach in marketing research strategy as the combination of these two methods may lead to some interesting and exciting conclusions in a research study (Flick 2002 and Carson et al 2001). Denzin and Lincoln (2005) referred Quantitative research as the ―science that silences too many voices‖. The quantitative approach involves collecting numerical data and analysing it in a statistical manner by applying statistical tests (Hussey and Hussey, 1997). It follows rigorous methods and procedures which allow generalisation of the findings, to measure and analyse causal relationships between variables (Denzin and Lincoln 2000). Quantitative approach is a method concerned with logically and critically testing, ing and identifying variables, in addition, it is objective and focuses on testing hypothesis and is very result oriented (Ghauri and Gounhaug, 2003). Quantitative research is conducted and validated by social survey and by experimental investigations to find out the fact and cause of social phenomena (Robson 1994). Qualitative approach aims to discover the views, perception and opinions of groups or individuals through language and the main method to conduct this is in-depth interview (Easterby-Smith et al 2009). According to Robson (1993) qualitative data tends to be based on meanings communicated verbally, concerns with understanding behaviour from actor‘s out of his own experience. Walliman (2001) further stated that qualitative research is more related with participant observation and unstructured in-depth interview in order to find out the feelings and motivation behind actions and attitudes. Qualitative research emphasises on subjective interpretation (Bryman, 2001) and facilitates effective and in-depth understanding of the research topic (Easterby-Smith et al 2009). The qualitative research method provides a deeper understanding, knowledge and insight into a particular phenomenon, by providing answers to questions of ‗how?‘ rather than ‗what?‘ (Miles and Huberman, 1994).

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From the above discussion and considering research questions, the author decides to adapt the quantitative research. Quantitative approach would help the author to collect large amount of data to answer the research questions and further leading to generalisation. Further the use of quantitative method is justified if the area of research topic is large and when there is a need to deduce casual relations between variables (Gordon and Langmaid 1988).

3.4 Research Purpose It is important to link research aims and objectives with the research philosophy and research design as it may help the researcher to find out answers to the research questions. Therefore, identification of research purpose is based on the success and direction of the research design (Saunders et al. 2009). According to Saunders et al. (2009) and Jankowicz (2005) research methods can be classified under three types of research purposes: exploratory, descriptive and explanatory. According to Robson (2002) An exploratory study is a valuable means of finding out ―what is happening; to seek new insights; to ask questions and to assess phenomena in a new light‖ (Cited in Saunders et al. 2009, pp 139). It is particularly used if the researcher is uncertain and wishes to clarify the understanding about the nature of the problem. Secondly, the objective of descriptive research is ―to portray an accurate profile of persons, events or situations‖ (Robson 2002, Cited in Saunders et al. 2009, pp 140). According to Gummesson (1991) it is the simplest form of science as it just involves observing and reporting other people‘s findings. Finally, the studies that establish causal relationship between variables can be termed as explanatory research. It emphasises on studying a situation or a problem in order to explain the relationship between variables (Saunders et al. 2009). This study aims to explore the impact of celebrity endorsements on consumer buying behaviour or their intention to purchase; therefore, the author has decided to undertake exploratory research.

3.5 Research Design According to Robson (2002) Research design is a process that turns the research question into a research project (cited in Saunders et al. 2009). Ghauri and Gronhaug (2002) further defined research design as an overall plan for ‗relating the conceptual research problem to relevant and practicable empirical research‘. Saunders et al. (2006) simplified the concept by stating that ―Research design is the arrangement of conditions for collection and analysis of

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data in a manner that aims to combine relevance to the research purpose with economy in procedure‖. Therefore, for this dissertation the author has justified the research design on the basis of research questions and objectives as well as by being consistent to the research philosophy as suggested by Saunders et al. (2009).

3.6 Research Strategy Research strategy enables the researcher to answer the particular research questions and meet their objectives (Saunders et al. 2009). The choice of research strategy is guided by the research questions and objectives, the extent of existing knowledge, the amount of time and other resources available as well as researchers own philosophical underpinnings (Saunders et al. 2009). Saunders et al. (2009) further revealed various type of research strategy approaches used in a management research i.e. experiment, survey, case study, action research, grounded theory, ethnography and archival research. According to Yin (2003) each of these strategies can be implemented for exploratory, descriptive and explanatory research. Further Robson (1993) stated that more than one method can be used by the researcher depending on the nature and number of research purpose(s). Survey strategy is a popular and commonly used strategy in business and management research. It is usually associated with the deductive approach and it is most commonly used to answer who, what, where, how much and how many questions (Saunders et al. 2009). Accordingly, it is tend to be used for descriptive and exploratory research. Moreover, survey allows a researcher to collect a large amount of data from a sizeable population in a highly economical way (Saunders et al. 2009). Most importantly the data collected by using a questionnaire is standardised and allows easy comparison. Additionally this strategy is generally perceived as authoritative among people and is comparatively easy to explain and understand (Saunders et al. 2009). Therefore, for this research project the author aims to collect the data through a structured questionnaire in the form of a survey.

3.7 Data Collection It is important for a researcher to collect all the necessary information and relevant data in order to be successful in achieving the desired aims and objectives of the research. According to Saunders et al., (2009) basically there are two data collection methods i.e. primary and secondary source of data. According to Collins and Hussey (2003) ―Primary data is known as original data that is collected from the main source‖. Sources to collect primary data include

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observation, survey, questionnaire and personal interviews (Hussey and Hussey 1997). On the other hand, Secondary data involves collecting and analysing data which is already been collected by past researchers for some other purposes. It can be in the either form, raw data and published summaries (Saunders et al., 2003). For this research the author has used structured questionnaire method as a source to obtain primary data. And for the secondary data the author has gained data from the relevant text books, journals, reports, articles and the internet.

3.7.1 Secondary Data Secondary data includes textbooks, surveys, reports, newspapers, magazines, articles, video recordings etc. (Saunders et al. 2007). The extent of secondary data available provides the base for a strong literature review and secondary research analysis. The availability of the secondary data enhances the existing knowledge of the researcher and offers guidance for primary data collection (Creswell 2009). The appreciating and commendable work by many researchers on celebrity endorsements has helped me to analyse and build on the secondary data available and also work on the further research that adds value to my research topic. The author has various sources for collecting secondary data such as journals, text books, internet and electronic resources provided by the university including databases like Athens etc. The collection and analysis of secondary data is time saving, cost efficient and provides a wider variety of options and findings (Ghauri and Gronhaug, 2003; Saunders, et al, 2007). However, its disadvantages cannot be neglected. The data is collected to serve different purposes to different studies. It means that the aims and objectives of the previous study might not match with the existing aims and objectives (Ghauri and Gronhaug, 2005). Additionally the secondary data might not be accurate and updated as the data has been collected a few years ago that might not solve the purpose of existing research question (Saunders et al. 2000).

3.7.2 Primary Data According to Saunders et al. (2007) Primary data involves the method which is ‗collected specifically for the research project being undertaken‘. Jankowicz, (2005) further states that data collected through primary sources is more relevant and consistent with the set objectives to the study. Ghauri and Gronhaug (2002) asserts that only primary data can help answering the questions related to people‘s attitudes, intentions and buying behaviour. The analysis of

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primary data is a central source for this study. Thus the author has adopted survey strategy using Self-istered questionnaire technique in order to collect primary data for this study. The survey strategy allows the researcher to collect which can be analysed quantitatively using descriptive and inferential statistics. The data collected through survey strategy is easy to explain and understand (Saunders et al. 2009). Moreover, it can be used to suggest possible reasons for relationships between variables and to produce models of these relationships (Saunders et al. 2009).

3.7.3 Questionnaire Within business and management research, the questionnaire is one of the most commonly used data collection technique within the survey strategy (Saunders et al. 2009). According to deVaus (2002) (cited in Saunders et al. 2009 pp. 360) generally questionnaire includes all the data collection techniques in which ―each respondent is asked to respond to the same set of questions in a predetermined order‖. Using questionnaire is an efficient way of collecting responses from a large number of people because every respondent is asked to respond to the same set of questions. Moreover it can avoid bias in data collection process (Saunders et al. 2009). As a result, questionnaire tends to be the most reasonable and appropriate method in collecting data from large number of people in order to fulfil the aims and objectives of the research study.

3.7.4 Questionnaire Design In order to collect data, the author distributed Self-istered questionnaires to be completed by the respondents. This type of questionnaires are electronically istered through the internet or Intranet, posted or delivered by hand to respondents (Saunders et al. 2009). Conducting such questionnaires is easy, relatively cheaper than face to face surveys and allows an opportunity for a large number of people to be surveyed (Saunders et al. 2009). The questionnaire is designed in a way to empirically test the hypotheses developed in the previous chapter, impact of celebrity endorsement on consumer buying behaviour (purchase intention). The questionnaire for the research is divided in four major sections. Sections A, deals with collecting the demographic data of the respondents for instance their age, gender, occupation etc. The rest of the three sections were aimed at collecting the data to prove each hypothesis.

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Section two comprises questions to explore and examine the current state of consumer perception about celebrity endorsements. Section three deals with evaluating the impact of each celebrity attribute on the purchase intention of consumers. Finally the section four is aimed at evaluating the overall impact of celebrity endorsements on consumer purchase intention. All the three sections were made coherent so that respondents can understand them easily and take the correct meaning of them. Moreover, the business jargons or complicated are made easy by providing a small definition at the end of the questions. The author used 5 point likert scale for evaluating the degree of agreement for each question. Likert scale questions are relatively easy to complete (Robson 1993). The author promised to keep the confidentiality of demographic profile of the respondents. In order to get the high response rate the author pre ed the friends and colleagues through email, telephone, SMS etc. The questionnaire was designed and distributed using the link provided by website (www.surveymonkwey.com). The questionnaire was distributed through email, social networking websites etc. The copy of online questionnaire is attached in (Appendix 3).

3.7.5 Pilot Test The purpose of the pilot test is to refine the questionnaire so that respondents don‘t face any problems answering the questions and to eliminate further problems in recoding the data. Additionally it helps the author to check the reliability and validity of the data to be collected (Saunders et al. 2009). Pilot test ensures that the collected data will be helpful in answering the investigative question or research questions. The number of people required to pilot test the questionnaire depends on research questions, research objectives and size of research project. According to Fink (2003b) for most student questionnaire the number for a pilot test is 10 (cited in Saunders et al. 2009). Therefore the author conducted the pilot test by distributing the questionnaire to 11 Indian respondents in Bournemouth University. After completing the pilot test unclear and confusing questions were revised and rectified accordingly. Small definitions were provided for the jargons used in the questionnaire.

3.8 Sampling Determining an appropriate research population and proper sampling procedure is an important aspect for a researcher in order to answer research questions.

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Jankowicz (2000) Sampling is a calculated choice of number of the people, representing a given population. Since, it is impossible for the author to survey the whole population due to time, money and access constraints it becomes important for the author to determine sampling size and sampling frame, in order to gather findings from the representative set of population.

Figure 6: Types of Sampling Techniques (Source: Saunders et al. 2009) According to Churchill (1995) sampling procedure can be divided into two parts namely probability and non-probability sampling. Saunders et al (2009) defined probability sampling as chance of each case being selected from the population is known and equal. Probability is based on statistical study. Whereas, non-probability sampling is a case where sample has not been selected using the random selection method. It implies that some units are more likely to be selected than others in a given population (Bryman and Bell, 2003). According to Aczel and Sounderpandian (2002) under probability sampling the chances of a sample being selected from a population is based on the principle of randomisation or chance. Hence probability sampling is more complex, time consuming and costly as compared to non-probability sampling (Saunders et al. 2003). For business and management studies, ―the research questions, objectives and choice of research strategy‖ may often use non-probability

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sampling (Saunders et al. 2007 pp. 170). There are many advantages of non-probability sampling: Non-probability sampling is relatively cheaper and is used when sampling frame is not available (Saunders et al. 2003). It is also useful in a research where the researcher wants to investigate the attitude and perceptions of people (Churchill 1995). Based on the above discussion, the author will use non-probability sampling for this research. The main argument for this is limited time and resources. Secondly, non-probability sampling is associated with recognising and questioning the respondents on the basis of their background and past experience (Jankowicz 2005).

3.8.1 Sampling Technique The sampling technique used for this study is convenience sampling (or haphazard sampling). ―It involves selecting haphazardly those cases that are easiest to obtain for your sample…….. the sample selection process is continued until your required sample size has been reached‖ (Saunders et al. 2009 pp. 241). Under convenience sampling respondents are selected on the basis of proximity, ease of access and willingness to participate (Timothy 2005). It enables the researcher to gather information from the targeted group of people easy and quickly. The author has selected convenience sampling for this research mainly on the basis of easy access to target population in India. The questionnaires were sent through email to the respondents in India i.e. authors friends, colleagues and relatives. The author has sent the questionnaire to Indian students studying in Bournemouth University and to friends through social networking website like Orkut, Facebook etc. as well.

3.8.2 Sampling Size The issue of sample size for all non-probability sampling techniques (except quota sampling) is ambiguous and, there are no rules (Saunders et al. 2009). ―generalisations being made to theory rather than about a population‖ (Saunders et al. 2009 pp. 233). According to Patton (2002) Sample size depends on the research questions and objectives of the research and also the analytical skills of the author (cited in Saunders et al. 2009 pp. 235). Generally researchers don‘t restrict themselves to any specific sample size. Fortunately, Crimp and Wright (1995) offered some guidance by proposing that sample size anything larger than 30 and below 500 is appropriate for the research methods. For this research the author aims for a minimum of 101 samples, in accordance to the time limitation. For Respondents profile please refer to (Appendix 2).

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3.9 Data Quality Issues There are a number of data quality issues need to be considered while conducting a research. According to Saunders et al. (2009) the quality of research findings can be identified on the basis of reliability, validity and generalisation. Emphasising on research design: reliability and validity reduces the possibility of getting the findings wrong (Saunders et al. 2009).

3.9.1 Reliability ―Reliability refers to the extent to which your data collection techniques or analysis procedures will yield consistent findings‖ (Saunders et al. 2009 pp. 156). Further, Cooper and Schindler (2003) stated that reliability involves supplying consistent findings. Reliability of the research refers to the ability of the research to generate same findings to the same questions if the research is repeated or conducted again (Hussey and Hussey 1997). According to Easterby-Smith et al (2008) Reliability of the research can be tested by posing the following three questions (Cited in Saunders et al. 2009): 

Do the measures produce the same findings on other occasions?



Did other authors reached the same findings?



Is there a transparency in the sense raw data was analysed?

Since this research is based on celebrity endorsements in Indian context. In order to ensure the reliability of the research, the author has collected the data from Indian consumers who are extensively exposed to billion dollar celebrity endorsements business in India. Moreover, the author has conducted a pilot test to reduce the confusions in the questionnaire and make it more meaningful for the respondents.

3.9.2 Validity According to Hussey and Hussey (1997) Validity is concerned with ―the extent to which the research findings accurately represent what is really happening in the situation‖. Reliability is concerned with the fact whether the findings are really about what they seem to be about (Saunders et al. 2009). Silverman (2000) made is more simple to define by stating that Validity is a synonym for truth. Furthermore Janskowicz (2000) revealed that validity deals with the accuracy of the measurements used for data collection and analysis, the data is valid if other researcher can reach to the same conclusion using other methods. The author has maintained the validity of the research by conducting a pilot test before conducting the main research in order to avoid any confusion and amendments were made

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thereafter. Moreover, the author has tried to explain each and every step during the research before arriving to the conclusion.

3.9.3 Generalizability Generalisability can also be referred to as external validity (Saunders et al. 2009). It refers to the extent to which the research findings are generalisable: i.e. whether the findings are equally applicable to other research settings, for instance organisations (Saunders et al. 2009). Further Hussey and Hussey (1997) suggested that there is a relationship between sample population and research findings by stating that greater the sample size, greater the generalisability. Since different people have different ideas and views selecting smaller sample size might not represent the wider population. Moreover it is virtually impossible to sample the whole representative population. Additionally use of convenience sampling makes it more difficult to analyse sample as a whole population. However, in order to improve the generalisability of the research only relevant questions intended to examine the impact of celebrity endorsement on consumer behaviour (purchase decision) are being asked.

3.10 Data Analysis The data collected through the online questionnaire will be analysed using the SPSS software. Author will use Descriptive Frequency analysis, Correlation analysis and Regression tests in order to examine the relationship between constructs and test the hypotheses accordingly.

Frequency Descriptive Analysis Descriptive frequency statistics is used to present quantitative data in a manageable form. It helps to represent large number of data in a simple and sensible way. It is basically used to assess the trend of demographic data (Mean, median, mode, standard deviation and percentage). Descriptive statistics include the numbers, tables, chart and graphs to describe, organise and summarise the data. Descriptive statistics help to summarise and assertion of facts.

Correlation Analysis Correlation is one the most important statistical analysis tool. It helps to describe the degree of relationship between two variables. Correlation determines the extent to which changes in the value of an attribute are associated with changes in another attribute. The author will use correlation analysis technique to measure the relationship between different attributes of celebrities and purchase intention and testing the hypotheses.

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Regression Analysis Regression analysis is used for modelling and analysing several variables. It is used to examine the relationship between a dependent variable and one or more independent variables. In this research dependent variable is purchase intention and independent variables are the various attributes of celebrity endorsers. Correlation analysis will help the author to examine and understand how the value of dependent variable changes when any one of the independent variable changes, while other variables are constant. For this research the author will use simple linear regression analysis.

3.11 Limitations of the Research There are certain problems being faced by the author while conducting this research. One of the main issues associated with the research is gaining access to the data. Internet has undoubtedly made it even easier to access and collect the secondary data through e-journals, articles and other e-resources provided by the university. However, gaining physical access or entry (Gummesson 2000) in order to collect primary data can still be difficult. Respondents may not be prepared to contribute to the research due to lack of time and resources required. However the author has made pre-survey with the respondents through various channels (e-mail, telephone and social networking websites) in order to remove operational constraints. Ethical challenge is one of the major concerns while conducting a research. Cooper and Schindler (2008 pp 34) defined ethics as the ―norms or standards of behaviour that guide moral choices about our behaviour and our relationships with others‖. For this research the author has ensured that the research design is both methodologically sound and morally defensible to respondents involved. The anonymity and confidentiality in of the answers is ensured at all times and the purpose of the research was made clear to the respondents beforehand. Another big limitation to the research is the time; the author has to submit the research project before the specified deadline. While studying celebrity endorsements the author has come across many other interesting and challenging concepts. Due to scarcity of time the author has only focussed on the relevant literature contributing to the research topic. Nevertheless, the author has successfully reviewed and mentioned all the relevant information available up to date. Furthermore, other related and interesting concepts are

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suggested for future research. Future research can be conducted on a broader scale on the basis of sex, disposable income and product categories.

3.12 Methodology Framework

Figure 7: Methodological Framework

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ANALYSIS AND FINDINGS

This chapter provides results obtained from the survey, which have been examined and evaluated through data analysis techniques. Findings are subjected to hypotheses testing. This chapter evaluates the relationship between celebrities attributes and consumes’ intention to purchase and later overall impact of celebrity endorsements on consumer purchase intention.

4.1 Research Question 1: How do consumers perceive celebrity endorsed ments as compared to non-celebrity ments?

In the first research question, the author tried to evaluate the common perception of Indian consumers about celebrity endorsed ment as compared to non-celebrity ments. Accordingly a number of questions were asked to the respondents to evaluate celebrity endorsed ments on different basis for instance: attractiveness, Influential etc. By getting answers to these questions the author can illustrate the clear picture of their perception and attitude towards celebrity endorsements.

What attracts you more: celebrity endorsed ments or non-celebrity ments?

Firstly the respondents were asked to rate what attracts them more, an ment featuring a celebrity or non-celebrity ment. The results show that celebrity endorsed ments are more effective at attracting people as compared to non-celebrity ments. The descriptive frequency analysis of the data shows that 83.6% of the respondents‘

favoured

celebrity

endorsed

ments

whereas

non-celebrity

ments ed for only 16.3% of sampled population. The results celebrity endorsed ments attract more consumer attention.

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Table 5: Frequency Table for Attractiveness Valid

Cumulative

Frequency

Percent

Percent

Percent

87

83.7

83.7

83.7

Non-celebrity ments

17

16.3

16.3

100.0

Total

104

100.0

100.0

| Celebrity endorsed ments

Figure 8: Attractiveness (Celebrity vs. Non-celebrity ments)

Later using the descriptive statistical analysis, the data was analysed on the basis of age groups. The respondents under the age of 18, categorised as (teenagers) showed significant results. They are most attracted by celebrity endorsed ments. The results show that 91.7 % of the teenagers‘ find celebrity endorsements more attractive. Comparatively, the people under the age group of 18-30 (Youngsters) were a bit less attracted by celebrity ments but were still high at 81%. Lastly, the people above the age group of 30 categorised as mature customers also came up with similar results. 83.6% of mature customers find celebrity ments more attractive. The analysis of data shows that celebrity endorsed ments has the potential to attract the consumers across all age groups. However, teenagers are most attracted by celebrity endorsed ments.

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Table 6: Age * More attractive Crosstabulation Count

Age

More attractive Celebrity endorsed

Non-celebrity

Total

ments

ments

less than 18 years

11

1

12

18-30

60

14

74

30 and above

16

2

18

Total

87

17

104

Figure 9: Attractiveness (Age group analysis) Further analysis on the basis of gender shows that Males are more likely to be attracted by celebrity endorsed ments as compared to females. The results show that 84% of male respondents find celebrity endorsed ments attractive closely followed by 82.8% female respondents. The result shows a mixed response in of gender since both the genders find celebrity endorsed ment more attractive than non celebrity ments.

Figure 10: Attractiveness (Gender analysis)

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Overall, from the above analysis it can be inferred that celebrity endorsed ments are more attractive at drawing consumer attention across all age groups and genders as compared to non-celebrity endorsements.

Does the presence of celebrities in the ment help you recognise and recall the product more promptly?

Secondly, the respondents were asked whether celebrity endorsed ments help them to recognise and recall the products more quickly. The frequency analysis shows that majority of the respondents ―agree‖ (62.5%) that associating celebrities with the product increases the recognition and recall rate for a certain product. Some respondents also ―slightly agree‖ (25%) to the statement. On the other hand only 5.8% of the respondents are ―Not sure‖ about the statement and only 6.7% of the respondents are either ―slightly disagree‖ or ―disagree‖. Overall 87.5% of the respondents ―agree‖ that they can more promptly recognise and recall a product if a celebrity is associated or endorsing it. Moreover, statistical analysis of data (Mean: 1.59, Mode: 1.00) also validates the statement that most of the people agree that the presence of celebrities in the ment help recognising and recalling the product more promptly.

Table 7: Statistical Analysis of Recognise and Recall rate Variable Recognise & Recall

Mean

Median

Mode

Std. Deviation

1.59

1.00

1.00

.970

Table 8: Recognise & Recall rate

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Agree

65

62.5

62.5

62.5

Slightly agree

26

25.0

25.0

87.5

Not sure

6

5.8

5.8

93.3

Slightly disagree

4

3.8

3.8

97.1

Disagree

3

2.9

2.9

100.0

104

100.0

100.0

Total

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Figure 11: Recognise and Recall rate of celebrity endorsed ments

Further analysis on the basis of age groups shows the similar trend. The respondents across all the age groups mostly ―agree‖ or ―slightly agree‖ only a few respondents either ―slightly disagree‖ or ―disagree‖ with the statement. Consequently it can be inferred that associating celebrities with products helps consumers recognising and recalling the product more promptly.

Table 9: Age * Recognise/Recall Crosstabulation Recognise/Recall Count Age

Agree

Slightly agree

Not sure

Slightly disagree

Disagree

Total

less than 18 years

9

1

1

0

1

12

18-30

45

20

4

3

2

74

30 and above

11

5

1

1

0

18

Total

65

26

6

4

3

104

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Figure 12: Age * Recognise/Recall rate of celebrity endorsements Cross-tabulation

How influential do you perceive celebrity endorsements as compared to non-celebrity endorsements? Thirdly the respondents were asked how influential do they think celebrity endorsement is at prompting intention to purchase for a product or service being endorsed by the celebrity endorser as compared to non-celebrity ment. This is an important question as the main aim of any ment whether celebrity or non-celebrity is to influence the customer to buy a certain product or service. Table 10: Descriptive Statistical Analysis of Influential Variable

Mean

Median

Mode

Std. Deviation

Influential

2.06

2.00

2.00

.779

The results from the descriptive analysis of the data shows that people consider celebrity endorsements as an influential factor in prompting purchase intention. The analysis shows that 24% of the respondents believe that celebrity endorsement is very influential and almost half of the respondents 48.1% consider it as an influential factor. That means majority of the respondents believe that

celebrities can influence their purchase intention for a certain

product or service being endorsed by them. On the contrary, 25% of the respondents believe that it is somewhat influential means celebrities may have a little influence on their purchase

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intention. Whereas only a few number of respondents 2.9% contend it to be not at all influential.

The statistical analysis of the data (Mean:2.06) and (Mode:2.00) also validate the statement that employing celebrity in an ment can influence the purchase decision of the consumers.

Table 11: Summary of Influential

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Very influential

25

24.0

24.0

24.0

Influential

50

48.1

48.1

72.1

Somewhat influential

26

25.0

25.0

97.1

Not at all influential

3

2.9

2.9

100.0

104

100.0

100.0

Total

Figure 13: Influential

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Table 12: Age * Influential Crosstabulation Count

Influential Very influential

Age

Influential

Somewhat

Not at all

influential

influential

Total

less than 18 years

8

2

1

1

12

18-30

10

45

18

1

74

30 and above

7

3

7

1

18

Total

25

50

26

3

104

Further descriptive analysis on the basis of age states that majority of respondents (83.3%) under the age of 18 years consider celebrity endorsements either ―very influential‖ or ―influential‖ and only 16% of respondents either consider it as somewhat influential or not at all influential. It shows that majority of teenagers find celebrity endorsements influential in prompting their purchase decision. In the age group of 18-30, 13.5% believe it ―very influential‖ and majority 60% of respondents consider as ―influential‖. Only 25% of respondents consider it to be neutral or not at all influential but that is still more than that of under 18 years age group. The mature consumers above the age of 30 gave neutral results where 55% of the respondents under this age group consdier it as very influential or influential 45% of the people beleive it as neutral or not at all influential. From the above analysis it can be said that teenagers are most likely to influenced by celebrity endorsements followed by young people and then mature customers above the age group of 30 years.

Figure 14: Age*Influential celebrity endorsements crosstabulation

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4.1.1 Testing the Hypothesis As mentioned before, for testing the first hypothesis three questions were asked to the respondents. The hypothesis was tested upon the data collected from 104 respondents. Firstly, the respondents were asked to rate what attracts them more: celebrity endorsed ment or non-celebrity ment. The results from the descriptive frequency analysis of the data shows that 83.6% of respondents find celebrity endorsements more attractive than noncelebrity endorsements. Majority of the respondents (87.5%) observed that celebrity endorsed advertisments increase the recognition and recall rate for a product being endorsed. And finally the respondents were asked to choose what most influences their intention to purchase among celebrity and non-celebrity endorsements. 72.1% of the respondents state that they find celebrity endorsements more influential at instigating their purchase intention. The analysis of data gave significant results that are more in favour of Hypothesis 1. Therefore, the Hypothesis1 is accepted. H1:

Celebrity endorsed ments are more attractive and influential than

non-celebrity ments

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4.2 Research Question 2: Hypotheses Testing

4.2.1 Degree of correspondence between variables The purpose of this part of the study is to evaluate and investigate the attributes that might affect the consumers purchase intention as a result of viewing celebrity endorsed ments. Therefore, the calculation of correlation is important in order to examine the relationship of each variable/attribute with dependent variable i.e. (Purchase Intention).

The figure below represents the correlation among seven attributes namely expertise, trustworthiness, similarity, familiarity, likeability, match-up and meaning transfer with purchase intention.

Table 13: Correlation Matrix PI

EX

TW

SM

FM

LK

MU

Purchase Intension

1.000

Expertise

.394**

1.000

.379

**

.587**

1.000

Similarity

.453

**

**

.370**

1.000

Familiarity

.479**

.434**

.530**

.588**

1.000

Likeability

.377**

.469**

.431**

.543**

.670**

1.000

Match up

.257**

.460**

.369**

.421**

.382**

.509**

1.000

Meaning transfer .200* .219* .343** .244** N = 104 **. Correlation is significant at the 0.01 level (1-tailed). *. Correlation is significant at the 0.05 level (1-tailed).

.309**

.293**

.344**

Trustworthiness

.347

MT

1.000

All seven of the tested attributes/variables expertise (.394), trustworthiness (.379), similarity (.453), familiarity (.479), likeability (.377), match-up (.257) and meaning transfer (.200) interact with the dependent factor (Purchase intention) in a positive manner; proving one tailed, positive correspondence between above mentioned variables. Therefore, hypotheses H2a, H2b, H2c, H2d, H2e, H2f, and H2g are ed and accepted.

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Regarding the strength of relationship between dependent and tested variables, Match-up (.257) and Meaning transfer (.200) seem to have a low but still positive relationship with purchase intention. Whereas, likeability (.377), trustworthiness (.379) and expertise (.394) have moderately good relationship. Similarity (.453) and familiarity (.479) hold significantly good relationship with purchase intention. Correlation matrix results prove the strongest relationship of familiarity (.479) with purchase intention. Additionally, in order to represent the overall opinion of respondents descriptive statistics results are mentioned in the table below:

Table 14: Descriptive Statistics of Attributes Mean Std. Deviation

N

Purchase Intension Expertise Trustworthiness Similarity

2.1538 2.1154 2.3654 2.4327

.96310 1.24095 1.30017 1.12141

104 104 104 104

Familiarity Likeability Match up Meaning transfer

2.4135 2.3269 2.1058 2.3558

1.24332 1.15281 1.03265 1.20612

104 104 104 104

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4.2.2 Regression Models In order to investigate and evaluate the proposed relationship of attributes and purchase intention the hypotheses were tested using simple linear regression analysis. The results of the test are summed up as under: 4.2.2.1 The Impact of “Expertise” The first question of this study is aimed at examining the impact of ―Expertise‖ on the purchase intention of consumers as a result of viewing celebrity endorsed ments. Simple linear regression is used to empirically test the hypothesis. The table below represents the results of regression analysis of relationship between Expertise and purchase intention of consumers (H2a). b

Model

1

R

.394

R Square

a

.155

Adjusted R Square

Model Summary Std. Error of the R Square Estimate Change

.147

.88957

.155

Change Statistics F Change

df1

df2

Sig. F Change

18.730

1

102

.000

b

ANOVA Model 1

Sum of Squares

df

Mean Square

F

Sig.

14.822

1

14.822

18.730

.000

80.716

102

.791

95.538

103

Regression Residual Total

a

a. Predictors: (Constant), Expertise b. Dependent Variable: Purchase Intension

Table 15: Model Summary of Expertise

The results show that the relationship between expertise and purchase intention is quite reasonable (R=.394), only 14.7% variance (Adjusted R2). 14.7% of purchase intention variability is explained by expertise. This means that 85.3% of the variation in purchase intention cannot be explained by expertise alone. Therefore, there must be other variables that may influence purchase intention.

Overall, the regression model was quite good with

F=18.73, one tailed p < .001. The regression equation for predicting the purchase intention on the basis of expertise value

YPI = 1.507 + .306 * XEX

is:  

YPI refers to predicted score on Purchase Intention XEX refers known score on Expertise

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Coefficients Model

1

a

Unstandardized Coefficients B

Std. Error

(Constant)

1.507

.173

Expertise

.306

.071

t

Sig.

8.711

.000

4.328

.000

Standardized Coefficients Beta

.394

a. Dependent Variable: Purchase Intension

Table 16: Coefficients of Expertise

The result obtained through the regression analysis regarding direct relationship between the two variables suggest that if the source is more expert then it may have significant impact on consumers purchase intention (β coefficient of ―Expertise‖ = .306). 4.2.2.2 The Impact of “Trustworthiness” The second question examines the impact of ―Trustworthiness‖ on the purchase intention of consumers. The table below represents the results of simple linear regression analysis of relationship between trustworthiness and purchase intention of consumers (H2b).

b

Model

1

R

.379

R Square

a

.143

Adjusted R Square

Model Summary Std. Error of the R Square Estimate Change

.135

.89579

.143

Change Statistics F Change

df1

df2

Sig. F Change

17.059

1

102

.000

b

ANOVA Model 1

Sum of Squares

df

Mean Square

F

Sig.

13.689

1

13.689

17.059

.000

81.850

102

.802

95.538

103

Regression Residual Total

a

a. Predictors: (Constant), Trustworthiness b. Dependent Variable: Purchase Intension

Table 17: Model Summary of Trustworthiness

The results show that the relationship between trustworthiness and purchase intention is quite reasonable (R=.379), only 13.5% variance (Adjusted R2). 13.5% of purchase intention variability is explained by trustworthiness. The analysis once again verifies the positive relationship between trustworthiness and purchase intention. Overall, the regression model was quite good with (F=17.05), one tailed p < .001.

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Coefficients Model

1

AMIT KUMAR

a

Unstandardized Coefficients B

Std. Error

(Constant)

1.491

.183

Trustworthiness

.280

.068

Standardized Coefficients

t

Sig.

8.144

.000

4.130

.000

Beta

.379

a. Dependent Variable: Purchase Intension

Table 18: Coefficients of Trustworthiness

The regression equation for predicting the purchase intention on the basis of trustworthiness value is:

YPI = 1.491 + .280 * XTW  

YPI refers to predicted score on Purchase Intention XTW refers known score on Trustworthiness

The regression analysis result state the direct proportional relationship between the two variables. If the source is more trustworthy then it will have significant impact on consumers purchase intention (β coefficient of ―trustworthiness‖ = .280).

Hence both hypotheses from source credibility model: H2a and H2b are analysed and ed through empirical

test.

Both

the variables

―Expertise‖

(14.7%) and

―Trustworthiness‖ (13.5%) show positive results on the purchase intention. Therefore both the hypotheses are accepted.

H2a: Expertise of the celebrity affects the purchase intention of the consumer H2b: Trustworthiness of the celebrity affects the purchase intention of the consumer

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4.2.2.3 The Impact of “Similarity” Similarity is an attribute from source attractiveness model. This question examines the impact of similarity on the purchase intention of consumers. The table below represents the results of simple linear regression analysis in order to test the hypothesis (H2c). b

Model

1

R

.453

R Square

a

.205

Model Summary Std. Error of the R Square Estimate Change

Adjusted R Square .198

.86273

Change Statistics

.205

F Change

df1

df2

Sig. F Change

26.358

1

102

.000

b

ANOVA Model 1

Sum of Squares

df

Mean Square

F

Sig.

Regression

19.619

1

19.619

26.358

.000

Residual

75.920

102

.744

Total

95.538

103

a

a. Predictors: (Constant), Similarity b. Dependent Variable: Purchase Intension

Table 19: Model Summary of Similarity

The results show that the relationship between similarity and purchase intention is quite reasonable (R=.453), only 19.8% variance (Adjusted R2). 19.8% of purchase intention variability is explained by similarity. The analysis derives the positive relationship between similarity and purchase intention.

Overall, the regression model was pretty good with

(F=26.35) , one tailed p < .001. Coefficients Model

1

a

Unstandardized Coefficients B

Std. Error

(Constant)

1.207

.203

Similarity

.389

.076

Standardized Coefficients

t

Sig.

5.950

.000

5.134

.000

Beta

.453

a. Dependent Variable: Purchase Intension

Table 20: Coefficients of Similarity

he regression equation for predicting the purchase intention on the basis of similarity value is:

YPI = 1.207 + .389 * XSM  

YPI refers to predicted score on Purchase Intention XSM refers known score on Similarity

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The regression analysis result state the direct proportional relationship between the two variables. If the source is more trustworthy then it will have significant impact on consumers purchase intention (β coefficient of ―similarity‖ = .389).

4.2.2.4 The Impact of “Familiarity” Familiarity is a next variable from source attractiveness model. In this question we will analyse the impact of familiarity on the purchase intention of consumers. The table below represents the results of simple linear regression analysis in order to test the hypothesis (H2d). b

Model

1

R

.479

R Square

a

.229

Model Summary Std. Error of the R Square Estimate Change

Adjusted R Square .222

.84967

.229

Change Statistics F Change

df1

df2

Sig. F Change

30.336

1

102

.000

b

ANOVA Model 1

Sum of Squares

df

Mean Square

F

Sig.

Regression

21.901

1

21.901

30.336

.000

Residual

73.638

102

.722

Total

95.538

103

a

a. Predictors: (Constant), Familiarity b. Dependent Variable: Purchase Intension

Table 21: Model Summary of Familiarity

The results show that the relationship between familiarity and purchase intention is quite reasonable (R=.479), only 22.2% variance (Adjusted R2). 22.2% of purchase intention variability is explained by similarity. The analysis derives the positive relationship between familiarity and purchase intention.

Overall, the regression model was significant with

(F=30.33) , one tailed p < .001. Coefficients Model

1

Unstandardized Coefficients B

Std. Error

(Constant)

1.259

.183

Familiarity

.371

.067

a

Standardized Coefficients

a. Dependent Variable: Purchase Intension

Table 22: Coefficients of Familiarity

65

t

Sig.

6.892

.000

5.508

.000

Beta

.479

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The regression equation for predicting the purchase intention on the basis of familiarity value is:

YPI = 1.259 + .371 * XFM  

YPI refers to predicted score on Purchase Intention XFM refers known score on Familiarity

The regression analysis result state the direct proportional relationship between the two variables. If the source is more familiar then it will have significant impact on consumers purchase intention (β coefficient of ―similarity‖ = .371). 4.2.2.5 The Impact of “Likeability” Likeability is the next variable from source attractiveness model. In this question we will analyse the impact of likeability on the purchase intention of consumers.

The table below

represents the results of simple linear regression analysis in order to test the hypothesis (H2e).

b

Model

1

R

R Square

.377

.142

a

Adjusted R Square

Model Summary Std. Error of the R Square Estimate Change

.134

.89643

.142

Change Statistics F Change

df1

df2

Sig. F Change

16.890

1

102

.000

b

ANOVA Model 1

Sum of Squares

df

Mean Square

F

Sig.

Regression

13.572

1

13.572

16.890

.000

Residual

81.966

102

.804

Total

95.538

103

a

a. Predictors: (Constant),Likeability b. Dependent Variable: Purchase Intension

Table 23: Model Summary of Likeability

The results show that the relationship between likeability and purchase intention is quite reasonable (R=.142), only 13.4% variance (Adjusted R2). 13.4% of purchase intention variability is explained by likeability. The analysis derives the positive relationship between familiarity and purchase intention.

Overall, the regression model was significant with

(F=30.33) , one tailed p < .001.

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Coefficients Model

1

AMIT KUMAR

a

Unstandardized Coefficients B

Std. Error

(Constant)

1.421

.199

Likeability

.315

.077

t

Sig.

7.149

.000

4.110

.000

Standardized Coefficients Beta

.377

a. Dependent Variable: Purchase Intension

Table 24: Coefficients of Likeability

The regression equation for predicting the purchase intention on the basis of likeability value is:

YPI = 1.421 + .315 * XLK  

YPI refers to predicted score on Purchase Intention XLK refers known score on Likeability

The regression analysis result state the direct proportional relationship between the two variables. If the source is more familiar then it will have significant impact on consumers purchase intention (β coefficient of ―similarity‖ = .315). Hence all three hypotheses from source attractiveness model: H2c, H2d and H2e are analysed and ed through empirical test. The variables ―Similarity‖ (20.5%) and ―Familiarity‖ (22.9%) and ―Likeability‖ (14.2%) show positive results on the purchase intention. Therefore all three of the hypotheses are accepted. H2c: Similarity between the celebrity and consumer affects the purchase intention of the consumer. H2d: Familiarity among the consumers affects the purchase intention of the consumer. H2e: Likeability among the consumers affects the purchase intention of the consumer.

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4.2.2.6 The Impact of Product Match up on Purchase Intention This hypothesis intends to examine the impact of Product match up on the purchase intention of the consumers. The regression analysis represents relatively low impact on the purchase intention of consumers (R = .257) with considerably low (R2 adjusted = .057). Resultantly, It can be inferred from the regression analysis that Product match up s for only 5.7% of variance in purchase intention value that is very low as compared to other variables. Overall, the regression model was quite moderate with (F=7.20), one tailed p < .001.

b

Model Summary Model

R

1

.257

a

R Square

Adjusted R Square

Std. Error of the Estimate

R Square Change

.066

.057

.93535

.066

Change Statistics F Change df1 df2

7.202

1

102

Sig. F Change .008

b

ANOVA Model 1

Sum of Squares

df

Mean Square

F

Sig.

6.301

1

6.301

7.202

.008

89.237

102

.875

95.538

103

Regression Residual Total

a

a. Predictors: (Constant), Credibility b. Dependent Variable: Purchase Intension

Table 25: Model Summary of Matchup

The regression equation for predicting the purchase intention on the basis of Match-up is:

YPI = 1.649 + .240 * XMU  

YPI refers to predicted score on Purchase Intention XMU refers known score on Match up Coefficients Model

1

Unstandardized Coefficients B

Std. Error

(Constant)

1.649

.209

Match up

.240

.089

a

Standardized Coefficients

a. Dependent Variable: Purchase Intension

Table 26: Coefficients of Matchup

68

t

Sig.

7.888

.000

2.684

.008

Beta

.257

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The regression analysis result state the direct proportional relationship between the two variables. If the attributes of source matches up more then it will have positive impact on consumers purchase intention (β coefficient of ―Match-up‖ = .240). On the basis of above regression analysis it is proved that ―Match-up‖ (5.7%) show positive results on the purchase intention. Although the impact is considered to be less but it lays positive impact on the purchase intention. Therefore the hypothesis is accepted.

H2f: Product Fit/Match with the celebrity affects the purchase intention of the consumer

4.2.2.7 The Impact of Meaning transfer on Purchase Intention This hypothesis intends to examine the impact of meaning transfer on purchase intention of consumers. The regression analysis shows that this variable has least impact on the purchase intention as compared to other variables. (R = .200) with almost minimal (R2 adjusted = .031). Therefore, on the basis of results from regression analysis and considering the variance of 3.1% it can be said that it is the least important variable in order to influence purchase intention. Overall, the regression model was modest with (F=4.267), one tailed p < .001.

Model Summaryb Change Statistics F Change df1 df2

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

R Square Change

1

.200a

.040

.031

.94818

.040

4.267

Sum of Squares

df

Mean Square

F

Sig.

Regression

3.836

1

3.836

4.267

.041a

Residual

91.702

102

.899

Total

95.538

103

1

102

Sig. F Change .041

ANOVAb Model 1

a. Predictors: (Constant), Credibility b. Dependent Variable: Purchase Intension

Table 27: Model Summary of Meaning Transfer

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The regression equation for predicting the purchase intention on the basis of Meaning transfer is:

YPI = 1.777 + .160 * XMT  

YPI refers to predicted score on Purchase Intention XMU refers known score on Meaning transfer Coefficients Model

1

Unstandardized Coefficients B

Std. Error

(Constant)

1.777

.205

Meaning transfer

.160

.077

a

Standardized Coefficients

t

Sig.

8.676

.000

2.066

.041

Beta

.200

a. Dependent Variable: Purchase Intension

Table 28: Coefficients of Meaning Transfer

The regression analysis result state the direct proportional relationship between the two variables. If the source is capable of transferring the meaning to the product then it will have positive impact on consumers purchase intention (β coefficient of ―Meaning transfer‖ = .160). On the basis of above regression analysis it is proved that ―Meaning transfer‖ (3.1%) show positive results on the purchase intention. Although the impact is least as compared to other attributes but it is represents the positive impact on the purchase intention. Therefore the hypothesis is accepted.

H2g: Meaning Transfer from the celebrity to the product affects the purchase intention of the consumer

4.2.3 Summary The overall linear regression analysis proves the positive relationship between purchase intention and seven different attributes namely expertise, trustworthiness, similarity, familiarity, likeability, match-up and meaning transfer. The figure () illustrates that linear regression assumptions are met and therefore it can be stated that all these attributes have positive effect on purchase intention of consumers.

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Figure 15: Residual Plots of Hypothesized Relationships

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4.2.4 Descriptive statistical Analysis of Attributes As a consumer, do you consider “Expertise” of the celebrity as an attribute that can influence your purchase decision? (Expertise refers to the level of knowledge, experience and expertise a celebrity has in particular field) The aim of this question is to evaluate if ―Expertise‖ of the celebrity as an attribute can influence their purchase decision. Majority of the respondents (39.4%) strongly agree that expertise of the celebrity endorser can be an important factor in influencing their purchase decision. Another 33.7% of the respondents slightly agree to the same statement that means it may have a little impact on their purchase decision. However, 10.6% of the respondents are unsure about the impact of expertise on their purchase decision. Only 8.7% of the respondents slightly disagree and 7.7% completely disagree to the statement. Overall, using the descriptive analysis, it can be said that Expertise can influence the purchase intention of the consumers. Table29: Descriptive Statistical Analysis of Expertise Attribute

Mean

Mode

Std. Dev

Expertise

2.11

1

1.24

Table 30: Expertise of Celebrity and Purchase Intention Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Agree

41

39.4

39.4

39.4

Slightly agree

35

33.7

33.7

73.1

Not sure

11

10.6

10.6

83.7

Slightly disagree

9

8.7

8.7

92.3

Disagree

8

7.7

7.7

100.0

104

100.0

100.0

Total

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Figure 16: Expertise of Celebrity and Purchase Intention As a consumer, do you consider “Trustworthiness” of the celebrity as an attribute that can influence your purchase decision? (Trustworthiness refers to the Honesty and believability of the celebrity) The aim of this question is to evaluate the impact of ―Trustworthiness‖ of the celebrity at influencing the purchase decision of consumers. Majority of the respondents (41.3%) slightly agree that trustworthiness of the celebrity can influence their purchase decision. Secondly, another 27.9% of the respondents strongly agree to the statement that means they consider the trustworthiness of the celebrity while making their purchase decision. However, 7.7% of the respondents are unsure about the impact of trustworthiness on their purchase decision. Only 12.5% of the respondents slightly disagree and 10% completely disagree to the statement. Overall, using the descriptive analysis, it can be said that Trustworthiness can influence the purchase intention of the consumers. Table 31: Descriptive Statistical Analysis of Trustworthiness Attribute

Mean

Mode

Std. Dev

Trustworthiness

2.36

2.00

1.30

74

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Table 32: Trustworthiness of Celebrity and Purchase Intention Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Agree

29

27.9

27.9

27.9

Slightly agree

43

41.3

41.3

69.2

Not sure

8

7.7

7.7

76.9

Slightly disagree

13

12.5

12.5

89.4

Disagree

11

10.6

10.6

100.0

Total

104

100.0

100.0

Figure 17: Trustworthiness of Celebrity and Purchase Intention

As a consumer, do you think the sense of “Similarity” between you and the celebrity endorser can influence your purchase decision for a certain product or service? (Similarity refers to the sense of similarity a consumer feels with a celebrity) The aim of this question is to evaluate the impact of ―Similarity‖ on the purchase decision of consumers. Majority of the respondents (49%) slightly agree that sense of similarity between the celebrity and them can influence their purchase decision. Secondly, only 16.3% of the respondents strongly agree that means they feel similarity as a factor to influence their purchase decision. On the other hand, 18.3% of the respondents are unsure about the sense of similarity on their purchase decision. Only 7.7% of the respondents slightly disagree and

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8.7% completely disagree. Overall, using the descriptive analysis, it can be said that ―Similarity‖ may influence the purchase intention of the consumers. Table 33: Descriptive Statistical Analysis of Similarity Attribute

Mean

Mode

Std. Dev

Similarity

2.43

2.00

1.12

Table 34: Similarity of Celebrity and Purchase Intention Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Agree

17

16.3

16.3

16.3

Slightly agree

51

49.0

49.0

65.4

Not sure

19

18.3

18.3

83.7

Slightly disagree

8

7.7

7.7

91.3

Disagree

9

8.7

8.7

100.0

104

100.0

100.0

Total

Figure 18: Similarity of Celebrity and Purchase Intention

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As a consumer, do you consider the “Familiarity” of the celebrity as an attribute that can influence your purchase decision for a certain product or service? This question aims at evaluating the impact of celebrity‘s ―Familiarity‖ on the purchase intention of consumers. Majority of the respondents (46.2%) slightly agree that familiarity of the celebrity can influence their intention to purchase. 22.1% of the respondents strongly agree that knowness of the celebrity can influence their purchase intention. Interestingly, 10.6% of the respondents are unsure 10.6% slightly disagree and 10.6% completely disagree to the statement that familiarity can be an important factor to influence their purchase intention. Based on the results it was found that it may influence the purchase intention of the consumers to an extent. Table 35: Descriptive Statistical Analysis of Familiarity Attribute

Mean

Mode

Std. Dev

Familiarity

2.41

2

1.24

Table 36: Familiarity of Celebrity and Purchase Intention Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Agree

23

22.1

22.1

22.1

Slightly agree

48

46.2

46.2

68.3

Not sure

11

10.6

10.6

78.8

Slightly disagree

11

10.6

10.6

89.4

Disagree

11

10.6

10.6

100.0

Total

104

100.0

100.0

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Figure 19: Familiarity of Celebrity and Purchase Intention As a consumer, do you consider the “Likeability” of the celebrity as an attribute that can influence your purchase decision for a certain product or service? (Likeability refers to the level of celebrity’s fame in the public opinion and how popular the celebrity is) This question aims at evaluating the impact of celebrity‘s ―Likeability‖ on the purchase intention of consumers. Majority around half of the respondents (45.2%) slightly agree that likeability of the celebrity is likely to influence their purchase intention. 23.1% of the respondents strongly agree that their purchase intention is affected if their favourite celebrity id endorsing the product or service. 15.4% of the respondents are unsure about the it while 8.7% slightly disagree and 7.7% completely disagree to the statement. Overall, it was found that likeability is most likely to influence the purchase intention of the consumers if their favourite celebrity is endorsing the product or a celebrity.

Table37: Descriptive Statistical Analysis of Likeability Attribute

Mean

Mode

Std. Dev

Matchup

2.32

2

1.15

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Table 38: Likeability of Celebrity and Purchase Intention Frequency Percent Valid Percent Cumulative Percent

Agree

24

23.1

23.1

23.1

Slightly agree

47

45.2

45.2

68.3

Not sure

16

15.4

15.4

83.7

Slightly disagree

9

8.7

8.7

92.3

Disagree

8

7.7

7.7

100.0

104

100.0

100.0

Total

Figure 20: Likeability of Celebrity and Purchase Intention

As a consumer, do you think the “Match” between the celebrity and the product can an important attribute in influence your purchase decision for a certain product or service? (Fit/Match refers to the level how well the fit between the celebrity and the product is) This question aims at investigating if it is important to have something in common between the celebrity and the product being endorsed in order to influence consumers purchase intention. Majority, nearly half of the respondents (46.2%) slightly agree that Product-

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celebrity match-up can influence their purchase intention. Another 28.8% of the respondents strongly agree that they look for commonness between the celebrity and the product. 15.4% of the respondents are unsure while only 4.8% slightly disagree and 4.8% completely disagree to the product-celebrity match up phenomena. Overall, it was found that 75% of respondents consider product-celebrity match-up as a factor to influence their purchase intention while only rest 25% are either not sure, slightly disagree or completely disagree. Therefore it can be said that its important the attributes of product should match with the celebrity in order to influence their purchase intention. Table39: Descriptive Statistical Analysis of Matchup Attribute

Mean

Mode

Std. Dev

Matchup

2.10

2

1

Table 40: Matchup of Celebrity and Purchase Intention Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Agree

30

28.8

28.8

28.8

Slightly agree

48

46.2

46.2

75.0

Not sure

16

15.4

15.4

90.4

Slightly disagree

5

4.8

4.8

95.2

Disagree

5

4.8

4.8

100.0

104

100.0

100.0

Total

Figure 21: Matchup of Celebrity and Purchase Intention

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Do you think celebrities can provide or transfer meaning to the product and influence your purchase intentions based on celebrity’s age, gender and lifestyle? (Meaning Transfer refers to the meaning a celebrity brings or transfers to a certain product with the help of their personality and lifestyle) This question is asked to the respondents to check whether associating a celebrity can bring meaning to the product or service being endorsed by him thereby influencing consumer purchase intention. The majority of the respondents (35.6%) slightly agree that celebrities can transfer meaning to a product that can influence their purchase intention. Another 26.9% of the respondents strongly agree that their purchase intention is affected through the meaning transfer from celebrity to the product. However, considerably more 21.2% of respondents are unsure. On the other hand 7.7% of the respondents slightly disagree and 8.7% completely disagree with influence of meaning transfer process. Overall, it was found that 62.5% of respondents see meaning transfer as a factor to influence their purchase intention while 37.5% are either not sure, slightly disagree or completely disagree. Therefore it can be said that meaning transfer process is likely to influence the purchase intention of most of the consumers. Table 41: Descriptive Statistical Analysis of Meaning Transfer Attribute

Mean

Mode

Std. Dev

Meaning Transfer

2.35

2

1.20

Table 42: Meaning Transfer of Celebrity and Purchase Intention Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Agree

28

26.9

26.9

26.9

Slightly agree

37

35.6

35.6

62.5

Not sure

22

21.2

21.2

83.7

Slightly disagree

8

7.7

7.7

91.3

Disagree

9

8.7

8.7

100.0

104

100.0

100.0

Total

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Figure 22: Meaning Transfer of Celebrity and Purchase Intention

In this section, the respondents were asked to rate the self-perceived importance of each attribute as a factor to influence their purchase decision. Each of the six attributes was evaluated on a scale ranging from 1, Not at all important, to 5, extremely important. The results were analysed using the descriptive frequency analysis through SPSS. The results of respondents‘ perceived importance are averaged and represented in the table below.

Table 43: Descriptive Statistical Analysis of Each Attribute Variable/Attribute Expertise Trustworthiness Similarity Likeability Product Match up Meaning transfer

Mean 4.22 4.11 3.06 3.34 3.00 3.18

Std. Dev .944 .927 1.05 1.13 1.26 1.18

Ranking 1 2 5 3 6 4

The results of the self-perceived importance of attribute (Mean) shows that Expertise (4.22) is the most important attribute. Second important attribute is Trustworthiness (4.11). Likeability (3.34) is ranked third and Meaning transfer (3.14) at fourth. Interestingly, Similarity (3.06) and product match-up (3.00) are very closely followed by each other. However, Product match-up is considered to be the least important attribute rated by the respondents (See Table below).

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Figure 23: Graphical Representation of Importance of Each Attribute

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4.3 Research Question 3 The models used for evaluating purchase intention consists multi item constructs. Three different questions were asked to the respondents in order to evaluate the impact of celebrity endorsers on their purchase intention. Therefore, in order to check the reliability of the constructs the calculation of Cronbach‘s α is required. The value of constructs should be <0.7 in order to be valid. In this case the findings show that the constructs are valid since the value is more than 0.7 Table 44: Reliability test for Purchase Intention Construct Purchase Intension

Number of Items 3

Cronbach's α .916

Mean 2.15

The three questions asked to the respondents in the questionnaire are as follows: PI 01 I’m likely to purchase products or services that have been endorsed by celebrities. PI02 I do purchase products and services endorsed by celebrities. PI03 In overall, I’m happy with purchasing products or services d by celebrities. The respondents were asked to rate each of these questions on the likert scale ranging 1 (Agree) to 5 (strongly disagree). Table 45: Statistical Analysis “Purchase Intention 01” Frequency

Percent

Valid Percent

Cum. Percent

Agree

46

44.2

44.2

44.2

Slightly agree

27

26.0

26.0

70.2

Not sure

18

17.3

17.3

87.5

Slightly disagree

8

7.7

7.7

95.2

Disagree

5

4.8

4.8

100.0

104

100.0

100.0

Total

The results from the descriptive frequency analysis for question 1 states that majority of the respondents (44.2%) are likely to purchase products endorsed by celebrities. 26% of

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respondents slightly agree to the statement as well. However, 17.3% of respondents are unsure whether they are likely to purchase products endorsed by celebrities. On the other hand, only 7.7% of respondents slightly disagree and 4.8% disagree about the influence of celebrities on their likeliness to buy products under celebrity influence. Table 46: Statistical Analysis “Purchase Intention 02” Frequency

Percent

Valid Percent

Cum. Percent

Agree

37

35.6

35.6

35.6

Slightly agree

26

25.0

25.0

60.6

Not sure

32

30.8

30.8

91.3

Slightly disagree

5

4.8

4.8

96.2

Disagree

4

3.8

3.8

100.0

104

100.0

100.0

Total

The analysis results from question 2 suggests that majority of the respondents (35.6%) do actually purchase products under the influence of celebrities. 25% of respondents slightly agree that means they do sometimes buy the endorsed products as well. However, a major number of respondents 30.8% are not sure whether they purchase the products under the influence by celebrities or not. Relatively high degree of unsure respondents 30.8% might bias the results. On the other hand, only very less number 4.8% of respondents disagree and 3.8% disagree about the influence of celebrities on their purchase decision. However, overall 60.6% of respondents show positive response by stating that they buy products and services endorsed by celebrities. Table 47: Statistical Analysis “Purchase Intention 03” Frequency

Percent

Valid Percent

Cum. Percent

Agree

40

38.5

38.5

38.5

Slightly agree

31

29.8

29.8

68.3

Not sure

24

23.1

23.1

91.3

Slightly disagree

3

2.9

2.9

94.2

Disagree

6

5.8

5.8

100.0

104

100.0

100.0

Total

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The results from analysis of question 3 represent the overall happiness or satisfaction level of respondents after buying products or services endorsed by celebrities. The analysis shows that majority of the respondents (38.5%) strongly agree that they are happy after their purchases of products endorsed by celebrities. While 29.8% of respondents are likely to be happy for their purchases as they slightly agree as well. Again 23.1% of people are neutral about their purchase decisions for the products endorsed by celebrities. Interestingly, only a few number of people slightly disagree (2.9) and disagree (5.8%) are not happy with their purchase decisions made under celebrity influence.

4.3.1 Testing the Hypothesis In order to check the overall influence of celebrities on the purchase decision of consumers the results from above mentioned question were combined together using the ―compute variable‖ function SPSS. The results from above three questions combined together are as follows:

Valid

Table 48: Overall Purchase Intention Frequency Percent Valid Percent

Cum. Percent

1 (Agree)

32

30.8

30.8

30.8

1.333

8

7.7

7.7

38.5

1.666

7

6.7

6.7

45.2

2 (Slightly agree)

7

6.7

6.7

51.9

2.333

14

13.5

13.5

65.4

2.666

11

10.6

10.6

76.0

3 (Not Sure)

12

11.5

11.5

87.5

3.333

5

4.8

4.8

92.3

3.666

2

1.9

1.9

94.2

4 (Slightly disagree)

2

1.9

1.9

96.2

4.333

1

1.0

1.0

97.1

4.666

1

1.0

1.0

98.1

5 (Disagree)

2

1.9

1.9

100.0

104

100.0

100.0

Total

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Figure 24: Overall Purchase Intention of Consumers for Celebrity Endorsements Table 49: Descriptive Statistics Overall Purchase Intention

Purchase Intension

Mean

Std. Deviation

N

2.1538

.96310

104

The overall results for purchase intention shows that celebrities can influence the purchase decision of the people by appearing with a product in an ment. The results show that most of the consumers are likely to buy or buy the products endorsed by celebrities. Moreover many of the customers are happy or satisfied with the purchases they have done under the influence of celebrity that is a positive sign. The level of after purchase satisfaction builds the trust on the part of the celebrity and the product and influences future purchase decisions. The results also show that there are low numbers of people who are actually not influenced or satisfied with their purchase decisions under celebrity influence.

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DISCUSSION

This chapter provides the reader with clear justification of the results and direct answers to the research questions. The results will be discussed and compared with the existing empirical research available.

5.1 Current State of Consumer Perception about Celebrity Endorsements Based on the research findings the author accepts that ―Celebrity endorsements are a ubiquitous feature of modern marketing‖ (McCraken 1989). The findings from the research extensively the statement. People come across celebrity endorsed ment in everyday life. Majority of the respondents (68.5%) stated that they come across celebrity endorsed ments very often (Appendix 4). Additionally, the respondents feel that TV ments (81.1%) is the more likely to carry celebrity endorsed ments followed by magazines (31.1%), Internet (22.3%) and newspapers (19%) (Appendix 5). This proves that, recent technological advances in the media and satellite television has increased the power of ment and made advertising more challenging (Croft, Dean and Kitchen 1999). The fierce competition between brands has encouraged marketers to use celebrities as endorsers in order to attract more consumer attention (Croft, Dean and Kitchen 1999). Undoubtedly the findings prove that celebrities are very successful at attracting more consumer attention towards the product they are endorsing. When asked 83.6% of respondents agreed that celebrity endorsed ment are more effective at attracting their attention as compared to non-celebrity ments (Figure). Additionally, the respondents state that they find bollywood actors and actresses (74%) more influential as celebrity endorsers followed by sport stars including cricketers (39.4%) (Appendix 6). As Patzer (1985) stated that ―attractiveness is an informational cue involves effects that are subtle, pervasive, and inescapable‖ The results state that celebrity endorsements are more attractive that means celebrities attracts the attention of consumers towards the product by appearing with them or endorsing them in an ment. Attracting the consumer attention is the first step to influence him to buy the product. Moreover, Celebrity endorsed ment deliver higher degree of appeal, attention and recall rate as compared to the non-celebrity ments (Cooper, 1984; Dean and Biswas, 2001) The research findings proves this by stating that 87.5% of the respondents either agree or slightly agree that

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celebrity endorsed ments enables them to recall and recognise the products more promptly. Celebrity endorsed ment have the potential to influence the cognitive processes of consumers (Wilkes and Valencia 1989). Interestingly the findings state that 72.1% of respondents said that they find celebrity endorsed ments more influential as compared to non-celebrity ments. Thus it can be said that employing a celebrity in an ment can influence the customers to buy the product or service endorsed by him. The findings the fact that ―the power of the celebrities lies in their ability to influence the consumers, even if they are physically and socially far from a common consumer (Choi & Rifon, 2007).

5.2 Relationship of Celebrity Attributes with Purchase Intention 5.2.1.1 Expertise Expertise of the celebrity endorser positively affects the consumers’ intention to purchase products or services endorsed by him Result of the study proves that expertise of the celebrity endorser positively influences the purchase intention of the consumers. The result states that the more expert the celebrity is in the category of product being endorsed by him, it is more likely that endorsed product will be purchased by the consumers. The strength of relationship between expertise and purchase intention is relatively sensible (R= .394). The result from the regression analysis shows that 14.7% of purchase intention variability is explained by expertise. That proves if the expertise of the endorser is more it is likely to affect the purchase intention of consumers. The descriptive frequency analysis results state that 39.4% of respondents agreed that expertise of the celebrity endorser affects their purchase intention. However, when the respondents were asked to rate each of the attribute independently ―Expertise‖ of the celebrity is ranked as the highest possible attribute (Mean 4.22) to influence their purchase decision (Appendix). Overall it s that Expert celebrities are more persuasive (Aaker and Myers 1987) and may influence the consumer purchase intention (Ohanian 1991).

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5.2.1.2 Trustworthiness Trustworthiness of the celebrity endorser positively affects the consumers’ intention to purchase products or services endorsed by him The result from the study proves that trustworthiness of the celebrity positively influences the purchase intention of the consumers. Regression analysis s the positive relationship between trustworthiness and purchase intention (R = .379). It states that 13.5% of purchase intention variability is defined by trustworthiness. The result states that if the celebrity is more trustworthy then the consumers are more likely to purchase the product. The descriptive frequency analysis results state that 27.9% of respondents agreed that they consider trustworthiness of the celebrity as a factor to influence their purchase intention. Independently respondents rated trustworthiness as rank 2 (Mean 4.11) in order to influence their purchase intention (Appendix). The study therefore s the experiment by Miller and Baseheart (1969) found out that if the perceived trustworthiness of the source is high; attitude change is more likely to occur.

5.2.1.3 Similarity Similarity with the celebrity endorser positively affects the consumers’ intention to purchase products or services endorsed by him The result from the study proves that being similar or feeling some similarity with the celebrity positively influences the purchase intention of the consumers. Regression analysis s the positive relationship between trustworthiness and purchase intention (R = .453). It states that 19.5% of purchase intention variability is defined by similarity. The result states that if the celebrity looks more similar or if the consumers feel something common in between them then they are more likely to purchase the product. The descriptive frequency analysis results state that 16.3% of respondents agreed that they consider trustworthiness of the celebrity as a factor to influence their purchase intention. Evaluating independently, respondents ranked ―Similarity‖ as 4th (Mean 3.06) influential attribute to influence their purchase decision (Appendix). The results that perceived resemblance between the source and the respondent influences their intention to purchase (Erdogan 1999).

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5.2.1.4 Familiarity Familiarity of the celebrity endorser positively affects the consumers’ intention to purchase products or services endorsed by him Result of the study proves that familiarity of the celebrity endorser positively influences the purchase intention of the consumers. The result states that the more familiar the celebrity, more are the chances that product endorsed by him will be purchased by the consumers. The strength of relationship between familiarity and purchase intention is relatively good (R= .479). The result from the regression analysis shows that 22.2% of purchase intention variability is explained by expertise that is more than the attributes discussed so far. That proves if the expertise of the endorser is more it is likely to affect the purchase intention of consumers. The descriptive frequency analysis results state that 22.1% of respondents agreed that familiarity of the celebrity endorser affects their purchase intention. Overall the results positively s that familiarity of the celebrity initiates positive perception towards the product endorsed by him and leads greater purchase intention (Hovland and Weiss 1951) 5.2.1.5 Likeability Likeability of the celebrity endorser positively affects the consumers’ intention to purchase products or services endorsed by him The empirical test results of the study have found positive relationship between likeability and purchase intention of the consumer. The strength of relationship between familiarity and purchase intention is relatively moderate (R= .377). The result from the regression analysis shows that 13.4% of purchase intention variability is defined by likeability. The results state that if the celebrity is more likeable among the consumer, the people are likely to buy products endorsed by him. The descriptive frequency analysis results state that 23.1% of respondents agreed that familiarity of the celebrity endorser affects their purchase intention. The result from the study s that likeability or fondness for the source can bring change in the buying behaviour of the consumer (Belch and Belch 2001). 5.2.1.6 Product Match-up The Product celebrity match-up of attributes positively affects the consumers’ intention to purchase products or services endorsed by him According to Till and Busler (1998) the existence of perceived 'fit' between the endorsing celebrity and the brand may influence the consumers intention to purchase. The empirical test results of the study state positive but low relationship between celebrity product match-up

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and purchase intention of the consumer. The strength of relationship between familiarity and purchase intention is relatively low (R= .257). The result from the regression analysis states that 5.7% of purchase intention variability is defined by likeability. The regression result state that if the celebrity fits with the product endorsed by him. There is a chance that people may buy that product. The descriptive frequency analysis results state that 28.8% of respondents agreed that the fit between the celebrity and the endorsed product can influence them to buy a certain product or service. Surprisingly, respondents ranked Match-up as the least preferred attribute rank 6th (Mean: 3.00) to influence their purchase intention. The regression result proves the positive relationship between the product celebrity match-up. However its impact is likely to be low as compared to other attributes. 5.2.1.7 Meaning Transfer The meaning transfer from celebrity to the product endorsed by them positively affects the consumers’ intention to purchase According to McCracken (1989) Celebrities can bring meanings to the product that can influence consumer purchase intention. The results from the research the statement and states positive relationship between meaning transfer and purchase intention. However the impact of meaning transfer on consumer purchase intention is likely to be very low as compared to other attributes tested. The strength of relationship between meaning transfer and purchase intention is very low (R= .200). The result from the regression analysis states that 3.1% of purchase intention variability is defined by meaning transfer. Meaning transfer is the least effective variable to impact the consumers‘ intention to purchase. The descriptive frequency analysis results state that 26.9% of respondents agreed that the meaning transfer from the celebrity to the product can influence their purchase intention. Respondents evaluating each attribute independently ranked meaning transfer 4th (Mean: 3.18) in influencing their purchase decision.

5.3 Impact of Celebrity Endorsements on Consumers Purchase Intention Many researchers have talked about the effectiveness of the celebrities as endorsers. The author in this question tried to find out if celebrities do really impact the purchase intentions of the consumer. Many authors in the empirical studies have argued that celebrity endorsers produced more positive attitudes and greater purchase intentions towards the product endorsed by them as compared to a non-celebrity endorser (Atkin and Block 1983; Petty et al. 1983; Ohanian 1991). The findings of this research the argument. The results from

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the research state that 76% of people agree that they buy the products endorsed by celebrities. Respondents were asked to rate celebrities on three different questions. Overall the result from the research approves the relationship between celebrity endorsements and consumer purchase intention. The results state that majority of the people are likely to purchase (70.2%), do purchase (60.6%) and are overall happy with their purchases (68.3%) done under the influence of celebrity endorsers. Therefore, it can be said that celebrity endorsers are likely to have a positive effect on consumer purchase intention (Goldsmith, Lafferty and Newell 2000; Mathur, Mathur & Rangan 1997). Despite the various benefits, there are still many potential risks involved in using celebrities as endorsers. Negative publicity concerning the celebrity is one of the major risks associated with the celebrity endorsement. Negative publicity about a celebrity endorser not only impacts consumers' perception about the celebrity, but also the endorsed product (Klebba and Unger 1982; Till and Shimp 1995) Therefore, the respondents were asked to state if the negative publicity of a celebrity endorser can influence their intention to purchase the products endorsed by them. The respondents gave very complicated results. Majority of the respondents were unsure about the effect of negative publicity on their purchase decision while some of them agreed and vice versa. Therefore the author used the (Mean: 2.73) to come up to the conclusion. The descriptive statistical results state that negative publicity about a celebrity slightly affects their purchase intention (Appendix 7).

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CONCLUSION

This chapter articulates the main outcomes of the research project, examining the extent to which the objectives are met and contribution to the existing literature on celebrity endorsements. Managerial and theoretical implications of the research are outlined. Finally the limitation of the current study is acknowledged and directions for the further research are suggested.

Celebrity endorsements has changed the way advertising used to be few decades ago. It is been accepted to be a ―ubiquitous feature of modern day marketing‖ (McCracken 1989). Celebrity endorsements business has become a multi-million dollar industry in India (Malhotra 2005). As a result, a greater understanding of consumers‘ reactions towards celebrity endorsements can help the marketers to use it more effectively. This research project explored the current state of Indian consumers‘ perception about celebrity endorsements. Empirically identified and tested the celebrity attributes specific to influence purchase intention and finally examined the impact of celebrity endorsements on purchase intention of consumers. In accordance with the study objectives, the following conclusions are drawn. Firstly, the research project examined and explored the current state of consumers‘ perception about celebrity endorsements. Research outcomes reveal extremely high degree of familiarity across all age groups. Results reveal that people find celebrity endorsements more attractive, particularly young people and teenagers. Further, on the basis of attractiveness people find actors and actresses from bollywood and films more influential as endorsers. Results reveal that using a celebrity in an ment increases the recognition and recall rate of the endorsed product. Overall the people believe that celebrity endorsements are more attractive, and effective at influencing their purchase decision. Interestingly, people know and agree that celebrities don‘t really use the products endorsed by them. Even though, celebrity endorsements have a very positive impact on consumers‘ perceptions and attitudes towards the endorsed product. Secondly, the positive relationship of different celebrity attributes and purchase intention of the consumers demonstrates the effectiveness of celebrities as successful endorsers. Although some attributes are very effective at influencing purchase intention of consumers some are relatively low or moderate. For instance, ―familiarity‖ of the celebrity has the highest impact on purchase intention followed by ―similarity‖, ―expertise‖, ―trustworthiness‖ and

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―likeability‖. The least important attributes to have impact are product-celebrity ―match-up‖ and ―meaning transfer‖. Controversially, in a separate test people ranked ―expertise‖ to the most important attribute likely to impact their purchase decision. Accordingly the other attributes were ranked as trustworthiness, likeability, meaning transfer, similarity and product match-up. This shows that there is a difference between what Indian consumers actually do and think. It is also crucial to keep in mind that selection of a celebrity endorser should not only be done over the two most important attributes but also consider the remaining as a priority, since these may strengthen the impact of a celebrity over purchase intention. Overall it can be said that the different attributes of the celebrities positively affect consumers purchase intention. Thirdly and finally, empirical test of relationship between celebrity endorsements and purchase intention satisfied the final objective of this research project. It was empirically tested and found that celebrity endorsers positively affect the purchase intentions of the consumers as compared to non-celebrity endorsers. It was found out that people are more ―likely to buy‖, ―already buy‖ and are ―happy‖ with the purchases done under the influence of celebrities. Regarding ―negative publicity‖ of the celebrity not many people think about it or are still unsure. The fact depicts that they actually follow their celebrities regardless of negative publicity while some are slightly considered about it. Overall, the results proved the effectiveness of celebrities as endorsers. In overall, all three research objectives have been achieved leading to better understanding of celebrity endorsements in context to India. Furthermore, the limitations, implications and suggestions for further research are articulated in subsequent topics.

6.1 Limitations of the study Every research has certain limitations therefore it is necessary to acknowledge them before moving on to generalisations of findings. The following are the few constraints faced by the author while conducting this study. Firstly, the sample size is relatively small to represent the larger population of India Hence the results of this study are not sufficient enough to make concrete recommendations. Another limitation to the research is that majority of the respondents were young consumers under the age of 18-30. The author didn‘t get any samples from the people above the age of 60 (senior citizens) who may have a different opinion regarding celebrity endorsements.

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Moreover, large number respondents belonged to or represented urban part of the population. Hence the rural sector, the major part of Indian population was left unobserved. Therefore the results may show difference if the study is conducted on a larger scale. Therefore the results from this research may not be used to sample India as a whole country. Secondly, the author feels that limited time and resources may affect the methodology of the research. The author considered and examined the factors/attributes from the earlier literature on celebrity endorsements. However additional research approaches qualitative study (focus groups) could have benefited this research even more. In other words it may lead to the determination of other relevant factors that might affect the purchase intention of the consumers. Moreover, the author feels that time was another big concern for the research. For a relevant successful research, 3 month time proved to be less in order to collect and analyse the data to a much deeper level. Thirdly, even though the quantitative method to the approach has provided the most appropriate results for achieving the research objectives. It may also affect the outcomes of the research. The author used online questionnaire method in order to collect the data from the respondents. This method is not considered to very reliable because there is no face to face interaction with the respondent and therefore the respondents may manipulate with the data in of age, gender etc. On this , the generalisations made on outcomes of the research are reasonable. Moreover, the elimination of above said limitations might reveal new insights in the area of celebrity endorsements.

6.2 Theoretical Implications The major contribution of the research is that this is the first attempt to analyse and evaluate the impact of celebrity endorsements on purchase intentions of the consumers. This research developed a survey instrument based on the critical analysis of literature which was further tested to establish the validity and reliability of the constructs. The outcomes of the research added significant value to the existing literature by testing each of the attribute particularly in order to examine its impact on purchase intention. The theoretical model and the survey instrument of the study can be further used for conducting a research on broader scale.

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6.3 Managerial Implications From managerial implications perspective, the research outcomes bring practically important results for marketers to consider while choosing a celebrity for an ment. Firstly, the regression coefficient analysis demonstrates the extent of each attributes impact on consumers purchase intention. Marketers can choose celebrities according to the important attributes required to influence a set of population. Moreover, the ability to predict purchase intention on the basis of results obtained through regression analysis will help the marketers to choose the perfect celebrity and to the class of product endorsed. Additionally, marketers should bound celebrities to use the products endorsed by them since majority of people believe that celebrities don‘t use the products they endorse. This will increase the credibility of celebrities and product among the consumers.

6.4 Further Research The author has come across many interesting topics while conducting this research. In fact, some of the results from the current research generated important questions to be explored. As mentioned in the conclusion as well, consumers tend to think and act differently because when asked to rate the attributes independently the consumers came up with different answers. That is why the author has not claimed the results to be accurate. Research on the psychological and practical aspects of consumer buying behaviour can provide marketers with deeper understanding of the topic. Another important aspect to be explored can be how negative publicity can affect the purchase intention of consumer with reference to low and high involvement product and services. Negative publicity of the celebrity associated with the product can destroy the brand and it may take lot of time to recover the same image. Moreover, how easily people can accept a celebrity with a negative publicity to be a brand endorser is also of special interest. Another major area to explore is demographical area. Attitudes and perceptions of people differ on various different basis for instance age, gender, country, income level etc. From the marketer point of view it is important to understand that consumers are governed by their culture and values. Moreover, the limitations highlighted in the earlier section provide a broad platform for future research.

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Robson, C., (1993). Real World Research, USA: Blackwell Publishing Robson, C., (2002). Real world research: a resource for social scientists and practitionerresearchers, 2nd Ed., Oxford: Blackwell. Rossiter. J.R and Percy, L., (1987), Advertising and Promotion Management London: McGraw-Hill, Inc. Roy. S., (2006). An Exploratory Study in Celebrity Endorsements. Journal of Creative Communications, Vol. 1(139) pp.139-153. Saunders, M. Lewis, P and Thornhill, A., (2000). Research Methods for Business Students, Essex: Pearson Education Saunders, M., Lewis, P and Thornhill, A., (2003). Research Method for Business Students, 3rd ed. Essex: Pearson Education Saunders, M., Lewis, P and Thornhill, A., (2007). Research Method for Business Students. 4th ed. Essex: Pearson Education Saunders, M., Lewis, P and Thornhill, A., (2009). Research Method for Business Students. 5th ed. Essex: Pearson Education Schiffman, L.G. and Kanuk, L.L. (2004), Consumer Behaviour, 8th Int. Ed., Upper Saddle River: Pearson Prentice Hall. Scott,

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Sherman, S.P., (1985). "When You Wish upon a Star," in Fortune Vol. 112. 66-71. Shimp, T.E., (1997). Advertising, Promotion and Supplemental Aspects of Integrated Marketing Communication, 4th Edition. Fort Worth, Texas: The Dryden Press. Shukla S.K. and Devi A., 2010. Changes in consumer behaviour of India. International conference on management of change. International school of management excellence. Available from: http://www.idoub.com/doc/28277064/Changes-in-Consumer-Behaviour-ofIndia [Accessed on 10 Feb 2010] Silvera, D.H. and Austad, B., (2004). Factors predicting the effectiveness of celebrity endorsement ments‘, European Journal of Marketing, 38, 11/12, p1509-1526 Silverman, D., (2000). Doing Qualitative Research: A Practical Handbook. London: SAGE Publication Ltd. Singer, B.D., (1983). The Case for Using "Real People" in Advertising," Business Quarterly, 48. Winter, pp. 32-37. Solomon, M. R. & Assael, H., (1987). ―The forest or the trees?: a gesalt approach to symbolic comsumption‖, in Umiker- Seboek, J.(Ed.), Marketing and Semiotics: New Directions in the Study of Signs for Sale, Mounton de Gruyter, Berlin, pp.189-218. Solomon, M., Bamossy, G. and Askegaard, S., (2002). Consumer Behaviour: A European Perspective. Prentice Hall Financial Times, 2nd edition, NJ, USA Speck, P.S., Schumann, D.W., and Thompson, C., (1988). ‗Celebrity endorsements-scripts, schema and roles: theoretical framework and preliminary tests,‘ In: Advances in Consumer Research (Ed) Michael, J.H, vol.15, p 68-76 Spielman, H.M., (1981). The celebrity sell: making it work. Marketing Times 28, 13-14. TAM Adex, 2009. Snapshot on celebrity endorsements on TV during H1‘ 09. Avaialble from: http://www.indiantelevision.com/tamadex/y2k9/aug/tam32.php Tellis, G.J., (1998). Persuasion Using Endorsers. Advertising and Sales Promotion Strategy. USA: Addison-Wesley Longman Inc.

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Zeithaml, V.A., 1985. The new demographics and market fragmentation. Journal of marketing Available from: http://www.proquest.umi.com

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APPENDICES

Appendix1: Descriptive Statistics for Each Attribute

Attribute

Mean

Median

Mode

Std. deviation

Expertise

4.2212

5.0000

5.00

.94465

Trustworthiness

4.1154

4.0000

5.00

.92755

Similarity

3.0673

3.0000

3.00

1.05448

Likeability

3.3462

3.0000

3.00

1.13864

Match up

3.0000

3.0000

3.00

1.26184

Meaning Transfer

3.1827

3.0000

4.00

1.18866

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Appendix 2: Respondents Profile

Sample Demographics Overall

Overall 104

Gender: -Male -Female Age: <18 18-30 >30

69 (66.3%) 35 (33.7%) 12 (11.5%) 74 (71.2%) 18 (17.3%)

Part of Country: -Urban -Rural

93 (89.4%) 11 (10.6%)

Occupation: -Student -Professional/Business -Unemployed -Others

44 (42.3%) 50 (48.1%) 2 (1.9%) 8 (7.7%)

Graphical Representation of Respondents’ Profile.

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Appendix 3: Questionnaire Dear Respondent, I‘m pursuing Masters in Management with Marketing from Bournemouth University, England. As a part of my course I need to submit a research project. My research project is based on ―Celebrity Endorsements and Its Impact on Consumer Buying Behaviour‖. The questions asked in the questionnaire are very simple and related to what we see and observe in common daily life. Please rate the questions according to what you actually feel about celebrity endorsements in real life. The whole questionnaire may take around 5 minutes of your precious time. I promise that your response will remain confidential and you will not be ed for any marketing purposes. Thank you for your participation.

Questionnaire Demographic Profile 1.

2.

3.

4.

What is your age? a. Less than 18 years b. 18-30 c. 30 and above What is your gender? a. Male b. Female What is your profession a. Student b. Professional/Business c. Unemployed d. Others (Please Specify) Which part of country do you live? a. Urban b. Rural

Consumer Perception and Celebrity Endorsements 5.

6.

Which of the following medium do you think is more likely to convey celebrity endorsed ments? a. TV ments b. Magazines c. Internet d. Radio e. Newspapers How frequently do you come across ments using celebrity endorsements? a. Often b. Occasionally c. Rarely d. Never

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7.

What attracts you more: celebrity endorsed ments or non-celebrity ments? a. Celebrity endorsed ments b. Non celebrity ments 8. What type of celebrities do you think is more influential as endorsers? a. Actors or Actresses from movies b. Sport stars including cricketers c. Politicians d. Business persons e. Others (Please specify) 9. Does the presence of celebrities in the ments help you recognise and recall product more promptly? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 10. Do you think celebrities really use the product endorsed by them in real life? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 11. How do you perceive celebrity endorsements? a. Very effective b. Effective c. Somewhat effective d. Not at all effective 12. How influential do you think is celebrity endorsements? a. Very influential b. Influential c. Somewhat influential d. Not at all influential

Celebrity Attributes and Purchase Intention 13. As a consumer, do you consider ―Expertise‖ of the celebrity as an attribute that can influence your purchase decision? (Expertise refers to the level of knowledge, experience and expertise a celebrity has in particular field) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 14. As a consumer, do you consider ―Trustworthiness‖ of the celebrity as an attribute that can influence your purchase decision? (Trustworthiness refers to the honesty and believability of the celebrity) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree

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15. As a consumer, do you think the sense of ―Similarity‖ between you and the celebrity endorser can influence your purchase decision for a certain product or service? (Similarity refers to the sense of similarity a consumer feels with a celebrity) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 16. As a consumer, do you consider the ―Familiarity‖ of the celebrity as an attribute that can influence your purchase decision for a certain product or service? a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 17. As a consumer, do you consider the ―Likeability‖ of the celebrity as an attribute that can influence your purchase decision for a certain product or service? (Likeability refers to the level of celebrity‘s fame in the public opinion and how popular the celebrity is) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 18. As a consumer, do you think the ―Match‖ between the celebrity and the product can an important attribute in influence your purchase decision for a certain product or service? (Fit/Match refers to the level how well the fit between the celebrity and the product is) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 19. Do you think celebrities can provide or transfer meaning to the product and influence your purchase intentions based on celebrity‘s age, gender and lifestyle? (Meaning Transfer refers to the meaning a celebrity brings or transfers to a certain product with the help of their personality and lifestyle) a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 20. Please rate these factors according to their importance and effectiveness in order to influence your purchase decision. (1 being the lowest and 5 being the highest) a. Expertise 1 2 3 4 5 b. Trustworthiness 1 2 3 4 5 c. Similarity 1 2 3 4 5 d. Likeability 1 2 3 4 5 e. Product-celebrity match 1 2 3 4 5 f. Meaning transfer 1 2 3 4 5

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21. Which of the below given factors influence you the most to buy a product or service endorsed by a celebrity? a. Expertise of the celebrity in the given field/ product endorsed. b. Trustworthiness of the celebrity c. Similarity between the celebrity endorser and yourself. d. Likeability of the celebrity e. Match between the Product and the celebrity. Celebrity Endorsements and Purchase Intention 22. Do you feel that ―Negative Publicity‖ about a celebrity endorser can influence your purchase decision? (For example Salman Khan is facing trial in 3 cases for killing black bucks and chinkaras and illegal possession of arms.) a. Yes b. No c. Sometimes d. Can‘t say 23. I‘m likely to purchase products or services that have been endorsed by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 24. I do purchase products and services endorsed by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree 25. In overall, I‘m happy with purchasing products or services d by celebrities. a. Agree b. Slightly agree c. Not sure d. Slightly disagree e. Disagree

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Appendix 4:

Appendix 5

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Appendix 6

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Appendix 7 Do you feel that Negative Publicity about a celebrity endorser can influence your purchase intention? In this research question, the author tried to identify how do celebrities impact the purchase intention of the customer by appearing with a product in an ment. There can be many factors associated with the effectiveness of a celebrity as an endorser. For instance negative publicity about the celebrity may spoil the public image of celebrity that may turn him ineffective as an endorser. Accordingly two questions were asked to the respondents to check the hypothesis.

Firstly the respondents were asked to rate if the negative publicity about a celebrity endorser can influence their purchase decision. The descriptive frequency analysis of results show that majority of the respondents slightly agree (38.5%) that negative publicity about a celebrity is likely to influence their purchase decision. 18.3% of the respondents also strongly agree to the statement. While 10.6% of respondents are unsure, 17.3% slightly disagree and 15.4% strongly disagree. The results don‘t show any concrete results. Overall results (Mean 2.73) show that respondents either slightly agree or unsure about the impact of negative publicity on their purchase intention. However the cumulative percentage suggests that more than half 56.7% respondents observe that negative publicity may influence their purchase decision (See table below).

Variable Negative Publicity

Agree Slightly agree Not sure Slightly disagree Disagree Total

Mean 2.73

Frequency 19 40 11 18 16 104

Median

Mode

Std. Deviation

2

2

1.35

Negative Publicity Percent Valid Percent 18.3 18.3 38.5 38.5 10.6 10.6 17.3 17.3 15.4 15.4 100.0 100.0

120

Cumulative Percent 18.3 56.7 67.3 84.6 100.0

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Further analysis on basis of age showed that 83.3% respondents under the age of ―slightly agree‖ that negative publicity about a celebrity can influence their purchase decision. Respondents between the age group of 18-30 gave mixed results. The analysis of data suggests that the youngsters are unsure about the negative publicity‘s influence on their purchase decision. However, 94% of respondents above the age of 30 years came up with some significant results that negative publicity about a celebrity influences their purchase decision. Overall, the analysis on the basis of age group suggest that people under the age of 18 and above 30 years are more sensitive to negative information and it influences their purchase intention. On the other hand people between the age of18-30 are either unsure or slightly agree to the statement.

Age group cross-tabulation Count Negative Agree Publicity Slightly agree Not sure Slightly disagree Disagree Total

less than 18 years 0 10 1 0 1 12

121

Age 18-30 14 18 10 17 15 74

30 and above 5 12 0 1 0 18

Total 19 40 11 18 16 104

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