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 todays 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 wasnt 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).

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 authors 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

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 authors 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 consumers perception about celebrity
endorsements.
OBJECTIVE 2
Identify the key factors which may influence consumers buying behaviour through celebrity
endorsements.
OBJECTIVE 3
Examine the impact of celebrity endorsements on consumers purchase intentions.

2 LITERATURE REVIEW
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 advertisement (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 advertisers to lend their personality to a product or brand
(Kaikati, 1987). The use of celebrities has been widely used as it could provoke attitudinal

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 support 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 advertisement
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
consumers 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 advertisements 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).

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 consumers 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 ones 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 (OMahony 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 McCrackens (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).

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

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
advertisement 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 dont work everytime (Misra and
Beatty, 1990). In fact, many commercials using such celebrity endorsers do not live up to the
advertisers 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

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 advertisement 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
advertisements use celebrity endorsement strategy. Due their well knowness, celebrities help
advertisements 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
companys image (Erdogan, 1999).

10

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). Advertisements 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 advertised 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 celebritys misdeeds. For instance PepsiCo suffered with three stained

11

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 advertisement, 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 advertisements 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).

12

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 advertisement to endorse
a product. Secondly, different celebrities appear in a series of advertisement 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 advertiser to build a sense of consensus, avoid
audience boredom and appeal to multiple audiences".

13

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
brands 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 LOreal 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 doesnt 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 celebritys 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 remember the celebrities

endorsed/advertised (Hsu and McDonald, 2002).

but

not

the

brand/product

Table 2: Examples of Multiple Product Endorsements in India

14

being

2.8 Consumer Buying Behaviour

In todays 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 marketers 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:

15

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 doesnt 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 dont 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.

16

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 consumerproduct 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, Indias 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 Indias population lives in rural areas, contributing around one-third of the

17

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 dont 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
support 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 feedback 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. Its 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).

18

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 sellers market to buyers 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 communicators positive characteristics
that affect the receivers 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

19
R

in terms of their

personal attitude and 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

20

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 sources 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
advertisements 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 sources
physical attributes and behaviour. Attractiveness of the source doesnt only arises due to
the physical attributes, It may also include the various other characteristics like intellectual
skill, lifestyle etc. (Erdogan 1999).

21

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 sources gender had no impact on respondents attitudes
towards advertisements or on purchase intentions either. The academic findings regarding
gender or cross gender interactions between source and respondent are superficious and
doesnt 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 advertisement 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 advertisement 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

22

(Kamins and Gupta 1994). Ohanian (1991) supported 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 remembers
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'Oral 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. Supporting 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.

23

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)
supported 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 advertisements 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).

24

Figure 2: Meaning Movement and Endorsement Process (Source: McCracken 1989)

The meaning transfer model illustrates a three stage process. It starts when the advertiser
identifies the cultural meanings intended for the product and decides what he/she wants the
product to say. After that, the advertiser 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 celebritys 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)
McCrackens (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 supported the

25

argument by McCracken (1989) that celebrities exemplify various meanings and these
meanings are passed 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 worlds fastest-growing economy by surpassing China (BBC 2009). In
todays dynamic and competitive environment, increasing consumers 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
$217 million. India is one of the most after sought market by major brands in advertising
industry across the world. In a report by McKinsey Global Institute (MGI), India's consumer
market will be the Worlds fifth largest (from twelfth) in the world by 2025 which is currently
valued at US$ 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 advertisers in the coming years.

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

26

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 advertisements 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 support 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 admired 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

27

celebrity endorsements (Kulkarni and Gaulkar, 2005). Procter & Gamble promoted its
Rejoice brand in India featuring an ordinary woman in their advertisement 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 Indias 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.

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.. 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 account of understanding Indian consumers perception towards celebrity
endorsements has enforced the author to conduct this research.

METHODOLOGY

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.

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
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).

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 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.

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).

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 peoples attitudes, intentions and buying behaviour. The analysis of
primary data is a central source for this study. Thus the author has adopted survey strategy
using Self-administered 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).

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.

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 support
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.

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.

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 contact 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 terms 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

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 support the statement. People come across celebrity endorsed advertisement in
everyday life. Majority of the respondents (68.5%) stated that they come across celebrity
endorsed advertisements very often (Appendix 4). Additionally, the respondents feel that TV
advertisements (81.1%) is the more likely to carry celebrity endorsed advertisements
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 advertisement 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 advertisement are more effective at attracting their
attention as compared to non-celebrity advertisements (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 advertisement. Attracting the consumer
attention is the first step to influence him to buy the product. Moreover, Celebrity endorsed
advertisement deliver higher degree of appeal, attention and recall rate as compared to the
non-celebrity advertisements (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
celebrity endorsed advertisements enables them to recall and recognise the products more
promptly.
Celebrity endorsed advertisement 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 advertisements more influential as
compared to non-celebrity advertisements. Thus it can be said that employing a celebrity in

an advertisement can influence the customers to buy the product or service endorsed by him.
The findings support 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).
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 advertisement 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 dont 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
likeability. The least important attributes to have impact are product-celebrity matchup 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 didnt get any samples from the people above the age of
60 (senior citizens) who may have a different opinion regarding celebrity endorsements.
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 terms of age, gender etc.
On this account, 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.

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 advertisement. 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 dont 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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