Consumer perception towards Celebrity endorsements

By- Rosh RejendranRahul SharmaShashankSandeep B NSwetha LSiddharth Patil

Who is a celebrity ?

A celebrity is a person who is widely

recognized in a society.

• Actors ( Shahrukh khan, Amitabh Bachchan )• Models ( Malaika Arora, Milind Soman)• Sports athletes (Sachin Tendulkar, Roger Federer ) • Pop Stars (Britney Spears, Lady Gaga)• Businessmen (Mukesh Ambani, Vijay Mallya)• Politicians (Barack Obama)• Fictional celebrities (Ronald McDonald, Fido dido,

Amul Girl)

Celebrities can be…….

What is celebrity endorsement ?

A celebrity endorser is an individual who is known by the public for his or her achievements in areas other

than that of the product class endorsed

Why celebrity?

• Greater believability

• Favorable evaluation of the product.

• Positive purchase intention.

1• Instant brand awareness and recall.

2• Celebrity values define, and refresh the brand image.

3• Celebrities add new dimensions to the brand image

4 • Instant credibility or aspiration PR coverage.

5• Lack of ideas.

6• Convincing clients.

Celebrity endorsement are impelled by virtue of the following motives

Impact of celebrity endorsement on a

brand

S=P* D*AV --the multiplier effect

Where S is a successful brand,

P is an effective product.

D is Distinctive Identity

and AV is Added values.

- the realm of celebrity`s impact is confined to bring in a distinctive identity

and provide AV to the Brand.

Effectiveness depends on the existence of a 'fit‘

Effective match:

Reid & Taylor and Amitabh Bachhan,

Accenture and Tiger Woods

Establishing a Perfect Match

Examples

REEBOK

BIPASHA BASU/ M S DHONI

• FIT

• HEALTHY

• PERFECT BODY

• SPORTS PERSON

PRODUCT

• FOR FITNESS

• FOR HEALTH

CONSCIOUS

• SPORTS SHOE

SONY VAIO

KAREENA

• BEAUTIFUL

• SLIM

• LIGHT WEIGHT

• ZERO FIGURE

• STYLISH

PRODUCT

• SLIM

• LIGHT WEIGHT

• STYLISH

• SLEAK

PEPSI

RANBIR KAPOOR /DEEPIKA

• YOUNG

• STYLISH

• ENERGETIC

• CHOICE OF YOUTH

PRODUCT

• FOR YOUNG

PEOPLE

• ENERGETIC

LUX

KATRINA / ASH

• FAIR

• SOFT SKIN

• BEAUTIFUL

• BEAUTY ICON

PRODUCT

• FAIRNESS SOAP

• FEMALE PRODUCT

Dearth of salesmanAmitabh bacchan is one man brand industry.Nobody has that 6-to-60 universal appeal who can sell anything to India, and to Bharat.

.

Revolutionized the psychological trend of using Cadbury from 5-55 age group.

‘A gift that helps foster relationships’.

Findings

PURCHASE BEHAVIOUR Vs CELEBRITY LIKELINESS

Very Likely

Somewhat Likely

Neither L

ikely nor Unlik

ely

Somewhat Unlik

eley

Very Unlikely

0%

5%

10%

15%

20%

25%

30%

35%

12%

34%

30%

16%

8%

32%

20%

34%

10%

4%

Attractiveness

MalesFemales

Findings• 64% of all the Males chose Expertise (in the product) as their most important variable when purchasing from a celebrity endorse.

• 50% of all the Females placed the greatest amount of emphasis on Attractiveness for their purchase decision.

• Celebrities have always been the easiest way for a product launch and will remain to do so in the near future on the account of their mass appeal

and a world full of star struck loyal fans.

Conclusion

• Celebrities overtime can influence the loyalty and make a person friendlier to a brand.

Conclusion

• Consumers are more willing to purchase products from companies that have perfectly matched the celebrity to the product they are representing.

Conclusion

• Baker, M.,Tagg,S.(2001). Selecting Celebrity Endorsers: The Practitioner’s Perspective. Journal of Advertising and Research. 41. pp. 39-49

• Bush, A., Craig, A., Victoria, D. (2004) Sports Celebrity Influence on Behavioural Intentions of Generation Y. Journal of Advertising Research. 44. pp. 108-118

• Elberse, A.,Verleun, J. (2012). The Economic Value of Celebrity Endorsements. Journal of Advertising Research. June 2012. 146-165.

• Friedman, H., Friedman, L. (2009). Endorser Effectiveness by Product Type. Journal of Advertising, 19, pp 63-71.

• Gaied, A.,Rached, K. (2010). The Persuasive Effectiveness of Famous and Non Famous Endorsers in Advertising. IBIMA Business Review.Volume 2010. pp. 14

• Ponpitakpan, C. (2003) The Effect of Celebrity Endorsers Perceived Credibility on Product Purchase Intention: The Case of Singaporeans. Journal of International Consumer Marketing, 16. pp. 55-74.

References

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