Effect Of Celebrity Endorsement On Customers’ Buying Behaviour Towards Gold Ornaments: A Descriptive Study Conducted

At Kottayam, Kerala.

By

Mr. Ajai Krishnan G Assistant Professor, Department of Management studies, MACFAST, Tiruvalla, Kerala &Mr. Ligo KoshyAssistant Professor, Department of Management studies, MACFAST, Tiruvalla, Kerala.

Introduction

• Possessing gold is firmly embedded in Indian customs and traditions.

• The south Indian states Kerala, Andhra Pradesh, Tamil Nadu and Karnataka shares the 40% of the Country’s Total Gold Consumption (The Indian Gold Market-Statistics from The World Gold Council).

• A jeweller may use one or a combination of two or more of the promotional tools available to reach out to its targeted customers.

Purpose of Research

• The main purpose of this study is to find out the effect of celebrity endorsement on consumers buying behaviour towards Gold ornaments in Kerala context.

Research Objectives

• The Primary objective of this work is to study the effects of celebrity endorsement on consumer buying behavior towards gold jewellery in Kerala context.

• To identify the demographic profile of the customers of gold jewellary in Kottayam District.• To identify the factors other than celebrity

endorsement affecting the buying behaviour.• To identify the characteristics of the celebrity which

have an influence on buying behaviour.

Research Methodology • The study was descriptive in nature.• Sample size

• Sample size was 200 customers. • Sampling method

• Convenient sampling technique was used.• Data collection tool

• A structured questionnaire was used for collecting the responses of the customers. To identify the various characteristics of the Celebrity which affects the buying behaviour a five point Rating Scale ranging from “5=Strongly Agree” to “1=Strongly Disagree” was used.

• Tools for Analysis• Along with the usual statistical tools such as tables, percentages,

Ranking, hypothesis testing were used for analyzing the data and arriving at the conclusion.

Demographic profile of the respondentsCharacteristics Frequency percentageGenderMale 98 49%Female 102 51%Total 200 100%Age<=25 26 13%26-35 30 15%36-45 40 20%46-55 44 22%>55 60 30%Total 200 100%Marital statusMarried 138 69%Unmarried 62 31%Total 200 100%OccupationSelf employed 52 26%Government 72 36%Private 76 38%Total 200 100%Monthly Income (in INR)<=20000 20 10%21000-30000 24 12%31000-40000 44 22%41000-50000 48 24%>50000 64 32%Total 200 100%

Analysis & Intrepretation• 51% respondents are female and 49% respondents are male.• 13% respondents fall in the age group of below 26 years, 15%

respondents fall under the age group of between 26-35 years, 20% of respondents fall under the age group of 36-45 years, 22% of respondents fall under the age group of 46-55, and 30% respondents were above 55 years.

• 69% respondents were married, 31% respondents were unmarried.• 26% respondents were self employed, 36% respondents were

Government employees and 38% respondents belonged to private sector.• 10% respondents belongs to the income bracket of below Rs. 21,000, 12%

respondents were from the income group of Rs. 21,000-30,000, and 22% respondents were from the income group of Rs.31,000-40,000, 24% respondents were from the income group of Rs. 41000-50000, and the majority of respondents, 32% is having monthly income above Rs. 50,000.

Factors affecting the selection of a jewellery shop by the respondents

Characteristics Frequency Percentage

Quality 20 10%

Price 16 8%

Word of Mouth 34 17%

Advertisement 60 30%

Endorsing Celebrity 40 20%

Years of existence 30 15%

Total 200 100%

Factors affecting the selection of a jewellery shop by the respondents

Celebrity’s characteristics which influence the buying behaviour

Characteristics Total Score RankCelebrity popularity

774(14.62%) Rank 2Celebrity physical attractiveness 771(14.56%) Rank 3Celebrity credibility

659(12.45%) Rank 4Celebrity prior endorsement

535(10.10%) Rank 8Celebrity profession

610(11.52%) Rank 5Celebrity’s fit with product

832(15.71%) Rank 1Celebrity- target audience match 537(10.14%) Rank 7Celebrity associated values

577(10.90%) Rank 6

Hypothesis Testing

• H0: There is no significant influence of celebrity advertisement on buying behaviour.

• χ² tabulated= 12.5; Number of degrees of freedom= 1; Table value of χ² at 5% level of significance = 3.841

• Conclusion• H0 is rejected since the calculated value of

χ²(12.5) is greater than the table value of χ² (3.841), hence there is a significant influence of celebrity advertisement on buying behaviour.

Hypothesis Testing

• H0: There is no significant influence of gender of the celebrity on buying behaviour.

• χ² tabulated= 5.768; Number of degrees of freedom= 1; Table value of χ² at 5% level of significance = 3.841

• Conclusion• H0 is rejected since the calculated value of χ²

(5.768) is greater than the table value of χ² (3.841), hence there is a significant influence of gender of the celebrity on buying behaviour.

Hypothesis Testing

• H0: There is no significant influence of credibility of the celebrity on buying behaviour.

• χ² tabulated= 9.524; Number of degree of freedom= 1; Table value of χ² at 5% level of significance = 3.841

• Conclusion• H0 is rejected since the calculated value of

χ²(9.524) is greater than the table value of χ²(3.841), hence there is a significant influence of credibility of the celebrity on buying behaviour.

Major Findings

• There is a significant influence of celebrity advertisement on the buying behaviour.

• There is a significant influence of gender of the celebrity on the buying behaviour.

• While selecting a jewellery shop the customers give much more importance to advertisement, celebrity in the advertisement and the years of existence than any other factor.

• Among the characteristics of the celebrity which influence the buying behavior, the celebrity-product fit ranks highest.

Managerial Implications

• The managers should take immense pain and care to ensure that the celebrity chosen to endorse the product is ‘right’ in terms of age, gender, personality, attractiveness, trustworthiness and all the other symbolic properties associated with the celebrity.