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113 Pages
English
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113 Pages
English

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UH-Downtown Library – MLA Citation Style 1 MLA Citation Style UH-Downtown Library This handout provides a summary of rules established by the MLA Handbook for Writers of Research Papers for documenting the original source of an idea or quotation. There are two steps in MLA documentation: (1) provide a brief citation to the original source in the text of your paper and (2) make a full citation on the Works Cited page at the end of your paper.
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The Effectiveness of Celebrity Endorsement in India
By
Rajni Surana
2008


A dissertation presented in part
consideration for the degree of MA in
Marketing
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Acknowledgements 

My research interest in celebrity endorsement and the efforts leading to this study have
brought me various debts of favour.
I am particularly appreciative to Dr. Deborah Roberts who gave her time to assist with my
requests for information, as well as for her guidance and valuable assistance from the offset
of this project. Her insights and remarks were of great value.
My deliberations on the study have also been influenced by the contributions of several other
researchers, many of whom are cited throughout the text. Furthermore, I would like to
express my gratitude to all the respondents without whom this research would not have been
possible.
Finally, I would like to recognize and thank my parents Mr and Mrs. Surana and my sister
Chiki for their undying support.








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Abstract 

The practice of celebrities being used for rendering services other than performing their
actual job as either an actor or an athlete, such as endorsements has proliferated over time.
Despite the cost and the risks involved with this technique of advertising, it is been used quite
extensively in the present era. The instrument of celebrity endorsement has nowadays
become a pervasive element in advertising and communication management.
India as a country is known for loving its stars. The Indians idolize their boll wood actors and
cricketers. The advertisers see this as an opportunity to grab and work on so as to expand
their operations and promote their product. This dissertation focuses on examining the
perception of these Indian Consumers about the celebrity endorsement process and the
subsequent impact on their purchase decisions.
This project begins with a literature review which provides an insight into the research done
by the previous authors followed by the structure of the research method adopted to achieve
the objective this study. In depth qualitative interview approach has been adopted to
investigate the attitude of the consumer towards celebrity endorsement and how it affects
their daily lives. The findings derived from analyzing the collected data unearthed some very
interesting facts which have been summarised in the conclusion and also managerial
implication relating to it has been discussed.


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Table of Contents


Page Number
Chapter 1: Introduction

1.1 Background to the topic 1
1.2 Research Aim 1-2
1.3 Research Questions 2
1.4 Synopsis of the Chapters 3-4


Chapter 2: Literature Review

2.1 Introduction 5-7
2.2 Celebrities as a form of Aspirational
Reference Group 7-8
2.3 Celebrity versus Non-celebrity
Endorsement effectiveness 8-9
2.4 Pros of Celebrity Advertisement 10-11
2.5 Cons of Celebrity Endorsement 11-13
2.6 Selecting the ‘Right’ celebrity 13-14
2.6.1 The Source Credibility Model 14-15
2.6.2 The Source Attractiveness Model 16-18
2.6.3 Match-up Hypothesis 18-20
2.6.4 The Meaning Transfer Model 20-22
2.7 Multiple Celebrity Endorsements 22-24
2.8 Consumer’s perspective 24-26
2.9 Country context: India 26-27
2.10 Conclusion 28


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Chapter 3: Methodology

3.1 Introduction 29
3.2 Research Methods 29-30
3.3 Why Qualitative Approach for
this Research? 31-32
3.4 Data Collection
3.4.1 Primary data 32
3.4.2Interview 33-34
3.4.3Pilot test 34
3.4.4 Secondary Data 34-35
3.5 Sampling Strategy 35
3.5.1 Research Informant Profile 36
3.6 Data Analysis 37
3.7 Summary 38


Chapter 4: Analysis and Discussion

4.1 Introduction 39
4.2General Opinion about Celebrity -
Endorsement versus Personal Choice
4.2.1 General view 39-42
4.2.2 Personal Choice 42-44
4.3 Effectiveness as an Aspirational
Reference group 45-46
4.4 Brand Recall and Brand Recognition 47-48
4.5 McCracken- Transfer of Meaning
4.5.1 Age 48-49
4.5.2 Gender 49-50
4.5.3 Personality 50
4.6 Match-up Hypotheses 51-52
4.6.1 Examples 52-55
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4. 7Source Attractiveness 55-56
4.8 The ‘Familiarity’ Aspect 56-57
4.9 Source Credibility 57-59
4.10 Celebrities are Endorsing One Brand
and using another 59-61
4.11 Multiple Product Endorsement 61-64
4.12 The Vampire Effect (Overshadowing) 64-66
4.13 Negative publicity 66-68


Chapter 5: Conclusion 69-72


Chapter 6: Limitations, Managerial Implications
and Future Research

6.1 Limitations 73-74
6.2 Managerial Implication 74-76
6.3 Future research 76-77

References
Appendix








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Chapter 1: Introduction

1.1 Background to the topic 

Marketers spend enormous amounts of money annually on celebrity endorsement contracts
based on the belief that celebrities are effective spokespeople for their products or brands
(Katyal, 2007). Celebrity Endorsement is viewed as a billion dollar industry in today’s era.
(Kambitsis et al, 2002). Various companies are signing deals with celebrities in the hope that
by using celebrities they can accomplish a unique and relevant position in the minds of the
consumers. (Temperley & Tangen, 2006).Celebrity endorsement is increasingly being
employed across various industries regardless of the product type. It is known to be playing
the role of a signalling strategy. (Mustafa, 2005). Also According to Reynolds (2000)
celebrity endorsement can give a brand a touch of glamour.
Everything said and done, one have to weigh the potential risks vs. the potential rewards as
celebrity endorsements are always a high-risk, high-reward situation and there is always a
human element that you might not know about.( Miller 1994)


1.2 Research Aim 
The topic of celebrity endorsements and its elements is heavily documented in academic
literature, but what makes this research interesting is that it enables us to understand the
celebrity endorsement process from an Indian consumers point of view. Not much work has
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been seen in the Indian light despite the fact of it being perceived as a potential market for
celebrity endorsed products.
Indian consumer attitudes are changing at a rapid pace and they are becoming more aware of
the products that they use to define their ‘self’. The research is carried out to obtain a view
amongst Indian Consumers about celebrity endorsement. Is it as positive as it is assumed to
be?
Most advertisements, be it of any form, majorly focuses on the young generation therefore
their perception about the celebrity endorsed form of advertisement is of utmost importance,
also getting to know the attitude the youth provides the knowledge of the most
current incidents or attitudes of any country, hence the youth has been targeted in this
research.
The research undertaken on celebrity endorsement in this paper will be useful on both
academic and professional platform, as it looks into the perception of Indian consumers on
celebrity endorsement, providing theory for scholarly and directives for managers and
professionals

1.3 Research Question 
How does celebrity endorsement impact the perception of Indian consumers?
How does it impact their buying behaviour?


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1.4 Synopsis of the Chapters 

The framework of this piece of study has been structured to gain insights into the above
purpose and thus includes 6 chapters namely the literature review, Methodology, Analysis
and Discussion, Conclusion, limitations, managerial implications and future research. A brief
outline of each of them is given below:

Chapter 2 is the literature review which relates to the study of the previous secondary data
available on this topic. This chapter primarily includes what celebrity endorsement is all
about, the merits and demirits associated with it, the effetiveness of celebrity versus non-
celebrity endorsements, multiple celebrity endorsements and the four most important models
pertaining to chosing the ‘right’ celebrity which constitute the central part of this research.

Chapter 3 establishes the method to be adopted to carry out this study and thus it talks about
the appropriateness of qualitative research as compared to the usage of quantitative approach
for this particualr research. Also the use of interviews has been reasoned in this chapter.
Apart from this the criterion for the selection of the sample size is disclosed.

Chapter 4 reveals the the analysis and interpretation of the responses which were collected
during the interviews.A wide range of sub-topics under this theme has been touched upon,
some of the results are consistent with the literature review and some opposing.

Chapter 5 related to the final conclusion where all the findings from the research has been
summarised.
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Chapter 6 finally expresses the limitations that were faced while conducting this research. It
also states an extensive area appropriate for future research and finally divulge the
managerial implication which would facilitate in a better execution of celebrity endorsed
campaigns.















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