Br Research Paper(celebrities).docx

MAHARAJA AGRASEN INSTITUTE OF TECHNOLOGY

BUSINESS RESEARCH METHODS – MS 108 MBA 2nd Semester (2017-19)

ASSIGNMENT ONAn examination on normative pressure generated by celebrity endorsers on consumption attitude of consumer for unhealthy food

SUBMITTED BYMohit Kaushik (04414803917) SUBMITTED TOAnoop Kumar Gupta Department of Management Maharaja Agrasen Institute of Technology Sector-22, Rohini, Delhi-110086 Affiliated to GGSIP University, New Delhi

1

Table of Content 1. Introduction………………………………………………………………………………3 2. Literature Review…………………………………………………………………….......5 3. Objective…………………………………………………………………………….……8 4. Methodology………………………………………………………………………………8 5. Presentation and interpretation of findings……………………………………..…………9 6. Conclusion………………………………………………………………………..…...…18 7. References……………………………………………………………………..…………19

2

I Introduction The term Celebrity refers to an individual who is known to the public (actor, sports figure, entertainer, etc.) for his or her achievements in areas other than that of the product class endorsed (Friedman and Friedman, 1979). Celebrity endorser is any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement, is useful, because when celebrities are depicted in advertisement, they bring their own culturally related meanings, thereto, irrespective of the required promotional role (McCracken, 1989). Kotler (2006) explains that celebrity endorsement is a particular strategy used by marketers to advertise a product from such a platform through which consumers can associate themselves with the brand value from the perspective of the celebrity personnel. In India, a celebrity idolizes in the mind of the consumer so large that any activity can be capitalized on their huge fan followers. Celebrities are generally attractive, which helps persuasion when consumers are worried about social acceptance and others‘ opinions or when the product is attractiveness-related (Kahle and Homer 1985, Kamins 1990).

In today's world the celebrities are being treated as a role model. People are changing their living style related to their favourite celebrity. This thing creates a great impact on the buying behaviour of the persons. This attracts the customers and ultimately increases company's productivity. Celebrities are not always creating any kind of effect on person mind in terms of buying. But mostly it gives a great impact on the perception of choosing any product. We are always thinking that if our favourite celebrity is using them. Then we should use that to be like them. The major aim to do advertising and adopt this strategy is to influence customers towards the products. Major intend of each commercial is to create attentiveness and stimulate interest in consumer’s mind. Today almost every company from different industry uses advertisement as the basic tool to encourage their goods and services because it’s the best way to convey information to the huge public in an effective and efficient manner. According to the consumer’s purchase intention the advertising play a crucial role, it becomes vital for the companies to use all the tracts and tool s to pursue customers towards their offering by using a different type of advertising campaigns. 3

In developed countries, consumers of good products are confronted with a wide array of decisions in everyday life. Not only must they choose among be wildering selection of different brands of the same products, they must also consider more basic issues in relation to their purchase decisions: how much carbohydrates and fat to include in their diet; whether to buy organically or conventionally grown produce, avoid large fish with a high mercury content, accept the risks of genetically modified foods, give preference to local products; and so forth.

Any food that is not regarded as being conducive to maintaining health is known as unhealthy food. Unhealthy foods include fats (especially of animal origin), “fast” foods (which are low in fibre and vitamins), foods high i n salt and tropical oils (e.g.,fried potato crisps/chips), and creambased (“white”) sauces (which are high in fat). The concern over increasing rates of unhealthy food preferences among fast moving generation is influenced by television and food advertisements. The effects of television food advertisements have been the issue of extensive research over a decade. TV viewing is significantly associated with increased consumption of unhealthy foods, including fast food, (Chang H, Nayga Jr RM. 2009) [17] and there is sufficient evidence that TV advertising influences the food preferences, purchasing requests and eating behaviour of consumer irrespective of different age group. This article seeks to examine, with voluminous literature how TV food advertisements have affected children’s unhealthy food preferences and eating behaviour that has been effectively summarized in a number of recent reviews. The research paper makes an attempt to club the definitions, reviews, other key contributions made by different authors on celebrity endorsement to gain more clarity on the selected topic. This paper would help guide further research.

4

II Literature review Kenneth.Clow, Karen E. James, Kristine E.Kranenburg, Chistine T.Berry( 2006) (The relationship of the visual element of an advertisement to service quality expectations and source credibility ) the study show that both source credibility and services quality evaluations have a definite impact on attitude towards the ad and purchase intentions of a services and the type of visual element used is important in the ad evaluation process. Subramanian Sivaramakrishnan and Rajesh V. Manchanda (2003) (the effect of Cognitive busyness on consumers’ perception of product value) according to this study, when consumers are cognitively busy, they are less likely to accurately assess the value of price discount offers. Such cognitively busy consumers generally disregard the magnitude of the discount and the actual saving offered in forming their assessments of value for the offer. Non- busy consumers, on the other hand, perceive a difference in values as the magnitude of discount, price or quality of product features being altered. It is shown that paying close attention to product–and-price related information details causes’ cognitive busyness. Karen E.Lear, Rodney.Runyan and William H.Whitaker (2009) (Sports celebrity endorsement in retail products advertising ) the purpose of this paper was to find out the effectiveness of sports celebrity endorsement in retail product advertisement. In this study, it appears that products which are ultimately sold by retailers are endorsed more frequently by celebrities. Mark ton car, Reid and Anderson (2007) (Effective spokespersons in a public service announcement: national celebrities, local celebrities and victims) the paper finds that hurricane victim is the most credible and believable spokesperson. The national celebrity is the least credible and least believable. The local celebrity is more credible and believable than the national celebrity. Miller (1994) everything said and done, one has to weigh the potential risks vs. potential rewards as celebrity endorsements are always a high – risk, high-risk, high-reward situation and there is always a human element that you might not know about. Alsmadi (2006) very often, various advertisement styles are used by advertisers to influence consumers brand choice behaviour and among these different available choices, one very popular choice is celebrity endorsements. Pappas (1999) examined the values of stars power in an endorsement and potential towards how a well- designed helped celebrities convert their star power into brand equity.

5

According to Kamins (1990), there is a necessity for the existence of a meaningful relationship between the celebrity, the audience and the product. McCraken(1989) a person who enjoys public recognition from a larger share of a certain group of people and uses this recognition on behalf of a consumer good by appearing with it in the advertisement is known as a celebrity. He found that the use of celebrity endorsers stand for an effective way of transferring to brand as it is believed that celebrity endorsers bring their own emblematic meaning to the endorsement process and that this cultural meaning residing in the celebrity is passed onto the product which is turn is passed on to the consumer. Friedman& Friedman (1979) they are usually known to the public for their accomplishments in areas other the product endorsed by them. Schlecht (2003) This stands true for classic forms of celebrities such as actors like Milan Somen, Sports athletes like Sachin Tendulkar and entertainers like Malaika Arora Khan but also for a less obvious group such as businessmen like the Ambani’s or politicians like Rahul Gandhi. Atkin, Block and Petty (1983) found that as compared to the non-celebrity endorsers, the celebrity endorsers produced more positive attitude towards advertisement and greater purchase intentions. There has been very old public concern over the harmful effects of food promotion on children. High levels of concern currently centre on the evidence of rising obesity among children, in common with many other countries in the developed world (World Health Organization, 2000).Previous food-related concerns have included nutrition, dental health, dieting and anorexia, and so forth. The royal college of physicians has reported that the obesity among the children is increasing (Kopelman, 2004 & Ambler, 2004).All agree that the food industry is one of the major players in the field of advertising (Hastings et al 2003, Young, Paliwoda & Crawford, 2003). Studies show that food advertising on television is dominated by breakfast cereals, confectionary, savoury snacks and soft drinks, with fast food restaurants taking up an increasing proportion of advertising on television. A major review of the field, recently conducted by Hastings et al (2003) for the food standards agency, has focused academic, policy and public attention on the role that food promotion, particularly television advertising, plays in influencing children’s food choices, defined in terms of food knowledge, preferences and behaviour. Both research methods and findings addressed in this and other reviews are much contested (Paliwoda & Crawford, 2004; Young, 2003; Ambler, 2004; and Livingstone, 2004) some reviews cover a wide terrain, examining the www.ccsenet.org/ijbm International Journal of Business and Management Vol. 6, No. 1; January 2011 Published by Canadian Center of Science 6

and Education 285 range of factors which may influence children’s diet. Others are focusing on the direct effects of advertising on food choice. Unfortunately, much of the literature on diet and obesity pays little attention to media-related factors such as exposure to television in general or advertising in particular. Also, unfortunately, much of the literature on the effects of advertising pays little attention to the contextual factors which may mediate or provide alternative explanations for the observed relationship between media use and children’s diet and/or weight. Reviewing the field is complex in part because of the research available spans a range of academic disciplines, countries and contexts and also because empirical studies use different measures, control for different factors or omit valuable information. In reviewing the published literature, it is worth identifying not only what can be concluded but also what remains unclear as well as questions for future investigation. Importantly, the balance of evidence (experimental, correlation and observational) in the published literature shows that television advertising has a modest, direct effect on children’s food choices. Although there remains much scope for debate, this conclusion is widely accepted across diverse positions and stakeholders

7

III Objective:

To understand the effect of advertisement on the normative belief of a consumer.



To find the effect of normative belief on consumer attitude towards consumption of unhealthy food



To explore the effect of attitude on consumption behaviour of the consumer.

IV. METHODOLOGY A. Research Design The research design is a logical and systematically plan prepared for directing a research study. It is the program that guides the investigator in the process of collecting, analyzing and interpreting data. The descriptive research design is adopted in this study B. B. Data Collection Methods In this research, only one method is adopted for collecting the data that is primary data. Primary Data - Primary data was collected with an aid of a Questionnaire distributed through online channels. The data collection was done using a questionnaire of 36 questions (excluding demographic information), which consisted of closed-ended questions. The questionnaire was designed to collect data about the normative pressure generated by the celebrity endorsements on the consumer’s unhealthy food consumption. C. Sample Size A total of 124 responses were collected from respondents ranging from the age group of 16-61 years. Convenience sampling technique was adopted for this study. The respondents were selected through convenience sampling. Ferber (1977) criteria of convenience sampling for consumer research were followed.

D. Data Analysis Tools MS excel along with charts and graphs were used to analyze the data. The main findings of the study are elaborated in the next section.

8

V PRESENTATION AND INTERPRETATION OF FINDINGS 1. Demographic Analysis of the sample The results in Table 4.1 were generated to depict the background information about the sample of 114 respondents.

Description

Frequency

Percentage

Male

71

57.3%

Female

51

41.1%

Other

2

1.6%

16-20 yrs

7

5.6%

20-30 yrs

103

83.1%

31-40 yrs

9

7.3%

41-50 yrs

3

2.4%

51-60 yrs

1

0.8%

61yrs and above

1

0.8%

Student

69

59.6%

Housewife

1

0.8%

Government Service

7

5.6%

Private Service

29

23.4%

Self Employed

12

9.7%

Unemployed

6

4.8%

Not Applicable

64

51.6%

Less than 1.5 lakhs

14

11.3%

Between 1.5-3.5 lakhs

21

16.9%

Between 3.5 5.5 lakhs

16

12.9%

Gender

Age

Profession

Income Group

9

Between 5.5-7.5 lakhs

1

0.8

Above 7.5 lakhs

8

6.5%

Q. Which medium do you consider most effective when celebrity endorsement is used?

Interpretation: about 77.4% respondents considered tv advertisement most effective when celebrity endorsement is used ,about3.2% considered magazines are more effective when it comes to celebrity endorsement , while 0.8% considered pamphlet/poster advertisement more effective medium ,16.9% considered internet advertisement effective ,and rest 1.6% considered radio advertisement more effective. Q. How frequently do you come across advertisements that feature celebrities?

Q. Does the presence of celebrities help you recognize the brand?

Q. Do you think the familiarity of celebrity has an influence on the purchase decision?

10

Q. I am more likely to buy products that have been endorsed by celebrities than noncelebrity endorsements?

Q. How influential to a purchase decision do you think celebrity endorsement is?

Q. What attracts you more: Celebrity endorsed advertisements or non-celebrity advertisements?

11

About 19.4%respondent finds celebrity endorsement more attractive than non-celebrity endorsement while 5.6% respondents consider non-celebrity endorsement more attractive than celebrity endorsement, whereas our majority of respondent i.e. 75% consider both equally attractive.

Q. How frequent do you drink soda pop(Example- Coke, Pepsi, Dew etc)

Majority of the respondent i.e. 40.3% drink soda/pop 1-2 times a weeks, about 8.9% of respondents don’t drink any soda /pop, while 12.1% drink soda/pop 3-4 times a week, and 4% drink more than 6 times a week, whereas 34% of the respondents respond that they rarely drink any such beverages.

Q. How many times do you eat a meal at a fast food restaurant such as McDonald’s, Pizza Hut, Burger King, KFC etc.

12

Nearly 46% of the respondent had their meals from fast food around 1-2 times a week, 8.1% had their meals from fast food 3-4 times, 2.4% more than 6 times and 37.9% rarely had a meal from fast food services, whereas4.8%respondent never had their meals from the fast food chain. Q. How many times do you eat an instant ready to cook meal such as pasta, noodles etc.

About 35.5%respondents eat readymade food 1-2times a week ,nearly 12.1% respondents eat readymade food around 3-4 times a week ,4.8%respondents eat readymade food 6 or more than 6 times a week, whereas majority of our respondents i.e.38.7%rarely had readymade food, while 8.9% respondents states they never eat readymade food. Q. It is important to me that the food I eat on a typical day should: 1-disagree 2-slightly disagree 3-not sure 4-slightly agree 5-agree

Q. I buy fast food because 1-disagree 2-slightly disagree 3-not sure 4-slightly agree 5-agree

13

Q. I like fast food because 1-disagree 2-slightly disagree 3-not sure 4-slightly agree 5-agree

Q. Main reason to buy Fast food and Cola drinks: 1-disagree 2-slightly disagree 3-not sure 4-slightly agree 5-agree

Q. Are you aware of what fast food you eat? 1-disagree 2-slightly disagree 3-not sure 4slightly agree 5-agree

Q. Do you trust your favourite celebrity while making a purchase a decision?(Trustworthiness refers to the honesty and believability of the celebrity)

14

Q. Do you consider the expertise of a celebrity as influential when making a purchase decision?

Q. As a consumer, do you consider the likability of the celebrity as an influential factor when making a food purchase decision?

15

Q. Do you feel that “Negative Publicity” about a celebrity endorser can influence your purchase decision of the food product?

When asked about, whether the negative publicity of celebrity endorser would influence their purchase decision of food product, about 28.2% respondents respond that it doesn’t affect their purchasing behaviour, while 24.2% respondent get influenced by this and rest 47.6% respondent believe that it might or might not affect their decision Q. Do you consume fast food because it is endorsed by your favourite celebrity?

Q. When a product endorsed by a celebrity does not match your need, would you buy any product endorsed by that celebrity again?

16

Q. If not satisfied once, would you go and buy the same product(food) endorsed by your favourite celebrity again?

According to the survey we conduct about 7.3% respondents would ready to go for the product if their favorite celebrity endorsed it even if they were not satisfied with the product before, while 65.3% respondents clearly states that it doesn’t matter if their favorite celebrity endorsing the product they would never go for it again once dissatisfied and rest 27.4% responds that maybe they would go for the product.

17

VI Conclusion •There search concludes that the celebrity endorsed advertisements are more attractive than non celebrity endorsed advertisements. •The study suggests that the best medium for watching the advertisement is TV(77.4%) and then comes the internet (16.9%). •50% Respondent sagree that celebrity endorsement does help recognize the product though it does not necessarily influence their buying pattern as 41.9% are neutral towards both sorts of endorsements. •Many people usually prefer products according to their own preference (75%) rather than categorizing them into celebrity endorsed and non endorsed products. •There search showed that celebrity endorsements lack trust as 46% respondents don’t completely trust them. •Study shows that the celebrity presence is not the only factor affecting the sales as respondents won’t buy a commodity just because it is endorsed by their favorite celebrity. •The study shows that if the customer is not satisfied with the product and it's requirements then there are less chances that he will repurchase it in future. But some might purchase it as they rely on the celebrity and the promises made by the product on their behalf. So we can conclude that there is a significant relationship between celebrity endorsement and the buying pattern of customers. Celebrity endorsements have a reasonable impact on sales of a commodity and help the brand to gain market recognition, making the prospective customer aware regarding the product. Though it is not the sole factor influencing it and greatly depends on perception of various customers and also financial status to an extent.

18

References 1. Daneshvary, Rennae and R. Keith Schwer (2000), “The Association Endorsement and Consumers’ Intention to Purchase,” Journal of Consumer Marketing, 17 (3), 203- 213. 2. Elizabeth Arden, Inc. (2002), ardenbeauty, URL: http://www.elizabetharden.com/ardenbeauty/inspiration.asp , [12/20/2002]. 3. Forbes.com (2002), “Stock Focus: Companies Plugged by Celebrities”, URL: http://www.forbes.com/2001/07/02/0702sf.html, [11/5/2002]. 4. Friedman, Hershey H. and Linda Friedman (1979), “Endorser Effectiveness by Product Type,” Journal of Advertising Research, 19 (5), 63-71. 5. Harris JL, Pomeranz JL, Lobstein T, Brownell KD. A crisis in the marketplace: How food marketing contributes to childhood obesity and what can be done. Annu Rev Public Health. 2009; 30:211-25. 6. Hastings, Gerard, Martine Stead, Laura McDermott, Alasdair Forsyth, Anne Marie MacKintosh, Mike Rayner, Christine Godfrey, Martin Caraher and Kathryn Angus. (2003a). Review of research on the effects of food promotion to children. Final report, prepared for the Food Standards Agency, 22nd September 2003. 7. Hsu, Chung-Kue and Daniella McDonald (2002), “An Examination on Multiple Celebrity Endorsers in Advertising,” Journal of Product & Brand Management, 11 (1), 19- 29. 8. Kotz K, Story M.Food. (1994). Advertisements during children’s Saturday morning television programming are they consistent with dietary recommendations?, J.Am.Diet.Association, 94(3), 1296-1300. 9. Lin, F-Y, Monteiro-Riviere, NA, Grichnik, JM, Zielinski, JE & Pinnell, SR, (2005). A topical antioxidant solution containing vitamin C, vitamin E, and ferulic acid prevents ultraviolet-radiation-induced caspase-3 induction in the skin. J Am Acad Dermatol, 52,158 10. Livingstone, S. (1998). Making sense of television: The psychology of audience interpretation (2nd Ed.).

19

11. Routledge, London, Lewis, M. K., and Hill, A. J. (1998). Food advertising on British children's television: A content analysis and experimental study with nine-year-olds. International Journal of Obesity, 22(3), 206-214.

20