Effectiveness Of Celebrity Endorsement - Research

Effectiveness of Celebrity -Monish J Shah -Pg 13; Indian Journal of Marketing, June-2009

Summary  To

determine the most preferred celebrity which people like to see in an advertisement endorsing a product  To determine the effectiveness of celebrity endorsement in brand recall  To determine the brand recall with different celebrities  To understand the influence of celebrity endorsement in purchase decision  To determine the brand-celebrity fit/congruence of selected endorsement.

A Few Concepts….. A

brand is a millions of experiences company creates with vendors, employees, investors, customers & community for products/services.  A celebrity is a well-known personality who enjoys public recognition by a large group of people.  Endorsement is termed as ‘association’.  Eg: Tiger Woods – American Express, Rolex, Accenture, ….

Celebrity Endorsement

-An Advertising Technique

Contd…  It uses famous personality in a commercial advertisement to connect to consumers emotions, psychographics & demographics.  It generates attention & creates positive attitude for brand & affects their purchase intention.  Advertisers relate the lifestyle, skills, attractiveness… of the celebrity.

Celebrity Endorsement

- An Opportunity for Celebrities



Celebrities are: › Film-Stars; Sportsmen; Models; Composers &

Singers; World Champions; etc…..

Celebrities get endorsement fee.  Celebrities include: 

› Bollywood

Stars: Shahrukh Khan, Amitabh Bachchan, Rani Mukherjee › Sportsmen: Sachin Tendulkar, Sania Mirza › Models: Priyanka Chopra, Katrina Kaif

20% of commercials use Celebrity Endorsement  10% of advertisement revenue goes to Celebrity Endorsement.  Multiple Brands /Celebrities 

› Eg: Pepsi /Amitabh Bachchan

Statistical Survey

 Sample

Size– 150 Respondent.

› Out of this 10% did not submit completely

filled questionnaire. › Hence; Final Sample Size – 135 Respondent  Area

of Survey:- Indore, Madhya Pradesh.  Time Frame:- 3 months; January–March 2008  Sampling

Technique:- NonProbabilistic Convenient Sampling.  Data Collection Tool:- Questionnaire with Open & Close ended questions

Demographic Factors

Demographic Factors

Demographic Factors

ANALYSIS OF DATA & RESULTS

Most Preferred Celebrity

 To

find out the most preferred Celebrity Endorser, respondents were asked to write the names of the Celebrity they will like to see in an advertisement. › Shah Rukh Khan is the most preferred

Celebrity with 12.6%, then Amitabh Bachchan with 10.4% & finally Hrithik Roshan with 7.4% at third position. › The others constituted 37 Celebrities who individually have been marked lower than 4%

Celebrity - Brand Recall

 Effectiveness

of Celebrity Endorsements in Brand Recall. › 60.5% of the respondents were easily able

to correctly recall the brand (Mean – 1.61) › Of all the endorsements studied, Aamir Khan in Titan had the highest recall with 82.2% with a Mean-1.29 › Shah Rukh Khan in Pepsi’s Right Recall – 80%; Mean-1.36 & Amitabh Bachchan in Cadbury’s Right Recall – 75.6%; Mean-1.36 were ranked Second & Third respectively › Priyanka Chopra in Hero Honda Pleasure had the lowest recall (Right Recall – 18.5%; Mean – 2.40)

Brand - Celebrity Recall

 Effectiveness

of Celebrity Recall with the advertisements. › Juhi Chawla had the highest recall (Right

recall – 84.4%; Mean - 1.19 ) › Aamir Khan was the next with recall Right Recall of 84.4% & Mean - 1.20 › Malika Sherawat had the lowest recall

(Right recall – 66.7%; Mean – 1.47)

 Do

people purchase the product/brand after watching the Celebrity Endorsed Advertisement? › The graph indicates that Celebrity

Endorsement is not a very effective tool to motivate people to buy the products. › Only 5.2% of the participants responded that they buy the products after watching the advertisement. › On the other hand, approx 74% of them were of the opposite opinion.

Celebrity – Brand Fit

 To

understand the congruence between brand personality & personality of the celebrity › Majority of the respondents ‘Strongly Agree’

that the personality of the Celebrities such as Shah Rukh Khan, Amitabh Bachchan & Malika Sherawat did not match with their ads i.e. Lux, Navratna Oil & 7UP respectively with 31.1%; 23.0%; 31.1%

Conclusion 

An insight to effectiveness of Celebrity Endorsement in : A. Brand Recall B. Purchase Decision

D. Brand Recall › Of

all the endorsements’, Aamir Khan’s Advertisement of Titan has the highest recall. › Shah Rukh Khan-Pepsi, Amitabh BachchanCadbury, Juhi Chawla-Kurkure & Saif Ali KhanLays also had a high recall due to long tenure.

H. Purchase Decision › Celebrity

Endorsement is not effective in influencing ‘Consumer’s Purchase Decision’ › Shah Rukh Khan-Lux, Amitabh BachchanNavratna Oil, Malika Sherawat-7UP › No relation or congruence (Celebrity – Brand)

Hence, it can be stated that Brand Recall & Purchase Decision does not go hand-in-hand

THANK YOU