research report on" impact of celebrity on consumers"

INSTITUTE FOR EXCELLENCE IN HIGHER EDUCATION

(NAAC RE-Accredited “A” Grade Institute)

Partial Fulfillment of Degree of Bachelor of Commerce Management

Honours

A Project Report On

“Impact Of Advertisement By Celebrities.”

Research Guide Teacher Guide

Dr. S. S. Vijayvargiya Mrs. Anita Deshbhratar

(HOD, Commerce Department) (Commerce Department)

Submitted By

Radhika singh

B. COM (Management HONOURS) Section-A

Roll no-: 213037

CERTIFICATE

This is to certify that Miss Radhika singh of B. COM (2nd Year)-213037 has

successfully completed her research report on “Impact of advertisement by

celebrities.” For the degree of Bachelors in Commerce under my able guidance

and supervision.

The work done by her is satisfactory and as per the prescribed guidelines by the

institute.

(Signature)

Guided by: Date of submission:

Smt. Anita Deshbhratar 13-4-2015

(Signature)

Name of Director:

Dr. Meera Pingle Stamp of the Institute with date

DECLARATION

I Radhika singh student of B.COM Management (Hons.) second year 213037

hereby, declare that this project work entitled “Impact of advertisement by

celebrities” is a result of my own research work and has not been previously

submitted to any other university for any other examination.

I hereby further declare that all information of this document has been obtained

and presented in accordance with academic rules and ethical conduct.

Date: 13-4-2015 Radhika singh

213037

Place:

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible

without the kind support and help of many individuals and college. I would like to

extend my sincere gratitude to all of them.

I am highly indebted to Smt. Anita Deshbhratar for her guidance and constant

supervision as well as for providing necessary information regarding the

assignment and also for her support in completing the assignment successfully.

I would like to express my gratitude towards my family and friends for their kind

co-operation and encouragement which helped me in successful completion of

this assignment.

(Signature)

Radhika singh

Roll no. -213037

PREFACE

Advertising is the blood of any organisation; its activity cannot be

underestimated for company who wishes to remain in global

competitive environment.

In a competitive market place where businesses compete for

customers,advertising is seen as a key differentiator and increasingly

has become a key element of business strategy. This research paper

examined theimpact of advertising by celebrities. Regarding the topic

the research topic consists of some chapters when arranged in

coherent manner. In order to test the validity of hypothesis, Chi-square

Test has been applied. The research has been conducted with a final

interpretation, suggestions and conclusion.

INDEX

Sr. No. Particulars Page No.

1. INTRODUCTION

2. LITERATURE REVIEW

3. OBJECTIVES OF RESEARCH

4. HYPOTHESIS OF RESEARCH

5. RESEARCH METHODOLOGY

6. COLLECTION OF THE DATA

7. DATA ANALYSIS AND INTERPRETATION

8. FINDINGS, SUGGESTIONS AND

CONCLUSION

9. BIBLIOGRAPHY

10. ANNEXURES

LIST OF TABLES AND GRAPHS

Sr. No. PARTICULARS PAGE NO.

7.1.1 Change in preference for the product, if the celebrity that consumer likes endorsing a product

changes.

7.1.2 Kind of product, consumers like to see endorsed by celebrities.

7.1.3 Opinion of consumers on, does celebrity advertisements motivates them to purchase.

7.1.4 Would consumers stop referring the product if the advertisement done by the celebrity gets involved in some scandal?

7.1.5 Does consumer’s favorite celebrity give a positive image to the endorsed brand?

7.1.6 Effect on consumer’s purchasing decision, if their favorite celebrity endorses a product, which they don’t like.

7.1.7 Celebrity personality, whom consumers find affecting their buying decisions.

7.1.8 Reasons according to consumers, for the companies choosing celebrity advertisements for promoting their product.

7.1.9 Consumers associating celebrity directly with the quality and performance of the product.

7.1.10 Duration for which consumers associate a particular celebrity to a brand.

7.1.11 Opinion of consumers on, does celebrity advertisements helps them in making their shopping beneficial.

7.1.12 Does negative publicity about consumer’s preferred celebrity influences their purchasing decision.

7.1.13 What appeals the consumers about advertisements?

7.1.14 Does consumers trust blindly the

claims that are made by the celebrities for their products?

7.1.15 Brand advertisements by celebrities lead to increase in product’s price.

7.1.16 Consumer’s experience after using celebrity endorsed

product.

7.1.17 Sectors according to consumers, celebrity advertisements are more influential.

7.1.18 Factors according to consumers, which make the celebrity endorsed product’s advertisement more influential.

7.1.19 Means of advertising which persuades consumers the most.

7.1.20 Opinion of consumers on, does they remember brands only because they are endorsed by celebrities.

CHAPTER-1

INTRODUCTION

INTRODUCTION

Celebrities are people who enjoy public recognition by a large share of a certain

group of people. They are the most influential icons those people admire and are

attracted towards. The term ‘celebrity’ refers to an individual who is known to the

public for his or her achievements in areas other than that of the product class

endorsed. Every brand attempts to steal at least a fraction of a person’s time to

inform him or her of the amazing and different attributes of the product at hand.

The challenge of the marketer is to find a hook that will hold the subject’s

attention. In helping to achieve this, use of celebrity endorsers is a widely used

marketing strategy.

1.1 ABOUT THE TOPIC

“Advertisements that use celebrity endorsers enjoy high popularity among

brand managers. Each year, companies spend vast amounts of money to

convince celebrities to endorse their products and brands for instance; Nike

spent about $339 million on advertisements and their dissemination in

advertising campaigns in 2004. In India, approximately 45% of all televised

commercial feature celebrities; in US, approximately 25% of all advertising

campaigns employ the celebrity endorsers. This communication strategy

benefits from the widespread belief that celebrities positively influence the

image of the advertised brands, such that a key outcome is a favorable

effect on brand image” (Erfgen, 2011).

The latter part of the ’80s saw the burgeoning of a new brand in India-

brands started being endorsed by celebrities. Hindi film and TV stars as well

as sportspersons were roped in to endorse prominent brands. Probably, the

first ad to cash in on star power in a strategic, long term, mission statement

kind of way was LUX soap. This brand has, perhaps as a result of this, been

among the top three in the country for much of its lifetime.

India is one country, which has always adored the stars of the celluloid

world. Therefore it makes tremendous sense for a brand to procure a

celebrity for its endorsement. In India there is an exponential potential for

a celebrity endorsement to be perceived as genuinely relevant, thereby

motivating consumers to go in for the product. This would especially prove

true if the endorser and the category are a natural lifestyle fit like

sportspersons and footwear, Kapil-Sachin and Boost or film stars and

beauty products.

In the Indian context, it would not be presumptuous to state that celebrity

advertisements can aggrandize the overall brand. We have numerous

examples explifying this claim. A standard example here is Coke, which, till

recently, didn’t use stars at all internationally. In fact, India was a first for

them. The result was a ubiquitously appealing Mr.Aamir Khan cheekily

stating “Thanda matlab Coca-Cola”. The recall value for Nakshatra

advertising is only due to the sensuous Mrs.Aishwarya Rai Bachchan. The

Parker pen brand, which by itself commands equity, used Mr.Amitabh

Bachchan to revitalize the brand in India. According to Pooja Jain, Director,

Luxor Writing Instruments Ltd (LWIL), post Mr.Bachchan, Parker’s sales

have increased by about 30%.

1.2 SIGNIFICANCE OF THE RESEARCH TOPIC

Now a day’s lots of advertisements are endorsed by the celebrities. Even

celebrities are endorsing multibrands. It has created a great confusion in

the mind of the customers regarding the purchase of the product. So there

is a need to study the impact of celebrity’s advertisements on the

consumers. This study will also help us to know whether the impact is

positive or negative.

CHAPTER-2

LITERATURE REVIEW

IMPORTANCE OF LITERATURE REVIEW

The review of literature is important due to the following reasons:

1. One of the early steps in planning a research work is to review research

done previously in the particular area of interest and relevant area

quantitative and qualitative analysis of this research usually gives the

researcher an indication of the direction.

2. It is very important for invigilator to be up-to-date in his information about

the literature, related to his own problem already done by others. It is

considered the most important pre-requisite to actual planning and

conducting the study.

3. It avoids the replication of the study of findings to take an advantage from

similar or related literature as regards, to methodology, techniques of data

collection, procedure adopted and conclusions drawn. He can justify his

own endeavor in the field.

4. It provides a source of problem of study; an analogy may be drawn for

identifying and selecting researcher’s own problem of research. The

researcher formulates his hypothesis on the basis of review of literature. It

also provides the rationale for the study. The results and findings of the

study can also be discussed at length.

LITERATURE REVIEW

S. Sivesan (2013)

The research was done to investigate the impact of celebrity advertisement

on the brand equity in the cosmetic industry in Sri Lanka. Customer’s

mindset about the brand is affected by the celebrity advertisement and its

dimension. The research is concentrated on the Jaffon Peninsula People.

The research deals with the facts that the use of celebrity advertisements in

marketing enjoys high popularity, largely because they have positive impact

on brand image. Various factors like trust worthiness, credibility,

attractiveness, and celebrity match up are studied in the research.

Dr.Bimal Anjum, Sukhwinder Kaur Dhanda and Sumeet Nagra

(2011)

This study was conducted to assess the impact of celebrity advertisements

on the purchasing behavior of the customers. Marketers use celebrities to

increase sales as well as to create the brand equity. There has been great

impact on sales of the products those being endorsed by the celebrities.

The study concludes that the companies using the strategy of celebrity

endorsement have more credibility, brand awareness and it enhances the

image of the product.

Ms.Jyoti Kasana and Mr.Naveen Chaoudhary (2014)

This research focuses on the various factors involved in celebrity

advertisement like price vs. Profit, Multiple brand endorsement vs. multiple

celebrity advertisements as well as factors impacting a brand while being

viewed by a consumer. Apart from selecting a celebrity it is also important

to measure effectiveness of that celebrity. Various examples of celebrities

have been mentioned giving a proof that celebrity advertisements have

positive impact on brand and sales.

Debiprasad Mukherjee (2009)

The research is based on the impact o0f celebrity advertisement on the

effective brand management and it also studies the factors that are

responsible for the success or failure of the endorsement. If the celebrity

advertisement strategy is correct then the product becomes highly

successful in the market. Various factors have been studied by the

researcher which have maximum impact on successful advertisement in

which celebrity selection, celebrity brand match and over dependency on

celebrity are important.

Reginald Esangbedo (2011)

Purpose of this research was to determine the persuasiveness of celebrity

advertisement on the consumer’s purchasing decisions with regard to

digital media players. Research studies that celebrity advertisements are

most effective when they are congruent with product being endorsed. This

study gives marketers a better idea of what tactics to employ when

marketing digital media players to young adults.

RESEARCH GAP

From referring the previous works on similar topic, we found that none of the

research was conducted in reference to Bhopal and they didn’t focus on what

kind of impact-positive or negative did the celebrity advertisements have among

male and female.

CHAPTER-3

OBJECTIVES OF

RESEARCH

OBJECTIVES OF OUR RESEARCH

To analyze the impact of celebrity advertisements on consumers.

To analyze the impact of non-celebrity advertisements on

consumers.

To compare preference of consumers between celebrity and non-

celebrity advertised products.

CHAPTER-4

HYPOTHESIS OF

RESEARCH

4.1 CONCEPT OF HYPOTHESIS

A hypothesis may be defined as a proposition or a set of proposition set forth as

an explanation for the occurrence of some specified group of phenomena either

asserted merely as a provisional conjecture to guide some investigation or

accepted as highly probable in the light of established facts. Quite often a

research hypothesis is a predictive statement, capable of being tested by scientific

methods, that relates an independent variable to some dependent variable.

TYPES OF HYPOTHESIS

NULL HYPOTHESIS

In the null hypothesis, the researcher makes a statement that no relationship

exits. The hypothesis, “There is no significant difference between the academic

achievement of high school athletes and that of non athletes.” Is an example of

null hypothesis. Since null hypothesis can be tested statistically, they are often

termed as statistical hypothesis. They are also called the testing hypothesis when

declarative hypothesis are tested statistically by converting them into null form. It

states that even where it seems to hold good it is due to mere chance. It is for the

researcher to reject the null hypothesis by showing that the outcome mentioned

in the declarative hypothesis does occur and the quantum of it is such that it

cannot be easily dismissed as having occurred by chance.

ALTERNATIVE HYPOTHESIS

In statistical hypothesis testing, the alternative hypothesis and the null hypothesis

are the two rival hypothesis which are compared by a statistical hypothesis test.

The alternative hypothesis, denoted by Ha, is the hypothesis that sample

observations are influenced by some non-random cause.

HYPOTHESIS OF OUR RESEARCH

NULL HYPOTHESIS- There is no significant relationship between celebrity

advertisements and its impact on consumers.

ALTERNATIVE HYPOTHESIS-there is significant relationship between celebrity

advertisements and its impact on consumers.

CHAPTER-5

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research methodology involves the systematic procedures by which the

researcher starts from the initial identification of the problem to its final

conclusions.

5.1TYPE OF RESEARCH

DISCRIPTIVE RESEARCH

In this type of research, the researcher will potray or describe the features or the

characteristics of individual, economy, etc. The important aspect of this type of

the study is that researcher has no control over the variables under the

investigation; he can only describe things as they exist and discover the causes.

ANALYTICAL RESEARCH

It is also known as critical researcher. Here the researcher has to use facts or

information already available and analyze these to make a critical evaluation of

the material in order to draw certain conclusions.

5.2 RESEARCH DESIGN

DESCRIPTIVE RESEARCH DESIGN

In the descriptive researcher design, the researcher will have no discretion over

the variables, under the description. It pertains to past and present.

EXPLANATORY RESEARCH DESIGN

It is also known as analytical or causal research design. In this type of research

design, the researcher will try to establish cause and effect relatonship between

variables. It is also known as diagnostic research design.

5.3 SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population.

It refers to the technique or the procedure the researcher would adopt in

selecting items for the sample. Sample design may as well lay down the number

of items to be included in the sample i.e., the size of the sample. Sample design is

determined before data is collected. There are many sample designs from which a

researcher can choose. Some designs are relatively more precise and easier to

apply than others. Researcher must select/prepare a sample design which should

be reliable and appropriate for his research study.

5.3.1 TYPE OF SAMPLE DESIGN USED IN THE RESEARCH

SIMPLE RANDOM SAMPLING

Simple random sampling is a type of probability sampling technique. With the

simple random sample, there is an equal chance of selecting each unit from the

population being studied while creating your sample.

5.3.2 TECHNIQUE OF SAMPLING

A sample is a miniature picture of the entire group from which it has been taken.

In other words it can be called as a small representation of a large whole. The

entire group from which the sample has been taken is known as the population. A

population may consist of persons, objects, attributes, qualities, behaviour of

people, answers to various items of atest, cities, families and as such.

5.3.3 SAMPLE UNIT

In our research, 60 respondents were used for data collection. Out of which 30

respondents were male and another 30 respondents were female. All the

respondents lied under the age group of 15-45. Most of the respondents were

students and were also non-working.

CHAPTER-6

COLLECTION OF THE

DATA

COLLECTION OF DATA

The task of data collection begins after a research problem has been defined and

research design/plan chalked out.While deciding about the method of data

collection to be used for the study, the researcher should keep in mind two types

of data viz., primary and secondary. The primary data are those which are

collected afresh and for the first time, and thus happen to be original in

character.The secondary data, on the other hand,are those which have already

been collected by someone else and which have already been passed through the

statistical process. The researcher would have to decide which sort of data he

would be using for his study and accordingly he will have to select one or the

other method of data collection.

6.1 METHODS OF DATA COLLECTION

PRIMARY SOURCES

The data which are obtained for the first time by the investigator himself for his

purpose are called primary data. According to Horace Secrist, “By primary data we

mean those data which are original, that is, those in which little or no grouping

has been made, the instance being recorded or itemized as encountered. They

are essentially raw materials”.

SECONDARY SOURCES

The data which have already been collected by some other

institution/investigator/person for their purpose and the present investigator

uses them are called secondary data. In this case, the investigator does not collect

the data but use the data collected for other purposes. According to M. M. Blair,

“Secondary data are those already in existence and which have been collected for

some other purpose than answering the questions at hand.

TOOLS OF DATA COLLECTION

PRIMARY SOURCES-

INFORMATION THROUGH QUESTIONNAIRE

In this method a questionnaire consisting of a list of questions pertaining to the

investigation is prepared and printed in advance. The questionnaires contain

blank spaces for answers. If necessary they are also given an assurance that the

answers will be kept confidential. The method is adopted by research workers,

private investigators, non-official agencies, etc. The questionnaire was a

structured questionnaire and both open-ended and closed-ended questions were

used.

SECONDARY SOURCES-

PUBLISHED SOURCES

Research reports and papers of other scholars on similar topics have been

referred in this research, to get better ideas for the research and to be able to

look at the research problem from different angles.

INTERNET

For conducting this research, the use of internet have also been made. So as to

gather more and more information for the research.

CHAPTER-7

DATA ANALYSIS AND

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Following graphs are used in the research-

BAR GRAPHS

A bar graph is a chart that uses bars to show comparisons between

categories of data. The bars can be either horizontal or vertical. Bar graphs

with vertical bars are called vertical bar graphs. A bar graph will have two

axis. One axis will describe the types of categories being compared, and the

other will have numeric values that represent the values of the data.

7.1 GRAPHICAL ANALYSIS OF THE DATA

7.1.1 Change in preference for the product, if the celebrity that

consumer likes endorsing a product changes.

RESPONSE YES NO SOMETIMES NONE OF THE ABOVE

FREQUENCY 8 22 30 0

PERCENTAGE OUT OF TOTAL RESPONDENTS

13.33 36.66 50 0

INTERPRETATION

Half of the respondents think that sometimes their references for

the product changes, if the celebrity they like endorsing a product

changes.

0

5

10

15

20

25

30

35

YES NO SOMETIMES NONE OF THE

ABOVE

RESPONSE

FREQUENCY

7.1.2 Kind of product, consumers like to see endorsed by

celebrities.

RESPONSE BRANDED NON-

BRANDED

BOTH NONE

FREQUENCY 28 8 22 2


46.66 13.33 36.66 3.33

INTERPRETATION

Most of the respondents would like to see branded products

being endorsed by the celebrities.

0

5

10

15

20

25

30

RESPONSE

FREQUENCY

7.1.3 Opinion of consumers on, does celebrity advertisements

motivates them to purchase.

RESPONSE STRONGLY

AGREE

STRONGLY

DISAGREE

NEUTRAL NO

FREQUENCY 12 6 38 4


20 10 63.33 6.66

INTERPRETATION

Most of the respondents have neutral belief regarding celebrity

advertisements motivating them to purchase.

0

5

10

15

20

25

30

35

40

STRONGLY

AGREE

STRONGLY

DISAGREE

NEUTRAL NO

RESPONSE

FREQUENCY

7.1.4 Would consumers stop referring the product if the

advertisement done by the celebrity gets involved in some

scandal?

RESPONSE YES NO ALWAYS NEVER

FREQUENCY 18 20 8 14


30 33.33 13.33 23.33

INTERPRETATION

There is a huge impact on consumers choice if the celebrity is

involved in some scandal.

0

5

10

15

20

25

YES NO ALWAYS NEVER

RESPONSE

FREQUENCY

7.1.5 Does consumer’s favorite celebrity give a positive image to

the endorsed brand?

RESPONSE YES NO CAN’T SAY NEVER



63.33 20 16.66 0

INTERPRETATION

Most of the respondents think that there is a positive image given

to the brand because of consumers favorite celebrity.

0

5

10

15

20

25

30

35

40

YES NO CAN’T SAY NEVER

RESPONSE

FREQUENCY

7.1.6 Effect on consumer’s purchasing decision, if their favorite

celebrity endorses a product, which they don’t like.

RESPONSE CHANGE NO

CHANGE

MAY BE

FREQUENCY 8 38 14


13.33 63.33 23.33

INTERPRETATION

There is no change in consumers choice if their favorite celebrity

is endorsing a brand which they don’t like.

0

5

10

15

20

25

30

35

40

CHANGE NO CHANGE MAY BE

RESPONSE

FREQUENCY

7.1.7 Celebrity personality, whom consumers find affecting their buying

decisions.

RESPONSE BOLLYWOOD STARS

T.V. STARS

SPORTS STARS

COMMON PEOPLE

FREQUENCY 26 6 8 20


43.33 10 13.33 33.33

INTERPRETATION

Most of the respondents like bollywood stars as celebrity

endorsers.

0

5

10

15

20

25

30

BOLLYWOOD

STARS

T.V. STARS SPORTS STARS COMMON

PEOPLE

RESPONSE

FREQUENCY

7.1.8 Reasons according to consumers, for the companies

choosing celebrity advertisements for promoting their product.

RESPONSE EASY RECOGINITION OF THE PRODUCT

CANNOT GENERATE NEW IDEAS

TO BE ABLE TO INCREASE SALES AND PROFIT

TO COMPETE STRONGLY

FREQUENCY 16 6 32 6

PERCENTAGE OUT OF TOTAL RESPONDENT

26.66 10 53.33 10

INTERPRETATION

Most of the respondents think that companies use celebrity

advertisements to increase sales and profit.

0

5

10

15

20

25

30

35

EASY

RECOGINITION

OF THE

PRODUCT

CANNOT

GENERATE

NEW IDEAS

TO BE ABLE TO

INCREASE

SALES AND

PROFIT

TO COMPETE

STRONGLY

RESPONSE

FREQUENCY

7.1.9 Consumers associating celebrity directly with the quality and

performance of the product.

RESPONSE YES EVERYTIME NO NEVER

FREQUENCY 14 2 36 8


23.33 3.33 60 13.33

INTERPRETATION

Most of the respondents don’t associate celebrity with quality and

performance of the product.

0

5

10

15

20

25

30

35

40

YES EVERYTIME NO NEVER

RESPONSE

FREQUENCY

7.1.10 Duration for which consumers associate a particular celebrity to

a brand.

RESPONSE TEMPORARY PERMANENT NEVER CAN’T SAY

FREQUENCY 34 12 6 8 PERCENTAGE OUT OF TOTAL RESPONDENTS

56.6 20 10 13.33

INTERPRETATION

Most of the respondents associate temporarily a particular

celebrity to a brand.

0

5

10

15

20

25

30

35

40

TEMPORARY PERMANENT NEVER CAN’T SAY

RESPONSE

FREQUENCY

7.1.11 Opinion of consumers on, does celebrity advertisements

helps them in making their shopping beneficial.

RESPONSE AGREE DISAGREE NEUTRAL CAN’T SAY



3.33 16.66 53.33 26.66

INTERPRETATION

Most of the respondents have neutral belief regarding celebrity

advertisements helping them in making their shopping beneficial.

0

5

10

15

20

25

30

35

AGREE DISAGREE NEUTRAL CAN’T SAY

RESPONSE

FREQUENCY

7.1.12 Does negative publicity about consumer’s preferred

celebrity influences their purchasing decision.

RESPONSE DOESN’T INFLUENCE

NEUTRAL INFLUENCES HEAVILY

MAY BE



43.33 26.66

20 10

INTERPRETATION

Most of the respondents don’t get influenced by the negative

publicity of their preferred celebrity.

0

5

10

15

20

25

30

DOESN’T INFLUENCE

NEUTRAL INFLUENCES

HEAVILY

MAY BE

RESPONSE

FREQUENCY

7.1.13 What appeals the consumers about advertisements?

RESPONSE PICTURISATION SOUND EFFECTS

ANIMATION ANY OTHERS

FREQUENCY 34 6 6 14


56.66 10 10 23.33

INTERPRETATION

Picturisation appeals the consumers about advertisements.

0

5

10

15

20

25

30

35

40

RESPONSE

FREQUENCY

7.1.14 Does consumers trust blindly the claims that are made by the

celebrities for their products?

RESPONSE YES NO SOMETIMES CAN’T SAY

FREQUENCY 2 40 12 6 PERCENTAGE OUT OF TOTAL RESPONDENTS

3.33 66.67 20 10

INTERPRETATION

Consumers don’t trust blindly the claims that are made by the

celebrities for their products.

0

5

10

15

20

25

30

35

40

45

YES NO SOMETIMES CAN’T SAY

RESPONSE

FREQUENCY

7.1.15 Brand advertisements by celebrities lead to increase in

product’s price.

RESPONSE YES NO SOMETIMES CAN’T SAY

FREQUENCY 36 8 8 8


60 13.33 13.33 13.33

INTERPRETATION

Most of the respondents think that brand advertisements by

celebrities lead to increase in product’s price.

0

5

10

15

20

25

30

35

40

YES NO SOMETIMES CAN’T SAY

RESPONSE

FREQUENCY

7.1.16 Consumer’s experience after using celebrity endorsed

product.

RESPONSE HIGHLY

SATISFYING

SATISFYIN

G

NEUTRA

L

DISSATISFIE

D

FREQUENCY 2 24 30 4


3.33 40 50 6.66

INTERPRETATION

Most of the respondents have neutral experience after using

celebrity endorsed product.

0

5

10

15

20

25

30

35

HIGHLY

SATISFYING

SATISFYING NEUTRAL DISSATISFIED

RESPONSE

FREQUENCY

7.1.17 Sectors according to consumers, celebrity advertisements

are more influential.

RESPONSE COSMETICS AUTOMOBILES ELECTRONICS CLOTHING

AND ACCESORIES

FREQUENCY 32 0 6 22


53.33 0 10 36.66

INTERPRETATION

Most of the respondents think that celebrity advertisements are

more influential in cosmetics sector.

0

5

10

15

20

25

30

35

COSMETICS AUTOMOBILES ELECTRONICS CLOTHING

AND

ACCESORIES

RESPONSE

FREQUENCY

7.1.18 Factors according to consumers, which make the celebrity

endorsed product’s advertisement more influential.

RESPONSE CELEBRITY’S PRESENCE

CELEBRITY’S CONVINCING SKILLS

WHOLE IMPACT OF ADVERTISEMENT WITH CELEBRITY’S PRESENCE

CELEBRITY’S PRESENCE WITH EXCITING OFFERS

FREQUENCY 16 8 28 8


26.66 13.33 46.66 13.33

INTERPRETATION

Most of the respondents think that whole impact of

advertisement with celebrity’s presence make the celebrity

endorsed product’s advertisement more influential.

0

5

10

15

20

25

30

RESPONSE

FREQUENCY

7.1.19 Means of advertising which persuades consumers the

most.

RESPONSE TELEVISION PRINT MEDIA

RADIO SOCIAL MEDIA

FREQUENCY 38 4 4 14


63.33 6.66 6.66 23.33

INTERPRETATION

Television is the means of advertising which persuades consumers

the most.

0

5

10

15

20

25

30

35

40

TELEVISION PRINT MEDIA RADIO SOCIAL MEDIA

RESPONSE

FREQUENCY

7.1.20 Opinion of consumers on, does they remember brands only

because they are endorsed by celebrities.

RESPONSE AGREE DISAGREE CAN’T

SAY

SOMETIMES



26.66 33.33 10 30

INTERPRETATION

Most of the respondents disagree that they remember brands

only because they are endorsed by celebrities.

0

5

10

15

20

25

AGREE DISAGREE CAN’T SAY SOMETIMES

RESPONSE

FREQUENCY

7.2 HYPOTHESIS TESTING

To test a hypothesis means to tell (on the basis of the data the researcher has

collected) whether or not the hypothesis seems to be valid. In the hypothesis

testing the main question is: whether to accept the null hypothesis or not to

accept the null hypothesis? Procedure for hypothesis testing refers to all those

steps that we undertake for making a choice between the two actions i.e.,

rejection and acceptance of a null hypothesis.

7.2.1 UTILITY OF CHI-SQUARE TEST

The chi-square test is used to determine whether there is a significant difference

between the expected frequencies and the observed frequencies in one or more

categories. Does the number of individuals or objects that fall in each category

differ significantly from the number expected? Is this difference between the

expected and observed due to sampling variation, or is it a real difference?

YATES CORRECTION

F. Yates has suggested a correction for continuity in x2 value calculated in

connection with a (2x2) table, particularly when any cell’s frequency is less than 5.

The rule for correction is to adjust the observed frequency in each cell of a (2x2)

table in such a way as to reduce the deviation of the observed from the expected

frequency for that cell by 0.5, but this adjustment is made in all the cells without

disturbing the marginal totals. The formula is

x2=[|Of-Ef|-0.5]2/Ef

7.2.2 APPLICATION OF CHI-SQUARE

In this research,

A-MALE a-FEMALE

B-POSITIVE b-NEGATIVE

THEREFORE,

AB- MALE WHO THINK THERE IS A POSITIVE IMPACT OF CELEBRITY

ADVERTISEMENTS ON CONSUMERS.

aB- FEMALE WHO THINK THERE IS A POSITIVE IMPACT OF CELEBRITY


Ab- MALE WHO THINK THERE IS A NEGATIVE IMPACT OF CELEBRITY


ab- FEMALE WHO THINK THERE IS A NEGATIVE IMPACT OF CELEBRITY


Here, AB-22

aB-26

Ab-8

ab-4

AB aB B

Ab ab b

A a N

22 26 48

8 4 12

30 30 60

As here the frequency of one class is less than 5 so,Yates

correction will be applied.

Degree of freedom =(Row-1)(Column-1)

=(2-1)(2-1)

=1

As level of significance is not mentioned we will take it as 5%.

Chi-square test is used for hypothesis testing.

Table value of chi-square is 3.841.

Here,Ef(AB)=AxB/N=24

Ef(Ab)=Axb/N=6

Ef(aB)=axB/N=24

Ef(ab)=axb/N=6

GROUP ALPHABETICAL REPRESENTATION

OF EF Of-Ef (Of-Ef)2

(Of-Ef)2/Ef

(|Of-Ef|-0.5)2

(|Of-Ef|-0.5)2/ EF

AB MALE WHO THINK THERE IS A POSITIVE IMPACT OF CELEBRITY ADVERTISEMENTS ON CONSUMERS.

22 24 -2 4 0.1666

2.25 0.0937

Ab MALE WHO THINK THERE IS A NEGATIVE IMPACT OF CELEBRITY ADVERTISEMENTS ON CONSUMERS.

8 6 2 4 0.6666

2.25 0.375

aB FEMALE WHO THINK THERE IS A POSITIVE IMPACT OF CELEBRITY ADVERTISEMENTS ON CONSUMERS.

26 24 -2 4 0.1666

2.25 0.0937

ab FEMALE WHO THINK THERE IS A NEGATIVE IMPACT OF CELEBRITY ADVERTISEMENTS ON CONSUMERS.

4 6 2 4 0.6666

2.25 0.375

x2=1.66

52 Correcte

d

x2=0.9374

As, we can see that corrected chi-square < table value of chi-

square or 0.9374 < 3.841.

Conclusion

As we can see that there is no significant relationship between

celebrity advertisements and its impact on consumers. Therefore

the null hypothesis is accepted and alternative hypothesis is

rejected.

CHAPTER-8

FINDINGS,

SUGGESTIONS, AND

CONCLUSIONS

FINDINGS

It has been found out that 73.33% of male think that there is a positive

impact of celebrity advertisements on consumers. And 86.66% of female

think there is a positive impact of celebrity advertisements on consumers.

On the other hand 26.66% of male think that there is a negative impact of

celebrity advertisements on consumers. And 13.33% of female think there

is a negative impact of celebrity advertisements on consumers.

SUGGESTIONS

It has been found out that most of the respondents whether male or

female think that there is a positive impact of celebrity advertisements on

consumers. So the companies should make good use of the celebrity

advertisements to capture the consumer’s attention and try to grab the

largest market share.

CONCLUSIONS

As we have observed that not only there is a positive impact of celebrity

advertisements on consumers but also it is a good way to capture the

consumer’s attention. Another advantage of using celebrity advertisements

is that consumers remember the brands for a longer period of time but the

companies must be careful while using celebrity advertisements as negative

publicity of the celebrity influences the consumer’s choice heavily.

And so the companies should take wise decisions while using celebrity

advertisements for their product.

BIBLIOGRAPHY

Sr.no. Book’s Name Author’s Name Publisher,s Name

1 Advanced Research

Methodology

Dr. Mohit Puri Navchetan Publishers

2 Research Methodology

C. M. Chaudhary

Srikala Publishers


C. R. Kothari New Age Publishers


Dipak Kumar Sanjog Publishers

ANNEXURES

INSTITUTE FOR EXCELLENCE IN HIGHER EDUCATION, BHOPAL

DECLARATION –WE HEREBY DECLARE THAT THE INFORMATION DISCLOSED BY RESPONDENTS SHALL BE

KEPT CONFIDENTIAL.

IMPACT OF ADVERTISEMENT BY CELEBRITIES.

Research Guide: Mrs. ANITA DESHBHRATAR Researcher: RADHIKA SINGH

MOLSHREE KUSRE

SWARNIKA HARNE

VAISHNAVI GAUTAM

1) Your gender?

A) Male

B) Female

2) In your opinion what will be the impact on consumers by the advertisement done by celebrities

on some sensitive products?

A) Positive impact

B) Negative impact

3) If the celebrity you like endorsing a product changes ,does your reference for the product

change?

A) Yes

B) No

C) Sometimes

D) None of the above

4) What Kind of brand would you like to see endorsed by celebrities?

A) Branded

B) Non-Branded

C) Both

D) None

5) Do you believe that celebrity endorsement on advertisement motivate you to purchase?

A) Strongly Agree

B) Strongly disagree

C) Neutral

D) No

6) Will you stop referring to a product if the advertisement done by the celebrity gets involved in

some scandal?

A) Yes

B) No

C) Always

D) Never

7) Does your favorite celebrity give a positive image to the endorsed brand?

A) Yes

B) No

C) Can’t say

D) Never

8) If your favorite celebrity is endorsing a brand you don’t like .What effect will it has on purchase

of that brand?

A) Change

B) No change

C) May be

9) What do you think is the most credible source of celebrity endorsement?

A) Trustworthiness

B) Expertise

C) Attractiveness

D) None

10) Out of the following celebrity persona whom do you find would affect your buying decision?

A)Bollywood Stars

B) T.V Stars

C) Sports Stars

D) Common people

11) Indicate your opinion for the statement that determine the purchase of celebrity endorsed

products. Where SA denote Strongly Agree, A denote Agree, N denote Neutral ,SD denote

Strongly disagree.

A) I buy a product based on attractiveness of the celebrity

B) I remember a brand just because the celebrities are endorsing it

C) I buy a product just because the celebrities are using it

D) I think celebrity endorsement is an important factor when I make my decisions

12) What do you think is the reason for the companies to choose celebrities endorsement for

promoting their product?

A) Easy recognition of product

B) Cannot generate new ideas

C) To be able to increase sales and profit

D) To compete strongly

13) Do you associate the celebrity directly with the quality and performance of the product?

A) Yes

B) Every time

C) No

D) Never

14) For how long do you associate a particular celebrity to a brand?

A) Temporary

B) Permanent

C) Never

D) Can’t say

15) How much do you think that the celebrity endorsement helps in making your shopping

beneficial?

A) Agree

B) Disagree

C) Neutral

D) Can’t say

16) Rate if negative publicity about your preferred celebrity influences your purchasing decisions?

A) Doesn’t influence

B) Neutral

C) Influences heavily

D) May be

17) Which of the following appeals you about advertisement?

A) Picturisation

B) Sound effects

C) Animation

D) Any others

18) Do you trust blindly the claims that are made by celebrities for their product?

A) Yes

B) No

C) Sometimes

D) Can’t say

19) Do you think that brand endorsement by celebrity leads to increase in products price?

A) Yes

B) No

C) Sometimes

D) Can’t say

20) What kind of experience do you have after using celebrity endorsed product?

A) Highly satisfaction

B) Satisfying

C) Neutral

D) Dissatisfied

21) In which sector do you think that celebrity advertisements are more influential?

A) Cosmetics

B) Automobiles

C) Electronics

D) Clothing and Accessories

22) According to you which of the factor make the celebrity endorsed products advertisement

influential?

A) Celebrity’s presence

B) Celebrity’s convincing skill

C) Whole impact of advertisement with celebrity presence

D) Celebrity presence with exciting offers

23) Which means of advertising persuades you the most?

A) Television

B) Print Media

C) Radio

D) Social Media

24) Do you remember the brands just because they are endorsed by the celebrities?

A) Agree

B) Disagree

C) Can’t say

D) Sometimes

25) How far celebrity advertising is more attractive than non celebrity advertising?

26) Is celebrity attractiveness going to have a direct impact on the product?

27) How far celebrity advertisements have an impact on the purchase decision?

Name: Age:

Occupation:

Data & Analytics

research report on" impact of celebrity on consumers"