EFFECT of CELEBRITY ENDORSEMENT on CONSUMERS: a STUDY of SELECTED FMCG PRODUCTS a Thesis Submitted for the Award of Ph.D
Total Page:16
File Type:pdf, Size:1020Kb
EFFECT OF CELEBRITY ENDORSEMENT ON CONSUMERS: A STUDY OF SELECTED FMCG PRODUCTS A Thesis Submitted for the Award of Ph.D. degree of UNIVERSITY OF KOTA in the Faculty of Commerce and Management Doctor of Philosophy by Amit Mathur Under the supervision of Dr. Anukrati Sharma Associate Professor Department of Commerce and Management Faculty of Commerce and Management UNIVERSITY OF KOTA, KOTA (RAJ) November 2017 Candidate’s Declaration I hereby certify that the work, which is being presented in the thesis, entitled “Effect of Celebrity Endorsement on Consumers: A Study of Selected FMCG Products” in partial fulfillment of the requirement for the award of the Degree of Doctor of Philosophy, carried under the supervision of Dr. Anukrati Sharma and submitted to the Department of Commerce and Management, University of Kota, Kota, represents my ideas in my own words and where others’ ideas or words have been included. I have adequately cited and referenced the original sources. The work presented in this thesis has not been submitted elsewhere for the award of any other degree or diploma from any Institutions. I also declare that I have adhered to all principles of academic honesty and integrity and have not misrepresented or fabricated or falsified any idea/data/fact/source in my submission. I understand that any violation of the above will be cause for disciplinary action by the University and can also evoke penal action from the sources which have thus not been properly cited or from whom proper permission has not been taken when needed. Amit Mathur (Research Scholar) Reg. No. F-6 () /Res/UOK/2014/25235-36 Date: This is to certify that the above statement made by is correct to the best of my knowledge. Date: Dr. Anukrati Sharma Associate Professor (Research Supervisor) Department of Commerce and Management University of Kota, Kota i Supervisor Certificate I feel great pleasure in certifying that the thesis entitled “Effect of Celebrity Endorsement on Consumers: A Study of Selected FMCG Products” by Amit Mathur Reg. No. F-6 () /Res/UOK/2014/25235-36 under my guidance. He has completed the following requirements as per Ph.D. regulations of the University. (a) Course work as per the University rules. (b) Residential requirements of the University (200 days). (c) Regularly submitted Annual Progress Report. (d) Presented his work in the Departmental Committee. (e) Published / accepted minimum of one research paper in a Referred Research Journal. I recommend the submission of the thesis. Date: Dr. Anukrati Sharma (Associate Professor) Department of Commerce and Management University of Kota, Kota ii Thesis Approval for Doctor of Philosophy This thesis entitled “Effect of Celebrity Endorsement on Consumers: A Study of Selected FMCG Products” by Amit Mathur Reg. No. F-6 () /Res/ UOK/2014/ 25235-36 Submitted to the Department of Commerce and Management, University of Kota, Kota, is approved for the award of degree of Doctor of Philosophy. Examiners Supervisor (s) Chairman DRC Date: Place: iii Acknowledgement During the research work as an individual, I could have never reached the heights of this research work without the blessings, help, guidance, encouragement and support of numerous people including my research supervisor, professors, family members, friends and various institutions. At this moment when my research work has been accomplished, it is a pleasure to convey my gratitude to all who contributed in development of this thesis and create a remarkable experience for me. Firstly, I would like to pay my sincere thanks to my family and dedicated this thesis to them. This work wouldn’t complete without their blessings. I deeply pay gratitude to my research supervisor Dr. Anukrati Sharma (Associate Professor, Department of Commerce and Management, University of Kota, Kota) for her valuable support, guidance, encouragement. Her ideas, thoughts, understanding, enthusiasm help me to make significant this research work. Under her guidance, I have gained my practical knowledge as well as theoretical knowledge. Working with her was an enriching experience for me. My special thanks and gratitude to Prof. P.K. Dashora (Hon’ble Vice Chancellor, University of Kota, Kota) who has given me a chance to do the research work and to gain some new knowledge. I am extremely thankful to Prof. Rajeev Jain (Dean, Department of Commerce and Management, University of Kota, Kota) for providing necessary infrastructure and resources to complete my research work. I am very thankful to him for relevant suggestion and motivation. I would like to thank Dr. O.P. Rishi (Director of Research, University of Kota, Kota) for his support, guidance and cooperation. His valuable suggestion helped me at the time of formulation of research work. I would like to thank staff members of the Directorate of Research, Dr. Vipul Sharma and all library staff members for their support. And heartily thank to all for making it happens. Amit Mathur iv Abstract The world is moving fast; most of the companies are going global. To match with the speed of the growing competition today, it is important for the advertisers to focus more on their promotional strategies. This thesis is closely related to marketing and promotional activities used by advertisers and manufacturers. The main objective of this thesis is to find how the advertisements done by celebrities affect the buyers and consumers. As we know, many celebrities play an important role in advertising. Selling of product and service is purely elastic and depends on celebrity image in consumer perception. Any positive or negative effect of celebrity may lead to dramatic changes in sales. The researcher has tried to find out buying behavior of consumer regarding FMCG products. According to the researcher, advertisers focus on the formulation and implementation of the advertisements as per the requirements of the customers. While planning the advertisements the advertisers have to keep in the mind the mental status, education level etc. of the customers. Other than this the researcher strongly believes that the celebrities play a vital role in the promotion of the products in comparison to non – celebrity endorsed advertisements. This thesis comprises six chapters: The first chapter titled “Conceptual Framework of Advertising and Celebrity Endorsement”, is based on advertising history, types of advertisement, ethics of advertising, celebrities and their selection. It also discusses celebrity and brand relationship. The second chapter “Effect of Celebrity Endorsement on Consumer Behavior With Special Reference to FMCG Products”, explains the FMCG Sector, segment of FMCG products, FMCG companies, FMCG in India and other relevant information. And this chapter also describes consumer behavior. The third chapter of the thesis is “Review of Literature”. Literature review is a text written by someone to consider the points of current knowledge including basic findings as well as theoretical and methodological contributions to a particular topic. “Research Methodology”, is the fourth chapter of the thesis, describes v various methodological tools which have been used for collecting various data, tabulation and interpretation of data and testing hypothesis by proper tools. Research Methodology is the way in which researchers identify how they are going to receive again all useful data and information that companies will need to make important decisions. The fifth chapter is “Data Analysis and Interpretation”. The results of the research have been presented objectively along with the analysis and discussion in this chapter. And the last sixth chapter titled “Findings and Suggestions”, gives suggestive mechanism and some useful recommendation. This chapter also deals with a brief conclusion of the whole thesis. With the use of various methodological tools, the researcher tries to get knowledge about relationship between FMCG product and consumers behavior through role play of celebrity in advertisement. And finally, this thesis concludes, Celebrity endorsement is a very powerful tool for product promotion and it creates an attraction for the product but ethical behavior is an important factor in product promotion. In FMCG sector, advertisements are only beneficial in the promotion of a new product. After a long period of time, the celebrity effect on the product starts diminishing and customers tend to pay more attention to the quality of the product. Overall advertisements and celebrity endorsements are always useful in promotion but somewhere this promotion tool is also the reason for the increase in the price of the product(s). vi Effect of Celebrity Endorsement on Consumers: A Study of Selected FMCG Products Candidate’s Declaration i Supervisor Certificate ii Thesis Approval for Doctor of Philosophy iii Acknowledgement iv Abstract v Table of Content vii List of Figures and Graphs xi List of Tables xiii List of Images xvi Table of Content Chapter 1 Conceptual Framework of Advertising and Celebrity Endorsement 1.1. Introduction of Marketing --------------------------------------1 1.2. Marketing Strategy-----------------------------------------------2 1.3. Marketing Mix----------------------------------------------------3 1.3.1. Product 1.3.2. Price 1.3.3. Place 1.3.4. Promotion 1.4. Integrated Marketing Communication------------------------4 1.4.1. Advertisement 1.4.2. Personal Selling 1.4.3. Sales Promotion 1.4.4. Public Relations 1.4.5. Direct Marketing 1.5. Advertising -------------------------------------------------------7 1.6. Types