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Celebrity Endorsement and Its Impact on Sales: a Research Analysis Carried out in India Global Journal of Management and Business Research Volume 11 Issue 4 Version 1.0 March 2011 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) ISSN: 0975-5853 Celebrity Endorsement And Its Impact On Sales: A Research Analysis Carried Out In India. By Dr Vipul Jain Dehradun Abstracts - 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 bollywood 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. Classification: GJMBR-A Classification: JEL Code: A13,A31,B25 Celebrity Endorsement And Its Impact On Sales A Research Analysis Carried Out In India. Strictly as per the compliance and regulations of: © 2011 . Dr Vipul Jain.This is a research/review paper, distributed under the terms of the Creative Commons Attribution- Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use, distribution, and reproduction inany medium, provided the original work is properly cited. Celebrity Endorsement And Its Impact On Sales: A Research Analysis Carried Out In India. Dr Vipul Jain March 2011 Abstract : The practice of celebrities being used for rendering Not much work has been seen in the Indian light services other than performing their actual job as either an despite the fact of it being perceived as a potential 69 actor or an athlete, such as endorsements has proliferated market for celebrity endorsed products. Indian over time. Despite the cost and the risks involved with this technique of advertising, it is been used quite extensively in consumer attitudes are changing at a rapid pace and the present era. The instrument of celebrity endorsement has they are becoming more aware of the products that they nowadays become a pervasive element in advertising and use to define their ‘self’. The research is carried out to communication management. India as a country is known for obtain a view amongst Indian Consumers about loving its stars. The Indians idolize their bollywood actors and celebrity endorsement. Is it as positive as it is assumed cricketers. The advertisers see this as an opportunity to grab to be? Most advertisements, be it of any form, majorly and work on so as to expand their operations and promote focuses on the young generation therefore their their product. This dissertation focuses on examining the perception about the celebrity endorsed form of perception of these Indian Consumers about the celebrity advertisement is of utmost importance, also getting to endorsement process and the subsequent impact on their purchase decisions. know the attitude the youth provides the knowledge of the most current incidents or attitudes of any country, I. BACKGROUND TO THE TOPIC hence the youth has been targeted in this research. The research undertaken on celebrity endorsement in this arketers spend enormous amounts of money paper will be useful on both academic and professional annually on celebrity endorsement contracts platform, as it looks into the perception of Indian M based on the belief that celebrities are effective consumers on celebrity endorsement, providing theory spokespeople for their products or brands (Katyal, for scholarly and directives for managers and 2007). Celebrity Endorsement is viewed as a billion professionals.Strategic Positioning and effective dollar industry in today’s era. (Kambitsis et al, 2002). communication are the two most important “mantras” Various companies are signing deals with celebrities in guiding brand success in today’s competitive marketing the hope that by using celebrities they can accomplish a environment. Corporate are ensuring all possible efforts unique and relevant position in the minds of the to promote their brands and to grab the customer’s consumers. (Temperley & Tangen, 2006).Celebrity mind share. The impetus is on attracting the customer’s endorsement is increasingly being employed across attention and developing positive associations not just various industries regardless of the product type. It is to influence recall but also to induce trial and eventually known to be playing the role of a signaling strategy. effect purchase decisions. In a market where advertising (Mustafa, 2005). Also According to Reynolds (2000) plays a vital role in coordinating consumer purchases, it celebrity endorsement can give a brand a touch of becomes pertinent for companies to induct all possible glamour. Everything said and done, one have to weigh measures to influence motivate and inculcate desire to the potential risks vs. the potential rewards as celebrity purchase, in the customer through an effective endorsements are always a high-risk, high-reward advertising campaign. Theory and practice proves that Global Journal of Management and Business Research Volume XI Issue IV Version I situation and there is always a human element that you the use of superstars in advertising generates lot of might not know about. publicity and attention. (Ohanian,1991). The billion of dollars spent on celebrity endorsement contracts show II. RESEARCH AIM that celebrities like LIZ Hurley, Britney spears and Tiger The topic of celebrity endorsements and its woods play an important role in the advertising industry. elements is heavily documented in academic literature, (DaneShvary and Schwer,2000,Kambtsis et al.2002). It but what makes this research interesting is that it is estimated that the companies in US spent $800 enables us to understand the celebrity endorsement million in 1998 to acquire talent entertainers, athletes process from an Indian consumer’s point of view. andother high profile personalities -to spot light in advertising, promotion and PR campaigns (Clark,Hastmann, 2003) In India advertisers pour crores About : Assistant Professor Sgrrits, 80 Patel Nagar Dehradun of rupees every year into celebrity advertising. Think of 9412900055,01352627102. Email: [email protected] Sachin Tendulkar -he means PEPSI in soft drinks, Boost ©2011 Global Journals Inc. (US) Celebrity Endorsement And Its Impact On Sales: A Research Analysis Carried Out In India. in malted beverages, Fiat Palio in cars, TVS victor in two IV. A firm that decides to employ a wheelers, Colgate Total in toothpaste, Britannia in celebrity to promote its products Biscuits, Visa in credit cards, Airtel in mobile services or services has a choice of using and many more brands. the celebrity as: The underlying question is if and how the lively interest of the public in “ The rich and the famous “be Testimonial: If the celebrity has personally used a product or service and is in a position to attest its quality March 2011 effectively used by companies to promote their brands and consequently increase their revenues. ,then he or she may give a testimonial citing its benefits. (Schlecht,2003) As a first step to answer this question, For instance Aishwarya Rai endorses Lux by testifying 70 this paper will examine the relationship between the quality of the product as it forms a part of her endorsements and brand there by unearthing risks and consumption basket. returns related to this strategy. In order to draw the Endorsement: celebrities often lend their names to ads relationship between celebrities, the brands they for product or services for which they may or may not be endorse and the perception of the people related to the the experts For instance Sachin Tendulkar has been two, models and concepts like source credibility, match endorsing the Palio brand of Fiat. up hypothesis ,model of meaning transfer and multi product endorsement would be discussed. Actor: A Celebrity may be asked to present a product or service as a part of character enactment rather than III. WHO IS A CELEBRITY? personal testimonial or endorsement. For instance Celebrities are people who enjoy public Sweta Tiwari of “Prerna fame” (Kasuati Zindagi ki ) recognition by a large share of a certain group of people enacts as a housewife for Nirma’s ad campaign. It has whereas attributes like attractiveness, extraordinary nothing to do with her on screen or off-screen image In lifestyle are just examples and specific common fact she just enacts the character and expectations of a characteristics cannot be observed though it can be normal housewife from a detergent bar. said that within a corresponding social group celebrities Spokesperson: A celebrity who represents a brand or generally differ from the social norm and enjoy a high company over an extended periods of time often in print degree of public awareness (Schlecht, and TV ads as well as in personal appearances is 2003).(Anonymous, Business Standard, Dec,2003)This usually called a company’s spokesperson. (Schiffman is true for classic forms of celebrities like actors (ex and Kanuk,1997) Sharukh khan, Amitabh Bachhan), models ( John and Business Researchand Business Volume XI Issue IV Version I
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