Executive Summary

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. 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 the Consumers about the celebrity endorsement process and the

subsequent impact on their purchase decisions.

This project begins with a literature review which provides an insight into the

research done by the previous authors and the articles which helped to do this

research. Also, few theories that will help to understand the topic.. Consumer’s

response towards the product attributes has been studied and their attitude of the

consumer towards celebrity endorsement. The findings derived from analyzing the

collected data unearthed some very interesting facts which have been summarized in

the conclusion.

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Introduction

Everyday consumers are exposed to thousands of voices and images in magazines,

newspapers, and on billboards, websites, radio and television. 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.

In this modern age, people tend to ignore all commercials and advertisements while

flipping through the magazines and newspapers or viewing TV. But even then, the

glamour of a celebrity seldom goes unnoticed. Thus, celebrity endorsement in

advertisement and its impact on the overall brand is of great significance. In this

process, the companies hire celebrities from a particular field to feature in its

advertisement campaigns. The promotional features and images of the product are

matched with the celebrity image, which tends to persuade a consumer to fix up his

choice from a variety of brands. Although this sounds pretty simple, but the design of

such campaigns and the subsequent success in achieving the desired result calls for an

in-depth understanding of the product, the brand objective, choice of a celebrity,

associating the celebrity with the brand, and a framework for measuring the

effectiveness.

Aristotle said, “Beauty is a greater recommendation than any letter of introduction.”

This could aptly summarize why innumerable products are endorsed by celebrities,

with or without a significant need or benefit from the same.

Similarly every product has an image. The consumer tries to consume a brand which

has the maximum fit with his/her own personality/image. The celebrity endorser fits

in between these two interactions, where he tries to bring the image of the product

closer to the expectation of the consumer, by transferring some of the cultural

meanings residing in his image to the product.

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Companies invest large sums of money to align their brands and themselves with

endorsers. Such endorsers are seen as dynamic with both attractive and likeable

qualities and companies plan that these qualities are transferred to products via

marcom activities. Furthermore, because of their fame, celebrities serve not only to

create and maintain attention but also to achieve high recall rates for marcom

messages in today’s highly cluttered environments.

Similarly every product has an image. The consumer tries to consume a brand which

has the maximum fit with his/her own personality/image. The celebrity endorser fits

in between these two interactions, where he tries to bring the image of the product

closer to the expectation of the consumer, by transferring some of the cultural

meanings residing in his image to the product.

Indian advertising started with the hawkers who used to call out their wares right from

the days when cities and markets first began. With this evolved a strategy that tried to

benefit from the emotional attachment of the admirers or the fans of the celebrities; in

the form of celebrity endorsement.

The report have been focused on the influence of Celebrity endorsement on buying

behavior of the consumer: As the celebrities traverse from a mere commercial

presence to public welfare message endorsements, a whole new dimension is added to

this process and helps us in achieving a holistic view of the impact which celebrities

generate in every sphere and segment through their well-versed endorsements.

Celebrities have also been in demand having succeeded in being effective by rising

above the clutter & grabbing the attention and focus of the consumer. They also

succeed in creating an aspiration in the minds of the consumer to acquire what their

favorite celebrity endorses.

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Purpose of the study

The purpose of this study is to find out what actually drives the customers to purchase

the product. Do they actually get attracted to products which are endorsed by the

celebrities? Or they prefer the brand because of its quality. Also, this research deals

with Cadbury Dairy Milk’s brand image. Are the customers actually attracted to the

quality of the chocolate or is it the celebrity endorsement done by Amitabh Bachchan

for Cadbury’s Dairy Milk chocolate.

This study will also help to understand the importance of celebrity endorsement on

brands. This study will help us to know whether the consumers actually get influenced

while making a purchase of a product just because of it is endorsed by the celebrity.

This will also help the buying response to an endorsed product.

Cadbury’s Dairy Milk

Cadbury is a British confectionery company owned by Mondelēz International

Inc. and is the industry's second-largest globally after Mars, Incorporated. With its

headquarters in Uxbridge, London, England, the company operates in more than 50

countries worldwide.

Cadbury India began its operations in India in 1948 by importing chocolates. It now

has manufacturing facilities in Thane, Induri (Pune) and Malanpur

(Gwalior), Bangalore and Baddi (Himachal Pradesh) and sales offices in  New

Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. Since

1965 Cadbury has also pioneered the development of cocoa cultivation in India. For

over two decades, Cadbury has worked with the Kerala Agricultural University to

undertake cocoa research.

Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India

operates in four categories: chocolate confectionery, milk food drinks, beverage and

candy category. Its products include Cadbury Dairy Milk, Bournville, 5-Star, Perk,

Gems, Eclairs, Bournvita, Celebrations, Bilkul Bournville, Cadbury Dairy Milk Shots,

Cadbury Dairy Milk Silk, Halls, Tang and Oreo.

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It is the market leader in the chocolate confectionery business with a market share of

over 70%.

Research Objectives

The topic of celebrity endorsements and its elements is heavily documented in

academic literature, but what makes this research interesting is that it enables us to

understand the celebrity endorsement and their impact on the consumers’ buying

behavior.

The objectives of this study are as follows:

To review the concept of brand endorsement and celebrity endorsement.

To assess the advantage of brand endorsement and celebrity endorsement.

To study the benefits made by celebrity endorsement to Cadbury’s Dairy milk.

Key questions

The key questions which are the reasons behind this project are as follows:

What are the factors that influence consumer to recall a brand with celebrity

endorsement?

What are the benefits gained by Cadbury through celebrity endorsement?

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Hypothesis

A hypothesis (plural hypotheses) is a proposed explanation for a phenomenon. For a

hypothesis to be a scientific hypothesis, the scientific method requires that one can

test it. Scientists generally base scientific hypotheses on previous observations that

cannot satisfactorily be explained with the available scientific theories. Even though

the words "hypothesis" and "theory" are often used synonymously, a scientific

hypothesis is not the same as a scientific theory. A scientific hypothesis is a proposed

explanation of a phenomenon which still has to be rigorously tested. In contrast, a

scientific theory has undergone extensive testing and is generally accepted to be the

accurate explanation behind an observation. A working hypothesis is a provisionally

accepted hypothesis proposed for further research.

The research hypothesis for this study is

HO: There is no significant impact of celebrity endorsement on the brand.

H1: There is a significant impact of celebrity endorsement on the brand.

Research Methodology

Primary Data:

Primary research consists of a collection of original primary data. It is often

undertaken after the researcher has gained some insight into the issue by reviewing

secondary research or by analyzing previously collected primary data. It can be

accomplished through various methods, including questionnaires and telephone

interviews in market research, or experiments and direct observations in the physical

sciences, amongst others.

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The term primary research is widely used in academic research, market research and

competitive intelligence.

For this project, Questionnaires were used as primary data as they helped to find out

the customer’s view towards celebrity endorsement. The questionnaire was made

respondent friendly so that the respondents of any age can fill it without any problem.

Also, the questionnaire consisted of such questions which actually helped to get

insight of the respondent’s view toward celebrity endorsement. As well as, the impact

of various advertisements on the respondent’s mind was also considered which help to

find out their recall capabilities.

The use of Likert Scale helped the respondents to be more specific towards certain

questions. This helped to find out the respondent’s feedback and what actually stays

in their mind about the celebrity endorsed products.

Secondary Data:

Prerequisite to the collection of primary data is a careful scrutiny of the existing

secondary data. Data that is collected from existing journals, reports and statistics

from private and public institutions. For this specific study the collection of secondary

data was done primarily from marketing journals already available on this topic.

Secondary data helps the author to comprehend the perception of Indian consumers on

celebrity endorsement better. One should proceed to primary data only when one has

exhausted the secondary data source. Thus the study carried out has analyzed the

primary data with the rationale and validation of the present secondary data.

However, one needs to be careful while using secondary data as maybe the collected

data may be biased as the collector of that original data might have highlighted only a

partial picture or another aspect may be that data may be quite old and also the data

quality could be unknown.

Sample Unit: 100

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The process of sampling constitutes one of the principal areas of confusion, a problem

not helped by the insufficient manner in which it is covered in the literature. There are

no clear cut rules for sample size in qualitative inquiry therefore its determinant

depends on what you want to know, the purpose of the inquiry, what will have

credibility, what’s at stake, what will be useful, and what can be done with the

available time and resources. Thus, choosing a study sample is an important step in

any research project since it is rarely efficient, practical, or ethical to study whole

populations.

For this study, the sample size was chosen of 100 respondents. This helped to know

about the genuine feedback of the respondents.

Scaling technique:

For the research, Likert Scale was chosen. And the ratings were as follows:

1 – Strongly Disagree

2 – Disagree

3 – Neutral

4 – Agree

5 – Strongly Agree.

Use of Statistical tool

The statistical tools which were used in order to do this research work were as

follows:

Likert Scale

A Likert scale is a psychometric scale commonly involved in research that employs

questionnaires. It is the most widely used approach to scaling responses in survey

research, such that the term is often used interchangeably with rating scale, or more

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accurately the Likert-type scale, even though the two are not synonymous. The scale

is named after its inventor, psychologist Rensis Likert. Likert distinguished between a

scale proper, which emerges from collective responses to a set of items (usually eight

or more), and the format in which responses are scored along a range. Technically

speaking, a Likert scale refers only to the former. The difference between these two

concepts has to do with the distinction Likert made between the underlying

phenomenon being investigated and the means of capturing variation that points to the

underlying phenomenon. When responding to a Likert questionnaire item,

respondents specify their level of agreement or disagreement on a symmetric agree-

disagree scale for a series of statements. Thus, the range captures the intensity of their

feelings for a given item. A scale can be created as the simple sum questionnaire

responses over the full range of the scale. In so doing, Likert scaling assumes that

distances on each item are equal.

Importantly, "All items are assumed to be replications of each other or in other words

items are considered to be parallel instruments"

The data was tabulated from the questionnaire. Then, those tabulated data were

interpreted in the form of charts and bar grams.

A chart is a graphical representation of data, in which "the data is represented by

symbols, such as bars in a bar chart, lines in a line chart, or slices in a pie chart". A

chart can represent tabular numeric data, functions or some kinds of qualitative

structures.

The term "chart" as a graphical representation of data has multiple meanings:

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A data chart is a type of diagram or graph, that organizes and represents a set

of numerical or qualitative data.

Maps that are adorned with extra information for some specific purpose are

often known as charts, such as a nautical chart or aeronautical chart.

Other domain specific constructs are sometimes called charts, such as the

chord chart in music notation or a record chart for album popularity.

Charts are often used to ease understanding of large quantities of data and the

relationships between parts of the data. Charts can usually be read more quickly than

the raw data that they are produced from. They are used in a wide variety of fields,

and can be created by hand (often on graph paper) or by computer using a charting

application. Certain types of charts are more useful for presenting a given data set

than others. For example, data that presents percentages in different groups (such as

"satisfied, not satisfied, unsure") are often displayed in a pie chart, but may be more

easily understood when presented in a horizontal bar chart. On the other hand, data

that represents numbers that change over a period of time (such as "annual revenue

from 1990 to 2000") might be best shown as a line chart.

A bar chart is a chart with rectangular bars with lengths proportional to

the values that they represent. The bars can be plotted vertically or

horizontally.

A pie chart shows percentage values as a slice of a pie.

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Chi Square test.

A chi-squared test, also referred to as chi-square test or test, is any statistical

hypothesis test in which the sampling distribution of the test statistic is a chi-squared

distribution when the null hypothesis is true, or any in which this is asymptotically

true, meaning that the sampling distribution (if the null hypothesis is true) can be

made to approximate a chi-squared distribution as closely as desired by making the

sample size large enough.

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Limitations of the project

No research is complete without admitting the limitations that was faced while

conducting a study which will contribute to present learning. This study too like the

others have certain constrains which has been discussed below.

The first constraint is that the chosen sample size is small and hence not sufficient

enough to make concrete recommendation. The limited sample makes it difficult to

generalize the data and view it as the undisputed thought process prevalent amongst

Indian consumers. It could be lacking and also might prove to be different. Another

facet to this is that all the participants were mostly students and few from any other

field of life which thereby restricting the inflow of diverse opinions on the issue at

hand. Also, the research dealt only with the urban people.

Time was another big concern in this research. In the short duration of only three

months it was not possible to cover the varied sections of the society because of

which this research has been restricted only to the students and the upper-class

segment of the society. As a consequence the data submitted is less in comparison to

what this research has highlighted.

The research also focuses mainly on the age group between 21 – 30 years, which

limits the inflow of the different viewpoint that could have been considered for final

evaluations. Due to such reasons an overall view in regard to different age groups

couldn’t be concluded. Probably, if an older generation or the kids were taken into

consideration then a completely diverse perspective could have been assumed.

Moreover, it cannot be assured that the respondents put across their feelings in the

truest of the manner as their impression or beliefs regarding a particular product or

over a particular issue is influenced by various aspects such as family, religion, fellow

mates, colleagues, surroundings, friends’ circle etc. Also, there are times when the

respondents filled the Questionnaire according to the needs of the researchers, not

taking the it on a serious note. This hinders the progress of the research to be

conducted in an absolute authentic manner.

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Also as a novice researcher I was limited in my skills and experience in conducting

the research and have arrived to the proposed results.

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Chapter I

Literature Review

1.1 Celebrity

A person who has excelled in his / her field of action or activity. In our day

to day activity, we perform many acts, may at home, at work place, on field in sports,

in social life. But these acts may be daily routine or just "acts" per say giving no

extra-ordinary results, not noticed by anybody surrounding, and not taken into notice

by Media.

But if a person acts or performs something which gives spectacular results is noticed

by masses. That person has "done something" special that we and masses can not do.

He is regarded as a special person with some "extra" given by that "Almighty" above.

We start feeling that he/she is great. We start celebrating his/her all acts which

produce success. If the success rate for that person is very high to "deliver" same

results, he becomes a "CELEBRITY". It may be in field of sports, cinema, theatre,

social life, politics, and science anything but something with some special results.

Celebrities are people who enjoy specific public recognition by a large number of

certain groups of people. They have some characteristic attributes like attractiveness,

extraordinary lifestyle or special skills that are not commonly observed. Thus, it can

be said that within a society, celebrities generally differ from the common people and

enjoy a high degree of public awareness.

1.2 Celebrity Endorsement

A celebrity endorser is an individual who is known by the public for his or her

achievements in areas other than that of the product class endorsed. Eg: - In the

Coco-Cola advertisement; actor Amir Khan is the celebrity endorser for the product or

brand called Coke, and this process is referred to as Celebrity Endorsement.

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According to Friedman & Friedman “a celebrity endorser is an individual who

is known for his or her achievements in areas other than the product class endorsed.

Corporate credibility along with endorser credibility plays a significant role in the

attitude of the consumer towards the brand and the advertisement respectively. On the

other hand, the over popularity of the celebrity sometimes overshadows the brand.

Endorsement is a channel of brand communication in which a celebrity acts as the

brand’s spokesperson and certifies the brand’s claim and position by extending his/her

personality, popularity, stature in the society or expertise in the field to the brand. The

general belief among advertisers is that brand communication messages delivered by

celebrities and famous personalities generate a higher appeal, attention and recall than

those executed by non-celebrities.

1.3 Need of Celebrity Endorsement

The charisma of the celebrities almost always entices people and their words are

worshipped by a lot of people. Their influence also goes on the political front, where

they are invited for political endorsement. The business firms, thus, resort to celebrity

endorsement to perk up brand recall and product sales. This has now become a trend

and is being perceived as a strategic means of brand building exercise. For example,

when actor Shah Rukh Khan endorses Santro-Zip drive; the consumers are made to

think that he is giving his opinion to go for this car. Two reasons why advertisers need

celebrity endorsement are to increase the credibility & attractiveness of their

advertisement.

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1.4 Celebrity Endorsements as a Strategy

Signing up stars for endorsements is a time-tested strategy and has been effectively

used by someof the top brands in the world including Nike and Pepsi. In India too,

HLL has used Hindi filmstars to endorse their beauty soap Lux since the fifties.

Vimal, Thums Up, Gwalior and Dinesh are some of the other brands that used star-

appeal in the early days of mass advertising. And who can forget Kapil ‘Palmolive’

Dev?

Marketeres believe that celebrity endorsements have several benefits, key among

them being building credibility, fostering trust and drawing attention or any or all of

which can translate into higher brand sales. So how does one decide whether to put a

celebrity in an ad? Ideally, this should be dictated by the communication idea. MG

Parmeswaran, Executive Director of FCB Ulka says, “As advertising professionals,

we recommend celebrity endorsements when the case is justified.

There are many cases where you need to use the celebrity to break out of a category

clutter. At times celebrity endorsement is used to build credibility to the brand offer.”

Most experts concur that, when used judiciously, celebrity endorsements can be an

effective strategy. According to Mohammed Khan, Chairman of Enterprise Nexus,

“Using a celebrity by itself is not a bad idea provided it is done intelligently.” And

there are many examples of good and bad use of celebrities. Take Amitabh Bachchan,

who has been used by some companies like Parker Pens and ICICI Home Loans

remarkably well while some others have been unable to exploit his Big B status too

well. Shah Rukh Khan’s endorsement of Hyundai i10 too seems to have worked well.

Parmeswaran adds, “We used cricketers like Rahul Dravid for Castrol in an attempt to

break out of the clutter, as well as have an image rub off of ‘dependability’ on to the

brand.”

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Yet, there are some who don’t have much conviction in star endorsements. Adrian

Mendonza, Executive VP and Creative Director of Rediffusion DY&R does not

recommend celebrity endorsements because he thinks that to be really successful, a

brand needs to have a strong identity of its own. It should ideally not piggyback on

the identity of a celebrity and hope to achieve success. Mendonza adds, “I somehow

get this feeling that not much effort is put in to think through an ad with a celebrity.

Most times it seems like it is just the celebrity saying ‘I use this product, so why don’t

you’ kind of thing and the ad agency thinks it has done its job.”

1.5 Uses of Celebrity Endorsement

The uses of celebrity endorsement are as follows:

Establishes Credibility

Approval of a brand by a star fosters a sense of trust for that brand among

the target audience- this is especially true in case of new products. The role of a

celebrity endorser in an advertising campaign is, without doubt, linked to the

reputation of the celebrity. If the reputation is damaged, more often than not for

reasons other than professional ,then the quality of his reputation dos

suffer:particulary if it is to do with his (or her) public behavior. Example: Dyna ad

by Katrina Kaif.

Attracts Attention

Celebrities ensure attention of the target group by breaking the clutter of

advertisements and making the ad and the brand more noticeable. Example:

Shahrukh khan in pespi, Hrithik Roshan in Sony Erricson.

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Associative Benefit

A celebrity’s preference for a brand gives out a persuasive message

because the celebrity is benefiting from the brand, the consumer will also benefit.

Example: Amitabh Bachchan in ‘Dabur Chwyanprash’.

Psychographic Connect

Stars are loved and adored by their fans and advertisers use stars to

capitalize on these feelings to sway the fans towards their brand. Example: Dhoni

in 7Up.

Demographic Connect

Different stars appeal differently to various demographic segments (age,

gender, class, geography etc.). Example: Amitabh Bachchan with child in Dadur

Honey, Sunny Deol in Lux cozi ad.

Mass Appeal

Some stars have a universal appeal and therefore prove to be a good bet to

generate interest among the masses. Example: Sharukh khan And Amitabh

Bachchan in Polio Promotion.

Mitigating a tarnished image

Cadbury India wanted to restore the consumer’s confidence in its

chocolate brands following the pitch following the high-pitch worm’s

controversy; so the company appointed Amitabh Bachchan for the job.

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Rejuvenating a stagnant brand

With the objective of infusing fresh life into the stagnant Chyawnprash

category and staving off the competition from various brand , Dabur India

roped in Bachchan for an estimated project of 8 crore.

1.6 Risks associated with celebrity endorsement

The various risks associated with celebrity endorsements are as follows

Negative publicity - If the celebrity is strongly associated with the brand then

the occurrence of the negative publicity can spill over the brand.. E.g., Salman

Khan lost his endorsement deal with Thumbs-Up after his infamous incidents

like buck-killing and rash-driving.

Overshadowing - When celebrity endorser is used, the risk of consumers

focusing on the celebrity and not on the brand exists.

Overexposure- This risk arises when the celebrity chooses to endorse several

different products simultaneously which might leave the consumers confused.

E.g., Sachin Tendulkar endorses several brands such as MRF, TVS Victor,

Pepsi, Fiat, Boost, etc.

Overuse - Sometimes the company can use many different celebrities to appeal

to different market segment. But multiplicity of endorser might blur the image.

Extinction - The favorable response obtained by a particular brand may

weaken over time if the brand gets significant exposure without the association

of the celebrity. If the celebrity contract is for a considerable period of time,

then it can lead to draining out capital without proper return.

Financial Risk - The decision for hiring an expensive endorser may not be

always feasible if there is a poor brand fit.

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Therefore, for celebrity endorsements to work effectively there are some

fundamental ground rules: -

o Clear brand promise and brand personality.

o The communication objectives for the campaign should be frozen.

o Focus must be on the synergy between the brand and the celebrity

image.

1.7 Why celebrity endorsement fails?

There may be cases where brands are not able to take-off even after the

backing of celebrities. And this leads to speculations in the Ad World on the

soundness of celebrity endorsement as an effective communication strategy.

Negative impacts of Celebrity on the brand

A popular drawback of celebrity endorsement is the 'Vampire Effect' or the

celebrity overshadowing the brand16. Some viewers forget the brand that a celebrity is

approving. Others are so spellbound by the personality of the celebrity that they

completely fail to notice the brand being advertised. Two new drawbacks can be seen

these days what marketers call Celebrity Trap and Celebrity Credibility. Celebrity trap

is when the celebrity becomes an addiction for the marketing team and the task to find

substitutes becomes more and more difficult, leading to surfeit of celebrities.

Celebrity credibility refers to skepticism by the consumers regarding the celebrities,

especially when there is anything negative regarding the celebrity associated with the

brand in the news, then brand is bound to be affected.

Positive Impact of Celebrity on the Brand

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Plethora of research has tried to explore the effects that a celebrity exhibits.

Celebrity endorsements: -

Creates and helps in retaining attention of the targeted audience.

Achieves high brand recall in an environment with multitude of products.

Transfers of qualities associated with the celebrity to the product.

Perceived as entertaining.

Portrays trustworthiness due to lack of apparent interest

1.8 Celebrity branding and its effect on consumers

It is a known fact that the best endorsements achieve an effective balance between the

product (brand) and the celebrity. Giving a brand a 'face' is more than just a marketing

strategy to increase sales or gain market share, it is a decision that can change the

future of the brand forever.

Choice of the celebrity, hence, is of utmost importance and is usually done based on

many different parameters - appeal, looks, popularity or even just a fantasy figure to

endorse a brand.

In today's highly competitive markets, big brands are at logger-heads when it comes

to products, each having a similar product to that of a rival. Where does one brand

gain that competitive advantage - advertising, service, or promise of trust. Advertising

seems to be the best platform where brands prefer to compete on - right from hiring

the best advertising agencies to getting the biggest celebrities. What would be the

formula to success then? Well, a good creative agency, a large enough promotional

budget and a huge star to endorse your brand would definitely ensure in the minds of

a brand management team a feeling of security, success and a triumph over the

competitors brand.

The general belief among advertisers is that brand communication messages delivered

by celebrities and famous personalities generate a higher appeal, attention and recall

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than those executed by non-celebrities. The quick message-reach and impact are all

too essential in today's

The importance of a celebrity-brand match and the various roles played by them as

brand associates show the momentum this strategy has gained in the last decade or so.

India is a country where people are star-struck by film stars, cricketers, politicians,

and even criminals. Why? Populations of 1 billion and ticking, everyday people need

something or someone to look up to. A sense of security, admiration, comfort,

familiarity, and above all, someone they aspire to be at some hidden level in their

lives. A clever marketer leverages this very celebrity appeal and successfully carries

out his job by giving the brands what they want - profit, market share and even recall.

But how much star power is too much? "Does Amitabh really use Tide," asked a 6

year old to her mother. Her mother laughs and says, "No way, just a gimmick." What

does that do to the brand?

Now, despite the potential benefits derived from celebrity endorsements, they increase

a marketer's risk and should be treated with full attention and aptitude. A brand should

be cautious when employing celebrities to ensure promise believability and delivery

of the intended effect. As the celebrities traverse from a mere commercial presence to

public welfare message endorsements, a whole new dimension is added to this

process and helps us in achieving a holistic view of the impact which celebrities

generate in every sphere and segment through their well-versed endorsements.

The most important thing to remember is that putting a celebrity in an ad is not an

idea in itself. Unfortunately, this is how most celebrities are being used in Indian

advertising, where they just become a prop. Ideally, there should be an idea that

makes the celebrity relevant to the product and the consumer. A celebrity's presence

in the ad should be contextual.

Celebrity endorsement cannot guarantee fool-proof success. The celebrity

endorsement strategy must be integrated with target market characteristics, and the

other elements of the marketing mix such as product design, branding, packaging, and

pricing. The message execution that will be mouthed by the celebrity must likewise be

made clear and single-minded. This can be done by aligning the spirit of the brand to

the product, or by using a celebrity because it ensures that people will notice you, and

hopefully remember what the brand is saying.

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It is also important to view the consumer in their social and cultural setting to further

see how celebrity endorsements increase sales and impact brands over time.

Celebrities usually form a very good example of a reference group appeal. This is

particularly beneficial to a marketer and a brand who can cash in on the success of the

star and, hence, push his brand. People who idolize their celebrities, hence, have a

biased affinity to the brand their favorites endorse. As time passes on, they believe

that they by adopting the brand that their celebrity endorses are becoming more like

them. Celebrities can be used in four ways namely: testimonial, endorsement, actor

and spokesperson.

Right now the current hot favorite in India is roping in celebrities for social causes

like AIDS, polio etc. This has shown to be having a positive effect on the people. In

India, Bollywood and sport personalities rule the mind-space and airwaves.

1.9 Is celebrity advertising effective?

There is no doubt that celebrity advertising has its benefits –

The four Qs:

Quick saliency:

It gets cut through because of the star and his attention getting value.

Nerolac has ensured high saliency for its brand with the inclusion of

Amitabh Bachchan in its advertising.

Quick connect:

There needs to be no insight but the communication connects because the

star connects. Sachin Tendulkar & Shah Rukh Khan ensure an easy

connect for Pepsi with the youth.

Quick shorthand for brand values:

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The right star can actually telegraph a brand message fast without

elaborate story telling. Kapil Dev and Sachin Tendulkar seem to have done

that successfully for Boost in the early '90s. And helped to differentiate it

in the malted beverages market.

Quick means of brand differentiation:

In a category where no brand is using a celebrity, the first that picks one

up could use it to differentiate itself in the market. Boost did it in the

malted beverage category. And Preity Zinta does all the above four for

Perk -- connecting with the youth and reinforcing the brand's youthful,

spontaneous, energetic values.

In general celebrity endorsements are impelled by virtue of the following motives:

Instant Brand Awareness and Recall.

Celebrity values define, and refresh the brand image.

Celebrities add new dimensions to the brand image.

Instant credibility or aspiration PR coverage.

Lack of ideas.

An appropriately used celebrity can prove to be a massively powerful tool that

magnifies the effects of a campaign. But the aura of cautiousness should always be

there. The fact to be emphasized is that celebrities alone do not guarantee success, as

consumers nowadays understand advertising. They know what advertising is and how

it works. People realize that celebrities are being paid a lot of money for

endorsements and this knowledge makes them to think twice about celebrity

endorsements.

The few concepts related to this project are as follows:

1.10 The Source Credibility Model

24

“The effectiveness of a communication is commonly assumed to depend to a

considerable extent upon who delivers it.”(Hovland et al., 1953). The expression

source credibility is used commonly to entail the communicator’s positive attributes

that affect the recipient’s acceptance of a message.. Furthermore, the source needs to

be trustworthy, in the nous of believability, honesty and ethics.(Belch & Belch, 2001).

Information from a credible source such as a celebrity has the power to influence the

opinions, belief, attitude and behavior through a process called internalization based

on the assumption that the information from the source is accurate..(Belch & Belch,

2001). Internalization occurs when source influence is accepted by the receiver in

terms of their personal attitude and value structures.(Erdogan, 1999)

Source credibility refers to the perception of the source’s expertise, objectivity and

trustworthiness (Ratneshwar and Chaiken, 1991). Over the past 30 years the research

conducted by psychologists demonstrates that a source which is distinguished as

highly credible is likely to be more persuasive than a low credibility sender (Aaker et

al. 1992,Erdogan 19999, Atkin & Block. 1983). The same is reflected in the source

credibility model, which contends that the effectiveness of a message displayed

depends on perceived level of trustworthiness and expertise in an endorser (Dholakia

and Sternthal 1977; Erdogan 1999; Ohanian 1991; Solomon et al. 1999).

Hovland et al., (1953) partitioned source credibility into expertise and trustworthiness.

Where expertise is “the extent to which a communicator is perceived to be a source of

valid assertions” and consists of knowledge, special experience and skills.(Shank,

2004).Expertise of the source should relate to the product that he/she is endorsing.

(Till & Busler,1998). Speck, Schumann and Thompson (1998) found that as

compared to non-experts, expert celebrities produced higher recall of product

information, but the difference was not statistically significant.(Erdogan, 1999)

Trustworthiness is “the degree of confidence in the communicator’s intent to

communicate the assertions he considers most valid and consists of honesty, integrity

and believability. Hovland et al., (1953). The advertisers by selecting endorsers who

are widely regarded as honest, believable and dependable, can capitalise on the value

of trustworthiness (Erdogan, 1999). Ohanian, (1990) states that the message will be

more effective and the receiver more integrated, when the celebrity is perceived to be

more trustworthy.

25

As source credibility research looks upon the celebrity endorsement process as uni-

dimensional, it fails to provide a well-grounded explanations of important factors.

Even though source credibility is an vital factor in the celebrity selection process, as

credibility has been proved to have direct and significant effect on attitude and

behavioural intentions, it should not be the only criteria that should be taken into

consideration while selecting celebrity endorsers (Erdogan, 1999).

1.11 The Source Attractiveness Model

“Beauty is a greater recommendation than any other introduction.” This quote by

Aristotle is suitable in this context of source attractiveness for appreciating the

efficacy of pleasant appearance since most societies place a high premium on physical

attractiveness. (Ohanian, 1991).Patzer (1985) affirms that physical attractiveness is an

informational cue which involves effects that are inescapable, persuasive and subtle.

(Erdogan, 1999)

Although expertise and trustworthiness have time and again been considered as

important elements, attractiveness based on ‘source valence’ model was identified as

another dimension of source credibility. (McGuire, 1968). Advertisers have made

choices of selecting celebrities on their foundation of their attractiveness to gain from

dual effects of physical appeal and celebrity status. (Singer, 1983) Source

Attractiveness is mostly associated with physical attributes, such as familiarity,

similarity and likeability, all of which are important in the individual’s initial

judgment of another person. (Ohanian, 1990). Similarity refers to the resemblance

between the receiver and the source of the message whereas familiarity refers to the

acquaintance of the source through exposure. While talking about similarity, it is

mentioned that consumers are more likely to be influenced by a message coming from

someone they feel a sense of similarity with. (Belch & Belch, 2001). The position

advocated by the source is better understood and received when the endorser and the

recipient are seen to have similar needs, lifestyles, goals and interests. (Kelman,

1961). Likeability on the other hand is the fondness for the source which may be as a

result of behaviour, physical appearance or other personal trait and also these

26

celebrities need to be at least well known and admired in the public eye.(Belch &

Belch, 2001).

Attractiveness includes any number of attributes such as intellectual skill, personality

properties, lifestyle or athletic prowess that consumers might perceive in a celebrity

endorser, and thus does not simple refer to physical attractiveness.(Erdogan, 1999).

“Source Attractiveness leads to persuasion through a process of identification.”

Kelman (1961) .Identification is the process which has been used to explain how

attractiveness influenced consumers. This is another of Kelman’s social influence

processes which occurs when because of the desire to identify with such endorsers,

receivers accept the attractive source’s information. (Ambrose, 1992; Friedman &

Friedman, 1979).

Research reveals that consumers have a tendency to form positive stereotypes about

attractive individuals and also that as compared to their unattractive counterparts,

physically attractive communicators celebrities are more successful at changing

beliefs (Baker and Churchill, 1977) and generating purchase intentions (Friedman et

al. 1976; Kahle and Homer, 1985). A study conducted by Kahle and Homer (1985)

divulged that consumers were more geared up to buy an Edge razor after seeing an

attractive celebrity in a magazine advertisement than an unattractive celebrity. They

also elucidated that speed of communication occurs more promptly when pictures

appear in advertisements than when arguments appear.

However it was suggested by Caballero et al., (1998) and Ohanian (1991) that though

attractiveness might result in positive feelings towards advertising and products, but it

is not necessary that this feeling should necessarily translate into actual behaviour,

cognitive attitudes and purchase intention. 24

It is indicated by both Till and Busler (1998) and Ohanian (1991) that more than

physical attractiveness, the expertise of the endorser is more important in affecting

attitude towards the endorsed brand.

27

1.12 Match-up Hypothesis

Spokesperson-brand congruence match-up entails that the highly relevant

characteristics of the spokesperson are consistent with the highly relevant attributes of

the brand.(Misra and Beatty, 1990). According to Kamins (1990) there is a necessity

for the existence of a meaningful relationship between the celebrity, the audience and

the product. According to Evans (1988) in the absence of a distinct and specific

relationship between the product and the celebrities, “celebrities suck the life blood of

the product dry”, thus, emphasizing the danger of the vampire effect.

According to Kahle and Homer (1985), the Match-up Hypothesis of endorser

selection fits well with Social Adaptation theory which implies that the adaptive

significance of the information will determine the impact. Research indicates that

advertising a product via a celebrity leads to a greater celebrity and advertiser

believability relative to advertisements portraying a less fitting product spokesperson

image. (Kamins and Gupta, 1994; Kotler1997)

Till and Busler, (1998) explained that even though Micheal Jordon is a an attractive

endorser, his effectiveness as a celebrity endorser is likely to be greater when

endorsing products related to his athletic deftness such as Gatorade or Nike, rather

than products that are unrelated to his athletic performance such as WorldCom

Communications. According to Katyal (2007), there are certain parameters that

postulate compatibility between brand image and the celebrity, which are as follows:

Celebrity popularity.

Celebrity physical attractiveness.

Celebrity credibility.

Celebrity prior endorsements.

Whether celebrity is a brand user.

Celebrity profession

Celebrity’s fit with the brand image.

28

Celebrity—Target audience match

Celebrity associated values.

Costs of acquiring the celebrity.

Celebrity—Product match.

Celebrity controversy risk.

The extensive and persistent use of celebrities in advertising suggests that they are

worth the costs associated with hiring them (Agrawal & Kamakura, 1995). A

celebrity’s stamp of approval can create an emotional bond between the endorser and

the consumer, if the fit is right (Bradley, 1996). A successful and popular endorser has

the capability to increase consumer’s purchase intentions and preference towards

brands either directly or indirectly. (Lui et.al 2007). One can always match a celebrity

with the wanted image of the brand but it will not be successful if the target audience

does not perceive the fit.(Temperley and Tangen, 2006). Newsome et al. (2000) take

the view that there should be no conflict between any prior promotion campaign

endorsed by a celebrity and the prefferd image.

During their careers, successful individuals are elevated to the celebrity status, and

therefore regardless of their actual physical appearance their achieved recognition and

popularity makes these celebrities look attractive to consumers. These celebrities’

accomplishments and fame transform in to credibility and power in the eye of the

public.(Choi, 2007). Solomon et al. (1999) refers to the ‘credibility gap’, where the

lack of credibility is aggravated by incidences where celebrities endorse products that

they do not really use, or in some cases do not believe in.

For this research, few research works were referred. These are as follows:

1.13 Celebrity Endorsement

By

29

N.Muthu Kumar.

(Asst. Prof/Mba Dept. Kalasalinagm University, Tamilnadu)

Research to date examining the nature of celebrity endorsement has been limited and

at times contradictory .The results of this study of consumers view and perception

about the topic indicated that the consumer has an over all positive attitude towards

celebrity endorsement. Such endorsement were perceived to be attention gaining,

likeable and impactful . this study aims to analyze the celebrity endorser influence on

attitude towards advertisement and brand. the study confirmed that consumer expect

congruence between the perceived image of the celebrity endorser and the type of

products which they endorse. celebrity must possess the expertise in product

categories consistent with their public profile and their perceived life styles. the

success of the life style depends on this congruence.

1.14 Celebrity Endorsement: It’s Impact on Brand

By

Dr. Anitha R. Natekar

Assistant Professor, Department of Management Studies

Karnataka State Women’s University

“A sign of a celebrity is that his name is often worth more than his services”.

- Daniel J.

Boorstin.

With no doubts, our society is very much influenced with celebrities. And the

advantage of this is taken upon by the advertising companies because for them it

becomes really very easy to market and increase the sale of their product. This is

because most of the Indian consumers are desperate followers of one or other

celebrities. And this is why Endorsements featuring celebrities has become the latest

30

trend of today. Though appreciating a celebrity is good but this does not at all mean to

follow them like dumb.

There is a huge Impact of Celebrity Endorsements among the consumers though TV

commercials in India as Indians like the celebrities a lot and consider most of the

celebrities their role models. There for more and more companies prefer the

celebrities of different fields in India like the cricketers, Bollywood celebrities and

other sports personalities.

Celebrity endorsement is quite famous and effective in India. Most of the products of

many companies are being endorsed by the Bollywood actors and Indian cricketers

for better sales targets. Television is something which is watched all over Indian by

the people of all class whether the people belong to lower class or middle class or

upper class, all of them watch television to entertain themselves. The main objective

of the project is to analyze the impact of Celebrity Endorsement on two brands

respectively of select celebrities.

1.15 “Analysis of celebrity endorsement as an effective

destination marketing tool”

By

Robert van der Veen

Bournemouth University – United Kingdom

Fachhochschule Heilbronn – Germany

Commercial companies use celebrities with target customer segments to increase the

appeal of their offerings. The instrument of celebrity endorsement has nowadays

become a pervasive element in advertising and communication management. Whilst

many strategic as well as tactical aspects of celebrity endorsement effectiveness have

come under scrutiny from a manufacturing product marketing perspective, the

concept of celebrity endorsement for hedonic consumption, in particular destinations

31

is an often overlooked and under-researched strategy. This study will therefore posit a

discussion of celebrity destination endorsement by providing an exploratory review of

the concept that is based on an analysis of existing academic and conceptual literature

on destination marketing and on celebrity endorsement in marketing management.

Furthermore, marketing experts are consulted in order to contribute to the literature

with new and deeper information. Here the main focus is on the perception of the

interviewees relating to aspects of celebrity destination endorsement within a

framework of celebrity endorsement in general. Therefore, by using a theoretical

inquiry, it is not the researcher’s intention to establish ‘facts’ but rather identify the

experts’ interpretations and perceptions in order to understand and determine the

effectiveness of celebrity endorsement as a destination marketing instrument. As such,

this study contributes to an understanding of the application of a marketing device for

a hedonic product in general, and it also increases understanding of celebrity

endorsement as a destination marketing tool.

1.16 Impact of Celebrity Endorsed Advertisements on

Consumers

by

DR. BIMAL ANJUM

SUKHWINDER KAUR DHANDA

SUMEET NAGRA

“Celebrity” refers to an „individual who is known to the public, such as actors, sport

figures, entertainers‟ and others of the like for his or her achievement in areas other

than that of the product class endorsed (Friedman and Friedman1979). The general

belief among advertisers is that advertising messages delivered by celebrities provide

a higher degree of appeal, attention and possibly message recall than those delivered

by non-celebrities. Marketers also claim that celebrities affect the credibility of the

claims made, increase the memorability of the message, and may provide a positive

effect that could be generalized to the brand Copper (1984).So considering these

32

points this paper is an attempt to know the impact of celebrity endorsed

advertisements on consumers and on sales. This study is also an attempt to know the

reasons of using the celebrities in advertisements. This study is based on primary as

well as on secondary data. The sources of secondary data have the annual reports of

selected brands. And the primary data has collected with the help of five point Likert

scale. The sample size of the respondents has taken 60 .the overall findings of the

study reveal that celebrity endorsers has used by the companies for brand equity. It

has also showed that consumer think that celebrity endorsed advertisement are

reliable and they have the knowledge. They are able to recall and retention of the

product. Consumers feel associated and it has also helped in influencing the demand

of the products.

1.17 Celebrity endorsement and brand personality

by

Subhadip Roy

ICFAI Business School

YLR.MOORTHI

Professor-11MB

BANGALORE

Celebrity endorsement is a highly researched field in marketing. Having its roots in

psychology and the source credibility of communication (Hovland and Weiss, 1952;

McCroskey and Young, 1981) it has come up a long way since the early research was

done in the seventies (Friedman, et aI., 1976; Kamen et aI., 1975). Researchers have

delved into various issues of celebrity endorsements such as source credibility of the

celebrity, celebrity-brand congruence and meaning transfer model (McCracken,

1989). Research in Br,and Personality is relatively new. The works of Aaker and

Fournier (1995), Aaker (1997) and Ourgee (1998) initiated the interest which

ultimately resulted in the construction of a Brand Personality Scale by Aaker (1997).

However, researchers have not looked into the issue of Celebrity Personality affecting

the Brand Personality even in congruence studies. In this paper we try to address the

issue of celebrity personality affecting brand personality. Based on an empirical

33

study, we try to find out whether the same personality dimensions exist for the

celebrity and the brand endorsed respectively. Following which we have tried to see

whether celebrity personality has an effect of brand personality. The study is

supposed to generate research interest because of its novelty of idea.

1.18 Impact of Celebrity Endorsements on Brand Image

By

Debiprasad Mukherjee

Business Process Management Consultant in IT Telecom domain.

Celebrity endorsement has been established as one of the most popular tools of

advertising in recent time. It has become a trend and perceived as a winning formula

for product marketing and brand building. It is easy to choose a celebrity but it is

tough to establish a strong association between the product and the endorser. While

the magnitude of the impact of celebrity endorsement remains under the purview of

gray spectacles, this paper is an effort to analyze the impact of celebrity endorsements

on brands. Objective of this article is to examine the relationship between celebrity

endorsements and brands, and the impact of celebrity endorsement on consumer's

buying behavior as well as how consumer makes brand preferences. This paper

proposes a 20 point model which can be used as blue-print criteria and can be used by

brand managers for selecting celebrities and capitalizing the celebrity resource

through 360 degree brand communication which, according to this paper, is the

foundation of the impact of celebrity endorsement.

Celebrity endorsement is always a two-edged sword and it has a number of positives

— if properly matched it can do wonders for the company, and if not it may produce a

bad image of the company and its brand.

Also, the purpose of her research was to study the impact of the celebrity endorsement

on effective brand management and evaluate associated factors that contribute to the

success or failure of the endorsement.

34

The work was done mainly as an exploratory research to find out the correlation

between celebrity endorsement and brand image based on structured questionnaire

and analysis was done on the outcome/response with the help of higher order

statistical tools.

Chapter II

35

Analysis of Data and Interpretation

2.1 Gender

GENDER NO. OF RESPONDENTS PERCENT

MALE 51 51%

FEMALE 49 49%

TOTAL 100 100%

MALE51%

FEMALE49%

Gender

36

Interpretation

For this research gender played an important role because as we know that women

gets more tempted towards chocolate than men. But, in the pie chart below if we see

there is a thin line difference between men and women. Out of 100 percent

respondents 49 percent were women thought, the men dominated by 51 percent.

2.2 Age of the Respondents

AGE NO. OF RESPONDENTSPERCENTAGE

13-20 99%

20-30 7878%

30-40 1010%

40-50 33%

TOTAL 100 100%

37

13-20

20-30

30-40

40-50

0% 10% 20% 30% 40% 50% 60% 70% 80%

Age of the Respondents

No. of Prercentage

Age

Interpretation

The age of the respondents were necessary in order to continue with this research. So,

78 percent of consumers were of the age between 20-30 years. This actually

dominated the sample. While 9 percent of respondents were of the age between 13-20

percent, 10 percent of respondent were between 30-40 years and 3 percent were of 40-

50 years. So, we can see that 20-30 years of consumers gets more affected.

2.3 The Sub-brands of Cadbury Dairy Milk tried by the respondents.

38

SUB BRANDS OF CADBURY

NO. OF RESPONDENTS

PERCENTAGE

CADBURY DAIRYMILK 18 18%

CADBURY DAIRYMILK CRACKEL

11 11%

CADBURY DAIRYMILK ROASTED ALMOND

14 14%

CADBURY DAIRYMILK FRUIT & NUT

21 21%

CADBURY DAIRLYMILK SHOTS

18 18%

CADBURY DAIRYMILK SILK

13 13%

CADBURY DAIRYMILKWOWIE

5 5%

TOTAL 100 100%

39

Cadbury Dairy Milk

Cadbury Dairy Milk

Crackel

Cadbury Dairy Milk

Roasted Almond

Cadbury Dairy Milk Fruit & Nut

Cadbury Dairy Milk

Shots

Cadbury Dairy Milk

Silk

Cadbury Dairy Milk

Wowie

18%

11%

14%

21%

18%

13%

5%

Sub Brands of Cadbury

Interpretation

When the respondents were asked that which Cadbury chocolate that they have tasted

it was seen that 21 percent of respondents preferred Cadbury Dairy Milk Fruit and

Nut. While, 18 percent of respondents accepted that they have tasted Dairy Milk and

Dairy Milk Shots. While 14 percent, 13 percent and 11 percent of respondents agreed

that they have tasted Dairy Milk Roasted Almond, Dairy Milk Silk and Dairy Milk

Crackle respectively. It should be noted that only 5 percent of respondents have

tasted Cadbury Dairy Milk Wowie.

40

2.4 Consumption of Cadbury chocolates by the respondents before or after endorsement.

SINCE WHEN ARE YOU EATING CADBURY

CHOCOLATES

NO OF RESPONDENTS

PERCENTAGE

BEFORE AMITABH BACHCHAN

88 88%

AFTER AMITABH BACHCHAN

12 12%

TOTAL 100 100%

Before

After

88%

12%

41

Interpretation

When the question was raised whether the respondents used to have Dairy Milk

chocolate before Amitabh Bachchan endorsed it or not. 88 percent of respondents

said that they used to have before it was endorsed by Amitabh Bachchan. While, 12

percent agreed that they got influenced to buy Dairy Milk because it was endorsed by

Amitabh Bachchan.

2.5 Consumption of other branded chocolates.

HAVE YOU BEEN EATING OTHER

BRANDS

NO. OF RESPONDENTS

PERCENTAGE

YES 77 77%

NO 23 23%

42

TOTAL 100 100%

Yes77%

No23%

Consumption of other branded chocolates

Interpretation

It was noticed that the respondents also have been eating other brand chocolates apart

from Cadbury. About 77 percent of respondents said they also prefer eating other

branded chocolates. While, 23 percent of respondents agreed that they prefer Cadbury

Dairy Milk.

43

2.6 Brand Ambassador the reason to switch to Cadbury Chocolates.

BRAND AMBASSADOR REASON TO SWITCH

TO CADBURY

NO. OF RESPONDENTS PERCENTAGE

YES 29 29%

NO 71 71%

TOTAL 100 100%

44

Yes29%

No71%

Switch to Cadbury

Interpretation

It was necessary in this research to know whether the respondents actually switched to

Cadbury’s Dairy Milk just because it was endorsed by Amitabh Bachchan? 29 percent

of respondents said it was celebrity endorsement which lead them to buy Cadbury

chocolates while, 71 percent didn’t agreed to it.

2.7 Recall of the Cadbury Dairy Milk Advertisements

ADVERTISMENTS NO. OF RESPONDENTS

PERCENTAGE

45

MEETHA HAI KHAANA 19 19%

SHUBH AARAMBH 25 25%

KHANE WALON KO 19 19%

REAL TASTE 15 15%

PAPPU PASS HO GAYA 13 13%

NIL 9 9%

TOTAL 100 100%

Meetha hai khana

Shubh aarambh

Khane walon ko

Real taste

Pappu pass ho gaya

Nil

0% 5% 10% 15% 20% 25%

Recall of the Cadbury adveritsments.

No. of Percentage

Cad

bury

Adv

erti

smen

ts

46

Interpretation

The recall of Cadbury’s Dairymilk advertisements mong the respondents were as

follows;

The Shubh Aarambh campaign left more impact on the consumers than any of the

other campaigns. 25 percent of respondents agreed that Shubh Aarambh campaign

advertisement moa more recallable. While, Pappu pass ho gaya Advertisement had

impact on the consumers but only 13 percent of respondents could recall it. While

Meetha hai khan and Khane walon ko advertisements did left its imprint on the

consumers and 15 percent of respondents were able to recall the advertisement. 15

percent of respondent could recall Real taste Campaign. But 9 percent of respondents

couldn’t recall any of the advertisements.

2.8 Reduction in consumption of Cadbury Dairy Milk if the brand ambassador is not there.

REDUCTION IN CONSUMPTION OF DAIRY MILK ID BARND AMABSSADOR IS NOT THERE

NO. OF RESPONDENTS

PERCENTAGE

YES 25 25%

NO 75 75%

TOTAL 100 100%

47

Yes

No

5% 15% 25% 35% 45% 55% 65% 75%

Yes No

Series1 0.25 0.750000000000005

Reduction in the consumption of Cadbury Dairy Milk chocolates if brand ambassador

is not there.

Interpretation

About 75 percent of respondents said that they won’t stop buying Cadbury Dairy Milk

if Amitabh Bachchan is not the brand ambassador. While 25 percent of respondents

agreed that if Amitabh Bachchan is not the brand ambassador of Cadbury Dairy Milk

they won’t buy it.

2.9 Products endorsed of good quality

48

CATEGORY NO. OF RESPONDENTS PERCENTAGE

YES 21 21%

NO 51 51%

NOT SURE 28 28%

TOTAL 100 100%

Yes21%

No51%

Not sure28%

Quality

49

Interpretation

When the question was raised that “Do you believe products specifically advertised

by the celebrities are of good quality?”. 51 percent of respondents agreed that the

products were not of good quality while 21 percent agree that they were of good

quality. 28 percent of respondents were not sure wether it was true that the products

endorsed were actually of good quality.

2.10 Persuading factor to purchase of Cadbury Dairy Milk.

PERSUDAING FACTOR NO. OF RESPONDENTS

PERCENTAGE

CELEBRITY 15 15%

QUALITY 63 63%

BRAND NAME 16 16%

PRICE 6 6%

TOTAL 100 100%

50

15%

63%

16%

6%

Persuading Factor

Celebrity Quality Brand Name Price

Interpretation

The most persuading factor to purchase Cadbury Dairy Milk was its quality. 63

percent of respondents agreed that for them quality mattered the most. While,16

percent of respondents said that brand name played an important role. 15 percent said

that Celebrity persuaded them to buy the product and 6 percent of respondents felt

that price persuaded them to buy Cadbury dairy Milk.

51

2.11 Presence of celebrity in an advertisement encourages to purchase.

PRESENCE OF CELEBRITY IN AN ADVERTISMENT

ENCOURAGES TO PURCHASE PRODUCT

OR SERVICE

NO. OF RESPONDENTS PERCENTAGE

YES 26 26%

NO 50 50%

NOT SURE 24 24%

TOTAL 100 100%

52

Yes

No

Not sure

3% 8% 13% 18% 23% 28% 33% 38% 43% 48%

Yes No Not sure

Series1 0.26 0.5 0.24

Presence of Celebrities

Interpretation

As we know that a product is endorsed by celebrity so that their fans help the product

to increase its market share. Where 26 percent of respondent believed that the

presence of the celebrity in the advertisement encourages them to purchase the

product or service. While, 50 percent of respondents didn’t agree with it. Whereas, 24

percent of respondents were not sure whether it actually affected the advertisement of

the product or the service.

53

2.12 Companies choose celebrities

REASONS TO “WHY COMPANIES CHOOSE

CELEBRITIES”

NO. OF RESPONDENTS PERCENTAGE

EASY RECOGNITION OF THE PRODUCT

35 35%

CAN’T GENERATE NEW IDEAS

21 21%

TO BE ABLE TO INCREASE SALES AND

PROFITS31 31%

TO COMPETE STRONGLY

13 13%

TOTAL 100100%

54

Easy recognition of the product

Can't generate new ideas

To be able to increase sales and profits

To compete strongly

0% 5% 10% 15% 20% 25% 30% 35%

Companies choose celebrities

Response of Consumers

Rea

sons

Interpretation

Usually a product is known for its benefits and the unique features it provides to its

consumers. But despite of having all the features companies go for celebrity

endorsement. When it was asked to the respondents what actually drives the

companies to go for celebrity endorsement 35 percent of respondents agreed that the

companies want easy recognition of the product. As, celebrities are famous for their

charm and personalty this will help the consumers to go for the easy recognition of

the product. While, 21 percent of respondents agreed to that the companies could not

generate new ideas for advertising their products. 31 percent agree that the companies

want to increase their sales and generate profit. On the other hand, 13 percent of

respondents agreed that the companies want to keep tough competition among them,

so they choose celebrity endorsement.

55

2.13 Celebrities use endorsed products.

DO CELEBRITIES USE

THEIR ENDORSED

PRODUCTS

NO. OF RESPONDENTS PERCENTAGE

YES 20 20%

NO 44 44%

NOT SURE 36 36%

TOTAL 100 100%

Yes20%

No44%

Not sure36%

Do Celebrity use their endorsed products?

56

Interpretation

As we know the celebrities leave great impact on the consumer’s minds so it was

necessary in this research to know whether the consumers believed in that the

celebrities use their endorsed product?. 20 percent of respondents agree to it, while

36 percent of the respondents were not sure whether the celebrities use the products

which they endorse. 44 percent of respondents simply disagreed to the usage of

endorsed products by the celebrities.

2.14 Celebrity endorsement help in Brand Promotion

DOES CELEBRITY ENDORSEMENT HELP

IN BRAND PROMOTION

NO. OF RESPONDENTS PERCENTAGE

YES 59 59%

NO 27 27%

NOT SURE 14 14%

TOTAL 100 100%

57

Yes59%

No27%

Not Sure14%

Celebrity endorsement help in brand promotion

Interpretation

Celebrity endorsement dose help in Brand promotion. Research revealed that 59

percent of respondents actually agreed with this fact that celebrity endorsement helps

in building brand promotion. 27 percent of respondents didn’t agreed to it. While, 14

percent of respondents were not sure about it.

58

2.15 Advertisement that persuades the consumers to buy endorsed products.

TYPE OF

ADVERTISMENT

PERSUADES

NO. OF RESPONDENTS PERCENTAGE

TELEVISION 66 66%

RADIO 11 11%

NEWSPAPER 13 13%

MAGAZINE 5 5%

INTERNET 5 5%

TOTAL 100 100%

59

television radio newspaper magazine inrernet

Series1 0.660000000000007

0.11 0.13 0.05 0.05

5%

15%

25%

35%

45%

55%

65%

Which type of advertisment persuades?

Res

pond

ents

Interpretation

Usually advertisements leave a great impact on the consumer’s mind. Also, while

making a purchasing decision on the celebrity endorsed product the consumers have

some form of advertisement in their mind. 66 percent of consumers agreed that the

television persuaded them to buy endorsed products while 11 percent of respondents

said it was radio and 13% of respondents said it was newspaper advertisements which

played important role in persuading them to buy products. While, 5 percent of

respondents agreed that the magazines and internet persuaded them to buy the

endorsed products.

60

2.16 Respondents value the most when purchasing the

product?

In order to continue with the analysis, for this question the Chi-square test is selected.

There are five variables:

Price of the product

Celebrity endorsement

Quality of the product

Value for money

Frequencies

Price of the product

Observed N Expected N Residual

1 7 20.0 -13.0

2 28 20.0 8.0

3 39 20.0 19.0

4 16 20.0 -4.0

5 10 20.0 10.0

Total 100

61

Price of the product

Chi Square

df

Asymp. Sig

35.500a

4

.000

Interpretation

The Chi-square calculated value X2 (35.50) is greater than Table value (9.488) at df 4

at 0.05 level.

Hence, reject the null hypothesis.

`

Celebrity endorsement

Observed N Expected N Residual

1 11 20.0 -9.0

2 17 20.0 -3.0

3 38 20.0 18.0

4 21 20.0 1.0

5 13 20.0 -7.0

Total 100

Celebrity Endorsement

Chi Square

df

Asymp. Sig

23.200a

4

.000

62

Interpretation

The Chi-square calculated value X2 (23.20) is greater than Table value (9.48) at df 4

at level.

Hence, reject the null hypothesis.

Quality of the product

Observed N Expected N Residual

1 10 16.7 -6.7

2 17 16.7 .3

3 27 16.7 10.3

4 20 16.7 3.3

5 24 16.7 7.3

6 2 16.7 -14.7

Total 100

Quality of the product

Chi Square

df

Asymp. Sig

25.880b

5

.000

Interpretation

The Chi-square calculated value X2 (25.88) is greater than Table value (11.070) at df

5 at level.

Hence, reject the null hypothesis.

63

Value for money

Observed N Expected N Residual

1 9 16.7 -7.7

2 13 16.7 -3.7

3 29 16.7 12.3

4 18 16.7 1.3

5 29 16.7 12.3

7 2 16.7 -14.7

Total 100

Value for money

Chi Square

df

Asymp. Sig

35.600b

4

.000

Interpretation

The Chi-square calculated value X2 (35.60) is greater than Table value (9.48) at df 4

at level.

Hence, reject the null hypothesis.

64

Test Statistics

Price of the product

Celebrity endorsement

Quality of the product

Value for money

Chi Square

df

Asymp. Sig

35.500a

4

.000

23.200a

4

.000

25.880b

5

.000

35.600b

5

.000

a. 0 cells (0%) have expected frequencies less than 5. The minimum expected

cell frequency is 20.0.

b. 0 cells (0%) have expected frequencies less than 5. The minimum expected

cell frequency is 16.7.

Now, for the other question the variables were:

Celebrity endorsement hikes the price of the product.

I don’t mind paying the higher price for a product endorsed by higher

celebrity.

Celebrity endorsements are not required.

Celebrity themselves use the products they endorse.

Celebrity endorsed products are high in quality.

65

2.17

Celebrity endorsement hikes the price

Observed N Expected N Residual

1 17 20.0 -3.0

2 14 20.0 -6.0

3 32 20.0 12.0

4 21 20.0 1.0

5 16 20.0 -4.0

Total 100

Celebrity endorsement

hikes the price

Chi Square

df

Asymp. Sig

10.300a

4

.036

Interpretation

The Chi-square calculated value X2 (10.30) is greater than Table value (9.48) at df 4

at level.

Hence, reject the null hypothesis.

66

I don’t mind paying higher price for a product endorsed by

higher celebrity.

Observed N Expected N Residual

1 19 20.0 -1.0

2 12 20.0 -8.0

3 34 20.0 14.0

4 18 20.0 -2.0

5 17 20.0 -3.0

Total 100

Don’t mind paying

higher price for product endorsed by

higher celebrity

Chi Square

df

Asymp. Sig

13.700a

4

.008

Interpretation

The Chi-square calculated value X2 (13.70) is greater than Table value (9.48) at df 4

at level.

Hence, reject the null hypothesis.

67

Celebrity endorsements are not required.

Observed N Expected N Residual

1 14 20.0 -6.0

2 18 20.0 -2.0

3 29 20.0 9.0

4 19 20.0 -1.0

5 20 20.0 .0

Total 100

Celebrity endorsement

are not required

Chi Square

df

Asymp. Sig

6.100a

4

.192

Interpretation

The Chi-square calculated value X2 (6.10) is greater than Table value (9.488) at df 4

at level.

Hence, accept the null hypothesis.

68

Celebrity themselves use the products they endorse.

Observed N Expected N Residual

1 20 16.7 3.3

2 15 16.7 -1.7

3 32 16.7 15.3

4 21 16.7 4.3

5 11 16.7 -5.7

6 1 16.7 15.7

Total 100

Celebrities themselves

use the products

they endorse

Chi Square

df

Asymp. Sig

32.720b

5

.000

Interpretation

The Chi-square calculated value X2 (32.72) is greater than Table value (11.7) at df 5

at level.

Hence, accept the null hypothesis.

69

Celebrity endorsed products are of high quality.

Observed N Expected N Residual

1 27 20.0 7.0

2 17 20.0 -3.0

3 22 20.0 2.0

4 19 20.0 -1.0

5 15 20.0 -5.0

Total 100

Celebrity endorsed

products are of high quality

Chi Square

df

Asymp. Sig

4.400b

5

.355

Interpretation

The Chi-square calculated value X2 (4.40) is greater than Table value (11.07) at df 5

at level.

Hence, accept the null hypothesis.

70

Test statistics

Celebrity endorsement

hikes the price

Don’t mind paying

higher price for product endorsed by

higher celebrity

Celebrity endorsemen

t are not required

Celebrities themselves

use the products

they endorse

Celebrity endorsed products

are of high

quality

Chi Square

df

Asymp. Sig

10.300a

4

.036

13.700a

4

.008

6.100a

4

.192

32.720b

5

.000

4.400b

5

.355

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected

cell frequency is 20.0.

b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected

cell frequency is 16.7.

71

Chapter III

Findings

This analysis helped to explore the behavior of the respondents towards the product as

well as the brand endorser. It was quite clear how the respondents were attracted

towards the brand and what influenced them to purchase a particular brand. Also,

brand loyalty among the respondents was also seen. It was evident that all the

respondents were much aware of celebrity endorsement and they also were clear

about it.

When it comes to the age, the respondents were majorly belonging to youth category.

It was seen that the respondents were quite knowledgeable about the product features

and they were also clear about what lead them to purchase a product. For them,

quality played a important role and they were not bothered whether product was

endorsed by a well known celebrity or by an unknown person.

Advertisements also played an important role while conducting this research. Usually,

advertisements leave a major impact on the consumer’s mind. In this research,

advertisement did played a vital role. It was noted thet advertisement of Cadbury

Dairy Milk’s “Pappu paas ho gaya and Miss Palampur” were not easily recallable by

the respondents. Thought the advertisements were quite impressible, still the

respondents were not able to recall the advertisements. The “Shubh Aarambh”

advertisement played a major role and it was revealed that the respondents were able

to identify this advertisement more easily than any other.

Also, when it was found that the celebrity endorsement didn’t mattered much for the

respondents. They believed that until the product like Cadbury Dairymilk is of good

quality they wouldn’t mind if it was not endorsed by celebrity. They believed that the

quality of the product is more important than the brand endorser.

72

Thought the respondents believed that usually the product endorsed by the celebrity if

of not good quality it was also clear among the respondents that it was not always the

celebrity that drive them to purchase the product. The respondent were clear about the

product’s quality and for them quality was the top priority.

The type of advertisements also played a major role in promotion of a brand. When

the consumers were asked about which type of advertisement persuaded them to

purchase a product, they agreed with television advertisement. It was noted that

television advertisements left more impact on the respondent’s mind and also they

were easily able to recall the various types of advertisement of Cadbury Dairy Milk.

73

Chapter IV

Suggestions and Recommendations

Having summarized the various findings of this research, the following managerial

implications have been proposed which if taken seriously can prove to be of value to

both in theory and practice. Businesses stand to gain if they from the suggestions

made known below.

Firstly in order to be successful, businesses should be able to differentiate between

different kinds of consumers namely the ‘celebrity enthusiasts’ and the ‘product

enthusiasts’ and promote their product accordingly. So they need to play it safe and

cater to the demand of both of them. Also marketers should come up with contracts

which bind the celebrities to use or wear their endorsed product at least in public in

order to counter the problem of lack credibility of the celebrities in the eyes of the

consumers.

The research has identified that the consumers are tolerant towards celebrity

endorsement with the stipulation that there should exist a common link between the

product and the celebrity. Thus the managers should take immense pain and care to

ensure that the celebrity chosen to endorse the product is ‘right’ in terms of age,

personality and the all the other symbolic properties associated with the celebrity. A

very popular and good looking celebrity is not enough; the endorsement should be

backed by an appropriate linkage. Also marketers should refrain from choosing

celebrities who are already endorsing a complimentary product within the same

product category.

Managers should cultivate appropriate means to handle the negative publicity that can

descend on the celebrities during their careers. This is because some consumers do get

pessimistically influenced by it and this could be dangerous for the endorsed product,

some to such an extent that they suggest that the celebrity facing a crises period

should be replaced. This is because the credibility of the celebrity is a very important

plays a very big role in 8influencing these consumers. Viewing this from another

74

perspective, any business should ensure that they have consumers who get influenced

by the quality and features of the product as opposed to the presence of a celebrity as

negative publicity anyways does not make much of a difference to them. Therefore

they can play the role of a safety net for the business.

Also the presence of genuine reasoning for the use of celebrities to endorse products

is essential is the recommendation for the managers and also that they should take

trouble to stick to the suggested guidelines when planning to utilise and execute

celebrity- based promotions.

As suggestions for future research, replication and expansion of the same study

should be made by doing a comparative analysis study of the consumer perceptions

towards celebrity endorsements between a developed country and a developing

country like India. Furthermore as this study has focused its research only on

consumers within the age bracket 21-30 years, future research can be undertaken

targeting different age groups in India which would probably bring to light different

perceptions regarding the topic in hand.

Also consumers from different walks of life as in the people who are working, the

housewives and even kids as quite a number of advertisement in India today such as

health drink advertisements are targeted at the kids. By including them in the future

research would help get an overall perception of the Indian consumers. Moreover

future research would bring interesting insights if conducted using the lower and

middle class segments. The usage of focus groups in future studies could also aid in

obtaining consumers thoughts and beliefs from varied angle, hence apart from the

conducting semi-structured interviews for understanding the consumers’ perception,

focus group as a data collection method seems very promising.

The same research design could be used to conduct a similar kind of study in different

national contents as every country has its own set of cultural values and hence

distinctive thoughts would surface and it would be interesting to observe what attitude

and beliefs influence them.

Future research in this area can challenge what kind of celebrities work best with what

type of products? Also whether all the products are suitable for being endorsed by

celebrities or they need to be categorized accordingly.

75

Also future research should aim to how the consumers are attracted to the different

traits of the celebrity, which is assumed to influence buying behavior, should be

studied in detail.

The changing mindset of people calls for inquiry into the degree of consciousness of

the consumers in relation to the advertising world. Some interviewed participants

viewed celebrity endorsement as a negative marketing technique. Future research

should look into the reason for this negativity and try coming up with the explanations

of how to overcome it.

76

Chapter V

Conclusion

Celebrity endorsement is truly a multifaceted and debatable research topic. After

mulling over the analysis it is evident that all the respondents were very much aware

of the fashion of celebrity endorsing products. It was observed that even though

celebrity endorsement as a marketing communication activity is viewed in a positive

light since the consumers used terms like ‘glamorous’ and ‘eye catching’ to define it,

the general view relating to opting for celebrity endorsed product as a personal choice

was pessimistic. Looking back at the analysis it can clearly be seen that the celebrities

are quite often viewed by people in some phase of their lives as their icon if not

consistently throughout their lives. The consumers follow the trends set by them both

in terms of external beauty and valuable characteristics. But this phenomenon is

deemed to be short lived in the consumer’s lives.

In relation to ‘good looks’ it was seen that the for the consumers the advertisements

should include attractive models to endorse the product as no one wants to view or be

like their unattractive counterparts. For the consumers who opted for celebrity

endorsed products their need for good looking models seemed to influence their

purchase but on the other hand the consumers who were in favor of product quality

and features, for them good looking personas appearing in advertisements were a

mere source of entertainment. In either case the presence of good look was asked for,

even though the need for it differed.

Credibility of the celebrities appeared to be of utmost importance for the respondents

for influencing their purchase decision. For them credibility of the celebrity endorsing

the product was of no value. The ‘familiarity’ of the celebrity as an essential criterion

for inducing a purchase of a celebrity endorsed product had to acknowledge rejection

77

at the hands of all the consumers. As per their thought process a celebrity being

familiar is not enough.

A profound number of consumers were not in favor of the notion that the celebrities

were in the habit of using the products which they endorse. This negative element was

significant as for the ‘celebrity enthusiast’ credibility has been stated as a very

important criterion. This makes consumers overly aware of the true nature of

endorsement which has more to do with generous compensation for the celebrity and

less to do with brand/product attributes. Thus, leading for consumers to feel overt

cynicism about their motives. (Tripp et al. ,1994). Such actions make the consumer

believe that it’s all about money for the celebrities.

Hence it can be concluded that since there is a heavy advertising clutter and almost no

room left for actual product differentiation in markets ,celebrity endorsement strategy

can be used to differentiate products from that of the competitors’ in mature and

saturated markets, provided the ‘right celebrity’ is found.(Erdogan, 1999)

In the case of brand recall, respondents agree that the existence of celebrities does

help in recalling the product faster and in some cases also leads to consumers going

ahead and purchasing the goods. But in most of the incidences it does not result in

inducing a purchase.

In terms of the popularity of the so called ‘vampire effect’ of the celebrity has

revealed really interesting findings. Some respondents were in the view that the

celebrities do take away the limelight from the product as it is believed that the

consumers are so mesmerized by the presence of the celebrity that they tend to

overlook the product. In contrast to this some respondents voiced that it is because of

the presence of these celebrities that the product is noticed and remembered by the

consumers.

78

The results of this study regarding negative publicity are quite contradicting to the

previous literature where negative publicity of the celebrity is taken in a cynical

attitude. There were some respondents whose thoughts were synonymous to the

previous literature. While the thought of the remaining respondents were in contrast

stating it’s not always the fault of the celebrities and in many cases the media who

unnecessarily evades the privacy hypes up the situation. Some candidates have

stressed on the importance of age and personality of the celebrities while attaching

meaning to the product. It was observed that the gender of the celebrity on the other

hand, is not much of a concern with the consumers.

All in all, the positive or negative impact of celebrities on the brand is open for further

pondering. But till the time the corporate world keep footing the large sums of pay

demanded by celebrities and till the consumers continue picturing celebrities sporting

a halo over their heads, celebrity endorsement as a marketing strategy will be

prevalent till then. (Katyal, 2007).

79

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IMPACT OF CELEBRITY ENDORSED ADVERTISEMENTS ON

CONSUMERS

By

DR. BIMAL ANJUM, SUKHWINDER KAUR DHANDA,SUMEET NAGRA

IRJC

Asia Pacific Journal of Marketing & Management Review

Vol.1 No. 2, October 2012, ISSN 2319-2836

A STUDY ON THE IMPACT OF CELEBRITY ENDORSEMENT ON BRAND

POSITIONING OF DIFFERENT PRODUCT CATEGORIES

Pooja Bahl

Dr. Bobby Brahme Pandey

Manoj Sharma

IJRIM Volume 2, Issue 3 (March 2012) (ISSN 2231-4334)

http://www.123helpme.com/view.asp?id=56878

http://www.studymode.com/essays/Dairy-Milk-Swot-752364.html

Social media case study: Cadbury Dairy Milk

Posted by David Greaves

80

http://www.furlongpr.com/social-media-case-study-cadbury-dairy-milk

Cadbury Dairy Milk – Gorilla

http://thisisnotadvertising.wordpress.com/2011/07/04/cadbury-dairy-milk-gorilla/>

 

 

Cadbury

Essay by dicksmith, University, Bachelor's, March 2006

http://www.writework.com/essay/branding-and-brand-management-cadbury

Brand Analysis: Cadbury’s Dairy Milk : A journey of success

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dairy-milk-a-journey-of-success/

CADBURY'S DAIRY MILK

http://www.mbaskool.com/brandguide/food-and-beverages/430-cadburys-dairy-

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CADBURY'S ADVERTISING STRATEGY 

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cadburys-advertising-strategy.html

81

Big B to promote Cadbury chocolates, Dairy Milk to get facelift

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dairy-milk-to-get-facelift/141905

Cadbury ropes in Amitabh as its brand ambassador

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Amitabh Bachchan to endorse better packaged Cadbury Dairy Milk Chocolates

By Ritu Midha

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How Cadbury's won the battle of worms

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Impact of Celebrity Endorsement on a Brand

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82

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Dr. Anitha R. Natekar

Assistant Professor, Department of Management Studies

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THAVAN IJRMM Vol 1, No. 2- Jan-Mar 2012, ISSN: 2277-1468

“Analysis of celebrity endorsement as an

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Robert van der Veen

Bournemouth University – United Kingdom

Fachhochschule Heilbronn - Germany

Master of Arts in European Tourism Management 2003/2004

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84

Appendix

Questionnaire: Cadbury’s Dairy Milk

Dear Sir/Ma’am,

I am student of Ramaiah Institute of Management Studies (RIMS), Department of Management Studies, Bangalore and presently doing a Final Year project on “Influence of Celebrity endorsement on buying behaviour of the consumer for Cadbury’s Dairy Milk”. I request you to kindly fill this Questionnaire below and assure you that the data generated shall be kept confidential. The data would be collectively analysed along with other respondents in the survey.

I thank you in advance for your cooperation.

Name:

Gender: Male Female

Age: 13-19 20-30 30-40 40-50

Address:

Contact No:

Income:

1) Have you tried any of the Dairy Milk chocolates?a. Yesb. No

85

2) If yes, what sub-brands of Cadbury Dairy Milk have you tried?a. Cadbury Dairy Milkb. Cadbury Dairy Milk Cracklec. Cadbury Dairy Milk Roasted Almondd. Cadbury Dairy Milk Fruit and Nute. Cadbury Dairy Milk Shotsf. Cadbury Dairy Milk Silkg. Cadbury Dairy Milk Wowie

3) Since when are you eating Cadbury chocolates? Is it before Amitabh Bachchan as brand ambassador or after? a. Before b. After

4) Have you been eating any other brand of chocolates earlier?a. Yes b. No

5) Is AmithabBachchan a reason for you to switch to Cadbury?b. Yes b. No

6) Which Ad of Cadbury Dairy Milk do you remember?a. Meetha hai Khana aaj pehli traarikh haia. Shubh aarambhb. Khane walon ko khane ka bahana chahiyec. Real taste of life Campaignd. Pappu pass hogaya & Radha Miss Palaumpur Campaign.

7) Will you stop buying Cadbury Dairy Milk if Amitabh Bachchan is not the Brand Ambassador? If Yes then why?

a. Yesb. No

8) Do you believe products specifically advertised by the celebrities are of good quality?

a. Yesb. Noc. Not Sure

86

9) What is the most persuading factor to purchase of Cadbury Dairy Milk?a. Celebrityb. Qualityc. Brand Named. Price

10) Does the presence of celebrities in an advertisement encourages you to purchase the product or service?

a. Yesb. Noc. Not Sure

11) Do you believe the celebrities also use those products which they themselves endorse?

a. Yesb. Noc. Not Sure

12) What do you value the most when purchasing a product? (5- Strongly Agree; 1- Strongly Disagree)

1 2 3 4 5a. Price of the productb. Celebrity endorsementc. Quality of the productd. Value for money

13) Does celebrity endorsement help in brand promotion?a. Yesb. Noc. Not Sure

87

14) What means of advertisements persuades you the most to purchase a product?a. Televisionb. Radioc. Newspaperd. Magazinee. Internet

15) What do you think is the reason for the companies to choose celebrity endorsement for promoting their products?

a. Easy recognition of productb. Can’t generate new ideasc. to be able to increase sales and profitd. To compete strongly

16) Rate the following: (5- Strongly Agree; 1- Strongly Disagree)

1 2 3 4 5a. Celebrity Endorsement hikes the

price of the productb. I don’t mind paying the higher price

for a product endorsed by higher celebrity.

c. Celebrity Endorsements are not required.

d. Celebrity themselves use the products they endorse

e. Celebrity endorsed products are of highquality.

88

Chi-Square Distribution Table

89