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IMPACT OF CELEBRITY ENDORSEMENT ON THE PURCHASEBEHAVIOUR IN MOBILE SERVICE PROVIDERS- A STUDY

OF FUTURE MANAGERS

Khushboo Makwana

Faculty of Marketing

Prestige Institute of Management And Research, Affiliated toDAVV, Indore

Nidhi Sharma

Faculty of Marketing

Prestige Institute of Management And Research, Affiliated toDAVV, Indore

For Correspondence:-

1. Khushboo Makwana301, Yeshodha Apartment Mahaveer Nagar, Indore (M.P.)

2. Nidhi SharmaFH-144, Scheme No. 54,Vijaynagar, Indore (M.P.)

IMPACT OF CELEBRITY ENDORSEMENT ON THE PURCHASE BEHAVIOUR INMOBILE SERVICE PROVIDERS- A STUDY OF FUTURE MANAGERS

ABSTRACT

In the present scenario of information explosion and media power,

the advertisements play a major role in changing customer

perception about brands. Brand endorsement is a way to get the

brand noticed amidst the clutter in the market place. Across the

world, celebrities are used to endorse different brands.

Marketers explicitly acknowledge the power of celebrities in

influencing consumer purchase behavior. Celebrity endorsement has

become an essential part of today’s advertisement world. The

present study focuses on comparing the impact of celebrity

endorsement on the purchase behavior of male and female consumers

of Reliance, Tata Docomo and Vodafone. Self designed closed ended

questionnaire was used to collect the data. Appropriate research

tools were used to analyze the collected data.

Keywords: Celebrity endorsement, consumer, purchase behavior,

brand.

Introduction

The term celebrity refers to an individual who is known to the

public (Actor, Sports figure, Entertainer etc) for his/her

achievements in areas other than that of the product class

endorsed. This is true for classic form of celebrities, like

Amitabh Bachan, Shahrukh khan, Salman khan and Katrina Kaif of

Bollywood, sports figures e.g. Sachin Tendulkar and M.S.Dhoni

etc. Hussain et. Al (2011). Everyday consumers are exposed to

thousands of voices and images in magazines, newspapers,

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 and hence, the 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.

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.

Literature Review

Firms have been putting together their brand and themselves with

celebrity endorsers (e.g. athletes, actors) in the anticipation

that celebrity may boast effectiveness of their marketing.

Different researchers have defined Celebrity in their own way.

According to Alsmadi[1] (2006) "A celebrity is a well-known

personality who enjoys public recognition by a large share of a

certain group of people". "Celebrities are individuals who enjoy

public recognition and who use this recognition on behalf of a

consumer good by appearing with it in an advertisement".

Christina Schlecht[10] (2003) quoted: "Celebrities are people who

enjoy public appreciation by a large share of certain Group of

people. Whereas the attributes like attractiveness, extraordinary

lifestyle or special skills are just examples and specific common

characteristics cannot be observed, it can be said that within a

corresponding social group celebrities generally differ from the

social norm and enjoy a high degree of public awareness.

Stephen K. Koernig and Thomas C. Boyd[15] (2009) examined the

roles of product-endorser "fit" with celebrity and non-celebrity

endorsers by comparing the effects of a famous athlete and an

unknown model on a variety of consumer responses. The results of

the first experiment suggested that a famous athlete is more

effective while endorsing a sport brand than a non-sport brand.

In the second experiment, an anonymous model is identified as

either a famous athlete or not and is paired with either a sport-

related brand or a non-sport brand. Results indicate that an

anonymous model identified as an athlete is more effective as an

endorser where there is a match between the endorser and the

product.

Hussain et al [5] (2011) conducted a

research to find out the relationship of celebrity endorsement

and consumer impulse buying. This research showed the behavior of

the consumer in Peshawar and the data was collected from three

shopping markets on random basis from the university road

markets. Chi-square test was applied to get appropriate result.

Survey research method was used by distributing structured

questionnaires to a sample size of 95 respondents from these

targeted markets. The result showed that that celebrity

endorsement has no relationship with impulse buying of the

consumers.

Across the world, celebrities have been used for a wide variety

of brands. The crescendo of celebrities endorsing brands has been

steadily increasing over the past years. Marketers overtly

acknowledge the power of celebrities in influencing consumer

purchase decisions. Balakrishnan et al [3] (2011) focused on

identifying the influence of celebrity endorsements on the

purchase attitude of the consumers towards durable products. It

is an universally accepted fact that celebrity endorsement can

confer special attributes upon a product or service, that it may

have lacked otherwise.

Mohammad et.al [16] (2011) recommended

the use of celebrities in advertising because of high

attractiveness which can help the customers to remember the brand

during shopping, and using celebrities can get more attention

than the advertisements that don't. Raja Shekhar and Udaya

Bhaskar[11] (2009), investigated the impact of the celebrities on

consumer attitudes toward the advertisement, and their intent to

purchase with reference to selected prepaid mobile service

providers (Airtel, Reliance, BSNL, Vodafone and Idea). The

dependent variables purchase intentions, attitude toward the

advertisement were measured against the independent variables

demographics and Celebrity qualities and advertisement attributes

using one-way ANOVA. The results indicated that celebrity

endorsements generated higher purchase intentions and positive

attitudes toward the advertisement in urban area compared to semi

urban.

On the basis of above literature reviewed, it is apparent that

brands endorsed by celebrities enjoy high degree of public

awareness, higher purchase intentions and positive attitudes

towards advertisement. This inspired us to conduct a study on the

impact of celebrity endorsement in telecommunication sector.

OBJECTIVE OF THE STUDY

To compare impact of celebrity endorsement on the purchase

behavior of consumer among male and female users of Tata,

Reliance and Vodafone

HYPOTHESIS

H01 : There is no significant difference between purchase

behavior of the male and female customers of Reliance , Vodafone

and Tata with respect to its impact of celebrity endorsement.


behavior of male customers of Reliance and Vodafone with respect

to its impact of celebrity endorsement.

H03 : There is no significant difference between in purchase

behavior of male customers of Tata and Vodafone with respect to

its impact of celebrity endorsement


behavior of male customers of Reliance and Tata with respect to



behavior of female customers of Reliance and Vodafone with

respect to its impact of celebrity endorsement


behavior of female customers of Reliance and Tata with respect

to its impact of celebrity endorsement


behavior of female customers of Tata and Vodafone with respect to


RESEARCH METHODOLOGY

Research type : exploratory

Sampling Technique : convenience sampling technique

Sampling Unit :Students of professional Institute pursuing

graduation from Indore City.

Sample Size : 120

: 60 male students ( 20 each of Vodafone,

Reliance, Tata)

: 60 female students ( 20 each of Vodafone,

Reliance, Tata)

Tools for data collection : Questionnaire based on five point

likert scale. Questionnaire consists of 14

questions and it has been administered on the

male and female students of professional

institutes.

Tools for Data Analysis : One Way ANOVA, Tukey. The data was

analyzed with the help of statistical package

for social science.

Reliability of the measures : Questionnaire adopted in the

study consisted of 14 items.

Reliability of the measure was assessed with the use of

Cronbach’s Alpha on all the 14 items. The Cronbach’s Alpha of the

questionnaire was 0.807. As a general rule, a coefficient greater

than or equal to 0.7 is considered acceptable. Hence, it was

found reliable for the further analysis.

RESULT AND DISCUSSION

Table 1 depicts that impact of celebrity endorsement on the

purchase behavior of male and female of consumer in Vodafone,

Reliance and Tata significantly differ in their mean values

( F=15.064 and P<0.01). Hence, Hypothesis H01 is rejected at 1 %

level of significance. Reliance female group has highest grand

average of 3.9, hence have better impact of celebrity endorsement

on the consumer purchase behavior, Reliance male group has grand

average of 3.5, Tata male group , Tata female group, Vodafone

male group, Vodafone female group have 3.2, 2.7, 2.5 and 2.4

respectively.

In order to find out the significant difference between groups

i.e male customers of Tata and Reliance, male customers of

Vodafone and Reliance ; and male customers of Vodafone and Tata;

female customers of Tata and Reliance, female customers of

Vodafone and Reliance ; and female customers of Vodafone and

Tata; Tukey test was applied as indicated in Table 2. It

represents that p value in groups 2, 3, 5 and 6 is 0.000 and this

means null hypothesis H02, H03, H04 H05, H06 and H07 are rejected at

5% significance level and it can be inferred that there is

significant difference between the purchase behavior of male

customers of Reliance and Vodafone with respect to its impact of

celebrity endorsement.

CONCLUSION

This paper examined the impact of Celebrity endorsement on the

purchase behavior of consumer among male and female customers of

Reliance, Tata and Vodafone. It was revealed that there is a

significant difference between the purchase behavior of the male

and female customers of Reliance, Vodafone and Tata with respect

to its impact of celebrity endorsement. Telecommunication

companies like TATA, Reliance and Vodafone must keep on using

celebrity while endorsing their brand for the promotion of their

product; as the consumers relate themselves with the celebrities.

Hence, celebrity endorsement act as one of the successful

marketing tools to enhance the brand recall value, credibility

and brand image.

REFERENCES:-

1 .Al-smadi Sami ,Journal of Accounting – Business & Management

vol. 13 (2006) 69-84.

2. Bahl Pooja, Bobby Pandey, Sharma Manoj, 2012“ A study on

the impact of celebrity endorsement on brand positioning of

different product categories”, IJRIM Volume 2, Issue 3 (ISSN 2231-4334)s

3. Balakrishnan Lalitha and Kumar C. (2011) “ Effect of

Celebrity Based Advertisements on the Purchase Attitude of

Consumers towards Durable Products (A study with reference to the

city of Chennai)”, World Review of Business Research Vol. 1. No. 2. May 2011 .

98 – 112

4. Dubey, S. K. , Agrawal, Pradeep , 2011 “. Impact of

Celebrity Advertisements: Bollywood Vs Cricket Stars.” Journal of

Marketing & Communication;, Vol. 7 Issue 2, 4-12, ISSN: 09732330

5. Hussain Murad, l Manzoor Sheikh, Shamsurrehman, Ali

Syed, Zia-ud-din, Imran , ( Nov 2011) “Relationship of

Celebrity Endorsement with Consumers Impulse Buying in

Leadership” Columbia Business School, January 15. 1-13.

6. Mark Choueke, 2006 “Celebrity scandals can be gold dust for

brands.” Marketing Week (01419285); 1/12/, Vol. 29 Issue 2, ISSN: 01419285

7. Patel, Pratik C , 2009 “ Impact of Celebrity Endorsement on

Brand Acceptance.”, ICFAI Journal of Consumer Behavior; Vol. 4 Issue 1, 36-45, ISSN:

09733760

8. Patra, Supriyo , Datta, Saroj K. 2010. “Celebrity

Endorsement in India--Emerging Trends and Challenges” Journal of

Marketing & Communication;, Vol. 5 Issue 3, 16-23, ISSN: 09732330

Pedhiwal G. (2011), “IMPACT OF CELEBRITY ENDORSEMENTS ON OVERALL

BRAND” ISSN No :2230-7850, Vol - I , ISSUE – VII

9. Peshawar, Khyber Pakhtunkhwa, Pakistan”, Interdisciplinary Journal of

Research in Business, Vol. 1, Issue. 10, .67- 72 Private University",

American Journal of Scientific Research ISSN 1450-223X Issue 13 (2011), 59-70

10. Schlecht, Christina (2003), “Celebrities’ Impact on Branding, Center on Global Brand

11. Shekhar Raja, Bhaskar Udaya, 2009 “A comparative study of

celebrity impact on consumer behavior with reference to prepaid

mobile service providers in select urban and semi urban areas.”

International Journal of Business Research;, Vol. 9 Issue 1, 103-107, ISSN: 15551296

12. Slivera David, Austad Benedikte, (2004) “Factors Predicting

the effectiveness of the Celebrity Endorsement advertisement”.

European journal of Marketing 38. 11/12, 1509

13. Sola OGUNSIJI (2012), “The Impact of Celebrity Endorsement on

Strategic Brand Management”. International Journal of Business and Social

Science Vol. 3 No. 6. 141-145

14. Sonwalkar, Jayant, Kapse, Manohar , Pathak, Anuradha 2011,

“Celebrity Impact- A Model of Celebrity Endorsement.” Journal of

Marketing & Communication;, Vol. 7 Issue 1,34-40, ISSN: 09732330

15. Stephen K. Koernig and Thomas C. Boyd, “To Catch a Tiger or

Let Him Go: The match-up Effect and Athlete Endorsers for Sport

and non-Sport Brands.” Sport Marketing quarterly; 2009, vol. 18 issue, 15-37.

16. Zoubi Mohammad, Bataineh Mohammad (2011), “ The Effect of

using Celebrities in Advertising on the Buying Decision -

Empirical Study on Students in Jarash

Annexure Table 1

ANOVA

VAR00001

Sum ofSquares Df Mean Square F Sig.

Between Groups 3852.942 5 770.588 15.064 .000

Within Groups 5831.650 114 51.155

Total 9684.592 119

Multiple Comparisons

Table 2

Tukey HSD

(I) VAR00002

(J) VAR00002

MeanDifference

(I-J)Std.Error Sig.

95% Confidence Interval

Lower Bound Upper Bound

Vodafone male

Relianc Male

14.15000* 2.26174 .000 7.5937 20.7063

Tata Male

10.40000* 2.26174 .000 3.8437 16.9563

Vodafone female

1.55000 2.26174 .983 -5.0063 8.1063

Relianc Female

13.40000* 2.26174 .000 6.8437 19.9563

Tata Female

12.05000* 2.26174 .000 5.4937 18.6063

Relianc Male

Vodafone male

-14.15000* 2.26174 .000 -20.7063 -7.5937

Tata Male

-3.75000 2.26174 .562 -10.3063 2.8063

Vodafone female

-12.60000* 2.26174 .000 -19.1563 -6.0437

Relianc Female

-.75000 2.26174 .999 -7.3063 5.8063

Tata Female

-2.10000 2.26174 .938 -8.6563 4.4563

Tata Male

Vodafone male

-10.40000* 2.26174 .000 -16.9563 -3.8437

Relianc Male

3.75000 2.26174 .562 -2.8063 10.3063

Vodafone female

-8.85000* 2.26174 .002 -15.4063 -2.2937

Relianc Female

3.00000 2.26174 .770 -3.5563 9.5563

Tata Female

1.65000 2.26174 .978 -4.9063 8.2063

Vodafone female

Vodafone male

-1.55000 2.26174 .983 -8.1063 5.0063

Relianc Male

12.60000* 2.26174 .000 6.0437 19.1563

Tata Male

8.85000* 2.26174 .002 2.2937 15.4063

Relianc Female

11.85000* 2.26174 .000 5.2937 18.4063

Tata Female

10.50000* 2.26174 .000 3.9437 17.0563

Relianc Female

Vodafone male

-13.40000* 2.26174 .000 -19.9563 -6.8437

Relianc Male

.75000 2.26174 .999 -5.8063 7.3063

Tata Male

-3.00000 2.26174 .770 -9.5563 3.5563

Vodafone female

-11.85000* 2.26174 .000 -18.4063 -5.2937

Tata Female

-1.35000 2.26174 .991 -7.9063 5.2063

Tata Female

Vodafone male

-12.05000* 2.26174 .000 -18.6063 -5.4937

Relianc Male

2.10000 2.26174 .938 -4.4563 8.6563

Tata Male

-1.65000 2.26174 .978 -8.2063 4.9063

Vodafone female

-10.50000* 2.26174 .000 -17.0563 -3.9437

Relianc Female

1.35000 2.26174 .991 -5.2063 7.9063

*. The mean difference is significant at the 0.05 level.

Table 3VAR00001

Tukey HSD

VAR00002 N

Subset for alpha =0.05

1 2

2 20 42.5000

5 20 43.2500

6 20 44.6000

3 20 46.2500

4 20 55.1000

1 20 56.6500

Sig. .562 .983

Means for groups in homogeneous subsets are displayed.

QUESTIONAIRE

Dear Participants,

We are conducting a survey on the subject of CELEBRITY ENDORSEMENT .Please attempt to answer all the questions and click one appropriate box that best suits your perspective for each statement.

Name:

Age:

Gender: Male/ Female

Please tick on your favorite Celebrity from the following:

1. Vodafone – ZooZoos/ Irfan Khan 2. Reliance – Anushka Sharma 3. Tata Docomo - Ranbeer Kapoor

Mark the following as (1= Strongly disagree, 2= disagree, 3=neutral, 4= Agree 5= Strongly Agree)

S.No.

Statements 1 2 3 4 5

1 Celebrity is required in an advertisement in telecommunication sector

2 I would not buy a brand if my favorite celebrity is not endorsing it

3 Celebrity endorsement increases your probability to purchase the product or service.

4 Celebrity endorsement decreases the risk related to the product or service.

5 Celebrity endorsement is essential for the success of product or service.

6 Celebrity endorsement increases the trustworthiness of the product or service.

7 Celebrity endorsement increases the brand recall fora product or a service.

8 Celebrity endorsement is essential for the promotionof product or service in this competitive market place.

9 Celebrity endorsement alters the buying behavior of a person in a positive way.

10 Celebrity endorsement increases the credibility of the product or service.

11 Individuals mostly relate themselves with the celebrity rather than the product or service

12 Celebrity endorsement attracts individual’s attention towards the product or service advertised.

13 Celebrity endorsement solely increases the sales fora product

14 I will stop buying a brand if my favorite celebrity endorsing it got involved in a scandal