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PIONEER INSTITUTE OF PROFESSIONAL STUDIES, INDORE DILIGENCE & EXCELLENCE (AN AUTONOMOUS INSTITUTE) A MAJOR PROJECT REPORT ON “EFFECT OF CELEBRITY ENDORSEMENT ON CONSUMER BUYIG BEHAVIOR (WITH REFERENCE TO BIKE SGMENT)” 1

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PIONEER INSTITUTE

OF PROFESSIONAL STUDIES, INDORE

DILIGENCE & EXCELLENCE

(AN AUTONOMOUS INSTITUTE)

A MAJOR PROJECT REPORT

ON

“EFFECT OF CELEBRITY ENDORSEMENT ON CONSUMER BUYIG BEHAVIOR (WITH REFERENCE TO

BIKE SGMENT)”

Supervisor: Submitted By: Dr.Mona Tanwar Praveen Singh Chauhan

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ACKNOWLEDGEMENT

It is a great delight and a moment of immense satisfaction for us to express our sense of deep gratitude and indebtedness towards Chairman DR. P.K. JAIN, Director DR. V.K. Jain, PROF. Dr. MONA TANWAR who showed confidence in the Endeavor and allowed us to carry out this project.

Where the emotions are involved words cease to meet. There is no word to express my regard to Professor Dr. Mona Tanwar , who took pain to bring us up to this stage.

PRAVEEN SINGH CHOUHAN

M.B.A. 4th SEM (SEC- P)

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CERTIFICATE

This is to certify that Mr. Praveen Singh Chouhan, student of Pioneer Institute of Professional Studies, Indore has done a research project titled “Effect of Celebrity endorsement On Consumer Buying Behavior “(With Reference To Bike Segment) in lieu of partial fulfillment of M.B.A.4th Sem exams of the institute.

The work is adequate and satisfactory & has been carried under my supervision and guidance. I wish them success and good luck in all their endeavors.

Place: INDORE Project Mentor

Date: (Prof. Dr .Mona Tanwar)

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TABLE OF CONTENTS

CHAPTER 1: -INTRODUCTION / CONCEPTUAL FRAMEWORK

CHAPTER 2: -LITERATURE REVIEW

-RATIONALE

-OBJECTIVE

CHAPTER 3: - RESEARCH METHADOLOGY

-UNIVERSE

-SAMPLE

-HYPOTHESIS

-RESEARCH DESIGN

-TOOLS FOR DATA COLLECTION

-TOOLS FOR DATA ANALYSIS

CHAPTER 4: - RESULT AND DISCUSSION

CHAPTER 5: -CONCLUSIONS

-IMPLICATIONS

-LIMITATION

-SCOPE FOR FUTURE WORK

REFERENCES: -BIBLIOGRAPHY

-WEBLIOGRAPHY

ANNEXURES: -QUESTIONNAIRE

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Chapter – 1

INTRODUCTION/CONCEPTUAL FRAMEWORK

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Introduction/Conceptual Framework

The effect of celebrity endorsement on consumer buying behavior, with special reference to bike

segment undertakes a applied research in which the study of effect of celebrity use in

advertisements of bike. This study will focus on the impact of celebrity on consumer buying

behavior and their impact on consumer decision.

Celebrity endorsement is a special type of advertisement which includes a famous

person from film fraternity, athletes, and sports, modelling world etc. it helps in promoting the

product brand and also increasing the sales of the product. Celebrity endorsement not only has

developed in recent years, it is being used from the past for promoting the product. This type of

marketing strategy is used to promote the product and has proved in itself a boon in advertising

world. It is mainly used to influence the consumer who comes across these advertisements as it is

accessed in the consumers mind for many days even after the advertisement. Celebrity

endorsement has not always helped in promoting the product but it has been developed

considerably over the years. It is very expensive to endorse a celebrity for a product but in the

long run it has helped in increasing the sales of the product. Celebrities are also interested in

endorsing themselves in the product as they get compensation for it and their image is been

developed considerably. Businesses have long sought to distract the attention of the potentials

customers that live in a world of ever increasing commercial bombardment. Everyday consumers

are exposed to thousands of voices and images in magazines, news paper, and on billboards,

websites, radio and television .Every brand attempts to steal a fraction of an unsuspecting

person‘s time to inform him or her of the amazing and different attributes of the product at hand.

Because of the constant media saturation that most people experience daily, they eventually

become numb to the standard marketing techniques.

The study is to be done within the purview of certain variables which will clearly underline the

factors which affect the consumer buying decision and would help in the study of effect of

celebrity endorsement on consumer buying behavior & the corresponding factors involved in it.

There are various variables (factors) which is affect the decision of consumer use of celebrity in

advertisements.

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Various studies suggest that the overall cost of attracting new customers in the market is much

higher as compared to retaining existing ones, thus companies must seek both to develop an

effective and efficient communication with their existing consumers along with attracting

potential customers utilizing its marketing mix.

It is a known fact that the best endorsements achieve an eclectic 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.

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. And clever marketers leverage this

very celebrity appeal and are successfully carrying out their jobs by giving the bottom lines of all

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 manifolds 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. The growing importance of mythical characters as celebrities and their sway

over the target segments are ample proof of public demand for icons to look up to. 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.

Does anyone buy a product because a Bollywood or TV actor/actress stands up and reads a script

in somewhat convincing manner? Are their distinctions in how consumers perceive these types

of endorsements and respond to them?

What happens when a celebrity endorser gets involved in a public scandal, or worse, dies? Will

the product lose consumer support or perish?

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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.

The four Qs:

Quick saliency: It gets cut through because of the star and his attention getting value. Goodlass

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, Shah Rukh and their ilk's ensure an easy connect for Pepsi with the youth.

Quick shorthand for brand values: 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.

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.

Convincing clients.

Types of Celebrity Endorsements

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Celebrity branding has many aspects. A slight change in the type of branding used can result in

either a great success or a dismal failure. Celebrity branding falls into five general categories:

Testimonial: The celebrity acts as a spokesperson for the brand.

Imported: The celebrity performs a role known to the audience.

Invented: The celebrity plays a new, original role.

Observer: The celebrity assumes the role of an observer commenting on the brand.

Harnessed: The celebrity's image is integrated with the ad's storyline.

Objectives of Marketing Communications

Defining the objectives of the advertisements is the first step. In general, there are four major

objectives for any advertisement. Note that not all advertisements need to have all the objectives.

1 Establish the product need

stablishing a need for a product or a product category is the necessary first step. This is more

important in new-to-world category of products In Indian context, consider the advertisement for

Polio Immunization drive - the TV advertisement featured Amitab Bachan telling that

immunization is a must for every child - while people suffering from polio are shown in the

background along with healthy kids. This advertisement used a celebrity to create the need for

polio immunization.

Another good example is Toyota’s advertisement of Innova in India. The TV advertisement

prominently shows Amir Khan playing different roles while traveling in an Innova. The different

roles - establish the need for such a big car in India. ( Note that Indian car market is dominated

by small cars - which can seat only four adults, Toyota wanted to establish the need for a 8 seater

car in India)

2 Create Brand Awareness

Once the need for a product is established, customers must be able to associate the brand with the

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product category. For example iPod is strongly associated with portable MP3 players, Nike with

sports shoes etc..

A classic example of this is Nike’s use of Michael Jordan advertising for Nike. This

advertisement instantly created a strong association of Nike with basketball shoes.

3 Set customer expectations

Brand value comes from the customers experience with the product. If the product meets or beats

his expectations, then a positive brand image is created, else a negative brand image is created.

Therefore it is essential to set the customer expectations accordingly.

This is most common in established consumer products - Beauty products, household cleaning

products, food products etc.

4 Create a purchase intention

These are marketing promotion advertisements - Buy one, get one free, or get additional

discounts if you buy within a particular date etc.. The sole purpose of such communication

messages is to encourage customers to buy immediately or within a short period after seeing

Use of celebrity endorsements to create a purchase intention has been very limited. This is

mainly because such advertisements adversely affect the personality brand value of the

celebrity. Being associated with a discount deal is not favorable image for the celebrity and

the customer.

Variable definitions:-

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Advertising

Advertising is any paid form of non personal presentation and promotion of ideas, goods, or

services by identified sponsor.

Consumer

Consumers as individuals generally purchase products or services for personal consumption for

his/her own use, household or gift. It means they are identified as end users.

Celebrity

McCracken's (1989) defines a celebrity as, "any person who enjoys a public recognition and who

utilizes this recognition on behalf of any consumer product by coming along with it in an

advert.”

As per (Friedman and Friedman, 1979), a celebrity is an individual who is a ‘Globally famous

and renowned icon’ among populace in cosmopolitan societies. He can be an entertainer to the

public, a movie superstar, a television actor or a sportsman, etc owning special entertaining

qualities respectively.

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Chapter- 2

Chapter 2: Review of Literature, Rational and Objectives

2.1 -LITERATURE REVIEW

2.2 -RATIONALE

2.3 -OBJECTIVE

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2.1 -LITERATURE REVIEW

Research is a systematic method of finding solutions to problems. It is essentially an

investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.

According to Clifford woody, “research comprises of defining and redefining problem,

formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,

reaching conclusions, testing conclusions to determine whether they fit the formulated

hypothesis”

What are the real factors which change the consumer purchasing decision?

Celebrity brand image?

Look?

Personality?

Cool Avenues, 2005

Friedman and Friedman also found empirical evidences that, in advertising and promotion of

products which are high in psychological and/or social risk, use of celebrity endorser can lead to

an authentic believability and a more favorable assessment of the product and the advertisement,

which can significantly lead to a more positive purchase intention by the customer.

According toVeer, Ekant Becirovic, Ilda Martin, Brett A. S.

A research on “The role of celebrity endorsements in political party advertising” has been

conducted with the aim of determining, if celebrity endorsers in political party advertising have a

significant impact? They found that to incorporate the use of celebrity endorsements in political

party.

The results show that low political salience respondents were significantly more likely to

vote for the political party when a celebrity endorser is used.

According to Choi, Sejung Marina Rifon, Noraj

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A research on “Does celebrity endorsement still work?” The article provides a research study of

the positive impact of celebrity endorsers in the society in the field advertising. The research is

carried out in three phases including exploratory phase that qualitatively measures self-concept,

brand image, and credibility. The article states that celebrities draw more attention to the

advertisements they appear in and brands they are associated with and can create, enhance and

change brand images. The article mentions that the celebrities who represent up-to-date and

dominant values in a fragmented and diverse society might facilitate the existence and evolution

of the cultural entity.

Thus considering the above base of knowledge further study of the topic has been done with an

aim of analyzing the feasibility of the above stated conditions and their impact on the consumer

and their buying decision.

As per Atkins and Block (1983), a research on effectiveness of celebrity endorsement found that

celebrities may be influential because celebrities are viewed as dynamic with both attractive and

likable qualities. In addition to this their names and fame is thought to attract attention to the

product or service they are endorsing.

Pandey(2010)in his study “Impact of celebrities multiple product endorsements on buyer’s

attitude and purchase intentions”study that the aim of advertiser is to make their product distinct

and so valuable that the customer becomes a repeat buyer.

Aggarwal (2009)in his study “brand ambassadors and their impact on consumer behavior: A case

study of mobile companies in India” study that the choice of celebrities to fulfill that role has

become common practice for brands competing in today’s cluttered media advertisements.

Recently, two of it giants, hp and Lenovo signed Bollywood stars, shah rukh khan and saif ali

khan as their brand ambassadors.

The term celebrity refers to an individual who is known to the public (actor figure,

entertainer, etc.) for his or her achievements the areas other than that of the product class

endorsed (Friedman and Friedman, 1979). Celebrities appear in public in different ways. First,

they appear in public when fulfilling their profession, e.g., Viswanathan Anand, who plays chess

in front of the audience. Furthermore, celebrities appear in public by attending special celebrity

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events, e.g., award ceremonies, Inauguration or world premieres of movies. In addition, they

present in news, fashion, magazines, and tabloids‘, which provide second information on events

and the private life of celebrities through mass media channel (e.g., Smiriti Irani being regulated

featured in various publications). Last but not the least,

celebrities act as spokes-people in advertising to promote products and services, which is

referred to celebrity endorsement.

(http://pakistanmba.jimdo.com )

Celebrity is 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. E.g. A bandit

queen of chambal valley was very famous, but was terror before her surrender to police. But she

never becomes celebrity. But an actress Ms Seema Biswas who acted in film on "Bandit Queen"

on life of that bandit, became very famous and a Celebrity. They pull crowds with their presence

only. If it is understood that BIG B is coming for shooting a film, to a particular location on a

particular day , then there is big commotion in that area. Police worry about law and order

situation, even young generation throng there in big nose to have glimpses of BIG B and even

wait since early morning leaving aside their. Celebrities are people who enjoy public recognition

by a large share of a certain group of people. Whereas 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.

(McCracken, Grant (1989), "Who is the Celebrity Endorser?" Journal of Consumer

Research, 16 (December), 310-321

A product endorsement is a form of testimonial from someone which indicates that they like or

approve of a product. Commonly, product endorsements are solicited from people who are

socially prominent, allowing companies to advertise their products with statements like as used

by such-and-such an actress, or the official product of company/event X. It's hard to miss a

product endorsement on product packaging and in advertisements; most companies keep their

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endorsements front and centred so that they are always in the public eye. The concept of the

product endorsement is quite ancient. In England, for example, several companies have been

advertising themselves as by appointment to the Queen for hundreds of years, indicating that

they enjoy the patronage of the British royal family. Consumers are often seduced by the idea of

purchasing a product which is endorsed by someone wealthy or famous, as though by buying the

product, the consumer also becomes affiliated with the person who endorses it. Modern product

endorsements can come with contracts worth substantial amounts of money. For example, many

sports stars agree to participate in product endorsement campaigns with the understanding that

the company will compensate them for the trouble; some stars donate the proceeds to charities

they support, using the product endorsement as a public relations campaign. In exchange for an

endorsement contract, someone may agree to use the product publicly whenever possible, and

they may be restricted from using products made by a competitor. A product endorsement

doesn't necessarily mean that a product is good. It just means that the company has managed to

work its public relations connections to get a big name associated with it. While most people and

organizations will try out a product before they agree to endorse it, this isn't always the case, and

you shouldn't rely on endorsements to speak to the quality of the product, especially if you are

concerned about issues like illegal labour or adulterated products. Some endorsements take the

form of written testimonials, where people write about how the product changed their lives.

Historically, such testimonials were often printed on the product packaging directly; modern

testimonials are more commonly included in advertising campaigns, with excerpts only on the

packaging. Many companies also use photographs of famous people on their products to create a

visual connection between the endorser and the product, which is why sports stars appear on

your cereal box. The modern mass media has increased the exposure and power of celebrity.

Often, celebrity carries with it immense social capitals that is highly sought after by some

individuals. High paying jobs and other social perks unavailable to most people are readily

available to celebrities, even for wok not connected to the talents or accomplishment that made

them famous. For example - A retired athletes might receive high speaking fees or compensation

for public appearances, despite his talent having been sports, not oratory, while some envy

celebrities, and many aspire to celebrity, some who have attained it are ambivalent about their

status . Often, celebrities cannot escape the public eye, and risk being followed by fans. As well,

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child celebrities are notorious for having poor emotional health in adulthood, and often turn to

drug and alcohols abuse when their celebrity (as it usually does) fades.

(Erdogan (1999), "Celebrity Endorsement: A Literature Review", Journal of Marketing

Research, 15, 291-314)

Attribution theory and endorsement effectiveness

Although past research documents a general tendency for consumers to believe in the purity of

the motives of celebrity endorsers, it is likely that this tendency varies substantially both across

consumers and across endorsers. For example, Tripp showed that celebrities who endorse several

products are viewed as less credible endorsers than those who endorse only a single product. also

demonstrated that celebrities who are blamed for negative events (e.g. accidents) can have

detrimental effects on the products they endorse. In short, the effectiveness of a celebrity

endorser is dynamic, dependent on the celebrity, the product, and perhaps even societal

conditions at the time and place where the advertisement is shown. As such, it could be fruitful

to abandon the use of traditional measures of the celebrity endorser's trustworthiness or

credibility in general in favor of directly measuring the degree to which individuals evaluate the

celebrity as liking the endorsed product after viewing the advertisement. Such evaluations fit

under a class of judgment that has been referred to as “correspondent inferences” Correspondent

inferences more generally refer to any judgment in which observers use an individual's behavior

(e.g. an endorser saying that she loves Cheerios cereal) to infer congruent dispositions in that

individual (e.g. inferring that the endorser actually does love Cheerios cereal). We propose that

correspondent inferences are a direct measure of a celebrity's credibility in the specific context of

the advertisement, and thus should predict consumers' attitudes toward the advertised

product.H1. =Correspondent inferences will be positively associated with attitudes toward the

advertised product. Another interesting question in this context is whether consumers will tend to

make correspondent inferences about celebrity endorsers. Early social psychological work in

attribution theory suggests not – a large endorsement fee should be viewed as a strong incentive

toward endorsement behavior, and thus observers should doubt that endorsements reflect true

liking for the product on the part of the endorser. However, research indicating that celebrities

are especially credible and trustworthy endorsers (e.g. Freiden, 1984) suggests that consumers

might believe celebrities like the product regardless of endorsement fees. Furthermore, research

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examining a phenomenon called “correspondence bias” suggests that observers are biased such

that they tend to attribute behavior to personal characteristics of the individual performing that

behavior (e.g. liking for the product) even when situational factors (e.g. endorsement fees) are

sufficient to fully explain the behavior.

2.2 -RATIONALE

The rationale behind the study is to add to the already existing stock of knowledge and taking

into consideration the left over variables and providing an entirely new dimension to it.

Advertising is any paid form of non personal presentation and promotion of ideas, goods, or

services by identified sponsor. Marketer uses the brand image of celebrity it positioning the

product in consumer mind.

Over object for research is Does people purchase a bike after watch a celebrity in the

advertisement and get influenced by them?

It is a known fact that the best endorsements achieve an eclectic balance between the product 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.

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. You can do this

cleverly 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. Smart

associations are ones where the former happens.

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2.3 -OBJECTIVE

1 To find the effect of celebrity endorsement on consumer buying behavior for purchasing a

bike.

2 To identify the most influential celebrity for bike endorsement.

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Chapter- 3

METHADOLOGY

3.1- RESEARCH METHADOLOGY

3.2 -UNIVERSE

3.3 -SAMPLE

3.4 -HYPOTHESIS

3.5 -RESEARCH DESIGN

3.6-TOOLS FOR DATA COLLECTION

3.7 -TOOLS FOR DATA ANALYSIS

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3.1- RESEARCH METHADOLOGY

Research is a systematic method of finding solutions to problems. It is essentially an

investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.

According to Clifford woody, “research comprises of defining and redefining problem,

formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,

reaching conclusions, testing conclusions to determine whether they fit the formulated

hypothesis”

Simple random sampling is used for this study. This is Applied Research.

3.2 –UNIVERSE

The universe chooses for the research study is the 18 to 30 age group people of Indore.

3.3 -SAMPLE

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

random sampling is used for this study.

a. SAMPLE SIZE : 200 Respondents from each institute.

b. UNIT : Indore

c. NO. OF QUESTIONS : 18

Sampling Procedure:

The procedure adopted in the present study is random sampling, select respondent randomly

from population.

3.4 –HYPOTHESIS

There is no impact of celebrity endorsement on consumer buying behavior for Purchasing a bike.

3.5 -RESEARCH DESIGN

The study all about celebrity endorsement effect on consumer buying behavior. It required

primary data and it collect from the various young employee of organization of Indore like

student , Business Man, Employee between the age of 18 to 30 year.

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3.6-TOOLS FOR DATA COLLECTION

-PRIMARY SOURCE:

Primary data are in the form of “raw material” to which statistical methods are applied for

the purpose of analysis and interpretations.

The primary sources are discussion with employees, data collected through questionnaire.

- QUESTIONNAIRE:

A well defined questionnaire that is used effectively can gather information on both overall

performance of the test system as well as information on specific components of the system. A

defined questionnaire was carefully prepared and specially numbered. The questions were

arranged in proper order, in accordance with the relevance.

- NATURE OF QUESTIONS ASKED:

The questionnaire consists of multiple choice and likerd scale, variable assessing questions.

-PRE-TESTING:

A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed and

all of them were collected back as completed questionnaire. On the basis of doubts raised by the

respondents the questionnaire was redialed to its present form.

- SAMPLE:

A finite subset of population, selected from it with the objective of investigating its properties

called a sample. A sample is a representative part of the population. A sample of 200 respondents

in total has been randomly selected. The response to various elements under each questions were

totaled for the purpose of various statistical testing.

-VARIABLES OF THE STUDY:

The direct variable of the study is the effect of celebrity endorsement indirect variables are the

market image, perception, personality, attachment.

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3.7 -TOOLS FOR DATA ANALYSIS

The tool used in the analysis of data would be

‘Z’Test

The data are presented through bar charts.

Data also presented through tables.

Based on above interpretation and inferences are drawn.

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Chapter- 4

RESULT AND DISCUSSION

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MAJOR RESULT

We have two objectives

1 To find the effect of celebrity endorsement on consumer buying behavior for

purchasing a bike.

2 To identify the most influential celebrity for bike endorsement.

For this we make Hypothesis which is there is no impact of celebrity endorsement on consumer

buying behavior for purchasing a bike.

QUESTIONNAIRE For objective first

rating range from 1 to 5 where stand for

1 Strongly Disagree.

2 Somewhat Disagree.

3 Neutral.

4 Somewhat Agree.

5 Strongly Agree.

1. Celebrity endorsing is the motivating factors when you plan to buy a Bike?

1. □ 2. □ 3. □ 4. □ 5.□

2. Do you believe Bike specifically advertised by the celebrities is of good quality?

1. □ 2. □ 3. □ 4. □ 5.□

3. Celebrity is the most persuading factor to purchase the Bike?

1. □ 2. □ 3. □ 4. □ 5.□

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4. Bike companies are investing large amounts of money for using celebrities; do you think its helping

them to increase their total revenue?

1. □ 2. □ 3. □ 4. □ 5.□

5. Does the presence of celebrities like John Abraham, Amir Khan or Dhoni in an advertisement

encourage you to purchase Bike?

1. □ 2. □ 3. □ 4. □ 5.□

6. Do you believe the celebrities also use those products which they themselves endorse?

1. □ 2. □ 3. □ 4. □ 5.□

7. Do you give value celebrity endorsement when purchasing a Bike?

1. □ 2. □ 3. □ 4. □ 5.□

8. Does celebrity endorsement help in brand promotion?

1. □ 2. □ 3. □ 4. □ 5.□

9. As a celebrity, do you look to buy products that are endorsed by celebrity?

1. □ 2. □ 3. □ 4. □ 5.□

10. Any quality of celebrity like Success, Personality, Attractiveness, and Nationality eg Indian Celebrity,

Status about the celebrity would influence your decision to buy?

1. □ 2. □ 3. □ 4. □ 5.□

11. Would you be prepared to pay more for a Bike which is advertised by a celebrity endorser?

1. □ 2. □ 3. □ 4. □ 5.□

12. Would you consider a Bike to be of a high quality if it was endorsed by a celebrity?

1. □ 2. □ 3. □ 4. □ 5.□

13. Give your opinion:- I am more likely to purchase a Bike if it is being advertised by a celebrity that I

like or admire?

1. □ 2. □ 3. □ 4. □ 5.□

14. If you had previously bought a Bike due to celebrity influence, would that celebrity personal problems

or lack of success effect your opinion of the Bike?

1. □ 2. □ 3. □ 4. □ 5.□

15. As an observer, do you believe that celebrity endorsing advertisement affects the Bike consumers’

buying patterns?

1. □ 2. □ 3. □ 4. □ 5.□

For objective second

16. What type of celebrity endorsement persuades you personally to purchase products?

• Film star □ • Cricketer □26

Page 27: 4th Sem Final Mrp FINAL

• Famous personalities □ • Other □

17. As a bike consumer, what brand of bike you purchase did you purchase most recently?

a.Mahindra Stilo □ b.TVS Star city □ c.Herohonda Karizma □ d.Yamaha SZ □

18. Please rate the following celebrities as a brand endorser:-

1Excellent□ 2Average □ 3Poor □ 4can’t say □

a) John Abraham for Yamaha SZ

1Excellent□ 2Average □ 3Poor □ 4can’t say □

b) Amir Khan for Mahindra Stilo

1Excellent□ 2Average □ 3Poor □ 4can’t say □

c) Hritik Roshan for Hero Honda

1Excellent□ 2Average □ 3Poor □ 4can’t say □

d) Virandra sahwag for Hero Honda

1Excellent□ 2Average □ 3Poor □ 4can’t say □

e) Rajvardhan singh rathod for Hero Honda

1Excellent□ 2Average □ 3Poor □ 4can’t say □

f) M.S. Dhoni for bajaj Discover

1Excellent□ 2Average □ 3Poor □ 4can’t say □

TABLE

Q/R 1 2 3 4 5 6 4 8 9 10 11 12 13 14 15

1 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

2 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

3 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

4 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

5 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

6 3 5 3 4 3 2 3 3 3 3 2 2 2 3 3

7 3 5 3 4 3 2 3 3 3 3 2 2 2 3 3

8 3 4 4 5 5 3 4 5 4 4 3 4 2 2 4

9 3 5 3 4 4 3 2 3 3 3 2 2 2 3 3

27

Page 28: 4th Sem Final Mrp FINAL

10 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

11 3 5 3 4 5 2 3 3 2 3 2 2 2 3 3

12 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

13 3 2 4 4 4 3 4 5 5 4 3 4 4 2 3

14 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

15 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

16 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

17 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

18 3 4 4 5 5 3 4 5 4 4 3 4 2 2 4

19 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

20 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

21 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

22 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

23 3 5 3 4 3 2 3 3 2 3 2 2 3 4 3

24 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

25 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

26 3 5 3 4 4 3 2 3 3 2 3 2 2 2 3

27 3 5 3 5 3 2 3 3 2 3 2 2 2 3 3

28 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

29 3 5 3 4 3 2 3 3 2 3 2 3 2 3 3

30 3 5 3 4 3 2 3 3 2 3 2 3 2 3 3

31 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

32 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

33 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

34 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

35 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

36 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

37 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

28

Page 29: 4th Sem Final Mrp FINAL

38 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

39 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

40 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

41 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

42 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

43 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

44 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

45 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

46 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

47 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

48 3 5 3 3 2 3 3 2 3 3 2 2 2 3 3

49 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

50 3 2 4 4 3 4 5 5 4 3 4 4 2 4 3

51 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

52 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

53 3 5 3 4 3 3 2 3 3 3 2 2 2 3 3

54 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

55 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

56 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

57 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

58 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

59 3 5 3 4 3 2 3 3 3 3 2 2 2 3 3

60 3 5 3 4 3 2 3 3 3 3 2 2 2 3 3

61 3 4 4 5 5 3 4 5 4 4 3 4 2 2 4

62 3 5 3 4 4 3 2 3 3 3 2 2 2 3 3

63 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

64 3 5 3 4 5 2 3 3 2 3 2 2 2 3 3

65 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

66 3 2 4 4 4 3 4 5 5 4 3 4 4 2 3

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Page 30: 4th Sem Final Mrp FINAL

67 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

68 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

69 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

70 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

71 3 4 4 5 5 3 4 5 4 4 3 4 2 2 4

72 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

73 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

74 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

75 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

76 3 5 3 4 3 2 3 3 2 3 2 2 3 4 3

77 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

78 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

79 3 5 3 4 4 3 2 3 3 2 3 2 2 2 3

80 3 5 3 5 3 2 3 3 2 3 2 2 2 3 3

81 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

82 3 5 3 4 3 2 3 3 2 3 2 3 2 3 3

83 3 5 3 4 3 2 3 3 2 3 2 3 2 3 3

84 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

85 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

86 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

87 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

88 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

89 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

90 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

91 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

92 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

93 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

94 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

95 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

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Page 31: 4th Sem Final Mrp FINAL

96 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

97 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

98 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

99 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

100 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

101 3 5 3 3 2 3 3 2 3 3 2 2 2 3 3

102 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

103 3 2 4 4 3 4 5 5 4 3 4 4 2 4 3

104 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

105 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

106 3 5 3 4 3 3 2 3 3 3 2 2 2 3 3

107 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

108 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

109 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

110 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

111 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

112 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

113 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

114 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

115 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

116 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

117 3 5 3 3 2 3 3 2 3 3 2 2 2 3 3

118 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

119 3 2 4 4 3 4 5 5 4 3 4 4 2 4 3

120 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

121 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

122 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

123 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

124 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

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Page 32: 4th Sem Final Mrp FINAL

125 2 3 3 4 3 2 2 4 2 3 2 2 3 3 3

126 1 2 1 5 1 1 1 5 4 1 5 2 2 2 2

127 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

128 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

129 2 3 3 4 3 2 2 4 3 3 1 2 3 3 3

130 3 2 4 2 4 2 1 5 3 5 1 1 3 5 5

131 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

132 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

133 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

134 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

135 1 2 5 1 1 2 1 1 5 4 1 5 2 2 2

136 1 2 5 1 1 2 1 1 5 4 1 5 2 2 2

137 3 2 4 2 3 4 4 5 5 4 3 4 4 2 4

138 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

139 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

140 3 5 3 4 3 3 3 3 2 3 2 2 2 3 2

141 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

142 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

143 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

144 3 3 2 3 3 4 3 2 3 3 2 2 2 3 2

145 2 3 3 4 3 2 2 4 2 3 1 2 3 3 2

146 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

147 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

148 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

149 3 2 4 4 3 4 4 5 5 4 3 4 4 2 4

150 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

151 3 5 3 4 3 3 3 3 2 3 2 2 2 3 2

152 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

153 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

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Page 33: 4th Sem Final Mrp FINAL

154 3 3 2 3 3 4 3 2 3 3 2 2 2 3 2

155 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

156 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

157 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

158 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

159 1 2 1 5 1 2 2 1 5 4 1 5 2 2 2

160 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

161 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

162 2 3 3 4 3 2 2 4 2 3 1 2 3 3 3

163 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

164 1 2 1 5 1 5 1 5 4 3 2 2 3 3 5

165 1 2 1 5 1 2 1 5 4 1 5 2 2 2

166 3 2 2 3 3 3 2 3 2 3 3 2 2 2 3

167 1 2 1 5 1 2 1 4 4 1 5 2 2 2 2

168 3 2 2 3 3 4 3 3 2 3 3 3 2 2 3

169 1 2 1 5 1 2 1 5 4 1 5 2 2 2 2

170 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

171 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

172 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

173 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

174 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

175 3 5 3 4 3 2 3 3 3 3 2 2 2 3 3

176 3 5 3 4 3 2 3 3 3 3 2 2 2 3 3

177 3 4 4 5 5 3 4 5 4 4 3 4 2 2 4

178 3 5 3 4 4 3 2 3 3 3 2 2 2 3 3

179 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

180 3 5 3 4 5 2 3 3 2 3 2 2 2 3 3

181 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

182 3 2 4 4 4 3 4 5 5 4 3 4 4 2 3

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Page 34: 4th Sem Final Mrp FINAL

183 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

184 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

185 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

186 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

187 3 4 4 5 5 3 4 5 4 4 3 4 2 2 4

188 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

189 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

190 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

191 3 5 3 4 3 2 3 3 2 3 2 2 2 3 3

192 3 5 3 4 3 2 3 3 2 3 2 2 3 4 3

193 3 5 3 4 3 2 3 3 2 3 3 2 2 3 3

194 3 2 4 4 4 3 4 5 5 4 3 4 4 2 4

195 3 5 3 4 4 3 2 3 3 2 3 2 2 2 3

196 3 5 3 5 3 2 3 3 2 3 2 2 2 3 3

197 5 4 4 5 5 3 4 5 4 4 3 4 2 2 4

198 3 5 3 4 3 2 3 3 2 3 2 3 2 3 3

199 3 5 3 4 3 2 3 3 2 3 2 3 2 3 3

200 3 2 4 4 3 4 4 5 5 4 3 4 4 2 4

Z Test

It is a parametric test which depends upon the parameters such as mean or standard deviation.This test is applicable only if the sample size i.e. n≥ 30 (sample size is greater than or equal to 30).

A sample survey of 200 respondents.

Starting from null hypothesis that the

Ho : There is no impact of celebrity endorsement on consumer buying behavior for

Purchasing a bike.

H1: There is impact of celebrity endorsement on consumer buying behavior

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Use z-distribution table to estimate critical value.

Zcal.(0.05) = 1.96 (At 5% level of signicance)

Compute the Test Statistic.

Test of significance between two means

Standard deviation = 1.013

Standard error (S.E.) = 0.716

Sample size (n) =200

Arithmetic mean =2.845

Assumed mean =3

Z= Arithmetic mean-Assumed mean/S.E.

Z tab (0.05) = 1.96

Z cal = -2.164

Since Z cal < Z tab

Therefore Ho is accepted it means there is no impact of celebrity endorsement on consumer

buying behavior for purchasing a bike.

Celebrities have always been the easiest way for a new product launch (consumer goods) and

will remain to do so in the near future on account of their mass appeal and a world full of star

35

Page 36: 4th Sem Final Mrp FINAL

stuck loyal fans. But the impact on the brand is much greater than just an advertisement showing

a celebrity.

This result show now in current time people not purchase bike for celebrity endorsement, they

required some thing more like feature, price etc.

For objective second

16. What type of celebrity endorsement persuades you personally to purchase products?

• Film star □ • Cricketer □ • Famous personalities □ • Other □

This is show that 43% people persuade by film star personality, than they persuade by cricketer but many around 30% people not persuade by famous personalities they persuade by anybody.

17. As a bike consumer, what brand of bike you purchase did you purchase most recently?

a.Mahindra Stilo □ b.TVS Star city □ c.Herohonda Karizma □ d.Yamaha SZ □

36

Page 37: 4th Sem Final Mrp FINAL

This is show that many 47% people want to buy charisma 34% people want to buy Yamaha sz both are related to film star but only 9% people want to buy TVS star city which endorse buy M. S. dhoni.

18. Please rate the following celebrities as a brand endorser:-

1Excellent□ 2Average □ 3Poor □ 4can’t say □

a) John Abraham for Yamaha SZ 1Excellent□ 2Average □ 3Poor □ 4can’t say □

Most of the people things that John Abraham is excellent brand endorser.

b) Amir Khan for Mahindra Stilo 1Excellent□ 2Average □ 3Poor □ 4can’t say □

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Most of the people things that Amir Khan is average brand endorser.

c) Hritik Roshan for Hero Honda 1Excellent□ 2Average □ 3Poor □ 4can’t say □

Most of the people things that Hritik Roshan is excellent brand endorser.

d) Virandra sahwag for Hero Honda 1Excellent□ 2Average □ 3Poor □ 4can’t say □

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Page 39: 4th Sem Final Mrp FINAL

Most of the people things that Virandra sahwag is poor is brand endorser.

e) Rajvardhan singh rathod for Hero Honda 1Excellent□ 2Average □ 3Poor □ 4can’t say □

Most of the people things that Rajverdhan S Rathore is poor is brand endorser.

f) M.S. Dhoni for bajaj Discover 1Excellent□ 2Average □ 3Poor □ 4can’t say □

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Most of the people things that Dhoni is average brand endorser.

It shows that John Abraham is the most influential celebrity for bike endorsement.

FINDINGS

After analyzing the whole survey results, one can easily draw the following conclusions.

1. Bike penetration is very high among the youngsters.

2. Celebrity endorsement plays a very minute role in final decision making for buying a new

bike. A celebrity might help in easy reorganization and popularity of a product but not in

final decision making.

3. If a consumer wants to purchase a new bike then feature of bike matters the most to

him/her and brand ambassador matters least to them.

4. Effect of brand ambassador differs with different products, according to our survey

results, it matters most in case of clothing and food products. Because people tends to be

more choosy in case of high attachment and costly products like cars.

5. A common man feels that a celebrity helps an organization in increasing their total sales

and hence the revenue.

6. A brand ambassador also helps in increasing the market share of the product.

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Page 41: 4th Sem Final Mrp FINAL

7. Three fifth of the surveyed people feels that a celebrity like John or Hrithik motivates

them to buy a product.

8. But vast majority of the surveyed people (60% approx) feels that celebrity themselves

don’t use their endorsed products.

9. Film stars are the most popular celebrities among all, followed by cricketers.

10. Popularity of John Abraham is slightly more then that of Hrithik Roshan as a brand

ambassador of a bike.

11. In final decision making, a value for money is most important for a consumer and a brand

ambassador matters the least.

12. Around 75% of the surveyed people feel that celebrity endorsement helps an organization

in easy recognization of their products.

Chapter- 5

CONCLUSION

5.1 CONCLUSION

5.2 IMPLICATION

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Page 42: 4th Sem Final Mrp FINAL

5.3 LIMITATIONS OF THE STUDY

5.4 SCOPE FOR FUTURE WORK

5.1 CONCLUSION

Celebrities have always been the easiest way for a new product launch (consumer goods) and

will remain to do so in the near future on account of their mass appeal and a world full of star

stuck loyal fans. But the impact on the brand is much greater than just an advertisement showing

a celebrity.

We have seen that the correct choice of a celebrity can surely increase sales but when it comes to

long term loyalty and impact on the brand. The effect is yet somewhat debatable. In the end, the

product must deliver for the customer, no matter who endorses the product, if the customer does

not see himself getting value from his purchase, he will not buy it. But yes, celebrities over time

can influence the loyalty and make a person friendlier to a brand. Brand and celebrities are here

to stay for a long time and in this age of slick advertising and mass media and unthinkable

budgets, celebrities are having a field day charging huge amounts and making more money than

their mainstream professions. But then do they really care about the brand? Or is it just the

money? But the bottom line, celebrity endorsements are here to stay.42

Page 43: 4th Sem Final Mrp FINAL

Let us accept one thing - the world of advertising and brand building does not believe in the

Laissez-Faire principle. Unless you reach out to the customer, make him think and nudge him

that little bit, you will fall short of your targets and that is a cardinal sin, given the competition.

The brand managers work on an extremely sleek, thought-controlling process which may be

propounded as the Multiplier Effect. They are smart, pragmatic people and know very well that

Mr. Singh, sitting in his cosy home in Delhi and watching his favourite action hero driving the

brand new LX car model, would not walk up to the car showroom next day and book one for

himself. They offer simple feelers like concept and lifestyle to him, which are inherent to the

product advertisement, with or without the celebrity endorsement.

5.2 IMPLICATION

The given principles were linked to specific managerial suggestions regarding more effective use

of celebrities to enhance brand equity:

Celebrity endorsements will be more effective when used consistently over time to

increase the strength of the link between the celebrity and the endorsed brand.

Celebrity endorsements will be more effective when the ad execution is simple, clean,

and free of irrelevant design elements. Focus on the celebrity and the brand together.

Celebrity endorsements will be more effective when using a celebrity who is not already

strongly associated with another product or service.

Celebrity endorsements will be more effective when using a celebrity with a high “fit”,

“congruence”, or “belongingness” with the endorsed brand.

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Page 44: 4th Sem Final Mrp FINAL

Celebrity endorsers can be used to effectively reinforce and/or create an image for a

product or service.

Test potential brand/celebrity combinations to ensure that the impression and image of

the celebrity is positive for the target audience.

Celebrity endorsements will be more effective for less familiar brands.

Celebrity endorsers will be more effective for brands for which consumers have limited

knowledge/facts.

Celebrity endorsers will be more effective when integrated across the elements of the

marketing mix.

Caution in choice of celebrity endorser is warranted given the potential risk of tarnishing

the brand’s image.

5.3 LIMITATIONS OF THE STUDY

The limitations of the study are the following -

The data was collected through questionnaire. The responds from the respondents may not be accurate.

The sample taken for the study was only 200 and the results drawn may not be accurate.

Lack of experience of Researcher.

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5.4 SCOPE FOR FUTURE WORK

The present study on employee motivation helps to get clear picture about the factors which

motivates the employees. This in turn helps the management to formulate suitable policy to

motivate the employees. Hence, the motivational level of the employees may also change.

The factors that motivate the employees may change with change in time because the needs of

employees too change with change in time. So continuous monitoring and close observation of

factors that motivate the employees is necessary to maintain a competent work force. Only with a

competent work force an organization can achieve its objective. Moreover, human resource is the

most valuable asset to any organization. A further study with in dept analysis to know to what

extent these factors motivate the employees is required and important conclusions can be drawn.

REFERENCES:

Reference

Jobber, D. (2001) Principles & Practice of Marketing 3rd edition, London UK, McGraw-Hill.

Journal of Marketing and Communication Jan-April 2010 ,Vol. 5 Issue 3,p20-25,5p

European Journal of Marketing, 2010, Vol. 44 Issue 3/4, p436-450, 15p, 1 Diagram, 1 Chart

Journal of Global Marketing, 2009, Vol. 22 Issue 2, p121-137, 17p, 2 Diagrams, 4 Charts

Bibliography

1)Kotler p and Kelker kavin lane, Abraham kosh, M. jha(2010) Marketing Management ,

Delhi; Person(13 Edition),PP.647

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Page 46: 4th Sem Final Mrp FINAL

2) Journal of Current Issues & Research in Advertising, Spring2009, Vol. 31 Issue 1, p1-13,

13p, 4 Charts

3) SHH. Kazmi and Satish K. Batra(2010) Advertising & Sales Pramotion, New Delhi; Excel

Books(3rd Edition),PP.660

4) BERI GC(1998)Marketing Reserch, New Delhi;Tata Mcgraw-Hill(2nd Edition)PP.454

5) Schiffman Leon G. & Ceslie Lazer Kanuk (2007) Consumer Behavior, New Delhi;

Person(9th Edition),PP.579

Webliography

1) http://web.ebscohost.com/ehost/detail?vid=17&hid=10&sid=b8121830-1f24-4f61-a8b7-

67d84609cf4e%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d

%3d#db=crh&AN=49389463

2 ) http://web.ebscohost.com/ehost/detail?vid=23&hid=12&sid=7e03db29-5baa-4567-9a67-b484fb57bacc%40sessionmgr10&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=crh&AN=46034421

3) http://web.ebscohost.com/ehost/detail?vid=3&hid=15&sid=ee2e9b0d-5ba2-4db1-bbd1-2a00afdc39e4%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d

4) http://web.ebscohost.com/ehost/detail?vid=3&hid=15&sid=ee2e9b0d-5ba2-4db1-bbd1-2a00afdc39e4%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bwh&AN=4KB20030609112606

5)http://www.google.co.in/search?hl=en&source=hp&biw=1003&bih=591&q=reserch+paper+on+celebrity+endorsement&aq=f&aqi=g-sx1&aql=&oq=

ANNEXURES

QUESTIONNAIRE

Dear respondent

I am MBA 3rd semester student of “Pioneer Institute of Professional studies” Indore (MP). As a part of my MBA curriculum I has been assigned major research project. My research topic is “EFFECT OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING BEHAVIOR (WITH REFERENCE TO BIKE SEGEMENT)”. I would be grateful if you would take a few minutes to complete this questionnaire in order to help us complete my research work. Your help will be highly appreciated.Please fill the information according to instruction given below:-Name: …………………………. Age ………

Gender: - Male Female Occupation ………………………

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Use below option to show your opinion: 1 Strongly Disagree. 2 Somewhat Disagree. 3 Neutral. 4 Somewhat Agree. 5 Strongly Agree.

1. Celebrity endorsing is the motivating factors when you plan to buy a Bike? 1. □ 2. □ 3. □ 4. □ 5.□

2. Do you believe Bike specifically advertised by the celebrities is of good quality? 1. □ 2. □ 3. □ 4. □ 5.□3. Celebrity is the most persuading factor to purchase the Bike? 1. □ 2. □ 3. □ 4. □ 5.□4. Bike companies are investing large amounts of money for using celebrities; do you think its helping them to increase their total revenue? 1. □ 2. □ 3. □ 4. □ 5.□5. Does the presence of celebrities like John Abraham, Amir Khan or Dhoni in an advertisement encourage you to purchase Bike? 1. □ 2. □ 3. □ 4. □ 5.□6. Do you believe the celebrities also use those products which they themselves endorse? 1. □ 2. □ 3. □ 4. □ 5.□7. Do you give value celebrity endorsement when purchasing a Bike? 1. □ 2. □ 3. □ 4. □ 5.□8. Does celebrity endorsement help in brand promotion? 1. □ 2. □ 3. □ 4. □ 5.□

9. As a celebrity, do you look to buy products that are endorsed by celebrity? 1. □ 2. □ 3. □ 4. □ 5.□

10. Any quality of celebrity like Success, Personality, Attractiveness, and Nationality eg Indian Celebrity,

Status about the celebrity would influence your decision to buy? 1. □ 2. □ 3. □ 4. □ 5.□

11. Would you be prepared to pay more for a Bike which is advertised by a celebrity endorser? 1. □ 2. □ 3. □ 4. □ 5.□

12. Would you consider a Bike to be of a high quality if it was endorsed by a celebrity? 1. □ 2. □ 3. □ 4. □ 5.□13. Give your opinion:- I am more likely to purchase a Bike if it is being advertised by a celebrity that I

like or admire? 1. □ 2. □ 3. □ 4. □ 5.□

14. If you had previously bought a Bike due to celebrity influence, would that celebrity personal problems

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or lack of success effect your opinion of the Bike? 1. □ 2. □ 3. □ 4. □ 5.□15. As an observer, do you believe that celebrity endorsing advertisement affects the Bike consumers’

buying patterns? 1. □ 2. □ 3. □ 4. □ 5.□

16. What type of celebrity endorsement persuades you personally to purchase products? • Film star □ • Cricketer □ • Famous personalities □ • Other □17. As a bike consumer, what brand of bike you purchase did you purchase most recently?

a.Mahindra Stilo □ b.TVS Star city □ c.Herohonda Karizma □ d.Yamaha SZ □

18. Please rate the following celebrities as a brand endorser:-

1Excellent□ 2Average □ 3Poor □ 4can’t say □

a) John Abraham for Yamaha SZ 1Excellent□ 2Average □ 3Poor □ 4can’t say □ b) Amir Khan for Mahindra Stilo 1Excellent□ 2Average □ 3Poor □ 4can’t say □ c) Hritik Roshan for Hero Honda 1Excellent□ 2Average □ 3Poor □ 4can’t say □ d) Virandra sahwag for Hero Honda 1Excellent□ 2Average □ 3Poor □ 4can’t say □ e) Rajvardhan singh rathod for Hero Honda 1Excellent□ 2Average □ 3Poor □ 4can’t say □

f) M.S. Dhoni for bajaj Discover 1Excellent□ 2Average □ 3Poor □ 4can’t say □

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