A Study on Consumer Perception for Celebrity Endorsement

Abstract:

In today’s world the celebrities are treated as a role model. People are changing their life style according with their favorite celebrity. This thing creates to a great extent an impact on the buying/ Purchasing behavior of the Consumer. This attracts the customers which leads to increases the company productivity which leads to increase in profit of the organization. Celebrities are not always creating any kind of effect on person’s mind in terms of buying but giving the consumers information about the product. But mostly it gives a great impact on perception of choosing which product is the best in the market for the use. Now a Days celebrity endorsement plays an important role to market a product. A Brand is known by the celebrity who endorsed the same. Consumer perception is affected due to celebrity endorsement among youth in Mumbai. The area of research is in Mumbai.

Introduction

In today’s world the celebrities are treated as a role model. People are changing their life style according with their favorite celebrity. This thing creates to a great extent an impact on the buying/ purchasing behavior of the Consumer. This attracts the customers which leads to increases the company productivity which leads to increase in profit of the organization. Celebrities are not always creating any kind of effect on person’s mind in terms of buying but giving the consumers information about the product. But mostly it gives a great impact on perception of choosing which product is the best in the market for the use. Now a Days celebrity endorsement plays an important role to market a product. We always think that if our favorite celebrity is using them. Then we use that to be like them (Khatri 2006). From last 100 years advertising is changing in different phases from the classical to modern. Now a day it is one of the excellent strategy used by marketers to influence customers by showing celebrities with their products, it includes different appeals lie, exciting, absurdity, sexual, etc. which give a negative thought to the youth. Belch, G. and Belch, M. (2008) acknowledged that the main aim of formulating such strategies is to get high brand revelation, longing, concentration and curiosity and to earn maximum profit. Thus marketers attach famous personalities, celebrities with their products.

Celebrity Endorsement-

Khatri (2006) studies that the celebrity endorsement is the Promoting strategy to attract the customers to a product. By analyzing the resent market, now it’s become the need of the marketers to use the different famous personalities to relate with their brands to create unique identity of the brand and to do flourish his company’s brand or product, which results high expenditure for the company to use that strategy, however nowadays it is used to be a powerful strategic tool to get maximum profit. It also shows that this can carry risk, because there is no sureness that the celebrity can come up with the sales generation of the firm. But it creates a humming voice and gives popularity to the company and the brand. This may increase the expectation of the customers in terms of real star by delivering the company promise. There are certain perspectives occurred where the real persons can work better than the celebrities’ endorsement, but not always.

Brand

AMA classifies that brand is a given name, indication, symbol, intend or blend of them that make one product or service different from other product or service which leads to Profit maximization. Brand is only about to create some associations with the customer, when it shows any characteristics of the brand we just recognize the brand. It’s about getting people to know you as the only one that satisfy them the best way. The good brand includes, clears message delivery, assures your trustworthiness, attach with your target market, peruse the buyer and create loyalty. To make your brand successful first you need to understand the desires of your customers and then offer any brand in that manner according to the customer demand. Your brand should be in the minds of your customers. Once customers accept the brand, the brand gets more loyalty from the customers and stays for long in the market. According to Silvera & Austid (2004) brand is a set of insights and descriptions that signify a corporation’s product or services, but many people think brand just a name or symbol but in real life it is beyond that and have larger definition and scope. It’s the overall image of the product; it is the tools, which attach the customer’s heart and mind.

Statement Of Problem

The Problems Of Research Are As Follows: –

• To study weather consumer perception is affected due to celebrity endorsement among youth in Mumbai.
• To study weather celebrity endorsement brings any change in the buying behavior of consumer among the youth in Mumbai.

Review Of Literature

According to Rizan Raheem Ahmed in a research published by him on the topic Impact of Celebrity Endorsement on Consumer Buying Behaviorat Pakistan in the year 2015. He conducted this research with an objective: -To examine the impact of celebrity endorsement on buying behavior. To study the perception of students and professionals about the celebrity endorsement. To Know the relationship between celebrity endorsement and customer buying behavior. To analyze influence of brand over celebrity endorsement. To analyze which factor of celebrity influence more to the public. Concludes that the Celebrity endorsed advertisements are more attractive than the non-celebrity endorsed advertisements. Respondents also voted that the one of the best medium for watching the advertisements is TV and then Internet. It is concluded that the highest relationship existed between the perception and the buying behavior. The lowest relationship is, between celebrity attractiveness and the consumer perception. There is a significant relationship among all the attributes of the celebrity endorsing a product. It is finally concluded that there is a relationship between celebrity endorsement and buying behavior. Respondents clearly conveyed that they do purchase those products and services, which are endorsed by the celebrities. Results show that the celebrity endorsement has an impact on customers as per their attitude and buying intention. Physical attractiveness, credibility and congruence of the celebrity with the reference to endorsed advertisement all have an influence on customer perception about the advertised product. It has also highlighted that celebrity endorsement advertisements do help in boosting up the sales and purchase of product, people like to buy the products more if endorsed by the celebrity and it shows that Present customers is aware and influenced by Celebrity endorsement.

Gap Analysis

In the past the preachers have studied various factors, awareness, impact on celebrity endorsement, consumer’s perception towards celebrity endorsement but has not studied the negative effect of celebrity endorsement for the topic “A Study on Consumer Perception for Celebrity Endorsement” so the researcher has decided to do a research on the negative and the positive effect of celebrity endorsement to the consumers

Objective Of Research

1. To study awareness of celebrity endorsement among youth in Mumbai.
2. To analyze the impact of celebrity endorsement among youth in Mumbai.
3. To study weather celebrity endorsement is creating any negative impact on the youth in Mumbai.
4. To study the consumer’s perception for celebrity endorsement among youth in Mumbai

Hyphothesis

• Ho : There is no impact of celebrity endorsement on consumer perception & buying behavior
• H1 : There is no impact of celebrity endorsement on consumer perception & buying behavior

Research Methodology

Research Problem:

• To study weather consumer perception is affected due to celebrity endorsement among youth.
• To study weather celebrity endorsement brings any change in the buying behavior of consumer among the youth.

Objective:

• To study awareness of celebrity endorsement among youth.
• To analyze the impact of celebrity endorsement among youth.
• To study weather celebrity endorsement is creating any negative impact on the youth.
• To study the consumer’s perception for celebrity endorsement among youth.

Area: The area of research is in Mumbai.

Sample size: The sample size is 100 youths

Duration: The duration of research is from 07 February, 2018 to 07 March, 2018

Procedure of collecting data: Questionnaire

Data Analysis

1. Are you Aware about celebrity endorsement?

Male (Red)

Female (Blue)

yes

80

76

No

10

14

Maybe

10

10

Table No: 8.1: – representing the awareness of celebrity endorsement among youth

Fig. no: 8.2: – Graphical representation of awareness of celebrity endorsement

Interpretation: –

The above table and the figure represent the awareness of celebrity endorsement among youth in Mumbai. From the figure we get to know that most of the youth are aware about the celebrity endorsement. Most aware are males, because nearly 80 males know about celebrity endorsement whereas only 76 females know about the same. And nearly 10 members out of 50 both males and females are not well known about the celebrity endorsement.

2. Do products require celebrity endorsement?

Male

Female

Yes

22

10

No

20

9

maybe

58

31

Table No: 8.3: – Tabular representation of the need of celebrity endorsement for a product.

Fig no: 8.4: – Graphical representation of the need of celebrity endorsement for a product.

Interpretation: –

The above table and the figure reflect that does a product need a celebrity endorsement. From the figure we get to know that most of the youth are aware about the celebrity endorsement but not in detail. Most aware are males, because 22 males say celebrity endorsement is required whereas only 10 females say celebrity endorsement is required. But 20 males say celebrity endorsement is not required whereas only 9 females say celebrity endorsement is not required.

3. Celebrity endorsement influence purchasing perception

Male

Female

Yes

30

46

No

35

22

Some Time

35

32

Table no: 8.7: – Tabular representation of does celebrity endorsement influence purchasing perception

Fig no: 8.8: – Graphical presentation to study does celebrity endorsement influence purchasing perception

Interpretation: –

The above table and the diagram represents that does celebrity endorsement influence the purchasing perception of the consumer. The diagram reflects that females are the most influenced once by celebrity endorsement because when 46 females get influenced by celebrity endorsement only 30 males are influenced. Males are influenced only some time.

Findings, Suggestions & Conclusion

The researcher could find that the customers are influenced when a celebrity endorsee a product. Due to Celebrity endorsement there is an influence in the demand, supply, consumer perception. But some endorsement goes to such extent that it leaves back a negative impact to the consumers of today’s world.

The researcher wants to suggest that celebrity endorsement should be used by each and every producer to advertise his product which may lead to growth of our economy. But to the extent that the endorsement should not leave back a negative impact on the consumers.

If celebrity endorsement is done to provide positive message to the world and to the customer, then celebrity endorsement is the best way to advertise the product. And yes, celebrity endorsement does influence the youth of the world which leads to growth of our economy and also brings up updates and new fashions.

Bibliography

1. Rizan Raheem Ahmed in a research published by him on the topic Impact of Celebrity Endorsement on Consumer Buying Behavior at Pakistan in the year 2015.
2. Vikas Kumar in a research published by him on the topic Customer Perception towards Celebrity Endorsement at Punjab in the year 2015.
3. Bhavesh Kumar J. Parmar in a research published by him on the topic A study on consumer perception for celebrity endorsement in television commercials for fast moving consumer goods at Gujarat in the year 2014
4. Female (Blue) T.V News paper Magazines 12 5 8 Influence of Celebrity Endorsement on Purchasing Perception
5. Male Yes No Some Time 45 55 35 Female Yes No Some Time 78 22 32 Male (Red) T.V News paper Magazines 15 6 3 Female (Blue) T.V News paper Magazines 12 5 8 Male (Red) T.V News paper Magazines 15 6 3