The key role of advertising is to extend the product and brand awareness. The companies apply various marketing strategies to endorse their products where the ultimate aim is to improve the demand and profitability quotient of the product. These strategies, to a large extent, have a great impact and further influence the consumer buying behavior. One such strategy is celebrity endorsements of the product, which certainly is not new in the market. Film actors and actresses, sports personalities, politicians, among others are approached for this kind of marketing and advertising strategy. To conclude the impact of celebrity endorsements, a survey is conducted among the general audience of Ludhiana, Punjab. In other words, to find out that whether celebrity endorsements influence consumer buying behavior or not, the individuals between the ages group of 18-40 years will be targeted to determine the desired results.
Keywords: Celebrity, Endorsement, Brand, Consumer Behavior, Marketing, Advertising
Celebrity endorsing is a type of publicizing campaign or marketing strategy which utilizes a famous personalities or societal position to promote a product, brand or administration, or to bring issues to light. Celebrity endorsement is a marketing strategy, broadly utilized by organizations and studies by researchers and analysts. Sometimes in some cases, even the celebrity endorsements cannot save the product due to various reasons. Celebrity endorsement has played a crucial role in the Indian market as this statement is supported and confirmed by the fact that near half of endorsements in India are supported by celebrities and VIPs when contrasted with around 20% in the U.S. With the expanded infiltration of digital satellite TV and developing reception of online media as an advertising instrument, the decade starting 2010 has seen a critical advancement in the Indian marketing, advertising, and endorsing space. There are a lot of advantages that this kind of marketing and advertising strategy brings. Some of these are discussed as below:
Apart from the advantages, there are disadvantages as well, and some of these are discussed below:
Whether to opt for this strategy or not depends on the various factors of the company. These determinants are carefully analyzed and the marketing and advertising policy strictly adheres to the same.
The significant perspective that organizations must note is that celebrity endorsement cannot supplant the comprehensive brand building measures. As branding evolves, organizations must be more wary and cautious to use each conceivable channel of communication instead of simply a superstar or celebrity endorsement. When all different strides in the marketing and branding cycle are followed and actualized, at that point channels, celebrity endorsements can be fruitful.
Significance of the Study
This research study will assist with accomplishing bits of knowledge on the effect that big name endorsements have on the purchasers or the consumers purchasing conduct, behavior and attitude. It will help the advertisers to get a superior thought with regards to what ascribes are significant and makes the biggest difference to the customers.
Limitations of this study
Scholarly Justification: Many researchers have previously conducted studies in the similar field. Scholars have contacted many new issues that are regularly found in celebrity endorsement such as harmful exposure of celebrities and so on. The United States, United Kingdom, and Indian markets are significantly centered while directing exploration around this subject of big name underwriting. The primary justification for picking this theme is that up to this point, no research has been conducted on understanding the impact of celebrity endorsements on consumer behavior covering the area of Ludhiana, Punjab.
Business Justification: Celebrity endorsements have transformed into an extremely viable procedure to market an item and furthermore it gives a cutthroat matured over contending brands in a profoundly serious encompassing. From seemingly forever, famous people are regularly utilized as good examples, particularly in individual appearance and in the area of beauty care products.
Nike is one of the most perceived brands all over the globe. The shoe business was altogether upset once Nike entered the business. As sports players carried on with their life before cameras, Nike made use and offered amazing measures of money for support arrangements and commercials. These rewarding associations have empowered sports stars to bring in more money outside of their game. While everybody pays abundantly to claim a couple of Jordans or altered gear, Nike additionally builds its ubiquity through the swoosh on the players' pullovers. The brand has made vital partnerships that have developed a little organization into a billion-dollar endeavor throughout the long term.
From Basketball legend Michael Jordan to the best footballer Cristiano Ronaldo, Nike makes some costliest deal pertaining to the celebrity endorsements. One of the most popular countenances on the planet, Cristiano Ronaldo is an advertisement man's wet dream. As the face of football, Ronaldo has an extraordinary European and worldwide impact that numerous NBA players and different competitors can't rival. A lifetime support manage Nike is set to surpass $1 Billion, making him seemingly the most extravagant of all Nike-supported competitors.
Ronaldo additionally rounds it up from different supports with brands like Herbalife, EA Sports, and American Tourister. He is the third most generously compensated competitor around the world, and gratitude to being one of the Nike lifetime competitors, has the third most significant support bundle. Loreal spends more than $ 1.7 billion every year on its ad to keep up with their picture. Same is the situation with its beauty care products. One cannot separate a L,Oreal face cream and an Olay one, in the event that they were not burning through attractive measure of cash on their celebrity endorsements.
Personal Justification: The Indians love superstars; for instance, the female population gets drawn in towards the brands that somehow reflect back their internal identities, have some piece of their qualities, share their thought of life and generally, satisfy their necessities. Consumers need to improve their self-image by picking such brand which implies and works out positively for their self-esteem. What's more, advertisers exploit this open door without limit. By directing this research study, it will be understood as to how and whether the celebrity endorsements have some or no impact on the consumer behavior.
There are many factors such as cultural, social, psychological, among others that influence a consumer's buying behavior. Since the beginning of the eighteenth century, companies are efficiently using this marketing technique to promote their brand and products. It is observed that a positive relationship exists between celebrity endorsements and consumers buying the product. Students from different universities were chosen as a survey sample wherein it was concluded that celebrity endorsements are more attractive than non- celebrity endorsements.
Celebrity endorsement comprises four pillars: credibility, matchup, attractiveness, and transfer. The study is conducted to evaluate that whether females are influenced in buying cosmetics whenever they are exposed to celebrity endorsements. Celebrities here necessarily don't mean big superstars such as Akshay Kumar or Salman Khan, whereas a celebrity is even considered to be the one who is generally known by a great number of people and audience. As the research proposes, consumers, in the field of cosmetics outline their buy aim for those beauty care products which are embraced by such famous people who have some mastery in that field and are viewed as reliable. At the point when these two conditions meet, a big name gets tenable and decidedly impacts the buying aim of female purchasers in the field of cosmetics.
The case here taken is that of Lebanese females. They are studied to determine the psychological effect they have in buying jewelry items after being exposed to some of the celebrity endorsements. Information assortment is performed through engaging, cross-sectional research design and plan. Probabilistic random sampling technique was utilized over a sample of 584 ladies matured somewhere in the range of 20 and 44 years of age utilizing Monkey Survey. The sample determination is identified with two criteria: the first is identified with the characterized age with a buying power and an aim for devouring, the most, jewelry. Celebrity endorser engaging quality has no critical impact on buyer's buying pattern. The last may be because of how that component of the Lebanese society will generally believe a jewelry brand and not its superstar endorser. Individuals followed the advertisement to look at the big name and not at the advanced brand. At that point one should think about different components to intervene that relationship, for example, brand inclination and brand review.
As indicated by Roll, he says that a celebrity endorser should force the quality that an objective crowd for that supported brand views as engaging. These characteristics could be with regards to way of life or then again actual appearance might be scholarly abilities. Roll makes sense of the term of believability as the big name endorser's apparent reliability and mastery. He cites "as big name support goes about as outside sign that empower clients to see through the enormous brand mess on the lookout, the validity component of the big name incredibly impacts the acknowledgment with clients" (Roll). What's more, his viewpoint about the exchange of significance is that there must be sufficient similarity between the item and the celebrity.
As per Erdogen (1999), he says that clients on seeing an endorser, who is actually appealing, structure good insight. The element of fascination doesn't chiefly incorporate physical lovely appearance, however it incorporates the way of life and furthermore character aspect of the endorser. Research discoveries have demonstrated that endorsers who are seen as appealing can undoubtedly impact the upsides of the clients. (Debence and Kernan 1984).
As indicated by Sushil Kumar Rai(2013), he specifies that celebrities are those individuals, who normally are connected with an alternate way in their standards and furthermore gets a raised measure of acknowledgment from others. The explanation that organization regularly takes part in the demonstration of employing famous people to underwrite their image is on the grounds that renowned character can without much of a stretch addition public mindfulness and a more noteworthy level of consideration and review. The fact that celebrity support impacts makes accordingly it said customer's mentality toward the brand and their buy choice emphatically.
(Clark and Horsman, 2003) holds the assessment that shoppers are more persuaded to buy those items that have big names into them in contrast with those items that are not embraced by big name in light of the very truth that celebrity supported item will have more worth to them. The strategy of involving superstars for showcasing correspondence approach is very boundless for huge firm for supporting their picture of the item.
As per Kokil, celebrity is that individual who has dominated in his field of activity and hence appreciates acclaim on being perceived all over. Advertisers trust that big name underwriting creates a few benefits which incorporate structure believability, cultivating trust and drawing consideration of the purchasers which will result into deals for that brand. Big name support is that effective methodology that assists with raising the deals and catch portion of the overall industry, this strategy furnish an item with an alluring touch and shimmer the assumption that a famous look will give that item an additional allure and an acknowledgment.
(R. Croft) referred to that as rivalry is expanding between the organizations to draw in more shoppers towards their brands, famous people are progressively utilized by the advertisers to underwrite their items. (Kulkarni and Gaulkar 2005) specifies that including a renowned character makes a difference markers in taking care of the issue of over correspondence. Famous people in view of their well knowness can help notices to turn out to be more famous what's more, stand apart from the messiness and increment open capacity. Superstar underwriting makes a difference in working on the brand's picture and furthermore cleans the organization's picture. Superstar underwriting can likewise end up being a useful asset in entering unfamiliar business sectors, it makes a difference the organization to beat various issues. For example, L,Oreal utilizes Ashwariya Rai and Sonam Kapoor in their White Perfect reach, Kareena Kapoor in Lakme Eye conic kajal and Kajol in Olay maturing cream are totally viewed as famous in India and Pakistan.
Findings and Results
Figure 1- Endorsements by Favorite Celebrities
From the above result, we can conclude that conclude that 60.3% people buy products endorsed by their favorite celebrity. The remaining ones fall in the Yes and No category where the percentage is 11 and 28.8 respectively.
Celebrity endorsements have been influencing the consumers towards vegan products. Celebrities have been promoting high grade and high quality convenient and ready to eat vegan products. Data Bridge Market Research has prepared a detailed report on the Global Vegan Cheese Market. Data Bridge Market Research analyses that the global vegan cheese market is projected to grow at a CAGR of 17.35% during the forecast period of 2021-2028. Some of the major factors responsible for promoting the market's growth are growth and expansion of the food and beverages industry, growing prevalence of lactose intolerance, and increasing personal disposable income. This market is segmented on the basis of product type, product form, source, distribution channel and end user industry.
Figure 2- Temptations for celebrity endorsements
From the above illustration, we conclude that only 4.1% people have given a rating of 5 in this case. Whereas, 12.3%, 28.8% and 21.9% haven given the rating of 4, 3 and 2 respectively. This means that 32.9% respondents are not tempted at all to buy the product in this case.
Celebrity endorsements via numerous mediums has been influencing the consumers to consume nutritional food and beverage items. With the rising number of celebrity endorsements, there is a rise in the awareness among the population pertaining to the health benefits associated with the consumption of such nutritional food and beverage items. Data Bridge Market Research analyses that the global nutritional beverages market is expected to reach a market value of USD 8.26 billion by 2027. Data Bridge Market Research further analyses that Asia-Pacific region is dominating the market owing to the high consumption rate of India, China and Singapore. Rising number of products on daily basis and well established online and offline distribution channels are responsible for this region's dominance. Data Bridge Market Research further analyses that Chr. Hansen Holding, SGS S.A., Intertek Group PLC, Eurofins Scientific SE, Bureau Veritas S.A., ALS Ltd, Mérieux Nutrisciences Corporation, Thermo Fisher Scientific, Inc. and ADM are some of the major companies dealing in this market.
Figure 3- Celebrity Endorsements and Consumer Behavior
From the above pie chart, it becomes clear that to 53.4% people, celebrity endorsements do influence when it comes to buying a commodity. Whereas, 42.5% people may or may not get influenced as per the public opinion. The remaining percentage of people are not at all influenced.
Figure 4- Product Purchasing Behavior
It is observed that 47.9% people rarely end up buying products that are endorsed by their favorite celebrities. However, 26% people may sometimes buy those products. 12.3% people fall in the category of never buying those products endorsed by the celebrities.
With the rising air pollution around people globally, owing to numerous reasons, there is a high growth in the demand for air filters. Air filters can be installed in the buildings or infrastructures, in the vehicles and at other indoor and outdoor locations. Data Bridge Market Research analyses that the commercial air filter market is projected to score a CAGR of 5.85% for the forecast period of 2021-2028. One of the biggest market growth determinant is the increasing need to control the industrial air quality especially in the heavy industrial zones or regions. Some other important market growth determinants are increasing integration of advanced air filters with into the vacuum cleaners, increasing demand for an effective commercial air filtration system, rise in awareness about the ill effects on the health of individuals of air pollution and integration of advanced technologies and innovations in the commercial air filters. However, there are a few challenges ahead of the market such as high cost associated with the product and maintenance and dearth of awareness about the product in the underdeveloped economies.
Figure 5- Relation between Celebrity Endorsements and Sales of Product
It is observed that 65.8% respondents believe that yes, celebrity endorsements help to improve the sales of the company whereas 2.7% believe it doesn't. 31.5% of the total respondents feel a dilemma about this question.
Figure 6- Celebrity and Product Brand Image
According to 50.7% people, celebrity value and brand image does overshadow or overlap the image of the product or the brand. However, 21.9% people have a complete opposite view to the same. 27.4% of the total respondents feel that maybe the celebrity value overlaps the product or the brand.
Figure 7- Celebrity Endorsements and Product Preferences
It is observed that 38.4% of the total respondents rarely replace their regular used products with the ones endorsed by the celebrities. 5.4% and 32.9% people often and sometimes respectively replace their regular products. However, 23.3% people never replace them.
There are a lot more advantages and disadvantages to this marketing and advertising strategy.
Figure 9- Celebrity Endorsements and New Customers
It is observed that 69.9% of the total respondents believe in the fact that celebrity endorsements help to grab the new customers whereas 11% people don't think so. The remaining 19.2% people think that maybe this might be the case.
Figure 10- Role of Celebrity Endorsements in Product Promotion and Trust
It is observed that 38.4% people don't have a sense of faith or trust over the products endorsed by the celebrities whereas 28.8% people do develop a sense of faith over the endorsed products. 32.9% of the total respondents may or may not trust the products endorsed by the celebrities.
Figure 11- Celebrity Endorsement as a Marketing Strategy
It is observed that 58.9% people positively support the arguments i.e. celebrity endorsement is an effective marketing strategy whereas 12.3% people don't feel so. 28.8% people are confused about this question.
Celebrity endorsements have a huge role to play in the footwear choices and preference of the populations. Celebrity endorsements have proven to be effective in influencing the customers' tastes and preferences when it comes to any kind of footwear. Therefore, Data Bridge Market Research conducted a detailed study on the Global Footwear Market. Data Bridge Market Research analyses that the global footwear market is currently being growing due to the rising awareness among consumers in sport activities, both men and women. Data Bridge Market Research analyses that the global footwear market is expected to be growing at a growth rate of 12.83% in the forecast period of 2021 to 2028. The global footwear market is segmented on the basis of product type, material, end-user and distribution channel. Based on product type, the footwear market is segmented into athletic and non-athletic footwear. Based on material, the footwear market is segmented into plastic, synthetic rubber, leather, plant based and others. Based on distribution channel, the footwear market is segmented into hypermarkets, online channels, specialty stores and others. Based on end-user, the footwear market is segmented into men, women and kids. PUMA SE; SKECHERS; Nike, Inc; JACK WOLFSKIN; Woodland Worldwide; The Aldo Group Inc.; Under Armour, Inc.; Bata Corporation; Skechers; PUMA; adidas AG; New Balance; ASICS Asia Pte. Ltd.; Columbia Sportswear Company; ECCO Sko A/S; Geox S.p.a; Hermès and KERING are some of the major companies dominating the global footwear market.
Celebrity Endorsement alludes to a marketing and advertising system whose objective is to utilize one or various big names to promote a particular product, brand or administration. There are a lot more advantages and disadvantages to this marketing and advertising strategy. Celebrity endorsement is multi-million dollar industry. In this advanced era, the universe of advertisement goes through a change, from old style ways, it has changed over to take a cutting edge course. This advanced course expects advertisers to foster methodologies joining the components of feelings, humor and so on the primary reason that lay behind these techniques is to get brand openness, consideration, interest, want and activity. Also, to make these methodologies into progress, advertisers utilize renowned superstars since famous people have the ability to make a more prominent sway on the customers purchasing conduct. Since a portion of the famous people have appealing characters and they appreciate public acknowledgment since they have particular characteristics like dependability and appeal. Many huge brands utilize the idea of this marketing strategy as a promoting specialized instruments. The researcher conducted this study with 73 respondents aged from 18 to 40 years. The respondents were the locals of Ludhiana, Punjab. The analysis was done by preparing a questionnaire which was distributed among these respondents. The questionnaire helped in achieving the answers to the objectives of the study. It is observed that rarely is the case when the consumers end up buying products that are endorsed by their favorite celebrities. This is because much of the fact that consumers are unable to develop a sense of trust on the product endorsed by the celebrities. This is because the consumers feel that the products are definitely not utilized by the endorsers themselves.
On the other side, it is observed that celebrity endorsements definitely help target and acquire new customers in the market. Further, this marketing strategy is also helpful in launching new products and brands in the market. But somewhere, consumers believe that the celebrity brand value and image often overlaps the image and value of the products. This might prove to be not a good thing for the company. But all in all, the consumers' verdict says that yes, celebrity endorsement is an effective marketing strategy. Celebrity endorsement is a triumph since when a typical individual selling an item telling the other to attempt to use that item as it has helped them, there is a potential opportunity that consumers may or may not trust them however when the equivalent is said by a celebrity that the item has helped them, then the customers will generally pay attention to the big name and accept it and it impacts on buyers purchasing conduct well.