Effectiveness

of
Celebrity
-Monish J Shah
-Pg 13; Indian Journal of Marketing,
June-2009
Summary
 To determine the most preferred celebrity
which people like to see in an
advertisement endorsing a product
 To determine the effectiveness of
celebrity endorsement in brand recall
 To determine the brand recall with
different celebrities
 To understand the influence of celebrity
endorsement in purchase decision
 To determine the brand-celebrity
fit/congruence of selected endorsement.
A Few Concepts…..
A brand is a millions of experiences
company creates with vendors,
employees, investors, customers &
community for products/services.
 A celebrity is a well-known personality
who enjoys public recognition by a large
group of people.
 Endorsement is termed as
‘association’.
 Eg: Tiger Woods – American Express,
Rolex, Accenture, ….
 Celebrity
Endorsement
-An Advertising Technique
Contd…
 It uses famous personality in a
commercial advertisement to connect to
consumers emotions, psychographics &
demographics.
 It generates attention & creates positive
attitude for brand & affects their
purchase intention.
 Advertisers relate the lifestyle, skills,
attractiveness… of the celebrity.
 Celebrity
Endorsement
- An Opportunity for Celebrities
 Celebrities are:
› Film-Stars; Sportsmen; Models; Composers &
Singers; World Champions; etc…..
 Celebrities get endorsement fee.
 Celebrities include:
› Bollywood Stars: Shahrukh Khan, Amitabh
Bachchan, Rani Mukherjee
› Sportsmen: Sachin Tendulkar, Sania Mirza
› Models: Priyanka Chopra, Katrina Kaif
 20% of commercials use Celebrity
Endorsement
 10% of advertisement revenue goes to
Celebrity Endorsement.
 Multiple Brands /Celebrities
› Eg: Pepsi /Amitabh Bachchan
Statistical
Survey
 Sample Size– 150 Respondent.
› Out of this 10% did not submit completely
filled questionnaire.
› Hence; Final Sample Size – 135
Respondent
 Area of Survey:- Indore, Madhya
Pradesh.
 Time Frame:- 3 months; January–March
2008
 Sampling Technique:- Non-
Probabilistic Convenient Sampling.
 Data Collection Tool:- Questionnaire
with Open & Close ended questions
Demographic Factors
Demographic Factors
Demographic Factors
ANALYSIS OF DATA
& RESULTS
Most Preferred Celebrity
 Tofind out the most preferred
Celebrity Endorser, respondents
were asked to write the names of
the Celebrity they will like to see in
an advertisement.
› Shah Rukh Khan is the most preferred
Celebrity with 12.6%, then Amitabh
Bachchan with 10.4% & finally Hrithik
Roshan with 7.4% at third position.
› The others constituted 37 Celebrities who
individually have been marked lower than
4%
Celebrity - Brand Recall
 Effectiveness
of Celebrity
Endorsements in Brand Recall.
› 60.5% of the respondents were easily able
to correctly recall the brand (Mean – 1.61)
› Of all the endorsements studied, Aamir
Khan in Titan had the highest recall with
82.2% with a Mean-1.29
› Shah Rukh Khan in Pepsi’s Right Recall –
80%; Mean-1.36 & Amitabh Bachchan in
Cadbury’s Right Recall – 75.6%; Mean-1.36
were ranked Second & Third respectively
› Priyanka Chopra in Hero Honda Pleasure
had the lowest recall (Right Recall – 18.5%;
Mean – 2.40)
Brand - Celebrity Recall
 Effectiveness
of Celebrity Recall
with the advertisements.
› Juhi Chawla had the highest recall (Right
recall – 84.4%; Mean - 1.19 )
› Aamir Khan was the next with recall Right
Recall of 84.4% & Mean - 1.20
› Malika Sherawat had the lowest recall
(Right recall – 66.7%; Mean – 1.47)
 Dopeople purchase the
product/brand after watching the
Celebrity Endorsed Advertisement?
› The graph indicates that Celebrity
Endorsement is not a very effective tool to
motivate people to buy the products.
› Only 5.2% of the participants responded
that they buy the products after watching
the advertisement.
› On the other hand, approx 74% of them
were of the opposite opinion.
Celebrity – Brand Fit
 To understand the congruence
between brand personality &
personality of the celebrity
› Majority of the respondents ‘Strongly Agree’
that the personality of the Celebrities such
as Shah Rukh Khan, Amitabh Bachchan &
Malika Sherawat did not match with their
ads i.e. Lux, Navratna Oil & 7UP respectively
with 31.1%; 23.0%; 31.1%
Conclusion
 An insight to effectiveness of Celebrity
Endorsement in :
A. Brand Recall
B. Purchase Decision

D. Brand Recall
› Of all the endorsements’, Aamir Khan’s
Advertisement of Titan has the highest recall.
› Shah Rukh Khan-Pepsi, Amitabh Bachchan-
Cadbury, Juhi Chawla-Kurkure & Saif Ali Khan-
Lays also had a high recall due to long tenure.
H. Purchase Decision
› Celebrity Endorsement is not effective in
influencing ‘Consumer’s Purchase Decision’
› Shah Rukh Khan-Lux, Amitabh Bachchan-
Navratna Oil, Malika Sherawat-7UP
› No relation or congruence (Celebrity – Brand)
Hence, it can be stated that
Brand Recall &
Purchase Decision
does not go
hand-in-hand
THANK YOU