Impact Of Celebrity Endorsement

And Event Sponsorships Marketing

Essay
This study was introducing the reader to the broad concepts regarding celebrity endorsement
and event sponsorships and along with on pre-purchase motives of consumers. The major
reason of this research was to find out whether event sponsorship and celebrity endorsement
affect consumer pre-purchase decision or not and if it increases the purchase-intent of the buyer
or not. Primary data has been collected via survey through questionnaire and secondary data
has been collected through research articles, journals and internet. The sample was drawn on
the basis of convenience i.e. Convenience Sampling method was followed. The questionnaire
was filled by 100 respondents. Pre-testing was used to check the weakness in design and
instrument. Twenty questionnaires were filled by consumers to check the reliability of the
questionnaire. Multiple regression analysis was used which was a general statistical technique
used to analyze the relationship between a single variable and several independent variables.
The output had shown that there was significant impact of event sponsorship on pre-purchase
behavior and celebrity endorsement has an insignificant impact on pre-purchase behavior. In
other words it was said that the relationship between event sponsorships and pre-purchase
behavior was strongly positive which means that consumers are influenced by the products or
services which are sponsored on events i.e. it has a greater impact rather than celebrity
endorsement. The relationship between Celebrity endorsement and pre-purchase behavior had
less impact as compare to event sponsorships. A self administered was developed to conduct the
study on consumer's pre-purchase behavior. Multiple linear regression was suggested for this
research to evaluate the impact of event sponsorship and celebrity endorsement (independent)
on consumer pre-purchase behavior (dependent).

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CHAPTER 1: INTRODUCTION
This chapter was introducing the reader to the broad concepts which discussed in this study.
Background of the topic regarding celebrity endorsement and event sponsorships and along with
this motivation for pursuing the topic. The ability of celebrity endorsement and event sponsorship
to have an effect on consumer per-purchase attitude with respect to product quality, product
image and purchase-intent was the focus of this study. This research was study that how many
consumers are willing to purchase the products which are endorsed by famous celebrities
(including TV stars and cricket stars) and along with this how event sponsorships add value to
the brand and purchase-intent of the particular product. Celebrity endorsement is now a day's
very useful practices of advertising among various tools to market the product or services as
well. Celebrity endorsements now days perceived a popular tool or best way to market the
product, for marketers it has been a winning formula. It is easy to select the best celebrity in
advertisement but it is quite difficult to create the association between the product and celebrity.
The capability of two advertising tools celebrity endorsement and event sponsorship have an
impact on consumer pre-purchase behavior including perceptions with regard to product quality
and uniqueness is the focus of this study. Marketing experts acknowledge that celebrity
endorsement and event sponsorships are very effective tools to examine consumer behavior and
also very useful to examine their attitudes. These both tools have an impact on consumer's pre-
purchase behavior. Marketers are interested to make more customers who are potential and are
influenced by celebrities. Day by day consumers are exposing to so many of voices and images
through media including audio visual aids. Every company tries to take away at least a portion of
an unsuspicious people's time to inform them about the amazing and different attributes and
features of the product at hand. Advertisement contains product endorsement by a celebrity and
event sponsorships and no other tool can compare of their ability to influence the consumer
perception of perceived Product quality, attitude toward the product, purchase intent and value of
the ad. In other words celebrity endorsement and event sponsorships are very useful advertising
cues to attract or to make more customers and also helpful to attain potential customers attention
towards the product or service.

It can be seen in telecommunication advertisement they are using event sponsorships in different
cricket match series to advertise their product and to enhance its features and benefits, same it
can be said that product endorsed by using celebrities in ad it is also now become a useful tool
for marketers. Celebrity endorsement is effectively using in different shampoos ad mostly.
Nowadays while event sponsorship and celebrity endorsement activities are between the
companies mainly openly Observable and discuss marketing positioning tool.

The targeted audience of this research is consumers who are effectively influenced by the
advertisements tools. This research was test the effect of celebrity endorsement and event
sponsorships on consumers buying behavior before making any decision to buy the particular
product or service which also includes perception and attitude before making buying decision.
This study tries to see the impact of these two variables or advertising tools on consumer
behavior that whether the consumers are influenced by celebrities whose using in ad to promote
product or not and also those products which are actively sponsoring events. In short people are
really go for that product which is promoted by a celebrity or not and same for the other tool
event sponsoring. The sample size is 100 and Convenience Sampling Method is used in this
study. As external environment is changing day by day there are also changing in marketing
activities according to many marketers these two tools (celebrity endorsement and event
sponsorships) are very effectively using by many companies, these tools are good way to
communicate and to create awareness about brand attributes and features. But it cannot be
ensured that these tools are playing an important role to increase purchase-intent, credibility, add
glamour, and enhance the value of brand and positive attitude towards the particular brand as
due to different interest of every individual because it is not sure that a consumer is going to
switch from one brand to another brand just because the particular product is endorsed by any
celebrity or actively sponsors event. In other words the purpose to this study is to examine the
impact of celebrity endorsement and event sponsorships on consumer pre-purchase evaluation.
By testing these two tools it was be analyzed that is it truly impact on consumer's perception that
makes their minds to go for that product or not? Or maybe these tools only helpful to create
awareness of a particular brand or product and to memorize these brands because of
association of brand with famous celebrities and big events like cricket matches specially or so
on.

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While complete brand information does not presented to customers inferences are prepared by
means of product cues to trim down ambiguity and to build perceptions of products. Promoters
can create uses of sport sponsorship and celebrity endorsement as extrinsic cues to persuade
consumers' pre-purchase attitudes towards the product. These cues are costly forms of
promotion. Marketers required beginning, whether they offer acceptable return on investment.
This research was explored consumers' attitudes and the impact of event sponsorship and
celebrity endorsement on brand/product associated variables such as brand quality and product
uniqueness. A total number of 100 respondents took a part in this study or research

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PROBLEM STATEMENT
The main problem was to discover the whether the impact of celebrity endorsement and event
sponsorships impact on consumer pre-purchase behavior. If these both factors influence on pre-
purchase attitude which variable had a greater impact on pre-purchase behavior.

HYPOTHESIS
1) H1: celebrity endorsement has a significant impact on consumer pre-purchase behavior.

Ho: celebrity endorsement has no significance impact on consumer pre-purchase behavior.

2) H1: event sponsorship has a significant impact on consumer per-purchase behavior.

Ho: event sponsorship has no significance impact on consumer per-purchase behavior.

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CHAPTER 2: LITERATURE REVIEW

The use of celebrity endorsement strategy is become nowadays very useful techniques and tools
for companies to increase their sales and thereby increase in market shares. Over the last few
years the celebrity endorsement has been become very useful and effective tool of advertising to
create awareness and to get attention of the viewers. The products which are endorsed with any
celebrity (star) were being remembered able for a long time period.

The ability of endorsements to affect consumer attitude and perception had been suggested in
academic. It is a truth that absolute product or brand information is hardly presented to
customers, especially while they are watching advertisement on television. While related
manufactured goods information is not there standards of these information might "indirect" as of
presented information then incorporated into complete estimation and going downward to
reproduce ambiguity. (Dean ,1999)

Dean found CR endorsement might perform like a signal of the promoter. Companies can send
pre-purchase signals of the quality of the products for instance a widely product's warranty might
signal of quality of particular product. This is supposed that customers want signals which would
be unbeneficial for the cheap supplier to throw, except beneficial for the high-quality seller. This
could be lead towards "separating equilibrium" of the company's on superiority or quality.
Because a CR (consumer report) "Best Buy" score is award to just one goods of each group, this
endorsement would appear to "separate" goods on the foundation of purpose quality and perform
as a signal in promotion. (Dean ,1999)

Found among one of the some only educational investigations of endorsements initiated that
skilled, celebrity, and usual customer endorsements considerably improved overall perception of
the manufactured goods or service and predictable price, but intention to buy is not affected.
Known the empirically proven control of extrinsic tools to have an impact on customer
perceptions and activities. (Fireworker and Friedman, 1977)

Found that Study has initiated sustaining proof that celebrity endorsements effect on viewer
concentration, remember, evaluations and purchase intent. (Hsu and McDonald, 2002)

Celebrities are usually eye-catching, which useful influence when customers are concerned
about common recognition and others opinions or at what time the manufactured goods is
attractiveness-related (Kahle and Homer 1990)

Also as sentimental tangential cues, celebrity endorsements might guide media solidity to have
an effect on sales in grown-up categories (MacInnis, Rao, and Weiss 2002).

According to these literatures celebrity endorsement is very effective tool to have an impact on
consumer pre-purchase attitude towards the endorsed product or services. In other words it is
now become a most popular and useful cue to test consumer perceptions. According to some
literatures celebrity endorsement has now become a common type of promotion in United States
and everywhere. (Agrawal and Kamakura, 1995).

Nowadays, the employ of celebrity marketing for organizations has become a common practice
and a superficial successful method of business picture structure and manufactured goods
advertising. This observable fact is reflected by the current promotion study result that totals
eight out of ten TV commercials ratings the maximum remember able recall are those with
celebrities' appearances. Further was elaborated it that this research indicated that those
advertisements are mostly recall in which products or services endorsed by any famous celebrity.
Celebrity endorsements now days perceived a popular tool or best way to market the product, for
marketers it has been a winning formula. It is easy to select the best celebrity in advertisement
but it is quite difficult to create the association between the product and celebrity. Day by day
consumers are exposing to so many of voices and images through media including audio visual
aids. Every company tries to take away at least a portion of an unsuspicious people's time to
inform them about the amazing and different attributes and features of the product at hand. It
was quite easy to pick a celebrity and to choose the best event to promote the product but it is
too difficult to build a good relationship among the goods and the endorser. In another research
an author staid that celebrities are the majority frequently measured a tangential cue they were
significant in influence merely while customers are not concerned in the manufactured goods
group or in dispensation the Commercials. According to another decade it was revealed that
while customers suitable or detachment themselves from product relations based on celebrity

endorsements then they do so in a way that is reliable with related them requirements like self-
enhancement. ( Kamins, Brand, Hoeke and Moe 1989).

Advertising become a big source to create awareness and create interest towards the product or
services and also it has an impact on consumers attitude towards that product or brand, but
celebrity endorsement now the most useful tool or cue to attract/make the customers thus by
utilizing a celebrity in commercials source to have an impact on product approach and purchase-
intentions of customers in a optimistic way. Celebrity endorsement has a physically powerful
impact on customer's remembrance and knowledge approach too. The majority of customers are
not in a buying condition while they are come across with communication of the product or
service. Most of the Marketers are using celebrities in their commercials to assist superior
storage space of information and knowledge in customers minds which they would be quickly
remember when they are purchasing. (Ranjbarian, Shekarchizade and Momeni 2010).

In the light of some author by Using of celebrity endorsers to sustain goods is give details by
balance theory principles too. In the light of this theory winning firms found a touching
relationship among the viewer and endorser and a relationship among endorser and product too.

( Mowen and Brown 1981)

This study is testing weather customer infer celebrity endorsers like the product which they
endorse and present a model using these inferences and other characteristics of the endorser to
forecast attitudes towards the endorse products. This is a latest research which indicated that
there is 25 percent American advertisements are using celebrities to endorse their products. One
of the studies has been initiated that celebrity endorsement are more favorable in results of
product evaluation and commercials favorable (Silvera and Austad 2004)

According to a researcher who studied those in order to recognize the issues come across using
of celebrity endorsements tool in commercials, it has been essential to start through a summary
of intellectual study by now expert in the part. It is just then that the route of this research could
be further particularly elected. Technical studies among the utilization of celebrities (stars) in
commercials have improvement in more than a few phases. Near the beginning some study
includes the era up to 1980. the majority of study carry out previous to that time is meant at
approximation the efficiency of commercials which utilize well-known populace along with this the
evaluation them with further plan of marketing.(McCracken, 1989)

A foundation is a human being or an association publicized communication. The bases

trustworthiness or reliability is the quantity to which a watcher or observer have perception or
attitude that the basis to acquire information or a suitable practice and do not give influenced
knowledge. Therefore there are two primary scope of foundation Trustworthiness which are
expertise and trustworthiness. (Ohanian, 1990).

Aptitude of event sponsorship had an impact on dependent variable. By means of proprietary,

longitudinal, consumer panel data, these writers established that approximately. (Polonsky and
Speed, 2001).

When sponsorship activities are between the organizations most openly Observable and discuss
advertising communications engagements, slight study has so far been conducted on the topical
a branding viewpoint along with this sponsorship was a very effective tool using by so many
companies domestically and internationally both. (Cornwell and Maignan 1998).

Also, when most advertising departments nowadays are conceited of their brand strategies and
their specialized standards a most excellent practice action, sponsorship is frequently performed
more than as an art than as a science stated customer-based brand equity as the degree of
difference impact of customer' brand knowledge on their reactions to product advertising stimulus
like promotion and marketing activities. Consumer-based brand equity includes buyer's
responses to a part of the brand's marketing mix in contrast with their responses to the same
marketing mix parts benefits to other products. Customer product or brand knowledge the
favorability of behavior toward the product and brands particular links are key apparatus of brand
equity. (Keller, 1993)

According to an author, planned that sponsorship worked in a different way on the consumer
behavior more than other kinds of advertising and marketing tools in which it indulge the
customer by bestowing advantage on an action from which the customers have an deeply
touching affiliation. (Meenaghan, 2001)

The analysis is that it shows that customers may really have memory-based prospect of
promoted products relationships. (McDaniel, 1999).

The efficiency of sponsorship is consists on the experience effect such as experience to a

sponsor's name enhances the awareness with the product in the long run basis and creates a
priority for the product. Generally sponsor communication was easy and connected to
corporation or product names. In other words they said that both event-based and longer term
consists recollection of audience in a sponsored event was inspired. This can be guide to upper
level of product awareness than those follow-on from marketing experience. This Sponsorship
tool was a very stretchy communications method that could be used to attain both marketing and
corporate communications objectives. Marketing Communication's purposes are responsiveness
construction and to a some degree of product's image building company communication's goals'
are to encourage company image and enhances good was of the corporation and these all have
impact on consumer's perception as well. (Ruth and Simonin, 2003).

In the light of another author who initiated that along with field sponsorship there is the possibility
for so many of interruption from other sponsors and the event. There is a one thing to be
remembered which is extremely concerned viewers that they was select on field sponsorship is
much more than those are not as concerned. The cause for this could be because extremely
concerned viewers are more well-informed and also more responsive to the surroundings around
the event as they struggle to be familiar with all information related to it. (Polonsky and Speed,
2001).

Through some source in which an author stated about events sponsorships that the event is very
helpful for both the parties sponsor and sponsored association as a communicational tool
through which they deal with communication to the targeted people by the organization of a few
tools of communication and according to a communicational strategy. According to the sponsored
sports institutions the sport event is a manufactured goods having distinctiveness particular to
sport and in other words the way communication or the perfect practices to convey organizations'
message to the targeted audience also. The event would sell to in the community or public,
through media and to the sponsor. In this means the media and public are become essential
elements of events sponsorship. The previous decade stated the televise which talk about the
event increase the messages speak to the audience and sketch concentration upon the sponsor
whose main advantage is free of cost positioning the final catch the messages from the two basis
one is the sponsored association and the sponsor.( Firica, 2008).

Through some analysis event Sponsorship is an initial grade advertising method or practice,
therefore a communication method whose development is inspiring in the 90' while it's satisfied
and shape of expression improved. When the purpose to convey message to target market and
part of endorsement intended to make further more money for sports expansion sponsorship
permit a straight organization among an organization's product and an event striking on a some
extent group of viewers. The globe of commerce or trade corporations among every pasture of
action flourish by means of sport in its ability of a worldwide movement and verbal
communication as well as the picture of sports celebrities as tools of endorsing their brands or
services, thoughts and image.(Firica, 2008).

From the previous this is about twenty to thirty years ago, sponsorship is developing as of
diminutive level movement in an inadequate number of developed places to a key worldwide
industry. Sponsorship is obviously known by a way of communication or as a message convey
tool and it is for that reason measured a profitable savings or as an assets for an organization.
The variety of sponsored behavior has greater than before. Whereas sports and along with this
on a some slighter degree the arts activities stay very significant part, social and environmental
sponsorship have also a significant role.The expansion of televise sponsorship is one more key
expansion. According to some research in 2001, international savings in sponsorship are
predictable is more than US $24 billion. (Walliser, 2003).

Hence, marketers might interest in making ads which could be motivate positive outcomes on
these variables. Perceived product quality (quality) can be clear as a generally finding of a
brand's superiority or dominance of presentation (with regard to its planned reason) virtual to
substitute brands. Customer's perceptions of product quality are measured to be a key
determinant of shopping attitude and goods and services options (Zeithaml 1988).

Perceived product uniqueness (unique) can be clear as the extent to which consumers feel the
goods/product is dissimilar from rival goods/products. Brand discrimination is middle to the
brand-building process. (Maison, Greenwald and Bruin, 2004).

This research is focusing to test how advertising tools or cues influenced customer's perception
and attitude of risk earlier to buy. In particular, this study focuses on pre-purchase behavior such
as product's perception and attitude. This study is focusing that event sponsorships and celebrity
endorsement these two communication or advertising tools influence consumers buying behavior
more than do other types of advertising tools or cues. Customers depend on these two cues
because these are based on stars and event such that cricket stars, film stars and models and
also the big events like cricket matches. However, both have a significant impact on customer
perceived risk. Pre-purchase information processing is straightly connected to dropping
customers risk perception. In particular, advertising process linked with manufactured goods
performance and it plays a vital role in dipping customer's perceived risk. Pre-purchase behavior
was defined as a sequence of information processed according to customer-specific purposes.
Customers have particular distinctiveness that is known with best information from wealth and
customers deeds depending on their own known condition. (Heerden, Kuiper & Saar, 2008).

In other words event sponsorships and celebrity endorsement have been become one of the
most famous techniques of marketing in current time in the market. These both tools have
become a fashion and taking as a successful formula for market the product and Services to
building consumers satisfaction and also have an impact on consumer's pre-purchase attitude
towards the products and services. (Ranjbarian, Shekarchizade, Momeni, 2010).

The majority study reports and articles managing consumer perceived worth situation in the
Opening that the rivalry is extra rigorous now than it is ever before due to the growing reduction
of the world geographically, logistically and rationally and due to immediate knowledge trade is
easier and quicker via the internet and e-mail. Since because of the development in the logistical
system and shipping, deliverance times have reduced and consumers are more and more
challenging. In other words, the life cycles of goods and services are now very lesser than it's
before and innovative ideas come into view more quickly. Innovative and different manufactured
goods are not stay in the market for so long as innovative and different. since the offering and
number of substitute products and services are growing in number and customer are getting
become very challengi8ng day by day so the firms are in growing force to expand more and
more attractive goods and services than their rival's option so that the customers were decide
their goods and services and plus these all are in affordable prices for the target market. The
growing options and rising demand of customers are identified in the literature on consumer
perceived value and the consumer must be at the centre of all process while the aim of firms is to
increase and remain their consumers. In order to raise the attention in firm's goods and services
the firms must incessantly expand their options so as to go around the competing choices from
the consumer perspective. (Venkatesan 1966).

CHAPTER 3: RESEARCH METHODS

This chapter covers the detail information regarding problem statement, research questions, and
objective of this study, research hypothesis, data collection, sample size and technique. It also
includes the tool which has been used in the study.

3.1 Research Questions

1) What is the impact of celebrity endorsement on consumer pre-purchase behavior?

What is the impact of event sponsorships on consumer pre-purchase behavior?

3.2 Objective of this Study

This research is focused on the impact of event sponsorship and celebrity endorsement on Pre-
purchase attitude of consumers. The major reason of this research is to find out whether event
sponsorship and celebrity endorsement affect consumer pre-purchase decision or not as well it
increase the purchase-intent of the buyer or not.

3.3 Method of Data Collection

There were two types of sources available for data collection one is primary and other is
secondary to gather data information, in this study both tools have been used to collect data.
Primary depends on survey through questionnaire and secondary depends on data collection
through research articles, journals and internet.

3.4 Sample Size

The sample is drawn on the basis of convenience i.e. Convenience Sampling method

is followed. A questionnaire is filled by 100 respondents.

3.5 validity and reliability test
The questionnaire testing is used to check the weakness in design and instrument. Pre-testing is
referred to check questionnaire on small sample size i.e. 15 or 20 to delete the potential
problems. 20 questionnaires were filled from consumers to check the reliability of the
questionnaire.

3.6 Research & Testing Instruments

Regression model is used to find out the dependency between pre-purchase and celebrity
endorsement and event sponsorships. Multiple Linear Regression technique is used to evaluate
the impact of event sponsorships and celebrity endorsement, two independent variables
(celebrity endorsement and event sponsorships) and one dependent variable (pre-purchase
behavior) have been used. Therefore, MLR is the best tool to evaluate this type of data.

CHAPTER 4: RESULTS
The impact on consumer's pre-purchase behavior is determined by the dependence technique
which is Multiple regression analysis, this technique is used to predict the amount of variation in
dependent variable due to the any changing occurs in independent variables and correlation
gives the strength of relationship between independent variable and dependent variables.
Multiple regression analysis is most useful method especially in business Its uses range from the
most general problems to the most specific.

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CHAPTER 5: CONCLUSION
This research was based on the consumer pre-purchase attitude that had been created to
determine the relationship between celebrity endorsement, event sponsorships and pre-
purchase behavior. The study could be helpful for marketers and researcher to understand the
nature and characteristics of consumer's pre-purchase behavior. It could be said that event
sponsorships had a strong impact on consumer's pre-purchase behavior and celebrity
endorsement had a modest impact on consumer pre-purchase behavior.

Finding of this research had shown a strong relationship between event sponsorships and pre-
purchase attitude. After filling out 100 questionnaires to verify the major factors influencing
consumer's pre-purchase behavior, after applying the multiple linear regressions Model (MLR) to
test the significance level of all the chosen variables, it could be said that the Event sponsorships
had strong impact on consumer pre-purchase behavior and celebrity endorsement had no
significance relation on consumer pre-purchase behavior. It was also found that the nature of
event also influenced the consumer pre-purchase behavior towards the product or service. On
the bases of findings the results were showing that event sponsorship had significant impact on
consumer pre-purchase behavior which means event sponsorships which was toady very useful
technique using by so many companies, this tool had strong impact on consumers perception in
other words products or brands which are using to sponsored the events had very effective
method of marketing the brand, as the value was 0.00 mean strong relationship between event
sponsorships and consumer pre-purchase attitude towards the product or service.

On the other hand celebrity endorsement has no significant impact on consumer pre-purchase
behavior as the required p-value was > 0.05 which was 0.058 and this value was greater than
significance level which was shown the insignificance relation between consumer pre-purchase
attitude and celebrity endorsement, in other words consumers were not influenced by those
products, brands or services which are endorsed by the celebrity. In other words event
sponsorship had a strong positive impact on consumer pre-purchase behavior as compare to
celebrity endorsement which had insignificant level of p value, showing less impact on pre-
purchase behavior. This study was shown that a person got influenced towards the nature of
events and also those products and services which were sponsored in an event, in addition it
could be said that event sponsorship was very effective tool or technique using by companies on
a large scale nowadays. As competition is increasing day by day with innovative ideas and
marketers that were striving to achieve a competitive edge in market and companies also who
are tailoring strategies to fulfill consumer requirements effectively and tailored strategies which
were fit to the market.

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Celebrity Endorsement:

Aishwariya Rai endorsed Lux, and in doing so linked the soap to feminine beauty. Later, when
Shahrukh Khan also endorsed the same soap his endorsement as a male attracted the macho
attitude as well.
Promotion is an important and determining aspect of any business. Unless a firm properly
advertises its product, consumers will not be aware about it. Advertisements play four major
roles: informing, persuading, reminding and reinforcing and thereby increase the chances of the
product being selected by the consumers. Who would ever know that there exists a liquid
vaporizer named Good Knight, if Godrej Household Products Ltd. did not properly advertise it?
Advertisements certainly play a significant role in educating the consumers about products,
which are solutions to their problems, and in increasing sales and maintaining goodwill.

Celebrity endorsement is a form of advertisement, wherein celebrities promote the product, and
this trend has been gaining huge success abroad. It is simply a way to take emotional benefit of
the craze that celebrities have between their fans and followers base. For example, former US
President Ronald Regan was imitated by a huge number of his fans in smoking the same brand
of cigarette that he smoked. The Beatles fans also followed the same trend as they used to
purchase the same brands of goggles and watches that the band members used to wear. This
craze is used in commercials as does, for instance by Nike, a global brand, whose entire
promotional campaigns are done by celebrities.

In India too, in India where celebrities like Sachin Tendlukar, Amitabh Bachhan or Karishma
Kapoor to name a few, have been selected for the promotion of various products, this trend has
made a significant mark. These promotions have equally influenced the entire Indian sub-
continent. At the end of 2010, Indian firms had made a clear note that segmenting market and
choosing the markets idol for endorsement makes significant mark in the minds of consumers.
Celebrity endorsement is done not just at the time of introducing the product, or keeping the
image of the product. Aishwariya Raiendorsed Lux, and in doing so linked the soap to feminine
beauty. Later, when Shahrukh Khan also endorsed the same soap his endorsement as a male
attracted the macho attitude as well.

Celebrity endorsement has not only been creating positive vibes, but has been able to gain huge
popularity. Though such endorsements could be expensive, it contributes significantly in
generating profits for the firms. Usually, fans want to get in touch with their favourite stars. When
a celebrity endorses a product, his/her fans take it as part of his/her trend. Celebrity images are
generally high, and no matter how less valued the product is, it adds up certain value for sure in
the minds of consumers.

The Congruity Theory has a separate explanation about celebrity endorsement. This theory
explains how the image of a celebrity modifies the consumers negative image of the product. In
Nepals context, Sahana Bajarcharyas endorsement of Colors Mobile as its brand ambassador is
an instance of this trend. If a male fan of Sahana happens to dislike Colors Mobile it leads to two
possibilities. The fan might dislike Sahana herself for promoting a product that he dislikes. Even
in this case, certain positive vibes takes place. Consider he had an image of +3 for Sahana and
-3 for Colors. The endorsement can bring his image perception for both Sahana and Colors
Mobile to 0. Or yet in another possibility, the product will gain a higher value with Sahana losing
some. He might deduct 1 point and ascribe +2 image value to Sahana, while ascribing +1 to
Colors Mobile because his favourite icon has promoted it. In either case the firm, in this instance
Colors Mobile, benefits as it helps in generating goodwill.
The Indian culture has always been playing a major role in the Nepali society. After all, the two
countries share an open border and many cultural similarities. This is the reason why Indian
celebrities are used to endorse various products in the Nepali market, too. It also makes the
advertisement cost cheaper as editing voices or fonts would be enough. However, some Neplai
celebrities are promoting various products as well. For example, Rekha Thapa has been
promoting UTL and Paras Khadka has been promoting Clinic Hair Oil. There are other examples
as well - from Haribansha Acharya and Madan Krishna Shrestha to Sugam Pokharel. However,
what has been the actual influence of the product endorsement by these celebrities in Nepal?
Are the firms concerned gaining as much priority as in India or abroad where international
celebrities are endorsing their products? Certainly Not!

The first reason for this is we dont have a crazy fan following of stars in Nepal like in other
countries. None of the celebrities here has enough fan craze compared to international
celebrities. The fan list of Bryan Adams is perhaps bigger than that of Ram Krishna Dhakal.
Saddiccha Shrestha can attract attention of people generally under 30. But an endorsement by
Taylor Swift will perhaps be more successful because of the stars huge fan following. The
second reason is a bit subtle. Celebrity endorsement is cheaper in Nepal. It is understandable
that living the life of a celebrity is expensive, and Nepali celebrities cannot let go any opportunity
to make money through endorsement. So, Saugat Malla will easily accept any offer - from the
advertisement of a hair oil to a soap. Hence, the value gets lower. Appearing in any kind of
advertisement has already made the MaHa duo cheap. Third, the advertisements seem to have
failed to make appropriate celeb selection. An endorsement by Pilot Bijay Lama can attract
attention for flights. Similarly, an endorsement by Dr. Bhola Rijal would rather gain value than an
endorsement by some comedian for cheap promotion.

There are celebs that have won the trust of consumers. For example, Anil Shah or Dr Bhagwan
Koirala, have gained respect in the society but nobody has so far thought about using them for
product endorsement. The problem can be resolved by first making market segmentation. For
this, identifying the targeted market and looking for the major icon of that market is important. For
a trendy endorsement, Nima Rumba would be better, and for diplomatic endorsement Sunil
Pokharel would suit. Deepak Raj Giri or Gopal Nepal would rather fit for funny endorsement of
products like Hajmola, instead of reliability. Celebrity endorsement certainly has huge scope but it
must be properly identified and utilized.

The writer is currently studying MBA at Jawaharlal Nehru Technological University, India
Nepali Context:

awankali of Kantipur TV is having time of her life. The innocent yet intelligent village
belle is currently busy not just enthralling audiences on the talk show but exhorting
people to go for Pepsi in her inimitable style in a new Pepsi campaign.

I consider it a great opportunity to be associated with an international brand.

And Im open to more such endorsements in future, gushes Mampi Ghosh
alias Pawankali.

Welcome to the era of celebrity endorsements, which seems to be catching on in

Nepal. As you switch on the idiot box, theres Neema Rumba inviting people to
join him in celebrating with Coca-Cola or gulping down San Miguel. Change the
channel and you catch Kollywood superstar Rajesh Hamal trying to hardsell Himstar
TV if not 2 PM noodles. Then theres the hotselling comedian duo Madan
Krishna Shrestha and Haribansha Acharya, Deepak Raj Giri, Santosh Pant selling
multiple products apart from Hari Khadka, Deepak Bjracharya, Pallavi Dhakal and
Sabin Rai among a host of others. The list appears to be increasing every day.

Business houses and their agencies claim using celebrities to promote brands tend to
add value to their products.

We used Neema Rumba for Shakalaka Boom Boom and San Miguel because he
is very popular with both the kids as well as the youth, claims Rajendra Khetan,
who owns the two brands.

The pop star symbolises youthfulness and positive attitude, which are the hallmarks
of Coca-Cola, adds Saumendra Bhattacharya, the Coke chief in Nepal.

While for brands it means capitalising on the popularity of celebrities, for the latter it
means neat dough in terms of additional income. Moreover, being associated with
reputed brands tends to add to their popularity. For instance, while Rumba has
appeared on several magazine

covers, rap star and sports news reader Sudin Pokharel is suddenly being interviewed
by several magazines and newspapers. Interestingly, the cost of hiring celebrities to
endorse products is variable, depending on the size of the product, the campaign,
popularity of the celebrity and the tenure of the contract. Advertising sources claim it
can range from anything between Rs 30,000 to 500,000. However, there are some
TV personalities, they confide, who are willing to work for much less. Even as
consumers in Nepal are beginning to identify brands with one celebrity or the other,
reckless use of the latter can hamper the growth of the brand. As popular faces
hasten to capitalise on the trend by endorsing multiple products, the brand recall
goes down.

Says Ranjit Acharya, head of Prisma Advertising, Most celebrity endorsements

in Nepal are happening in a very haphazard way. While brand owners usually pick up
a celebrity at a party

without deliberating on the brand fit, celebrities themselves are grabbing any offer
that comes

their way.