2. Opinion Leadership & Celebrity Endorsement Presentation on OL + CE

5. Opinion Leadership (Word-of-Mouth communications) is the process by which one person (the opinion leader) informally influenced the action or attitudes of others, who may be opinion seekers or merely opinion recipients. What is Opinion Leadership ?

6. They key characteristics of influence is that it is interpersonal and informal and takes place between two or more people, none of whom represents the commercial selling that would gain directly from the sale of something. This often called word-of-mouth communication or the opinion leadership process What is Opinion Leadership ? Contd...

7. word-of-mouth implies personal, or face-to-face, communication, although it may also take place in a telephone conversation or in the context of chat group on the internet What is Opinion Leadership ? Contd...

9. OPINION LEADERSHIP IS CATEGORY SPECIFIC 9% Financial Services 18% Automotives 22% Travel 24% Consumer Electronics 36% Computer HW/SW 69% Restaurants

13. The self-designation method is the most commonly used technique in opinion leader identification. Here, respondents are asked to evaluate the extent to which they have provided other with information about a product category or specific brand or have otherwise influenced the purchase decisions of others. SELF-DESIGNATING METHOD

14. The Self-designating technique is used more often than other methods for measuring opinion leadership because consumer researchers find it easy to include in market research questionnaires. Because this method relies on the respondent’s self-evaluation. SELF-DESIGNATING METHOD Contd…

15. SINGLE-QUESTION APPROACH: In the last six months have u been asked you advice or opinion about “ golf equipment” SELF-DESIGNATING METHOD

18. Sociometric, the second method, involves tracing the communication patterns among group members. It measures the person-to-person informal communication of consumers concerning products or product categories. In this method respondents asked to identify (1) the specific individuals (if any) to whom they provided advice about the product or brand under study and (2) the specific individuals (if any) who provided them with advice about the product or brand under study. SOCIOMETRIC METHOD

20. SAMPLE QUESTION ASKED: “ Whom do you ask?” “ Who asks you for information about that product category?” Contd…

21. Opinion leadership can also be measured through the use of a key informant, a person who is keenly aware of or knowledgeable about the nature of social communication among members of a specific group. The key informant is asked to identify those individuals in the group who are most likely to be opinion leaders. KEY INFORMANT METHOD

22. Carefully selected key informants in a social system are asked to designate opinion leaders. This method is relatively inexpensive because it requires that only one individual or at most several individuals be intensively interviewed, where as the self-designating and sociometric methods require that a consumer sample or entire community be interviewed. Informants who are not thoroughly familiar with the social system are likely to provide invalid information. Contd…

23. SAMPLE QUESTION ASKED: “ Who are the most influential people in the group?” Contd…

24. Objective method is much like a “controlled experiment” – it involves placing new products or new-product information with selected individuals and then tracing resulting “web” of interpersonal communication concerning the relevant products. It artificially places individuals in a position to act as opinion leaders and measures results of their efforts. OBJECTIVE METHOD

25. SAMPLE QUESTION ASKED: “ Have you tried the product?” Contd…

26. SAMPLE QUESTION ASKED: “ Whom do you ask?” “ Who asks you for information about that product category?” Contd…

27. SAMPLE QUESTION ASKED: “ Whom do you ask?” “ Who asks you for information about that product category?” Contd…

28. CELEBRITY ENDORSEMENT

29. Cost Credibility Crisis Factor Factors Critical in Celebrity Advertising

30. As spoke person In print and electronic advertisements In outdoor media like hoardings As brand ambassadors The use of brands by celebrities in movies . Forms of Celebrity Endorsement

31. Brand has close substitutes available. Need to create a clear differentiation. Entry into the market. When the life cycle of the brand is feared short. Reasons for Celebrity Endorsement

32. CUSTOMERS BRAND CELEBRITY Advisement Advisement Advisement

33. Huge compensation Level of Acknowledgement Endorsement breeds Endorsement Why Celebrity themselves would like to endorse products…

34. Messages Celebrity Expertise perceived relevant Celebrities are perceived Trustworthy Ambitious psych e Physical Attractio n Why Customers accept the Celebrities

35. Duration of endorsement Multiple endorsement Celebrity Life Cycle Vampiring Critical Issue Related To Celebrity Management

36. 1.Cost incurred on the celebrity as a percentage of budget 2.Currently or recently endorsements of the celebrity with another entity 3.Whether the celebrity is strongly identified with another product, company or not. Possible Check List before a Celebrity Endorsement is done

37. 4.The number of commercials or ads the celebrity has appeared in over his or her career 5.Does the celebrity identify with a trend or fashion style? 6.Is the celebrity regarded as controversial? 7.Is the celebrity likely to alienate certain market segments? Contd...

38. Improper positioning Brand-celebrity disconnect Clutter Flutter Dissatisfaction with product quality Confusion When it doesn’t work

39. Is it smart to use celebrity endorsements for branding?

40. The rewards of using celebrities for your brands

41. CONCLUSION

42. Is it smart to use celebrity endorsements for branding?

43. [email_address] Thank you for your proper response and support! For further information contact: +91-9427913540 [email_address] From : Parakhiya Vasant