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mba disserTaTion Thesis
 mba disserTaTion Thesis


                                                                                        2009




 The influence of celebriTy endorsemenT in
                                 adverTising

comparaTive sTudy on india vs. uniTed Kingdom

 ARITTRA BASU
 UWL ID: 28001438
 Word Count: 28296
 October 2009
 Dissertation submitted as part fulfillment of the MBA (Masters of Business Administration at University of Wales,
 Lampeter /College of Technology, London)

 Social Science and Business Administration Programmes

 Department of Management and Information Technology

 UNIVERSITY OF WALES LAMPETER




                                                                                         09/23/2009
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PRIFYSGOL CYMRU LLANBEDR PONT STEFFAN

PERSONAL DECLERATION:

It is hereby notified to the Academic Registry and the Department of Management and
Information Technology of University of Wales, Lampeter that “this dissertation is submitted in
part fulfilment of the M.B.A (Masters of Business Administration) at College of Technology
London” by student bearing UWL ID: 28001438. It is an original piece of work which has been
solely researched and written by the student with the help and support of academic supervisor
allocated to the student by the University management. The topic of the dissertation has been
chosen by the student from his experience and knowledge gathered from the previous marketing
modules which he has undertaken during his Term 2 (Marketing Pathway) and the idea and
concept behind the topic came from the IMC (Integrated Marketing Communication) module
assignment which has initiated the phenomenon to develop the research. The student has seen a
cause behind the research for the benefit and enhancement of advertising media in the context of
Global Marketing for prospective companies. Therefore, the whole research is a genuine piece of
research and is a reflection of the academic effort and management knowledge of the student
from his postgraduate studies. As, a student I completely understand the rules and regulation of
the academic procedures in a postgraduate study and acknowledge their concern for the
perspective students. I solely respect and honor the rules of the University and thereby certify
this research as my own work.
“I declare that this dissertation is the result of my own research and all sources are duly
acknowledged by the researcher”


Thanking You

Yours Faithfully,

Arittra Basu

UWL ID: 28001438

Dated: 28/06/09
3


ACKNOWLEDGEMENT:

I Mr. Arittra Basu would like to dedicate my master’s degree dissertation to my loving parents
Mr. Asit Basu and Mrs Ratna Basu who has always supported and encouraged me throughout my
life and in my academic studies. They have always supported me emotionally and bought
courage to my life which has given me the present platform to do my master’s degree from
University of Wales, Lampeter. I am grateful to god for giving me such wonderful parents who
always cared me and bought me up to become a proper individual in life. I would also like to
thank Ms. Lipi Begum for supervising my dissertation and her assistance as a faculty has
immensely helped me to produce my scholastic work. Lastly, I would like to thank all my
friends, fellow class mates and faculties in the College of Technology, London for showing me
the light of management studies and making me a professional during the whole tenure of my
MBA.
4


ABSTRACT:

Purpose – The main purpose of this research paper is first, to gain a deeper understanding of the
celebrity endorsement strategy and consumers perception about it. What do consumers feel about
celebrity endorsements and where this marketing strategy lays when it comes to actual purchase
of goods and products? Moreover, when the world is heading towards a global economy
multinationals and established brands are enhancing their prospects to market products in an
international market. How effectively they can use the celebrity endorsement strategy. Secondly,
to evaluate whether there is any cultural difference among the consumers from different
countries and cultures? How companies face the challenge to convince consumers about their
product by utilising the celebrity endorsement strategy. These are the kind of questions evaluated
and analysed in the whole research.

Research Methodology – A survey was conducted of 80 consumer samples (India and UK) and
the sample was chosen as ‘convenience sample’. They were approached about the research by
using online community networking website for Indian sample and for UK, questionnaire were
distributed to volunteering participants in the reception area of Ramada Ealing, hotel. They were
asked various questions about the impact of celebrity endorsement and consumer’s buying
attitude. Even cultural significance from consumers’ view point was taken into consideration.

Findings – The data analysis of the research resulted in forming a positive and significant
relationship between the celebrity endorsement and consumers buying behavior. It has been
revealed that consumers are attracted towards celebrity advertisements and it initiates the 1 st
phase of the consumers buying cycle. (Pre-purchase dissonance) Also, the influence of culture
plays an important role in the recognition of a celebrity as described by the sample tested.
Difference between Indian and UK consumers were also found from the analysis.

Research limitations/implications – Results are based on limited and small sample. Different
locations within UK and India would have constructed a better research design. There are many
scopes for further studies in this area concerning advertising and marketing relationships.

Realistic implications – Celebrities are mere promotional tools used by the companies and
brands to attract consumers. Charisma of the characters doe’s appeals many people, but it doesn’t
demonstrate whether it fosters the sales growth. Culture plays a vital role in the human society
and it’s the fundamental basis to approach people (consumers) across the world.

Originality/value – The paper has demonstrated the significance and importance of celebrity
endorsement as promotional tool by examining consumers’ perception. Also it has given an
insight to the global marketing sector about the importance of understanding the cultural
difference to penetrate the market effectively.
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Table of contents:                                              Page Number

Chapter 1

1. Introduction

1.1 The topic…………………………………………………………………………………10

1.2 Background……………………………………………………………………………...12

1.3 Current facts about celebrity endorsements……………………………………………..15

1.4 Celebrity endorsement in Indian Advertisements……………………………………….18

1.5 Celebrity endorsements in UK advertisements………………………………………….20

1.6 Problem Discussion……………………………………………………………………...22

1.7 Rationale behind the research……………………………………………………………24

1.8 Purpose of the research…………………………………………………………………..25

1.9 Outline of the research……………………………………………………………….......25


Chapter 2

2. Literature Review

2.1 Celebrity Endorsements and its importance in Promotion Mix…………………….27

2.1.1 Pros and Cons of Celebrity Endorsement Approach………………………………….27

2.1.2 Meaning Transfer Model……………………………………………………………...30

2.2 The Process of Celebrity Selection……………………………………………………35

2.2.1 The TEARS model……………………………………………………………………35

2.2.2 The No TEARS Approach for celebrity selection…………………………………….38
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2.2.3 Celebrity endorsement and Cultural Dimension………………………………………41

2.2.4 Acceptance of Celebrity Endorsement based on Cultural Difference……………….. 44

2.2.5 Celebrity endorsements and ROI (Return on Investments)………………………….. 50

Chapter 3                                                               Page Number

3. Research Methodology

3.1 Purpose of Research…………………………………………………………………..53

3.1.1 Exploratory Research………………………………………………………………..53

3.1.2 Explanatory Research……………………………………………………………….53

3.1.3 Descriptive Research………………………………………………………………. 54

3.2 Research Approach………………………………………………………………… 55

3.2.1 Quantitative Research……………………………………………………………….56

3.2.2 Qualitative Research……………………………………………………………….. 56

3.3 Research Strategy…………………………………………………………………….57

3.3.1 The Survey…………………………………………………………………………...58

3.3.2 Designing of Questionnaire………………………………………………………….59

3.3.3 Principles of questionnaire construction…………………………………………….61

3.4 Data Collection Procedure and Analysis…………………………………………....62

3.5 Sample Selection……………………………………………………………………...63

3.6 Research Principle…………………………………………………………………....65

3.6.1 Construct Validity…………………………………………………………………...66

3.6.2 Reliability…………………………………………………………………………....66
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3.7 Logistical and Ethical Consideration……………………………………………….67

3.8 Summary……………………………………………………………………………..69




Chapter 4                                                                   Page Number

4. Data Analysis

4.1 Data Collection Draft…………………………………………………………………….70

4.2 Data Analysis of Questions……………………………………………………………….72

4.2.1 Analysis of Close Ended Questions…………………………………………………….72

4.2.2 Analysis of Open Ended Questions……………………………………………………..86

Chapter 5

5. Findings and Conclusions

5.1 Consumers and Companies Opinion about Celebrity Endorsements as a Promotional
Strategy………………………………………………………………………………………..89

5.1.2 Repetition of Celebrities in Advertisements and Consumers Opinion…………………..90

5.1.3 Celebrity Endorsement and Cultural Significance……………………………………….91

5.1.4 Cultural difference between India and UK………………………………………………92

5.1.5 Meeting objectives of the Research………………………………………………………93

5.1.6 Implication for future Research…………………………………………………………..94

5.2. Emerged Model of Celebrity Selection from the Research…………………………….96

5.3. Cultural difference among consumers in (India and UK) model………………….......98

6. List of References…………………………………………………………………………...99
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Appendix Number 1 (Questionnaire)
Appendix Number 2 (Ethical Consideration Form)
Appendix Number 3 (Data collection of the open ended questions)

Appendix Number 4 (Email interactions between the student and supervisor)
Appendix Number 5 (Letter of Consent from General Manager: Ramada London Ealing)
List of Figures and Tables                                                       Page Number

Figures

Figure 1.1 Framework of the research………………………………………………………………26

Figure 2.1 Pros and Cons of Celebrity Endorsement Strategy……………………………………...28

Figure 3.1 The Meaning Transfer Model…………………………………………………………...30

Figure: 4.1 TEARS model…………………………………………………………………..36

Figure: 5.1 Factors essential for Celebrity and Brand Congruency……………………….39

Fig 6.1 Geert Hofstede Cultural Dimensions of United Kingdom…………………………45-46

Fig 7.1 Geert Hofstede Cultural Dimensions of India………………………………………46-47

Fig 8.1 Cultural Dimensions accepted in India and UK……………………………………48

Fig 9.1 Comparison between India and UK based on Geert Hofstede: Cultural Dimensions…49

Fig 10.1 Research Strategies for different situations………………………………………..58

Fig 11.1 Basic Principles of Questionnaire Design………………………………………….61

Fig 12.1 5 Sources of Evidence: Strength and Weakness……………………………………62

Figure 13.1 summarizes the different methods which are been applied in the research in a
diagrammatic flowchart………………………………………………………………………69

Fig 14.1 Population Participation of the research…………………………………………….71

Fig 15.1 Division of age group of the sample………………………………………………...71

Fig 16.1 Celebrities in advertisements………………………………………………………..72
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Fig 17.1 Celebrities in media channels……………………………………………………….73

Fig 18.1 Celebrity endorsement influencing busying behaviour of consumers………………75

                                                                                  Page Number

Fig 19.1 Power of persuasion of celebrities………………………………………………….76

Fig 20.1 Products ideal for having celebrity endorsement…………………………………..77

Fig 21.1 Consumer appeals in terms of advertisements……………………………………...78

Fig 22.1 Areas prone for celebrity advertisement……………………………………………79

Fig 23.1 Preference of celebrities in advertisements by consumers………………………….80

Fig 24.1 Percentage of repetition of celebrities in advertisements…………………………...81

Fig 25.1 Consumers preference of celebrity advertisement in purchasing…………………...82

Fig 26.1 Ranking of celebrity characteristics in an endorsement…………………………….83

Fig 27.1 Line chart representation of the characteristics of celebrity from consumer survey…..85

Fig 28.1 Model of Celebrity Selection………………………………………………………..96

Fig 29.1 Cultural difference among consumers in (India and UK) model……………………98
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                                         CHAPTER 1

1. Introduction:

In this chapter the researcher has provided the readers an insight about the inception of the
problem of the research and has explained the history behind the problem with various facts and
documentation which relates to the actual cause of taking celebrity endorsement as a topic of
research from global marketing perspective. Later in this research we will see the problem
discussion followed by purpose of thesis writing addressing the research questions and
hypothesis.


1.1 The topic:

The use of celebrities in advertising has been phenomenal since the inception of the advertising
media in the field of marketing. From decades many companies and world’s renowned brands
has taken the advantage of the using public figures in promoting their products to the consumers.
Advertising being one of the essential tools of the promotion mix of marketing has played an
important role in the prosperity of the brands and portrayed them as consumable products to the
consumers from different aspects and cultural diversity of the world. However, it has been
observed in the recent years with the modernization of technology and advancement in the
advertising media, advertising accounts to become a fundamental part for the success and failure
of a particular product / brand for major companies and organizations. Advertising has captured
the consumers mind and has psychologically influenced the buying behavior of the consumers. It
has acted as a technique of selective vision for the consumer which has helped the brands to
become associated along with the life style and cultural entity for many individuals. Consumers
like to get the notion of being associated along with the tangible and intangible aspects of the
brands and products. In a specific way it depicts the personality and attributes of the individual.
Additionally, with the advancement in the field of consumable products and with invention of
modern hi-tech technology there has been an increased state of competition in the market
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globally and several companies came up with similar product offerings which created a big pool
of developed products and goods with slightly modified attributes. Now, the challenge for the
marketers arises when they are trying to establish their own brand in the market in order to
achieve brand equity and market share.

In relation to this subject there comes the importance of individual personalities and known
figures of the society who portray specific images of them in promoting the products and goods
of the companies which gives them another dimension of association and catalyzes the
promotional mix of the marketing dynamics. However, as we study human psychology it would
be eminent from the behavioral characteristics of human beings that they tend to follow their
superiors in order to learn the behavioral attributes. The major example would be taken from the
child and parent relationship where the child always follows what their parents teaches them to
do. It is to assume that they learn each and every element to become a proper human being from
their parental upbringing. Therefore, some get the good attributes and some get bad from their
parents. Similarly, in the consumer world the consumers do follow certain personalities and
distinguished people to purchase goods and products as they carry emotional traits which are
similar to certain consumer’s nature and behavioral characteristic. They find their own
distinctiveness within these personalities and enjoy the relationship of using those products
endorsed by them. These personalities or characters are defined as celebrities in the societal
terms and they not only belong from the tinsel world of glamour but also from other sectors like
sports, academics, business giants, politicians and even entrepreneurs.

But the question arises why these characters become a subject of attention from the public and
get huge response over their activities. Needless to mention that with their achievement in
specific field the celebrities also gain a lot of power and prestige in the society which acclaims
them to be personified figures and the clever marketers use them in their promotional mix to
utilize their power of persuasion to convince consumers for purchase. However, in the 21st
century it has been observed that the involvement of celebrities into the marketing activities of
various companies has risen enormously. The main objective of the research is to find out the
reason behind celebrity endorsement and why do companies do that. Is there any benefit which
the companies attain through it? If they want to target different market across the globe do they
have to follow the same strategy or they need to redefine it. Moreover, it has been observed that
12


celebrity endorsement is very popular mode of marketing in India rather than in UK where the
effectively of the product/goods are considered more by the consumers than endorsement and
even if there is an endorsement of any product the companies rather do it very intelligently as
consumers are intrinsic in nature. In order to do the research a comparative study about the
consumers from UK and India has been taken as sample.

1.2 Background:

The world economy has become a global arena, where each and every activity of the trade is
imitable by the rest of the world. What is happening in the recent economic crisis situation
throughout the world is just an evidence to prove the phenomena that recession has not only
effected the western world but all the developed, underdeveloped and emerging economies of the
world as businesses has become global and are operating in every parts of the world. So the
adverse effect or the privilege of operating a successful business is experienced by all. In terms
of enhancing a company, a brand or a product to a particular target audience marketers play a
vital role. On the other hand side it is not a case of miracle to convince consumers in this highly
intrinsic and inquisitive society where people are considerably rational about their buying
behaviour. Consumers are not living in a fool’s paradise and the conventional phenomenon of
ruling the market from a companies offering and perspective is no more pertinent. Now
consumers are giving the verdict or opinion about what they want from companies and in order
to survive in the market all major industries have to accept the judgement. [Haugtvedt et.al.
(2008) in Basu (2009: unpub)]

However, marketers are very clever to nurture with the emotions and psychology of the
consumers and they always initiate the phenomenon of buying into the grey matter of the over
eloquent society with the help of advertising. Moreover, advertising is a weapon which the
marketers use to dominate the consumers attitude towards a specific brand or product.
Additionally, advertising principles are based on certain theories of consumer psychology where
uses of different kinds of messages with expressions are highly recognized. [Brook and Green
(2005) in Basu (2009: unpub)] Kambitsis et.al. (2002) suggests that advertising has become
important to the contribution and development of the society in the early era of 1930’s.
Celebrities and known faces have taken the role of spokesperson to advertise and promote
13


goods, services and ideas for various companies and organizations. They came from all facet of
the society after claiming their identity as personified person from the public and belonged from
glamour world of movie, modeling, arts and even sports background. But when it comes down to
promotion an important role has been played by the use of testimonials in marketing. According
to theory of advertising, testimonials are considered as promotional tools which are also known
as endorsements. But both testimonial and endorsements carries different meanings in the
application, where the former is often used to strengthen ‘sales pitches’ for general mass and
convey messages to a larger community and the later take into account the use of ‘celebrities’ in
communicating the message. An endorsement essentially consists of a well written document or
statement of a person who has a public image or a personality of a charismatic leader whose
work or contribution to society has been recognized considerably by the community and their
approval of the product or brand significantly improves the promotional aspect and buying trend
of the product or services. [Heath (2004) in Basu (2009: unpub)] This phenomenon has been
prominent since 1893, when British actress Lillie Langtry was portrayed on the package of
Pears Soap and thus she became the world’s first celebrity endorser. Though, in those
generations the advertisers used celebrities in their campaign to address the consumers about the
current trend. (Ibid).

Moreover, Tellis (1998) asserts that endorsers of products can be classified into three broad
groups; as in experts, lay endorsers and celebrities. Generally, experts are those people who have
specific knowledge in a particular field and they use their expertise to promote the product/
goods of the company. Experts are chosen by the marketers because they have gathered a sound
knowledge about the product and the usage of the item through learning, training or experience
(Ibid). An example of showing the approval of Oral-B brand by the British Dental Health
Foundation claiming it as an expert’s authority to endorse it as a quality product in dental
material enhancing the credibility of the product. [(www.oralb.com) in Basu (2009: unpub)]
Additionally, Tellis (1998) suggests that there is another segment of endorsers who are fictitious
characters or rather unknown individuals or characters known as ‘lay endorsers’. They are
chosen by the marketers based on the target market they wanted to capture and there are certain
characteristics of these endorsers which are similar to the target audience which eases the process
of identifying the endorser and the message communicated by the companies. Example would be
14


taken from the anonymous voice-over in video and audio advertisements which often uses lay
endorsers to promote the products.

However, Shimp (2000) talks about another form of endorsement which is similar to the lay
endorser concept of Tellis, but instead of using voice, typical individuals are used in this
segment. Shimp (2000) asserts that individual endorser’s are inexpensive than that of using
celebrity marketing techniques and avoid the conventional biasness of using ‘beautiful people’
with physical attributes or individual characteristics which are rather identical in advertising
media. Shimp (2000) also suggests that adverts which uses person endorsers includes several
persons rather than singular ones with the intension that multiple number of endorsers will
generate higher levels of message involvement and in the same way would create greater
message circulation. This technique creates a mind block in consumer’s mind and starts showing
favorable attitude towards the brand/ product (Ibid).

On the other hand use of endorsements is not only limited to celebrities or experts but
consumers are also endorsed by the brands to reflect the understanding what consumers are
going to get from the use of the product demonstrating the rational judgement of a common
person. Using consumer endorsements specially targeting necessity commodities and famous
products or brands are having substantial benefit for the product as it relates to everyday person
and a consumers can imagine him / her in that person which is another way of playing with
consumer psychology. [Perle et.al. (1999: A99) in Basu (2009: unpub)]

Subsequently, there is a rational aspect of using celebrities into the endorsement of a product. If
the products can be classified as technical (e.g. PC’s) or non-technical (e.g. jeans) then using
celebrities in a technical product is less substantial than using them in non-technical products. It
is to relate to the rational aspect of evaluating the use of the product, where technical product are
used by all consumers coming from every aspect of the society and in such purchases showing
someone reliable preferably a technical person or common users are more effective. Their
connotations are highly recognized and valued by the consumers whereas in the use of non-
technical products the use of celebrities are of high importance as it associates the brand name
and image of the person along with the product. People tend to perceive a delineation of a
15


personified figure into the brand and gets the association of being recognized as part of the clique
summoning the celebrity as a captivating leader. [Leon et.al. (2008:328) in Basu (2009: unpub)]


1.3 Current facts about celebrity endorsements:

McCracken (1989: 311) states that Celebrity Endorsement is defined as: “any individual who
enjoys public recognition and who uses this recognition on behalf of a consumer good by
appearing with it in an advertisement” Moreover, celebrity endorsement has become an
omnipresent factor in the global arena of modern marketing and is recognized worldwide in the
field of marketing and advertising (Ibid). In toady’s word of modern hi-tech media celebrities are
used in all the communication channels like Television, Radio, Internet, Publications etc and a
vivid presence of TV actors, movie stars, sport personalities and even dead celebrities are
observed into the marketing campaign of various companies. (Shimp, 2000) However, Kambitsis
et.al. (2002) asserts that the use of celebrities in advertising has been associated along with
several complexities involving the celebrities individual life-style and claims the process to be
rather sophisticated marketing technique than mere promotional agenda. Marketers around the
world in various established organizations spends a huge amount of money annually on celebrity
contracts for their products and it is an established belief among the marketers that celebrities are
efficient spokesperson for their products / brands. Another, important verity described by (Belch
& Belch, 2001) is that from 1979 to 1997 the popularity of celebrity endorsement has risen from
15 to 25 % in USA and in present 21st century more than 20% of all TV commercials around the
world feature celebrities in advertisements. According to (Forbes 2003) in the year 2003 actress
Jennifer Aniston has been ranked the No. 1 celebrity for endorsing various products for
companies and brands followed by Rapper Eminem and Dr Dre in the 2nd place and in the 3rd
place Comes Tiger Woods who has got a contact with Nike worth $105 million. This data proves
the fact that how companies are spending a huge block of money on their marketing budget
especially when it comes to endorse celebrity for product branding.

Moreover, (Mowen & Brown, 1981) asserts that marketers also rely on multiple celebrity
endorsement as an advertising practice where they target more than one celebrity to endorse the
product / brand. Examples of companies who are involved into this practice are Pepsi, Coke and
Nike who have introduced this technique into their advertising campaigns. Most important
16


practical illustration of the above tactic has been found in the “Milk Mustache” campaign in the
USA where they have engaged more than 100 celebrities for the promotion of milk since 1995.
Subsequently, previous research from scholars proves the fact that while considering celebrity
endorsement the ‘thumb rule’ is to consider whether the characteristics of the product matches
with the profile of the endorser as this tie-up acts as an effective mode of communication. (e.g.
Kahle and Homer, 1985; Kalra and Goodstein, 1998; Kamins and Gupta, 1994; Misra and
Beatty, 1990; Sengupta et al., 1997; Till and Busler, 1998)

Additionally, multiple celebrity endorsement has positive impact on the consumers as it
influences their behavior. As described by the attribution theory, people summon that the cause
of certain events in their life is influenced by their own behavioral acts or is affected by the
behaviors of others around them. From celebrity endorsement perspective it could be analyzed
that consumers receive the message of the endorser based on the fact that he / she actually
believes in the qualities and effectiveness of the product (internal attribution) or they are paid to
say so (external attribution) Although, consumers do acknowledge consensus voting about the
same which acts as credit for the marketers and they tend to view the product from endorsers
perception. (Kelley, 1967)

However, another interesting phenomenon which has come across in the marketing agenda of
companies having less resources and financial flexibility is bringing in sports personalities into
the marketing campaign to promote their products. As, most of the companies have consensually
agreed that celebrity endorsements has become a distinguished part of the promotional drive,
therefore for companies having limited budgets endorsements of sports and athletes has turned
out to be potentially viable investment than endorsing named celebrities. (Martin, 1996)
Moreover, there are certain general objectives which are expected to be accomplished by the
endorsers of any brand. They are as follows:

•   Capturing consumer’s attention.
•   Building up the brand name.
•   Strengthen the brand image of the product
•   The endorsed message should be plausible.
•   Adding charisma to the endorsed product.
17


•   Creating a liking for the advertisement and add recall by consumers.
•   The prospect of having amplified sales from the campaign (Ibid).

On the other hand Jagdish and Wagner (1995) illustrates that celebrities enhance the potential of
having the advertisement recalled by the target audience because of their persuasion power. They
also enrich the possibility of having positive brand recognition for the product, create a positive
attitude of the consumers towards the brand, catalyze brand consumption among the consumers
and construct the identity of the celebrity along with the endorsed brand / product. Furthermore,
celebrity endorsement has become an integral part of the advertising strategy for many
companies as it increases the marginal expenditure of the marketing budget but gives a huge
return on investment by creating brand equity with the association of “secondary association”
of a celebrity with a brand (Ibid).

Another facet of the celebrity endorsement is the technique of using them by the companies. Till
(1998) mentioned that companies uses the celebrity endorser into their adverts either periodically
or opportunistically based on the situational requirement of the person in endorsing the product
campaign. From another perspective it would be assumed that the return on investments from
celebrity endorsements could be dynamic if the celebrity is used by the brand often to endorse
the product. The repetition of the celebrity into the adverts strengthens the association of the
celebrity along with the consumers as many already know the endorser and the rest would come
to know from the previous group’s association. It also creates awareness about the brand and
celebrity among the consumers. Subsequently, the caution is that marketers should maintain
stability in endorsing the same personality into the brand which they have endorsed earlier as
unexpected fluctuations among the endorser generates a negative association of the brand and
simultaneously fades the possible outcome from the endorsement. (Till, 1998)

Some of the example would be taken from Nike’s consistent use of Michael Jordan, Armani and
David Beckham, Penelope Cruz and L’Oreal. In all the above cases the advertisements has
encouraged the consumers to think about the perfect symbiosis between the product and the
personality which signifies that all the characters later became intangible element of the brand.
(Ibid). If we take the example of different media channels it would be more prominent like
L’Oreal brand uses the celebrity film stars and international models to endorse their shampoos
18


and cosmetic ranges using the universal pay off “because I am worth it” which a patent version
of their testimonials used by the endorsers conveying the message to the consumers that if being
a celebrity if the product works on being my beauty secret why not for you. [Mooiji (2005)]

However, Jagdish and Wagner (1995) describes that though from investment perspective
endorsing a celebrity into the marketing campaign of a company is expensive and accounts a
huge involvement of money and networking, but simultaneously is a very effective medium to
get a brand attention in the competitive market. It helps the companies to get their product/ brand
identified by the consumers because of the relationship which both the celebrity and brand
carries in the societal structure. Endorsements are rather classified as good technique to maintain
a continual flow of stocks as it enhances the consumption making the investment worthwhile.
But potential threats of associated risks are not to be eliminated as association (positive /
negative) both have certain impacts on the product / brand.


1.4 Celebrity endorsement in Indian Advertisements:

However, in order to do a research about the impact of celebrity endorsement in marketing and
advertising media and considering this phenomenon as a major tool of promotional mix by
various organizations of the world, it is very important to do a comparative study between
different countries to exemplify the impact of celebrity endorsement among the consumer’s of
different cultures and their perception towards the association of a product, service / brand along
with celebrity attachment. Therefore, for the purpose of the research India has been chosen a
country of research and the current facts about celebrity endorsements in India is demonstrated in
this section to give the clear understanding of the country’s position in relation to celebrity
endorsement.

Chaturvedi (2008) talks about the impact of celebrity endorsement in India during one of the
countries major movement for Polio eradication which has portrayed numerous celebrities of
the bollywood banner to communicate with the common mass and publics of India through
television ads, friendship cricket matches, awareness programmes, rallies etc. Some of the major
known celebrities who have done television and media shots for the polio campaign are Priety
Zinta, Rani Mukherjee and Priyanka Chopra. Even famous actress and Miss World 1994
19


pageant winner Ashwarya Rai and Tennis player Sania Mirza have done print ads for the same
campaign. Moreover, to generate awareness and literate the Indian mass about the importance of
Polio vaccination a wide spectrum of celebrities were approached to endorse the immunization
programme and various television spots were prepared and telecasted in the National and
terrestrial channels in the television throughout India. (Ibid.)

Additionally, the impact of cricket as a sport in India has a huge response from all aspects of the
society and various community people and in that relation a ‘Friendship Series’ between India
and Pakisthan was organized in April 2004 to raise awareness for the Polio Immunization
prorgamme where the captains of 2 cricket teams urged the people to “Bowl out Polio”.
Similarly other important celebrities were also approached to do awareness rallies and direct visit
to the household to intensify the magnitude of the programme. Farooque Sheikh, an ex
Bollywood actor who has substantial knowledge about Koran addressed the Muslim prophet nad
religious leaders about the importance and validity of the campaign. Javed Akhtar, a script and
songwriter for bollywood films, Sharmila Tagore (ex actress) and Soha Ali Khan (a new
comer in the tinsel world) also did direct home campaigns where they visited the household of
common people in particular areas of India to justify the essentiality of the programme and
communicated the message to the mass. (Ibid.)

Another important aspect of celebrity endorsement in India is observed in the ‘Cola Wars’
where the major concern comes for all the fizzy drinks company is to create price sensitivity. As
most of the cola ads are endorsed by popular bollywood celebrities like Sharukh Khan, Amir
Khan, Akshay Kumar etc and have glamorous associations which shows the association of the
drink along with the position and celebrity predilection. However, considering the price per
bottle was a challenge as most of the companies endorse similar people and Coca Cola
implemented a strategy where they reduced 300 ml bottle to 200ml bottle and sold it in INR 5
equivalent to 7p in GBP and $10 in US which benefitted Coca Cola to rule the market for a short
term, with the celebrity influence to purchase smaller bottles in a cheaper price as the ads were
focused on the price of the bottle than other aspects of the drink. (Amis & Cornwell, 2005)

On the other hand there are current facts about celebrity endorsements in India where
international companies have endorsed bollywood celebrities for their product launch in India.
20


Some of the references would be taken from the endorsement of bollywood superstar Sharukh
Khan as the brand ambassador of Swiss watch maker TAG Heuer, a part of LVMH Watch and
Jewellery. As per Jean Christophe Babin, president and CEO of LVMH Watch and Jewellery the
company has plans to open 4 more outlets in Bangalore, Chennai, Mumbai and Hyderabad and
the brand ambassador will involve in the marketing of the new models of watches of the
company in India. Being the brand ambassador Sharukh Khan commented that the watch has
always stood for luxury, style, prestige and exception and in India the brand will enhance its
market creating its association along with the pristine society. (9th September 2003)

As a celebrity Sharukh has also endorsed another Swiss watchmaker Omega before getting
associated along with TAG Heuer. However, TAG Heuer has also endorsed bollywood actress
Priyanka Chopra (Ex Miss World 2000) as a brand ambassador for ladies collection in India
and has replaced Susmita Sen from the TAG banner. TAG has always represented glamorous
figures to execute the brand to the world and in India as well they have targeted the celebrities to
maintain the consistency of supremacy of the brand. (16th March 2007)

However, the world famous brand of fizzy drinks Coca Cola has also endorsed actor Amir
Khan as a brand ambassador of coke in India and has made several Indian ads featuring Amir in
various cultural perspective portraying the Indian eccentricity in different regional cultures
prevailing in different states in a humorous version.


1.5 Celebrity endorsements in UK advertisements:

In compare to India the impact of celebrity endorsements in the advertising and marketing of
products / brands in UK are entirely different as seen superficially from a common observation.
In UK particularly the adverts are made according to the effectiveness and usage of the product
to the general mass and celebrity endorsements are rather limited than its generous use in Indian
adds. In UK as well there are several organizations who endorse celebrities from different
background and societal structure than using them from the world of glamour. Example would
be taken from using Chef Jamie Oliver in the advertisement of grocery retail supermarket
Sainsbury where they show Jamie endorsing the Sainsbury products and certify that their
products are best for cooking and as raw ingredients. Celebrities in UK are rather classified into
21


several categories as companies choose them according the fame of popularity in the public
index. They can be chosen from sports world, glamour, television or from recent scandal as well.
Taking the reference of Late. Jade Goody who died of cervical cancer was pointed out as one of
the characters of arousing racism in a celebrity lifestyle television show Big Brother where she
was accused of doing racist behavior to one of her contestant (Indian actress Shilpa Shetty) by
abusing her in public media. This particular event captured a lot of media attention in UK and
again ignited the fire of white vs. brown in UK mass. But with the sudden discovery of her
having cervical cancer grabbed the attention of the Britons and she got the sympathy of the
common public from UK and her previous behavior was rather substituted for her illness.
Though she had to beg apology but her terminal cancer gave her the fame and the NHS made her
a role model of creating awareness among the young women in UK about cervical cancer. Well
it could be described that she turned out to be the person from ‘ashes to gold’ but women in UK
has recognized her as a person who has shown the female Britons about the danger of having
cervical cancer and a positive impact for cervical cancer checks among the women as recorded
by NHS.

Subsequently, there are other adverts in UK where presences of celebrities are also noticed. But
as UK and US both follows Hollywood film stars therefore the ads of UK also depicts celebrities
from US as a vast majority. But there are few adverts where domestic celebrities are seen as
being an endorser. Some of the examples would be taken from ‘Cadbury’s Milk Tray’
magazine advert where Laura Bailey was endorsed for the marketing of Cadbury’s product in
1998. Cadbury has also endorsed the television personality Mat Lucas for the marketing
campaign of ‘Cadbury’s Crème Egg’ in 2000. However, there are also certain facts where 2
major brands like Cadbury’s and MTV – (chart numbers and pop songs hit channel) jointly made
a marketing campaign to promote free live musical events for the popularity and promotion of
both the brands. For this campaign they endorsed Five, 5ive, Ritchie Neville, J Brown the
singers   to   promote    Cadbury’s    as    well   as   MTV      to   the   young    audience.
[www.advertisingarchives.co.uk]

However, there are brands and companies which have endorsed celebrities for their marketing
campaign and the current data about their endorsement policies depicts the phenomenon that
they not only choose celebrities from the glamour world but from all other business entities.
22


Walkers endorsed celebrities Cat Deeley and Garry Lineker for their marketing campaign in
2009, Moneysupermarket.com endorsed entrepreneur and Dragon Den’s Peter Jones for
promoting their price comparison website and L’Oreal endorsed actress Jane Fonda for their
cosmetics and skincare range which emphasized on antiageing and ageing wrinkles skin care.
Even the royal family was endorsed into magazine adverts which were reflected in the cover
page TV Times magazine, 1981 following the wedding of Prince Charles and Princess Lady
Diana. Princess Diana appeared back in the cover page of Woman magazine after the birth of
Prince William in 1982. Even sport celebrities like Ian Botham, Andrew Freddie Flintoff,
Tiger Woods, Thierry Henry, Roger Federer were endorsed into several consumer goods and
mostly into men’s skin care products and sport shoes from companies like Gillette, Sureman
and Nike. Interestingly, in UK politicians are also endorsed by companies and recently
Schweppes endorsed Prime Minister Gordon Brown in their Magazine Advert. Also prestigious
brand for men, Dunhill has endorsed actor Jude Law for their newspaper advert in 2009.
Surprisingly, the Dorchester Collection of Hotels used personalities like Grace Kelly, Albert
Einstein, Kristin Scott Thomas and Orson Welles in their 2009 magazine advert, who were
once associated along with the hotel in her glorious past. [www.advertisingarchives.co.uk]


1.6 Problem Discussion:

Bryne and Breen (2003) claims that studies and researches in the field of consumer behavior and
marketing shows that celebrity endorsement have positive impact on the purchasing behavior of
the consumers than non celebrity endorsers. Moreover, McCracken (1989) suggests that celebrity
endorsements are effective ways of transferring the association of the personality to the brand
and is highly recognized by the marketing community of international organizations. Bryne et al
(2003: 289) states that “celebrities can build, refresh and add new dimensions. What celebrities
stand for enhances brands and they save valuable time in terms of creating the credibility a
company has to create in order to build its brands by transferring their values to the brand.
When consumers see a credible celebrity endorsing a product they think the company must be
OK”

Moreover, in this research the specific problem which has been observed by the researcher is
related to the difference in endorsing celebrities into the advertisements in India and UK. After
23


evaluation of the advertisements of both the countries it has been reflected that in India the
prominence of celebrity endorsement are more from the tinsel world (Bollywood) of glamour
and in all types of product endorsements the companies are eager to get a Bollywood celebrity
enrolled into the advertisements rather than endorsing other personalities from any other sectors.
On the other hand in UK it has been observed that companies are eager to endorse the
celebrities / personalities into the advertisement campaign of the product or brand based on the
effectively and practical realization of the advertisement in the societal structure. For example,
L’Oreal hasn’t endorsed Deborah Meaden (entrepreneur) and Dragon of Dragon’s Den Show
(BBC 2) as a celebrity endorser to promote their cosmetic range for women or
Moneysupermarket.com has not enrolled Penelope Cruz to promote their price comparisons
websites. In contrast it has been observed in India that domestic Banking and financial sector
giant ICICI bank has endorsed actor Sharukh Khan to promote the banks financial and NRI
banking facilities in the form of television adverts. Moreover, celebrities in India endorse all
types of products from cosmetics, fizzy drinks to National Polio Vaccinations programme where
the presence of Bollywood personalities are in abundance.

According to Bryne et al (2003) most of the companies face the problem while choosing the
right personality/celebrity for their product endorsements. It is the responsibility of the
advertisers within a specific company to be able to match the company’s image or product image
with the personality of the celebrity and the characteristics of the target market to establish
effective messages for the consumers. McCracken (1989) state that endorsements are more
effective when there is a ‘fit’ between the endorser and the endorsed product. Subsequently,
Martin (1996) illustrates that in order to achieve maximum outcome of a celebrity endorsement it
is very important to consider the degree of similarity between the image of the celebrity and the
image of the product. The more is the similarity in association between the image of the product
and the celebrity, the more positive response from the consumers which leads to purchasing
intension of the product. (Ibid).

On the other hand Tellis (1998) identifies that companies should concentrate in building up a
prolonged relationship between the product / brand and the celebrity (long-term relationship) as
it helps the company in designing its strategic goals and objectives in relation to the
establishment of the brand and maintaining a clear and consistent brand strategy over time.
24


Bryne et al (2003) argues that maintaining a long tern relationship with a celebrity in an
endorsement campaign for a company remains challenging because there is no harmony,
between the product and the celebrity and in reality the consumers recalls the celebrity more than
the product. This is termed as “Vampire Effect”, in marketing terms which signifies the fact that
celebrities sucks out the ‘life blood’ from the product / brand (Ibid).


1.7 Rationale behind the Research:

The researcher has chosen this topic as a matter of subject for the dissertation of his MBA
following the creation of the problem area which has been observed by the researcher while
doing the term 2 (MBA) assignment of IMC (Integrated Marketing Communication). The topic
given by the University was to discuss about impact of testimonial advertising by the advertisers
and marketers comparing its advantages and disadvantages. While doing the research for the
assignment it has been found by the researcher that there is a distinction between the ways of
celebrity endorsement in India and UK where the former is having greater affinity towards
celebrity (Bollywood Stars) endorsements in media ads and consumer goods of all genres
whereas in UK the endorsement is based on the credibility of the endorser and their association
along with the product / brand they are endorsing. Even in UK personalities are endorsed into the
advertisement from various backgrounds and not only from the glamour world. In UK the
companies are more concerned about matching the profile of the product along with the
personality and expertise of the endorser. Therefore, they chose various people who have
acclaimed recognition from the society due to their success and achievement in different sectors
(sports, business, acting, modeling, politics etc.)

However, the interesting constituent of the research is to establish the fact for international
organizations who are considering India as a prospective market for expanding their business and
willing to invest in the huge market, is to portray the scenario that they might have to change
their advertising technique considering the importance and existence of celebrity influence
among the consumer life-style of general public in the Indian community. Therefore, a
comparative study between India and UK has been done in this research based on the consumer
preference of celebrity endorsement in the advertisement of various products in both countries.
25


1.8 Purpose of the Research:

Through the analysis of previous studies and academic research on consumer behavior it has
been observed that celebrity endorsements in the advertisements of goods for particular brands
and companies enhances the purchasing behavior of the consumers. Even studies have also
established the fact why companies are in a row to endorse celebrities and how they do it and for
what objectives? But the segment which has not been researched is the distinction about the way
of endorsing celebrities into different cultures (e.g. western and eastern) where some celebrities
have greater influence than the others. The purpose of the study is as follows:

Showing the influence of celebrity endorsements in the marketing campaign of brands / products
and significance of culture in the recognition of a celebrity by consumers’ from various cultures
across the world. Also creating awareness for the probable organizations trying to become
global corporations.


1.9 Outline of the Research:

The dissertation is a specific research project which is done by the post graduate students of
master’s degree and higher studies. As, dissertation is a research process therefore it is very
important to consider the structure of the research in which it is going to be drafted in theory. In
this specific research the dissertation is divided into 6 sections starting from the introduction of
the topic and background analysis. The 1st chapter illustrates about the cause of taking the topic
as a research agenda. The 2nd chapter is the literature review where various consumer behavior
and advertising theory models and previous literature about the research area are analyzed
critically. Main emphasis would be given to the models which organizations follow to endorse
celebrities into product / brand campaign and hence structuring a strong reference of academics.
The 3rd chapter would reflect the research methodology of the research followed by the data
collection techniques in chapter 4. In chapter 5th the data gathered is analysis in reference with
theory and academic models with quantitative and qualitative data analysis. Lastly, chapter 6 is a
discussion about the conclusion and findings which the researcher gathered out of the research
and individual recommendation suggestion.
26




                              INTRODUCTION – CHAPTER 1




                           LITERATURE REVIEW – CHAPTER 2




                        RESEARCH METHODOLOGY – CHAPTER 3




                             DATA ANALYSIS – CHAPTER 4




                        CONCLUSON AND FINDINGS- CHAPTER 5




Figure 1.1 Framework of the research   Source: (Basu: 2009) Author’s creation




                                       CHAPTER 2

2. Literature Review:

In the previous chapter the researcher has discussed about the current facts of celebrity
endorsement and illustrated the cause of doing the research about the impact of celebrity
endorsements in India and UK. This chapter will narrow down the research area to the specific
27


objectives with critical discussion of theories and models. The chapter will entail theories like:
Pros and Cons of celebrity endorsements, Meaning transfer model, Cultural dimension about
celebrity endorsements, TEARS model, no TEARS approach strategy and Investment returns on
celebrity endorsements.


2.1 Celebrity Endorsements and its importance in Promotion Mix:

This section of the thesis will demonstrate the theories which support the phenomenon of
endorsing celebrities by various organizations worldwide along with the illustration of theories.
A critical discussion of the academic models will add value to the research and would establish a
firm grounded theory.


2.1.1 Pros and Cons of Celebrity Endorsement Approach:

Erdogan (1999) suggests that the academic research and annual reports of companies about the
schema of celebrity endorsements clearly states the effectiveness of celebrity endorsers as a
promotional strategy than non celebrity endorsers. While evaluating the universal thought about
celebrity endorsement it has been observed that there is a higher affinity of organizations behind
celebrity endorsements as it nurtures the consumer’s attitude towards endorsed brands and
products which supports in the purchasing behavior and results higher sales in terms of quantity.
Moreover, desirable outcomes are preferable by companies when they endorse celebrities having
public consensus and their personality matches with the product profile and the target clientele
than celebrities who have never been endorsed (Ibid).

Although there are potential benefits of using celebrity endorsements in the advertising,
marketing and promotion of products / brands there are certain risks associated along with the
cost of contracts. Moreover, Erdogan (1999) explains about the advantages and disadvantages of
celebrity endorsements and even if while companies are using celebrities as endorsers, he
illustrates a table showing the benefit of this strategy along with suggestion of preventive
measures for the organizations.

Figure 2.1 Pros and Cons of Celebrity Endorsement Strategy:
28


  Potential Advantages              Potential disadvantages               Preventive tactics

      Increased attention              Overshadow the brand          Pre-testing and careful planning

        Image polishing                  Public controversy            Buying insurance and putting
                                                                       provision clauses in contracts
        Brand prologue                Image transformation and         Explaining what is their role
                                            overexposure               and putting clause to restrict
                                                                        endorsement for the brand
      Brand repositioning             Image change and loss of          Examining what life-cycle
                                         public recognition             stage the celebrity is in and
                                                                      how long this stage is going to
                                                                               exist in future
 Strengthen global campaigns            Expensive contracts            Selecting celebrities who are
                                                                       appropriate for global target
                                                                      audience, not because they are
                                                                       ‘hot’ in all market audiences

Source: Erdogan (1999, p. 295)

Moreover, Erdogan(1999) illustrates that with the invention of new products the consumer
market has become very competitive and the companies are in a row to compete with each other
for establishing their brand. Thus they are taking the help of celebrity (media stars) attention to
assist the marketing of their products. Additionally, with the advancement in the field of
technology and with entrance of digital TV, Video control systems, internet and satellite TV, 3D
media effects, internet advertising etc. the consumers were bombarded with overpowered
advertising from various channels and advertising media became more challenging sector than
before (Ibid). On the other hand the companies have discovered that with celebrity attention in
their product advertisements these potential threats from modern technology can be minimized to
a certain extent. From a general perspective celebrity endorsement in any product creates an
attention for the consumers and an unrevealed biasness of curiosity which makes this strategy
more favorable for the organizations. Furthermore, Erdogan (1999) argues that celebrity
advertisements stand out of the clutter from similar product advertising. Subsequently, celebrities
also catalyze the communication process and eradicate the excessive noise of the communication
29


from the surroundings which improves the process of sending the message of the product to the
target audience.

In contrary, there are certain difficulties which the organizations face while entering into global
marketing of their products and the massive barriers comes from the foreign markets due to the
cultural ‘roadblocks’ from various countries in the form of time, space, language, relationships,
power difference, masculinity, femininity (Ibid). E.g. the Indian culture of collectivism vs.
individualism in U.K. for which many companies operating in UK has to understand the cultural
background of India in order to sustain business and enhance operation in India. People in Indian
culture are more prone to accept what the society accepts as a whole even if there are certain
variations but they all obey the cultural consensus, which in UK is entirely different and
consumers here are more intrinsic in nature. Erdogan (1999) defines ‘celebrities’ as a powerful
weapon of promotion and conviction while entering the foreign markets as there are many
celebrities whose popularity is wide spread and the publics in those nations accept their
recommendations. But there are risks associated with celebrity endorsements as well and the
challenge for organizations is to maintain the harmony due to the celebrity image incongruity,
drop in popularity, celebrity involvement in events of ethical turpitude and loosing credibility
due to over endorsements in products / brands (Ibid).


   Culture                                Endorsement                            Consumption

2.1.2 Meaning Transfer Model:

McCraken (1989) describes the process of endorsement through his model of meaning transfer
which has a comprehensive description about the phenomenon. The focal point of meaning
transfer model states that if the celebrity is utilized appropriately they encode positive set of
meanings which can be transferred to the endorsed product. The model is divided into 3 sections:
culture, endorsement and consumption.

Figure 3.1 The Meaning Transfer Model         Source: McCracken, 1989, p. 315




        Key:                            Path of meaning transfer

                                        Stage of meaning movement
30




Objects

                  Celebrity
Persons
                                          Celebrity      Product                  Product      Consumer
Context



Role 1

2

                Stage 1
3                                        Stage 2                                Stage 3




    Stage 1: Culture

    McCraken (1989) illustrates that celebrities are different from that of anonymous models or
    actors and organizations invest huge amount of money on celebrities to bring value to the
    advertisement. They convey extra amount of depth and power of persuasion which is carried
    over as a message to the consumers. It is a matter of common sense that advertisement carries
    out messages to the publics and thus they serve the purpose of meaning transfer from the
    commodity to the usability of the product. But it has been observed that organizations are deeply
    indulged into endorsing celebrities into their marketing campaign in spite the fact that they are
    expensive to maintain and are taking most of their marketing budget. Now the question arises
    why do they do it? What benefit they have got in doing celebrity endorsements than endorsing a
    local star or popular personality (anonymous professionals)? How a celebrity endorsement adds
31


value to the meaning transfer model? What are the attributes of a celebrity endorsement in
relation to marketing campaign and association with culture? Are there any special features
which the celebrities bring in to the product campaign which influences the consumer behaviour
towards the brands / products?

On the other hand Bergstrom and Skarfstad (2004: unpub) suggests that anonymous actors and
models presents demographic community in the form of gender, age, status and symbols which
are relatively indistinguishable and vague in carrying meaning to a specific culture due to lack of
popularity and recognition. Celebrities offer all these attributes with the verity of a special life-
style that anonymous models cannot offer and they break the communal barrier with the act of
exactitude. Each celebrity carry a unique constitution of meaning due to their association within
the community and social power which companies cannot get from the anonymous models /
actors. Moreover, it is quite certain that celebrities are more powerful endorsers than that of
anonymous actors / models. Though they also bring in meaning to the any endorsements but their
power of persuasion is considered limited in compare to celebrity endorsements as celebrities
have a wider circulation of identity and thus they receive consent from various communities
throughout the world. Celebrities also transfer the meanings of their association to the brand
with great radiance and accuracy creating a long term acquaintance with the product which they
have developed from their re-appearance and intense participation.

Interestingly, Bergstrom and Skarfstad(2004: unpub) discusses that celebrities gather the
meanings of a powerful persona from their characters which they act in television, movie,
athletes, politics, sports and other careers. These specific roles which they perform give them the
opportunity to associate with various ranges of objects, persona and context which remains with
the celebrity and are reflected in the advertisements making a meaning transfer from a character
to the product / items.

Stage 2: Endorsement

Subsequently, the 2nd part of the meaning transfer process is endorsement where the celebrity and
product are major variables and the meanings are transferred from the celebrity to the product
making it a real endorsement. McCracken (1989) suggests that selection of a specific celebrity
based on their characteristics is a challenging task. Advertising agencies choose the celebrities
32


based on the criteria that which kind of the characteristics the consumers are looking for from the
product / brand and who are the celebrities making a ‘close fit’ in that quality circle for
endorsement. Selection of the celebrity also takes into account the financial viability of the
campaign.

McCracken (1989) after celebrity selection the probable expectation would be that the
advertising should identify the necessity of bringing the celebrity association to the product.
However, care must be taken in this process as the celebrities carry a lot of meanings along with
them but the advertisers should understand the ‘perfect match’ of the celebrity and product
association eliminating the vague aspect of culture instead concentrating on the specific objective
of the endorsement. Hence, to satisfy the process the advertisers uses people, objects, context
which are parallel to have same meaning as the celebrity. Celebrities also take advantage of the
advertisement where there is overreliance and the celebrity utilises this opportunity to refrain
their image (Ibid).

Additionally, McCracken (1989) asserts that the advertisement should be designed in such a way
that there is a perfect symbiosis between the product and the celebrity association which initiates
the consumers to take part in the meaning transfer process. In advertising theory copy testing is
done to measure the success of the advert and when the advert is put forward to the consumers
they realize the connection of the celebrity with the product which helps in the meaning transfer
movement from celebrity to product.

Stage 3: Consumption

From a general conception consumers today are looking for meaning in everyday life and when
consumption comes into play they are looking for the absolute value into it. Consumers come
from various cultures and in all societies the life-style of the public is influenced by the current
phenomenon which is happening in the surrounding of the people. In the 21st century when there
is abundance of materials from various sources the consumers are bombarded with the product
offerings and that makes confusion in the mind of the consumers about the consumption of the
product. Celebrity association supports the buying behaviour of the consumers as it reflects
reliability of the persona in the product endorsement.
33


McCracken (1989) suggest that the final stage of meaning transfer from the product to the
consumer is the most complicated process. It is not just a matter of fact that consumers merely
own the product and take possession of its meaning nor the meanings are automatically
transferred back to the consumers. Consumers must incorporate the meanings into them and they
have to claim the meaning transfer from the product to self and work along with it. They have to
participate in the whole process of claiming the meaning where the use of the product will
develop the process of meaning transfer and it can be assumed as a test examination where the
consumers test the product quality and effectiveness along with the celebrity association and
judge the viability of the association.

Celebrities have already influenced the process of buying in the 1st stage of the meaning transfer
where they have associated them along with the product and reflected their own life-style along
with the product. Consumers have accepted what the celebrities has shown them in the initial
phase and then only they have progressed into the final stage. Celebrity association is combined
along with the objects, people and events around the consumer’s life-style and this phenomenon
shows that celebrities built their own self well which is appreciated by the consumers. In an
everyday life the consumers are interchanging among various consumer goods and therefore they
are constantly changing various products / goods to construct the aspect of their self and world.
They admire those characters that are also changing their characters depending on the situation
of the life and can accomplish the changes well into the situation. As celebrities has already done
the stage 1 of meaning transfer process, now the consumers are processing their mind in their
own stage 1 process where they construct the self meaning out of the meaning provided by the
celebrities and judge whether the meanings are accessible to them there.

Additionally, McCracken (1989) states that the consumers simply do not admire the celebrity
because of their association but the reason behind their liking is related to what the consumers
wanted to see from the celebrity. When the celebrities enter into the endorsing process they make
the meaning of the celebrity self out of the elements in the form of dramatic cultural disposition
which is available in the materials form (products) for the consumers. McCracken (1989)
illustrates that celebrities also plays the role of a ‘super consumer’. What actually happens in this
phenomenon is that when a movie star is acting they take up a character based on the script and
within the script they portray the individual based on the circumstances and situation of the story
34


line rather then depicting their own life-style. In most circumstances they carry the character of a
person (imaginary) but they are quite similar to that of the human characters what we see in a
daily life. If that character succeeds, then the celebrity becomes a known personality and posses
a power of a new self which is accepted by the consumers. (E.g. the role of Kate Winslet in the
‘Titanic’ movie gave her the character of the survivor lady of the tragedy and she became
associated along with the historic epic.) Thus celebrity world is such a imaginary world where
the characters give new meaning to the person due to their association in a specific role and this
trial method of the celebrities taking up different characters becomes a compelling source of
meaning in marketing. Similarly, they are also termed as ‘superior customers’ as they gave
meaning to a character and the association of the character with the tangible and intangible
aspect becomes a matter of marketing. They capture the characters in a rational way which gives
life to the characters and the product association along with the characters become a matter of
new entrants in marketing terms.

However, in the society certain groups of people are having higher affinity towards celebrity
association due to their social supremacy and cultural hierarchy which makes a positive
association of these consumers along with the celebrity life-style. Interestingly, these societal
groups are followed by their societal subordinates who gather the knowledge of association of
the celebrity from their pioneers and they do that not because they know about the celebrity but
in order to associate along with the societal supremacy of their peers. Association can also differ
from the generation to generation and also depend upon gender, class, personality and life-style
in a culture of having higher individualism in people than collectivism, but individuals does have
personal liking and when the consumers chosen character endorse the product the meaning
transfer from product to the consumer becomes relatively easy.

Therefore, McCracken (1989) advocates the celebrity endorsement operates as a method of
meaning transfer from the phase when meaning moves into the persona of the celebrity following
celebrity to the product and from product to the consumers where the celebrity becomes the key
player of meaning transfer process.

2.2 The Process of Celebrity Selection:
35


          In this section the researcher will entail with the theories which reflect on how the companies
          select the celebrities. Theory model discussed in this section are TEARS model, no TEARS
          approach and the stereotyping of the endorsers.

          2.2.1 The TEARS model:

          Moreover, Shimp (2000) suggests that there are 2 general attributes which the companies should
          consider while endorsing a celebrity for marketing. These are the credibility of the character and
          the attractiveness of the celebrity which determines the effectiveness of the communiqué of the
          endorser to the target audience. Under the credibility characteristic trustworthiness and expertise
          of the endorser are also counted as sub- quality. Credibility refers to the celebrity’s judgment and
          reliability and expertise refers to the explicit skills, knowledge or capability that the endorser has
          about the brand (Ibid). Additionally, Shimp (2000) describes that attractiveness consists of 3 sub
          categories namely physical attractiveness, respect and similarity.

          An example of physical attractiveness is reflected when the Swiss watchmaker, Omega choose
          tennis player Anna Kournikova for their marketing campaign. However, Kournikova never won
          a tournament in her tennis career but the company’s marketing director believes that she is
          “really everything in one package” (Ibid). Secondly, celebrities are recognized by the publics for
          their athletic power, appealing personality and acting ability etc which earns them respect from
          the society and a consensus voting of recognition. The last attribute is similarity where the major
          concern is focused on the endorser and their capability to match along with the target group of
          consumers in terms of age, gender, ethnicity etc. (Ibid). However, Shimp (2003: 293) states that
          the reason behind taking attributes of the celebrity as a major issue is to “identify how brand
          managers and their agencies actually go about selecting celebrities, as to avoid the grief from
          making an unwise decision”.

          TEARS model of Celebrity Selection:

          Credibility                          Attractiveness



Trustworthiness         Expertise       Attractiveness       Respect             Similarity
36




T            E                  A                 R                     S
Figure: 4.1 TEARS model          Source: (Basu, 2009) Author’s creation

The TEARS model consists of 5 major parameters based on which the companies select the
celebrity for the advertisement campaign. These 5 parameters are: trustworthiness, expertise,
attractiveness, respect and similarity.

Trustworthiness: It is related to the fact, how reliable and dependable is the celebrity. As
companies endorse the celebrity for enhancing their marketing campaign therefore the main
objective of selection is based on the circumstances whether the celebrity carries the image in the
society to convince the target audience. Celebrities earn their trust from the public due to their
work and achievement in respective field and the marketers utilizes the trustworthiness of the
celebrities in the advertisement. On the other hand if the celebrities are showing self interest in
endorsing the product the persuasive effect of the endorsement can be negative and consumer’s
reliability towards the celebrity falls but increasing reliability can be enhanced when the endorser
is seen as a character having ‘zero’ interest in endorsing the brand.

Expertise: Expertise relates to the specific skills and knowledge of the endorser in any particular
field. The celebrities achieve these expertises from their prolonged association within any
specific subject and also due to excessive media attention. Whether or not the celebrity is a real
expert is unimportant but for companies what matters is the celebrity interference in changing the
opinion of the consumers about their product / brand.

Attractiveness: In this respect the attractiveness of the celebrity plays a vital role. Celebrity
attractiveness in terms of physical attributes grabs a lot of public attention more than their
achievement in acting or expertise. Marketers are clever manipulators to visage the mind of the
consumers with the physical attractiveness as it becomes a prime role of getting general
37


consensus in pursuing the mass in various cultures. E.g. Leonardo Dicaprio known as a
handsome actor and his association with TAG heuer, Jude Law and Dunhill, Dipika
Padupune (Indian actress) and Kingfisher Airlines.

Respect: Celebrities earn respect from the general audience due to their acting skills and their
contribution to the society in sports, business, politics and their arguments in any concerning
issues of the society. All these are counted as the personal qualities of the celebrity which earns
then respect and the credibility of a spoke person. When a respected celebrity endorses a product
their association enhances the brand’s equity due to the positive alliance of the celebrity. E.g.
Shabana Azmi (Indian actress) endorsed the AIDS campaign in India and became the face of
the WHO’S (world health organization) AIDS campaign in India.

Similarity: Similarity relates to the fact how the celebrity relates them along with the age,
gender, ethnicity, social class, creed, community and cultural variations. It is highly important
for companies to consider because consumers admire the individuals who are similar to them in
any of the mentioned attributes like from same ethnicity, gender or country. Shimp (2000) states
that research on ethical minorities reveals that they show greater affinity to the spokesperson
who comes from the same background as they matches with the audience’s liking and gain trust
in endorsing a product / brand. (Adopted from Shimp, 2000 and modified by Basu, 2009)

2.2.2 The No TEARS Approach for celebrity selection:

In compare to Shimp’s (2000) TEARS approach which shows the attributes of the celebrities and
how companies select the celebrities based on the requirement of their advertising campaign, No
TEARS approach of Shimp (2000) describes the correct procedure of celebrity selection by the
managers / decision makers of an organization to avoid the unnecessary hazard of taking an
unwise decision of selecting a wrong personality for marketing campaign. The TEARS approach
only reflects on the attributes of the celebrities and the 1 st letter of the word describes the
qualities of the characters based on their credibility and attractiveness but the “No TEARS”
approach talks about the real quintessence of using the attributes in conjunction with TEARS.
38


According to Shimp (2000) the advertisers considers various factors while endorsing celebrities
into their marketing campaign and some of the core aspects what they are looking from the
celebrity and brand concurrence are:




   1. Celebrity and target market match up

   2. Celebrity and brand concurrency

   3. Celebrity credibility

   4. Attractiveness of the celebrity

   5. Cost of endorsement

   6. Working easy vs. difficulty factor

   7. Endorsement dissemination

   8. Celebrity association and risk of brand dilution




All the above mentioned factors are essentials elements which the companies consider while
endorsing a celebrity. Most important aspect of having the factorial analysis is to establish the
brands association with the positive aspect of the celebrity association. Marketers are clever to
establish this phenomenon and a well known idiom “when you are in Rome (do as Romans
do)” reflects the ideology behind the strategy. The choice of ‘right celebrity’ to target the ‘right
market segment’ and eliminating the celebrity as well due to their negative manifestation in the
society is the ‘mantra’ behind celebrity selection by the companies in today’s economic
scenario. However, a diagrammatic description of the factors essential for celebrity and brand
congruency is established as follows:
39
                                    Celebrity and target market match up

                                                                                               Brand Factors in
                                    Celebrity and brand concurrency
                                                                                               quest of
                                    Celebrity credibility
Celebrity
Endorsement                         Attractiveness of the celebrity

Factors required
                                    Cost of endorsement

                                    Working easy vs. difficulty factor

                                    Endorsement dissemination

                                    Celebrity association and risk of brand dilution




       Figure: 5.1 Factors essential for Celebrity and Brand Congruency

       Source: (Basu, 2009) Author’s creation

       Celebrity and target market match up: Marketers always choose the celebrity based on the
       fundamental element whether the celebrity endorsement is going to work for the prospective
       target market where they want the advertisement to launch. Celebrity alignment has to be in
       parallel with the target audience. E.g. Sport Stars endorsing brands like Addidas, Nike, and
       Reebok etc.

       Celebrity and brand congruency: The reflection of the celebrity in relation to the brand
       values, decorum, principle and also the image required by the celebrity to enhance the brand
       advertised. E.g. Moneysupermarket.com and entrepreneur Peter Jones: a well knitted congruency
       where the celebrity’s association with the business world and financial assessment put forward
       the image of moneysupermarket.com.

       Celebrity credibility: It associates along with the reliability and dependability of the celebrity
       and the knowledge of the person about the product / brand and its effectiveness. If the celebrity
       trust is reflected in the brand and celebrity’s vow for the brand is significant then the advert is
40


considered valuable. E.g. the key statement of L’Oreal said by all the endorsers around the world
“because I am worth it”

Attractiveness of the celebrity: While choosing celebrities as spokesperson the companies
evaluate the attractiveness of the person and in this relation attractiveness doesn’t means physical
beauty but also the personality of the character and charisma of the person as an individual. E.g.
Dipika Padupune, being the brand ambassador of Kingfisher airlines, India.

Cost of endorsement: Another important consideration which all the companies and the
advertising agencies are looking at is the cost of celebrity endorsement. As endorsement itself, is
cost sensitive and accounts to huge amount of marketing budget, therefore companies are
looking at the worthiness of the investment. In many occasion they choose the celebrities
depending on the budget limitations. Subsequently, they also consider the aspect of the brands
image and its association along with the consumer class, where popular celebrities’ appearance
holds the identity of the brand in spite of the cost involved. Therefore, cost is not a fixed
constraint for endorsement strategy but variable depending on the situation and the need for
attention of the brand. E.g. Armani with David and Victoria Beckham (expensive endorsement)
but its paying off Armani the return on investment due to the celebrities association. Companies
always do a cost-benefit analysis in order to determine the celebrity as it relates to the
justification of the fact that what is expected from the return in terms of sales and revenue for the
product and this analysis establishes the decision of endorsement.

Working easy vs. difficulty factor: There is a major concern for the advertisers about the
celebrity endorsement and that relates to the attitude and professionalism of the celebrity.
Companies prefer to deal with celebrities who are ‘hassle free’ and are specific about their
routine. Unprofessional, arrogant, temperamental characters are hard to manage and are difficult
people to work with as they follow the typical celebrity headed life-style.

Endorsement dissemination: If a celebrity is overexposed into the media channel due to their
association with various product / brand endorsement there is a possibility that the credibility of
the celebrity as an endorser fades away. Over exposition of the celebrity reduces their perceived
credibility and attains saturation among the consumers.
41


Celebrity association and risk of brand dilution: However, there are not always positive
effects of celebrity association. Sometimes the celebrity association with the brand can dilute the
brand image. The marketers and the advertisers are always concerned about the celebrities
private life in which their relation with unsocial or trouble elements can hamper the brands
position recognition failure. There are no set principles to illustrate why the brands suffers a
pessimistic position when the celebrity endorsing the brand is convicted of any crime or unsocial
affair. (Adopted from Shimp, 2000 and modified by Basu, 2009)

2.2.3 Celebrity endorsement and Cultural Dimension:

On the other hand if we consider culture as a dimension to measure the impact of celebrity
endorsement then it would be argued that the principles of marketing and the advertising doesn’t
comply with the cultural difference which is predominant in the sentient world. Marketing and
promotions for companies is a vital agenda for market development and their weapon to enhance
the target market for the brand / product. But considering the fact that when all companies are
going global and are operating throughout the world their products are also available to various
countries in spite of cultural difference and consumers are also accepting the product / brand.
The question arises how it is possible to penetrate the deep-rooted cultural ethos of various
nations. While endorsing a celebrity for a product / brand marketers do consider the cultural
dimension to evaluate the suitable personality who is going to be recognized and accepted in the
prevailing culture and society. When it comes to the core essence of cultural dimension
marketers study the structure and the societal make-up of the country they are willing to target.

Moreover, Ginsburgh and Throsby (2006) suggest that there certain fundamental issues with
culture which is denoted by the fact, how the people behave in other cultures, their customs,
religion, beliefs, and societal hierarchy. From organization point of view the challenge is to
investigate how well the public could be motivated to adopt the product, gaining trust among
them, establishing the product / brand within the specific culture, technological advancement in
the culture and its reach to the human population of that nation. Therefore, describing culture as
a nucleus becomes a challenging task for marketers. Ginsburgh and Throsby (2006) describes
that there are 4 main dimensions of cultural variations based on which the cultural segregation
has been done from one culture to another.
42


Based on the assumption that a pragmatic approach to identify culture which nurtures the
development and influences economic growth the 4 dimensions of culture are introduced. They
prevail in the western competitive individualistic society as well as in idyllic closed society of
solidarity. Casson (1993) in Ginsburgh and Throsby (2006) illustrates the 4 types of dimensions
which are:

   1. Individualism Vs. Collectivism

   2. Pragmatism Vs. Proceduralism

   3. Low trust Vs. High trust

   4. High-tension Vs. Low-tension

Individualism vs. Collectivism: Earl (1986) in Ginsburgh and Throsby (2006) suggests that
people having individualistic approach believes that common people are autonomous in nature in
that respect each and every individual values their own personal ‘lifestyle’ than that of others. In
the individualistic culture the information required for coordination is widely distributed and the
after shocks received by the individuals are very specific. In this approach people believe that
ownership and control of resources should be invested in the individuals as individuals only have
the ability to take decisions based on the information received.

On the other hand, collectivist believes that common people are part of the community where
they are born and they follow the communal structure more than their individual thoughts and
judgement. Even if they have individual thoughts about specific matters, but they always tend to
substitute that with the consensus from the communal hierarchy. Even adults seek opinion from
their elders regarding survival issues. People having collectivist view also believe in group
uniformity as in everyone is same and values group ideas. Information required for coordination
is centralized based to the group and the after shocks are having collective impact. Ownership
and control of resources in this approach is invested in group. [Ekelund and Tollison (1997) in
Ginsburgh and Throsby (2006)]

Pragmatism vs. Proceduralism: Pragmatists believes that sensitive judgements are based upon
wide personal experience and should be based upon the grounded theory or practical world i.e. to
say what is obvious to happen in circumstances of odd and even in human life and decisions
43


based upon these approaches tend to reflect successful decisions. In spite of the fact that there
might be situations where intuition are very strong based on the circumstances but these
perceptions can be tested through informal conversations with other people. Decisions should be
based on individual judgements and needs prompt attention in the same. Individuals should be
responsible for their own decisions. Proceduralists believes that good decisions are formed from
closely knitted formal procedures, which are having a theory base and subsequently follows a
systematic collection of objective information. Proceduralists believes that the decisions which
are taken in the form of committees may be time consuming and lengthy, but the argument is that
it is better to get the right decisions than taking random decisions within a short span of time.
Ginsburgh and Throsby (2006)

Low trust vs. High-trust: Cultures which are having the reliability based on high-trust believes
that people and common public will be honest, work hard, loyal and generally keep their
promises in situations of odd and even and in adverse conditions when they have little / no
material inducement related with the subject / matter. In contrast, cultures having low trust
appeal believe that common people are motivated to do certain things based on the material
incentives and their motive is concerned with self attainment. Therefore, there might be tendency
towards deceitful behaviour, cheating or elusion. High trust characteristics are a prominent
feature of the individualistic society where the power of enforcement about any agenda is not the
same as compared to collective society. Holmes and Sustein (1999) in Ginsburgh and Throsby
(2006)

High-tension vs. Low-tension: Subsequently, Scitovsky (1976) and Casson (2002) in
Ginsburgh and Throsby (2006) assert that person with the attribute of a high-tension society will
engage in ambitious projects whereas a person belonging from low-tension society prefers to
have easy projects. High-tension people are more inclined to be stressed out as they are aiming
high for their own achievement and are ashamed of failure. On the contrary, low-tension people
are relaxed minded as their aim is comparatively low than others and they blame the situational
factors for their failure i.e. ‘external locus of control’. Though, low-tension people tend to
behave in an unstructured manner, which often has anti-social repercussion.

2.2.4 Acceptance of Celebrity Endorsement based on Cultural Difference:
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India
Celebrity Endorsement in advertising a comparative study between UK and India

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Celebrity Endorsement in advertising a comparative study between UK and India

  • 1. mba disserTaTion Thesis mba disserTaTion Thesis 2009 The influence of celebriTy endorsemenT in adverTising comparaTive sTudy on india vs. uniTed Kingdom ARITTRA BASU UWL ID: 28001438 Word Count: 28296 October 2009 Dissertation submitted as part fulfillment of the MBA (Masters of Business Administration at University of Wales, Lampeter /College of Technology, London) Social Science and Business Administration Programmes Department of Management and Information Technology UNIVERSITY OF WALES LAMPETER 09/23/2009
  • 2. 2 PRIFYSGOL CYMRU LLANBEDR PONT STEFFAN PERSONAL DECLERATION: It is hereby notified to the Academic Registry and the Department of Management and Information Technology of University of Wales, Lampeter that “this dissertation is submitted in part fulfilment of the M.B.A (Masters of Business Administration) at College of Technology London” by student bearing UWL ID: 28001438. It is an original piece of work which has been solely researched and written by the student with the help and support of academic supervisor allocated to the student by the University management. The topic of the dissertation has been chosen by the student from his experience and knowledge gathered from the previous marketing modules which he has undertaken during his Term 2 (Marketing Pathway) and the idea and concept behind the topic came from the IMC (Integrated Marketing Communication) module assignment which has initiated the phenomenon to develop the research. The student has seen a cause behind the research for the benefit and enhancement of advertising media in the context of Global Marketing for prospective companies. Therefore, the whole research is a genuine piece of research and is a reflection of the academic effort and management knowledge of the student from his postgraduate studies. As, a student I completely understand the rules and regulation of the academic procedures in a postgraduate study and acknowledge their concern for the perspective students. I solely respect and honor the rules of the University and thereby certify this research as my own work. “I declare that this dissertation is the result of my own research and all sources are duly acknowledged by the researcher” Thanking You Yours Faithfully, Arittra Basu UWL ID: 28001438 Dated: 28/06/09
  • 3. 3 ACKNOWLEDGEMENT: I Mr. Arittra Basu would like to dedicate my master’s degree dissertation to my loving parents Mr. Asit Basu and Mrs Ratna Basu who has always supported and encouraged me throughout my life and in my academic studies. They have always supported me emotionally and bought courage to my life which has given me the present platform to do my master’s degree from University of Wales, Lampeter. I am grateful to god for giving me such wonderful parents who always cared me and bought me up to become a proper individual in life. I would also like to thank Ms. Lipi Begum for supervising my dissertation and her assistance as a faculty has immensely helped me to produce my scholastic work. Lastly, I would like to thank all my friends, fellow class mates and faculties in the College of Technology, London for showing me the light of management studies and making me a professional during the whole tenure of my MBA.
  • 4. 4 ABSTRACT: Purpose – The main purpose of this research paper is first, to gain a deeper understanding of the celebrity endorsement strategy and consumers perception about it. What do consumers feel about celebrity endorsements and where this marketing strategy lays when it comes to actual purchase of goods and products? Moreover, when the world is heading towards a global economy multinationals and established brands are enhancing their prospects to market products in an international market. How effectively they can use the celebrity endorsement strategy. Secondly, to evaluate whether there is any cultural difference among the consumers from different countries and cultures? How companies face the challenge to convince consumers about their product by utilising the celebrity endorsement strategy. These are the kind of questions evaluated and analysed in the whole research. Research Methodology – A survey was conducted of 80 consumer samples (India and UK) and the sample was chosen as ‘convenience sample’. They were approached about the research by using online community networking website for Indian sample and for UK, questionnaire were distributed to volunteering participants in the reception area of Ramada Ealing, hotel. They were asked various questions about the impact of celebrity endorsement and consumer’s buying attitude. Even cultural significance from consumers’ view point was taken into consideration. Findings – The data analysis of the research resulted in forming a positive and significant relationship between the celebrity endorsement and consumers buying behavior. It has been revealed that consumers are attracted towards celebrity advertisements and it initiates the 1 st phase of the consumers buying cycle. (Pre-purchase dissonance) Also, the influence of culture plays an important role in the recognition of a celebrity as described by the sample tested. Difference between Indian and UK consumers were also found from the analysis. Research limitations/implications – Results are based on limited and small sample. Different locations within UK and India would have constructed a better research design. There are many scopes for further studies in this area concerning advertising and marketing relationships. Realistic implications – Celebrities are mere promotional tools used by the companies and brands to attract consumers. Charisma of the characters doe’s appeals many people, but it doesn’t demonstrate whether it fosters the sales growth. Culture plays a vital role in the human society and it’s the fundamental basis to approach people (consumers) across the world. Originality/value – The paper has demonstrated the significance and importance of celebrity endorsement as promotional tool by examining consumers’ perception. Also it has given an insight to the global marketing sector about the importance of understanding the cultural difference to penetrate the market effectively.
  • 5. 5 Table of contents: Page Number Chapter 1 1. Introduction 1.1 The topic…………………………………………………………………………………10 1.2 Background……………………………………………………………………………...12 1.3 Current facts about celebrity endorsements……………………………………………..15 1.4 Celebrity endorsement in Indian Advertisements……………………………………….18 1.5 Celebrity endorsements in UK advertisements………………………………………….20 1.6 Problem Discussion……………………………………………………………………...22 1.7 Rationale behind the research……………………………………………………………24 1.8 Purpose of the research…………………………………………………………………..25 1.9 Outline of the research……………………………………………………………….......25 Chapter 2 2. Literature Review 2.1 Celebrity Endorsements and its importance in Promotion Mix…………………….27 2.1.1 Pros and Cons of Celebrity Endorsement Approach………………………………….27 2.1.2 Meaning Transfer Model……………………………………………………………...30 2.2 The Process of Celebrity Selection……………………………………………………35 2.2.1 The TEARS model……………………………………………………………………35 2.2.2 The No TEARS Approach for celebrity selection…………………………………….38
  • 6. 6 2.2.3 Celebrity endorsement and Cultural Dimension………………………………………41 2.2.4 Acceptance of Celebrity Endorsement based on Cultural Difference……………….. 44 2.2.5 Celebrity endorsements and ROI (Return on Investments)………………………….. 50 Chapter 3 Page Number 3. Research Methodology 3.1 Purpose of Research…………………………………………………………………..53 3.1.1 Exploratory Research………………………………………………………………..53 3.1.2 Explanatory Research……………………………………………………………….53 3.1.3 Descriptive Research………………………………………………………………. 54 3.2 Research Approach………………………………………………………………… 55 3.2.1 Quantitative Research……………………………………………………………….56 3.2.2 Qualitative Research……………………………………………………………….. 56 3.3 Research Strategy…………………………………………………………………….57 3.3.1 The Survey…………………………………………………………………………...58 3.3.2 Designing of Questionnaire………………………………………………………….59 3.3.3 Principles of questionnaire construction…………………………………………….61 3.4 Data Collection Procedure and Analysis…………………………………………....62 3.5 Sample Selection……………………………………………………………………...63 3.6 Research Principle…………………………………………………………………....65 3.6.1 Construct Validity…………………………………………………………………...66 3.6.2 Reliability…………………………………………………………………………....66
  • 7. 7 3.7 Logistical and Ethical Consideration……………………………………………….67 3.8 Summary……………………………………………………………………………..69 Chapter 4 Page Number 4. Data Analysis 4.1 Data Collection Draft…………………………………………………………………….70 4.2 Data Analysis of Questions……………………………………………………………….72 4.2.1 Analysis of Close Ended Questions…………………………………………………….72 4.2.2 Analysis of Open Ended Questions……………………………………………………..86 Chapter 5 5. Findings and Conclusions 5.1 Consumers and Companies Opinion about Celebrity Endorsements as a Promotional Strategy………………………………………………………………………………………..89 5.1.2 Repetition of Celebrities in Advertisements and Consumers Opinion…………………..90 5.1.3 Celebrity Endorsement and Cultural Significance……………………………………….91 5.1.4 Cultural difference between India and UK………………………………………………92 5.1.5 Meeting objectives of the Research………………………………………………………93 5.1.6 Implication for future Research…………………………………………………………..94 5.2. Emerged Model of Celebrity Selection from the Research…………………………….96 5.3. Cultural difference among consumers in (India and UK) model………………….......98 6. List of References…………………………………………………………………………...99
  • 8. 8 Appendix Number 1 (Questionnaire) Appendix Number 2 (Ethical Consideration Form) Appendix Number 3 (Data collection of the open ended questions) Appendix Number 4 (Email interactions between the student and supervisor) Appendix Number 5 (Letter of Consent from General Manager: Ramada London Ealing) List of Figures and Tables Page Number Figures Figure 1.1 Framework of the research………………………………………………………………26 Figure 2.1 Pros and Cons of Celebrity Endorsement Strategy……………………………………...28 Figure 3.1 The Meaning Transfer Model…………………………………………………………...30 Figure: 4.1 TEARS model…………………………………………………………………..36 Figure: 5.1 Factors essential for Celebrity and Brand Congruency……………………….39 Fig 6.1 Geert Hofstede Cultural Dimensions of United Kingdom…………………………45-46 Fig 7.1 Geert Hofstede Cultural Dimensions of India………………………………………46-47 Fig 8.1 Cultural Dimensions accepted in India and UK……………………………………48 Fig 9.1 Comparison between India and UK based on Geert Hofstede: Cultural Dimensions…49 Fig 10.1 Research Strategies for different situations………………………………………..58 Fig 11.1 Basic Principles of Questionnaire Design………………………………………….61 Fig 12.1 5 Sources of Evidence: Strength and Weakness……………………………………62 Figure 13.1 summarizes the different methods which are been applied in the research in a diagrammatic flowchart………………………………………………………………………69 Fig 14.1 Population Participation of the research…………………………………………….71 Fig 15.1 Division of age group of the sample………………………………………………...71 Fig 16.1 Celebrities in advertisements………………………………………………………..72
  • 9. 9 Fig 17.1 Celebrities in media channels……………………………………………………….73 Fig 18.1 Celebrity endorsement influencing busying behaviour of consumers………………75 Page Number Fig 19.1 Power of persuasion of celebrities………………………………………………….76 Fig 20.1 Products ideal for having celebrity endorsement…………………………………..77 Fig 21.1 Consumer appeals in terms of advertisements……………………………………...78 Fig 22.1 Areas prone for celebrity advertisement……………………………………………79 Fig 23.1 Preference of celebrities in advertisements by consumers………………………….80 Fig 24.1 Percentage of repetition of celebrities in advertisements…………………………...81 Fig 25.1 Consumers preference of celebrity advertisement in purchasing…………………...82 Fig 26.1 Ranking of celebrity characteristics in an endorsement…………………………….83 Fig 27.1 Line chart representation of the characteristics of celebrity from consumer survey…..85 Fig 28.1 Model of Celebrity Selection………………………………………………………..96 Fig 29.1 Cultural difference among consumers in (India and UK) model……………………98
  • 10. 10 CHAPTER 1 1. Introduction: In this chapter the researcher has provided the readers an insight about the inception of the problem of the research and has explained the history behind the problem with various facts and documentation which relates to the actual cause of taking celebrity endorsement as a topic of research from global marketing perspective. Later in this research we will see the problem discussion followed by purpose of thesis writing addressing the research questions and hypothesis. 1.1 The topic: The use of celebrities in advertising has been phenomenal since the inception of the advertising media in the field of marketing. From decades many companies and world’s renowned brands has taken the advantage of the using public figures in promoting their products to the consumers. Advertising being one of the essential tools of the promotion mix of marketing has played an important role in the prosperity of the brands and portrayed them as consumable products to the consumers from different aspects and cultural diversity of the world. However, it has been observed in the recent years with the modernization of technology and advancement in the advertising media, advertising accounts to become a fundamental part for the success and failure of a particular product / brand for major companies and organizations. Advertising has captured the consumers mind and has psychologically influenced the buying behavior of the consumers. It has acted as a technique of selective vision for the consumer which has helped the brands to become associated along with the life style and cultural entity for many individuals. Consumers like to get the notion of being associated along with the tangible and intangible aspects of the brands and products. In a specific way it depicts the personality and attributes of the individual. Additionally, with the advancement in the field of consumable products and with invention of modern hi-tech technology there has been an increased state of competition in the market
  • 11. 11 globally and several companies came up with similar product offerings which created a big pool of developed products and goods with slightly modified attributes. Now, the challenge for the marketers arises when they are trying to establish their own brand in the market in order to achieve brand equity and market share. In relation to this subject there comes the importance of individual personalities and known figures of the society who portray specific images of them in promoting the products and goods of the companies which gives them another dimension of association and catalyzes the promotional mix of the marketing dynamics. However, as we study human psychology it would be eminent from the behavioral characteristics of human beings that they tend to follow their superiors in order to learn the behavioral attributes. The major example would be taken from the child and parent relationship where the child always follows what their parents teaches them to do. It is to assume that they learn each and every element to become a proper human being from their parental upbringing. Therefore, some get the good attributes and some get bad from their parents. Similarly, in the consumer world the consumers do follow certain personalities and distinguished people to purchase goods and products as they carry emotional traits which are similar to certain consumer’s nature and behavioral characteristic. They find their own distinctiveness within these personalities and enjoy the relationship of using those products endorsed by them. These personalities or characters are defined as celebrities in the societal terms and they not only belong from the tinsel world of glamour but also from other sectors like sports, academics, business giants, politicians and even entrepreneurs. But the question arises why these characters become a subject of attention from the public and get huge response over their activities. Needless to mention that with their achievement in specific field the celebrities also gain a lot of power and prestige in the society which acclaims them to be personified figures and the clever marketers use them in their promotional mix to utilize their power of persuasion to convince consumers for purchase. However, in the 21st century it has been observed that the involvement of celebrities into the marketing activities of various companies has risen enormously. The main objective of the research is to find out the reason behind celebrity endorsement and why do companies do that. Is there any benefit which the companies attain through it? If they want to target different market across the globe do they have to follow the same strategy or they need to redefine it. Moreover, it has been observed that
  • 12. 12 celebrity endorsement is very popular mode of marketing in India rather than in UK where the effectively of the product/goods are considered more by the consumers than endorsement and even if there is an endorsement of any product the companies rather do it very intelligently as consumers are intrinsic in nature. In order to do the research a comparative study about the consumers from UK and India has been taken as sample. 1.2 Background: The world economy has become a global arena, where each and every activity of the trade is imitable by the rest of the world. What is happening in the recent economic crisis situation throughout the world is just an evidence to prove the phenomena that recession has not only effected the western world but all the developed, underdeveloped and emerging economies of the world as businesses has become global and are operating in every parts of the world. So the adverse effect or the privilege of operating a successful business is experienced by all. In terms of enhancing a company, a brand or a product to a particular target audience marketers play a vital role. On the other hand side it is not a case of miracle to convince consumers in this highly intrinsic and inquisitive society where people are considerably rational about their buying behaviour. Consumers are not living in a fool’s paradise and the conventional phenomenon of ruling the market from a companies offering and perspective is no more pertinent. Now consumers are giving the verdict or opinion about what they want from companies and in order to survive in the market all major industries have to accept the judgement. [Haugtvedt et.al. (2008) in Basu (2009: unpub)] However, marketers are very clever to nurture with the emotions and psychology of the consumers and they always initiate the phenomenon of buying into the grey matter of the over eloquent society with the help of advertising. Moreover, advertising is a weapon which the marketers use to dominate the consumers attitude towards a specific brand or product. Additionally, advertising principles are based on certain theories of consumer psychology where uses of different kinds of messages with expressions are highly recognized. [Brook and Green (2005) in Basu (2009: unpub)] Kambitsis et.al. (2002) suggests that advertising has become important to the contribution and development of the society in the early era of 1930’s. Celebrities and known faces have taken the role of spokesperson to advertise and promote
  • 13. 13 goods, services and ideas for various companies and organizations. They came from all facet of the society after claiming their identity as personified person from the public and belonged from glamour world of movie, modeling, arts and even sports background. But when it comes down to promotion an important role has been played by the use of testimonials in marketing. According to theory of advertising, testimonials are considered as promotional tools which are also known as endorsements. But both testimonial and endorsements carries different meanings in the application, where the former is often used to strengthen ‘sales pitches’ for general mass and convey messages to a larger community and the later take into account the use of ‘celebrities’ in communicating the message. An endorsement essentially consists of a well written document or statement of a person who has a public image or a personality of a charismatic leader whose work or contribution to society has been recognized considerably by the community and their approval of the product or brand significantly improves the promotional aspect and buying trend of the product or services. [Heath (2004) in Basu (2009: unpub)] This phenomenon has been prominent since 1893, when British actress Lillie Langtry was portrayed on the package of Pears Soap and thus she became the world’s first celebrity endorser. Though, in those generations the advertisers used celebrities in their campaign to address the consumers about the current trend. (Ibid). Moreover, Tellis (1998) asserts that endorsers of products can be classified into three broad groups; as in experts, lay endorsers and celebrities. Generally, experts are those people who have specific knowledge in a particular field and they use their expertise to promote the product/ goods of the company. Experts are chosen by the marketers because they have gathered a sound knowledge about the product and the usage of the item through learning, training or experience (Ibid). An example of showing the approval of Oral-B brand by the British Dental Health Foundation claiming it as an expert’s authority to endorse it as a quality product in dental material enhancing the credibility of the product. [(www.oralb.com) in Basu (2009: unpub)] Additionally, Tellis (1998) suggests that there is another segment of endorsers who are fictitious characters or rather unknown individuals or characters known as ‘lay endorsers’. They are chosen by the marketers based on the target market they wanted to capture and there are certain characteristics of these endorsers which are similar to the target audience which eases the process of identifying the endorser and the message communicated by the companies. Example would be
  • 14. 14 taken from the anonymous voice-over in video and audio advertisements which often uses lay endorsers to promote the products. However, Shimp (2000) talks about another form of endorsement which is similar to the lay endorser concept of Tellis, but instead of using voice, typical individuals are used in this segment. Shimp (2000) asserts that individual endorser’s are inexpensive than that of using celebrity marketing techniques and avoid the conventional biasness of using ‘beautiful people’ with physical attributes or individual characteristics which are rather identical in advertising media. Shimp (2000) also suggests that adverts which uses person endorsers includes several persons rather than singular ones with the intension that multiple number of endorsers will generate higher levels of message involvement and in the same way would create greater message circulation. This technique creates a mind block in consumer’s mind and starts showing favorable attitude towards the brand/ product (Ibid). On the other hand use of endorsements is not only limited to celebrities or experts but consumers are also endorsed by the brands to reflect the understanding what consumers are going to get from the use of the product demonstrating the rational judgement of a common person. Using consumer endorsements specially targeting necessity commodities and famous products or brands are having substantial benefit for the product as it relates to everyday person and a consumers can imagine him / her in that person which is another way of playing with consumer psychology. [Perle et.al. (1999: A99) in Basu (2009: unpub)] Subsequently, there is a rational aspect of using celebrities into the endorsement of a product. If the products can be classified as technical (e.g. PC’s) or non-technical (e.g. jeans) then using celebrities in a technical product is less substantial than using them in non-technical products. It is to relate to the rational aspect of evaluating the use of the product, where technical product are used by all consumers coming from every aspect of the society and in such purchases showing someone reliable preferably a technical person or common users are more effective. Their connotations are highly recognized and valued by the consumers whereas in the use of non- technical products the use of celebrities are of high importance as it associates the brand name and image of the person along with the product. People tend to perceive a delineation of a
  • 15. 15 personified figure into the brand and gets the association of being recognized as part of the clique summoning the celebrity as a captivating leader. [Leon et.al. (2008:328) in Basu (2009: unpub)] 1.3 Current facts about celebrity endorsements: McCracken (1989: 311) states that Celebrity Endorsement is defined as: “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” Moreover, celebrity endorsement has become an omnipresent factor in the global arena of modern marketing and is recognized worldwide in the field of marketing and advertising (Ibid). In toady’s word of modern hi-tech media celebrities are used in all the communication channels like Television, Radio, Internet, Publications etc and a vivid presence of TV actors, movie stars, sport personalities and even dead celebrities are observed into the marketing campaign of various companies. (Shimp, 2000) However, Kambitsis et.al. (2002) asserts that the use of celebrities in advertising has been associated along with several complexities involving the celebrities individual life-style and claims the process to be rather sophisticated marketing technique than mere promotional agenda. Marketers around the world in various established organizations spends a huge amount of money annually on celebrity contracts for their products and it is an established belief among the marketers that celebrities are efficient spokesperson for their products / brands. Another, important verity described by (Belch & Belch, 2001) is that from 1979 to 1997 the popularity of celebrity endorsement has risen from 15 to 25 % in USA and in present 21st century more than 20% of all TV commercials around the world feature celebrities in advertisements. According to (Forbes 2003) in the year 2003 actress Jennifer Aniston has been ranked the No. 1 celebrity for endorsing various products for companies and brands followed by Rapper Eminem and Dr Dre in the 2nd place and in the 3rd place Comes Tiger Woods who has got a contact with Nike worth $105 million. This data proves the fact that how companies are spending a huge block of money on their marketing budget especially when it comes to endorse celebrity for product branding. Moreover, (Mowen & Brown, 1981) asserts that marketers also rely on multiple celebrity endorsement as an advertising practice where they target more than one celebrity to endorse the product / brand. Examples of companies who are involved into this practice are Pepsi, Coke and Nike who have introduced this technique into their advertising campaigns. Most important
  • 16. 16 practical illustration of the above tactic has been found in the “Milk Mustache” campaign in the USA where they have engaged more than 100 celebrities for the promotion of milk since 1995. Subsequently, previous research from scholars proves the fact that while considering celebrity endorsement the ‘thumb rule’ is to consider whether the characteristics of the product matches with the profile of the endorser as this tie-up acts as an effective mode of communication. (e.g. Kahle and Homer, 1985; Kalra and Goodstein, 1998; Kamins and Gupta, 1994; Misra and Beatty, 1990; Sengupta et al., 1997; Till and Busler, 1998) Additionally, multiple celebrity endorsement has positive impact on the consumers as it influences their behavior. As described by the attribution theory, people summon that the cause of certain events in their life is influenced by their own behavioral acts or is affected by the behaviors of others around them. From celebrity endorsement perspective it could be analyzed that consumers receive the message of the endorser based on the fact that he / she actually believes in the qualities and effectiveness of the product (internal attribution) or they are paid to say so (external attribution) Although, consumers do acknowledge consensus voting about the same which acts as credit for the marketers and they tend to view the product from endorsers perception. (Kelley, 1967) However, another interesting phenomenon which has come across in the marketing agenda of companies having less resources and financial flexibility is bringing in sports personalities into the marketing campaign to promote their products. As, most of the companies have consensually agreed that celebrity endorsements has become a distinguished part of the promotional drive, therefore for companies having limited budgets endorsements of sports and athletes has turned out to be potentially viable investment than endorsing named celebrities. (Martin, 1996) Moreover, there are certain general objectives which are expected to be accomplished by the endorsers of any brand. They are as follows: • Capturing consumer’s attention. • Building up the brand name. • Strengthen the brand image of the product • The endorsed message should be plausible. • Adding charisma to the endorsed product.
  • 17. 17 • Creating a liking for the advertisement and add recall by consumers. • The prospect of having amplified sales from the campaign (Ibid). On the other hand Jagdish and Wagner (1995) illustrates that celebrities enhance the potential of having the advertisement recalled by the target audience because of their persuasion power. They also enrich the possibility of having positive brand recognition for the product, create a positive attitude of the consumers towards the brand, catalyze brand consumption among the consumers and construct the identity of the celebrity along with the endorsed brand / product. Furthermore, celebrity endorsement has become an integral part of the advertising strategy for many companies as it increases the marginal expenditure of the marketing budget but gives a huge return on investment by creating brand equity with the association of “secondary association” of a celebrity with a brand (Ibid). Another facet of the celebrity endorsement is the technique of using them by the companies. Till (1998) mentioned that companies uses the celebrity endorser into their adverts either periodically or opportunistically based on the situational requirement of the person in endorsing the product campaign. From another perspective it would be assumed that the return on investments from celebrity endorsements could be dynamic if the celebrity is used by the brand often to endorse the product. The repetition of the celebrity into the adverts strengthens the association of the celebrity along with the consumers as many already know the endorser and the rest would come to know from the previous group’s association. It also creates awareness about the brand and celebrity among the consumers. Subsequently, the caution is that marketers should maintain stability in endorsing the same personality into the brand which they have endorsed earlier as unexpected fluctuations among the endorser generates a negative association of the brand and simultaneously fades the possible outcome from the endorsement. (Till, 1998) Some of the example would be taken from Nike’s consistent use of Michael Jordan, Armani and David Beckham, Penelope Cruz and L’Oreal. In all the above cases the advertisements has encouraged the consumers to think about the perfect symbiosis between the product and the personality which signifies that all the characters later became intangible element of the brand. (Ibid). If we take the example of different media channels it would be more prominent like L’Oreal brand uses the celebrity film stars and international models to endorse their shampoos
  • 18. 18 and cosmetic ranges using the universal pay off “because I am worth it” which a patent version of their testimonials used by the endorsers conveying the message to the consumers that if being a celebrity if the product works on being my beauty secret why not for you. [Mooiji (2005)] However, Jagdish and Wagner (1995) describes that though from investment perspective endorsing a celebrity into the marketing campaign of a company is expensive and accounts a huge involvement of money and networking, but simultaneously is a very effective medium to get a brand attention in the competitive market. It helps the companies to get their product/ brand identified by the consumers because of the relationship which both the celebrity and brand carries in the societal structure. Endorsements are rather classified as good technique to maintain a continual flow of stocks as it enhances the consumption making the investment worthwhile. But potential threats of associated risks are not to be eliminated as association (positive / negative) both have certain impacts on the product / brand. 1.4 Celebrity endorsement in Indian Advertisements: However, in order to do a research about the impact of celebrity endorsement in marketing and advertising media and considering this phenomenon as a major tool of promotional mix by various organizations of the world, it is very important to do a comparative study between different countries to exemplify the impact of celebrity endorsement among the consumer’s of different cultures and their perception towards the association of a product, service / brand along with celebrity attachment. Therefore, for the purpose of the research India has been chosen a country of research and the current facts about celebrity endorsements in India is demonstrated in this section to give the clear understanding of the country’s position in relation to celebrity endorsement. Chaturvedi (2008) talks about the impact of celebrity endorsement in India during one of the countries major movement for Polio eradication which has portrayed numerous celebrities of the bollywood banner to communicate with the common mass and publics of India through television ads, friendship cricket matches, awareness programmes, rallies etc. Some of the major known celebrities who have done television and media shots for the polio campaign are Priety Zinta, Rani Mukherjee and Priyanka Chopra. Even famous actress and Miss World 1994
  • 19. 19 pageant winner Ashwarya Rai and Tennis player Sania Mirza have done print ads for the same campaign. Moreover, to generate awareness and literate the Indian mass about the importance of Polio vaccination a wide spectrum of celebrities were approached to endorse the immunization programme and various television spots were prepared and telecasted in the National and terrestrial channels in the television throughout India. (Ibid.) Additionally, the impact of cricket as a sport in India has a huge response from all aspects of the society and various community people and in that relation a ‘Friendship Series’ between India and Pakisthan was organized in April 2004 to raise awareness for the Polio Immunization prorgamme where the captains of 2 cricket teams urged the people to “Bowl out Polio”. Similarly other important celebrities were also approached to do awareness rallies and direct visit to the household to intensify the magnitude of the programme. Farooque Sheikh, an ex Bollywood actor who has substantial knowledge about Koran addressed the Muslim prophet nad religious leaders about the importance and validity of the campaign. Javed Akhtar, a script and songwriter for bollywood films, Sharmila Tagore (ex actress) and Soha Ali Khan (a new comer in the tinsel world) also did direct home campaigns where they visited the household of common people in particular areas of India to justify the essentiality of the programme and communicated the message to the mass. (Ibid.) Another important aspect of celebrity endorsement in India is observed in the ‘Cola Wars’ where the major concern comes for all the fizzy drinks company is to create price sensitivity. As most of the cola ads are endorsed by popular bollywood celebrities like Sharukh Khan, Amir Khan, Akshay Kumar etc and have glamorous associations which shows the association of the drink along with the position and celebrity predilection. However, considering the price per bottle was a challenge as most of the companies endorse similar people and Coca Cola implemented a strategy where they reduced 300 ml bottle to 200ml bottle and sold it in INR 5 equivalent to 7p in GBP and $10 in US which benefitted Coca Cola to rule the market for a short term, with the celebrity influence to purchase smaller bottles in a cheaper price as the ads were focused on the price of the bottle than other aspects of the drink. (Amis & Cornwell, 2005) On the other hand there are current facts about celebrity endorsements in India where international companies have endorsed bollywood celebrities for their product launch in India.
  • 20. 20 Some of the references would be taken from the endorsement of bollywood superstar Sharukh Khan as the brand ambassador of Swiss watch maker TAG Heuer, a part of LVMH Watch and Jewellery. As per Jean Christophe Babin, president and CEO of LVMH Watch and Jewellery the company has plans to open 4 more outlets in Bangalore, Chennai, Mumbai and Hyderabad and the brand ambassador will involve in the marketing of the new models of watches of the company in India. Being the brand ambassador Sharukh Khan commented that the watch has always stood for luxury, style, prestige and exception and in India the brand will enhance its market creating its association along with the pristine society. (9th September 2003) As a celebrity Sharukh has also endorsed another Swiss watchmaker Omega before getting associated along with TAG Heuer. However, TAG Heuer has also endorsed bollywood actress Priyanka Chopra (Ex Miss World 2000) as a brand ambassador for ladies collection in India and has replaced Susmita Sen from the TAG banner. TAG has always represented glamorous figures to execute the brand to the world and in India as well they have targeted the celebrities to maintain the consistency of supremacy of the brand. (16th March 2007) However, the world famous brand of fizzy drinks Coca Cola has also endorsed actor Amir Khan as a brand ambassador of coke in India and has made several Indian ads featuring Amir in various cultural perspective portraying the Indian eccentricity in different regional cultures prevailing in different states in a humorous version. 1.5 Celebrity endorsements in UK advertisements: In compare to India the impact of celebrity endorsements in the advertising and marketing of products / brands in UK are entirely different as seen superficially from a common observation. In UK particularly the adverts are made according to the effectiveness and usage of the product to the general mass and celebrity endorsements are rather limited than its generous use in Indian adds. In UK as well there are several organizations who endorse celebrities from different background and societal structure than using them from the world of glamour. Example would be taken from using Chef Jamie Oliver in the advertisement of grocery retail supermarket Sainsbury where they show Jamie endorsing the Sainsbury products and certify that their products are best for cooking and as raw ingredients. Celebrities in UK are rather classified into
  • 21. 21 several categories as companies choose them according the fame of popularity in the public index. They can be chosen from sports world, glamour, television or from recent scandal as well. Taking the reference of Late. Jade Goody who died of cervical cancer was pointed out as one of the characters of arousing racism in a celebrity lifestyle television show Big Brother where she was accused of doing racist behavior to one of her contestant (Indian actress Shilpa Shetty) by abusing her in public media. This particular event captured a lot of media attention in UK and again ignited the fire of white vs. brown in UK mass. But with the sudden discovery of her having cervical cancer grabbed the attention of the Britons and she got the sympathy of the common public from UK and her previous behavior was rather substituted for her illness. Though she had to beg apology but her terminal cancer gave her the fame and the NHS made her a role model of creating awareness among the young women in UK about cervical cancer. Well it could be described that she turned out to be the person from ‘ashes to gold’ but women in UK has recognized her as a person who has shown the female Britons about the danger of having cervical cancer and a positive impact for cervical cancer checks among the women as recorded by NHS. Subsequently, there are other adverts in UK where presences of celebrities are also noticed. But as UK and US both follows Hollywood film stars therefore the ads of UK also depicts celebrities from US as a vast majority. But there are few adverts where domestic celebrities are seen as being an endorser. Some of the examples would be taken from ‘Cadbury’s Milk Tray’ magazine advert where Laura Bailey was endorsed for the marketing of Cadbury’s product in 1998. Cadbury has also endorsed the television personality Mat Lucas for the marketing campaign of ‘Cadbury’s Crème Egg’ in 2000. However, there are also certain facts where 2 major brands like Cadbury’s and MTV – (chart numbers and pop songs hit channel) jointly made a marketing campaign to promote free live musical events for the popularity and promotion of both the brands. For this campaign they endorsed Five, 5ive, Ritchie Neville, J Brown the singers to promote Cadbury’s as well as MTV to the young audience. [www.advertisingarchives.co.uk] However, there are brands and companies which have endorsed celebrities for their marketing campaign and the current data about their endorsement policies depicts the phenomenon that they not only choose celebrities from the glamour world but from all other business entities.
  • 22. 22 Walkers endorsed celebrities Cat Deeley and Garry Lineker for their marketing campaign in 2009, Moneysupermarket.com endorsed entrepreneur and Dragon Den’s Peter Jones for promoting their price comparison website and L’Oreal endorsed actress Jane Fonda for their cosmetics and skincare range which emphasized on antiageing and ageing wrinkles skin care. Even the royal family was endorsed into magazine adverts which were reflected in the cover page TV Times magazine, 1981 following the wedding of Prince Charles and Princess Lady Diana. Princess Diana appeared back in the cover page of Woman magazine after the birth of Prince William in 1982. Even sport celebrities like Ian Botham, Andrew Freddie Flintoff, Tiger Woods, Thierry Henry, Roger Federer were endorsed into several consumer goods and mostly into men’s skin care products and sport shoes from companies like Gillette, Sureman and Nike. Interestingly, in UK politicians are also endorsed by companies and recently Schweppes endorsed Prime Minister Gordon Brown in their Magazine Advert. Also prestigious brand for men, Dunhill has endorsed actor Jude Law for their newspaper advert in 2009. Surprisingly, the Dorchester Collection of Hotels used personalities like Grace Kelly, Albert Einstein, Kristin Scott Thomas and Orson Welles in their 2009 magazine advert, who were once associated along with the hotel in her glorious past. [www.advertisingarchives.co.uk] 1.6 Problem Discussion: Bryne and Breen (2003) claims that studies and researches in the field of consumer behavior and marketing shows that celebrity endorsement have positive impact on the purchasing behavior of the consumers than non celebrity endorsers. Moreover, McCracken (1989) suggests that celebrity endorsements are effective ways of transferring the association of the personality to the brand and is highly recognized by the marketing community of international organizations. Bryne et al (2003: 289) states that “celebrities can build, refresh and add new dimensions. What celebrities stand for enhances brands and they save valuable time in terms of creating the credibility a company has to create in order to build its brands by transferring their values to the brand. When consumers see a credible celebrity endorsing a product they think the company must be OK” Moreover, in this research the specific problem which has been observed by the researcher is related to the difference in endorsing celebrities into the advertisements in India and UK. After
  • 23. 23 evaluation of the advertisements of both the countries it has been reflected that in India the prominence of celebrity endorsement are more from the tinsel world (Bollywood) of glamour and in all types of product endorsements the companies are eager to get a Bollywood celebrity enrolled into the advertisements rather than endorsing other personalities from any other sectors. On the other hand in UK it has been observed that companies are eager to endorse the celebrities / personalities into the advertisement campaign of the product or brand based on the effectively and practical realization of the advertisement in the societal structure. For example, L’Oreal hasn’t endorsed Deborah Meaden (entrepreneur) and Dragon of Dragon’s Den Show (BBC 2) as a celebrity endorser to promote their cosmetic range for women or Moneysupermarket.com has not enrolled Penelope Cruz to promote their price comparisons websites. In contrast it has been observed in India that domestic Banking and financial sector giant ICICI bank has endorsed actor Sharukh Khan to promote the banks financial and NRI banking facilities in the form of television adverts. Moreover, celebrities in India endorse all types of products from cosmetics, fizzy drinks to National Polio Vaccinations programme where the presence of Bollywood personalities are in abundance. According to Bryne et al (2003) most of the companies face the problem while choosing the right personality/celebrity for their product endorsements. It is the responsibility of the advertisers within a specific company to be able to match the company’s image or product image with the personality of the celebrity and the characteristics of the target market to establish effective messages for the consumers. McCracken (1989) state that endorsements are more effective when there is a ‘fit’ between the endorser and the endorsed product. Subsequently, Martin (1996) illustrates that in order to achieve maximum outcome of a celebrity endorsement it is very important to consider the degree of similarity between the image of the celebrity and the image of the product. The more is the similarity in association between the image of the product and the celebrity, the more positive response from the consumers which leads to purchasing intension of the product. (Ibid). On the other hand Tellis (1998) identifies that companies should concentrate in building up a prolonged relationship between the product / brand and the celebrity (long-term relationship) as it helps the company in designing its strategic goals and objectives in relation to the establishment of the brand and maintaining a clear and consistent brand strategy over time.
  • 24. 24 Bryne et al (2003) argues that maintaining a long tern relationship with a celebrity in an endorsement campaign for a company remains challenging because there is no harmony, between the product and the celebrity and in reality the consumers recalls the celebrity more than the product. This is termed as “Vampire Effect”, in marketing terms which signifies the fact that celebrities sucks out the ‘life blood’ from the product / brand (Ibid). 1.7 Rationale behind the Research: The researcher has chosen this topic as a matter of subject for the dissertation of his MBA following the creation of the problem area which has been observed by the researcher while doing the term 2 (MBA) assignment of IMC (Integrated Marketing Communication). The topic given by the University was to discuss about impact of testimonial advertising by the advertisers and marketers comparing its advantages and disadvantages. While doing the research for the assignment it has been found by the researcher that there is a distinction between the ways of celebrity endorsement in India and UK where the former is having greater affinity towards celebrity (Bollywood Stars) endorsements in media ads and consumer goods of all genres whereas in UK the endorsement is based on the credibility of the endorser and their association along with the product / brand they are endorsing. Even in UK personalities are endorsed into the advertisement from various backgrounds and not only from the glamour world. In UK the companies are more concerned about matching the profile of the product along with the personality and expertise of the endorser. Therefore, they chose various people who have acclaimed recognition from the society due to their success and achievement in different sectors (sports, business, acting, modeling, politics etc.) However, the interesting constituent of the research is to establish the fact for international organizations who are considering India as a prospective market for expanding their business and willing to invest in the huge market, is to portray the scenario that they might have to change their advertising technique considering the importance and existence of celebrity influence among the consumer life-style of general public in the Indian community. Therefore, a comparative study between India and UK has been done in this research based on the consumer preference of celebrity endorsement in the advertisement of various products in both countries.
  • 25. 25 1.8 Purpose of the Research: Through the analysis of previous studies and academic research on consumer behavior it has been observed that celebrity endorsements in the advertisements of goods for particular brands and companies enhances the purchasing behavior of the consumers. Even studies have also established the fact why companies are in a row to endorse celebrities and how they do it and for what objectives? But the segment which has not been researched is the distinction about the way of endorsing celebrities into different cultures (e.g. western and eastern) where some celebrities have greater influence than the others. The purpose of the study is as follows: Showing the influence of celebrity endorsements in the marketing campaign of brands / products and significance of culture in the recognition of a celebrity by consumers’ from various cultures across the world. Also creating awareness for the probable organizations trying to become global corporations. 1.9 Outline of the Research: The dissertation is a specific research project which is done by the post graduate students of master’s degree and higher studies. As, dissertation is a research process therefore it is very important to consider the structure of the research in which it is going to be drafted in theory. In this specific research the dissertation is divided into 6 sections starting from the introduction of the topic and background analysis. The 1st chapter illustrates about the cause of taking the topic as a research agenda. The 2nd chapter is the literature review where various consumer behavior and advertising theory models and previous literature about the research area are analyzed critically. Main emphasis would be given to the models which organizations follow to endorse celebrities into product / brand campaign and hence structuring a strong reference of academics. The 3rd chapter would reflect the research methodology of the research followed by the data collection techniques in chapter 4. In chapter 5th the data gathered is analysis in reference with theory and academic models with quantitative and qualitative data analysis. Lastly, chapter 6 is a discussion about the conclusion and findings which the researcher gathered out of the research and individual recommendation suggestion.
  • 26. 26 INTRODUCTION – CHAPTER 1 LITERATURE REVIEW – CHAPTER 2 RESEARCH METHODOLOGY – CHAPTER 3 DATA ANALYSIS – CHAPTER 4 CONCLUSON AND FINDINGS- CHAPTER 5 Figure 1.1 Framework of the research Source: (Basu: 2009) Author’s creation CHAPTER 2 2. Literature Review: In the previous chapter the researcher has discussed about the current facts of celebrity endorsement and illustrated the cause of doing the research about the impact of celebrity endorsements in India and UK. This chapter will narrow down the research area to the specific
  • 27. 27 objectives with critical discussion of theories and models. The chapter will entail theories like: Pros and Cons of celebrity endorsements, Meaning transfer model, Cultural dimension about celebrity endorsements, TEARS model, no TEARS approach strategy and Investment returns on celebrity endorsements. 2.1 Celebrity Endorsements and its importance in Promotion Mix: This section of the thesis will demonstrate the theories which support the phenomenon of endorsing celebrities by various organizations worldwide along with the illustration of theories. A critical discussion of the academic models will add value to the research and would establish a firm grounded theory. 2.1.1 Pros and Cons of Celebrity Endorsement Approach: Erdogan (1999) suggests that the academic research and annual reports of companies about the schema of celebrity endorsements clearly states the effectiveness of celebrity endorsers as a promotional strategy than non celebrity endorsers. While evaluating the universal thought about celebrity endorsement it has been observed that there is a higher affinity of organizations behind celebrity endorsements as it nurtures the consumer’s attitude towards endorsed brands and products which supports in the purchasing behavior and results higher sales in terms of quantity. Moreover, desirable outcomes are preferable by companies when they endorse celebrities having public consensus and their personality matches with the product profile and the target clientele than celebrities who have never been endorsed (Ibid). Although there are potential benefits of using celebrity endorsements in the advertising, marketing and promotion of products / brands there are certain risks associated along with the cost of contracts. Moreover, Erdogan (1999) explains about the advantages and disadvantages of celebrity endorsements and even if while companies are using celebrities as endorsers, he illustrates a table showing the benefit of this strategy along with suggestion of preventive measures for the organizations. Figure 2.1 Pros and Cons of Celebrity Endorsement Strategy:
  • 28. 28 Potential Advantages Potential disadvantages Preventive tactics Increased attention Overshadow the brand Pre-testing and careful planning Image polishing Public controversy Buying insurance and putting provision clauses in contracts Brand prologue Image transformation and Explaining what is their role overexposure and putting clause to restrict endorsement for the brand Brand repositioning Image change and loss of Examining what life-cycle public recognition stage the celebrity is in and how long this stage is going to exist in future Strengthen global campaigns Expensive contracts Selecting celebrities who are appropriate for global target audience, not because they are ‘hot’ in all market audiences Source: Erdogan (1999, p. 295) Moreover, Erdogan(1999) illustrates that with the invention of new products the consumer market has become very competitive and the companies are in a row to compete with each other for establishing their brand. Thus they are taking the help of celebrity (media stars) attention to assist the marketing of their products. Additionally, with the advancement in the field of technology and with entrance of digital TV, Video control systems, internet and satellite TV, 3D media effects, internet advertising etc. the consumers were bombarded with overpowered advertising from various channels and advertising media became more challenging sector than before (Ibid). On the other hand the companies have discovered that with celebrity attention in their product advertisements these potential threats from modern technology can be minimized to a certain extent. From a general perspective celebrity endorsement in any product creates an attention for the consumers and an unrevealed biasness of curiosity which makes this strategy more favorable for the organizations. Furthermore, Erdogan (1999) argues that celebrity advertisements stand out of the clutter from similar product advertising. Subsequently, celebrities also catalyze the communication process and eradicate the excessive noise of the communication
  • 29. 29 from the surroundings which improves the process of sending the message of the product to the target audience. In contrary, there are certain difficulties which the organizations face while entering into global marketing of their products and the massive barriers comes from the foreign markets due to the cultural ‘roadblocks’ from various countries in the form of time, space, language, relationships, power difference, masculinity, femininity (Ibid). E.g. the Indian culture of collectivism vs. individualism in U.K. for which many companies operating in UK has to understand the cultural background of India in order to sustain business and enhance operation in India. People in Indian culture are more prone to accept what the society accepts as a whole even if there are certain variations but they all obey the cultural consensus, which in UK is entirely different and consumers here are more intrinsic in nature. Erdogan (1999) defines ‘celebrities’ as a powerful weapon of promotion and conviction while entering the foreign markets as there are many celebrities whose popularity is wide spread and the publics in those nations accept their recommendations. But there are risks associated with celebrity endorsements as well and the challenge for organizations is to maintain the harmony due to the celebrity image incongruity, drop in popularity, celebrity involvement in events of ethical turpitude and loosing credibility due to over endorsements in products / brands (Ibid). Culture Endorsement Consumption 2.1.2 Meaning Transfer Model: McCraken (1989) describes the process of endorsement through his model of meaning transfer which has a comprehensive description about the phenomenon. The focal point of meaning transfer model states that if the celebrity is utilized appropriately they encode positive set of meanings which can be transferred to the endorsed product. The model is divided into 3 sections: culture, endorsement and consumption. Figure 3.1 The Meaning Transfer Model Source: McCracken, 1989, p. 315 Key: Path of meaning transfer Stage of meaning movement
  • 30. 30 Objects Celebrity Persons Celebrity Product Product Consumer Context Role 1 2 Stage 1 3 Stage 2 Stage 3 Stage 1: Culture McCraken (1989) illustrates that celebrities are different from that of anonymous models or actors and organizations invest huge amount of money on celebrities to bring value to the advertisement. They convey extra amount of depth and power of persuasion which is carried over as a message to the consumers. It is a matter of common sense that advertisement carries out messages to the publics and thus they serve the purpose of meaning transfer from the commodity to the usability of the product. But it has been observed that organizations are deeply indulged into endorsing celebrities into their marketing campaign in spite the fact that they are expensive to maintain and are taking most of their marketing budget. Now the question arises why do they do it? What benefit they have got in doing celebrity endorsements than endorsing a local star or popular personality (anonymous professionals)? How a celebrity endorsement adds
  • 31. 31 value to the meaning transfer model? What are the attributes of a celebrity endorsement in relation to marketing campaign and association with culture? Are there any special features which the celebrities bring in to the product campaign which influences the consumer behaviour towards the brands / products? On the other hand Bergstrom and Skarfstad (2004: unpub) suggests that anonymous actors and models presents demographic community in the form of gender, age, status and symbols which are relatively indistinguishable and vague in carrying meaning to a specific culture due to lack of popularity and recognition. Celebrities offer all these attributes with the verity of a special life- style that anonymous models cannot offer and they break the communal barrier with the act of exactitude. Each celebrity carry a unique constitution of meaning due to their association within the community and social power which companies cannot get from the anonymous models / actors. Moreover, it is quite certain that celebrities are more powerful endorsers than that of anonymous actors / models. Though they also bring in meaning to the any endorsements but their power of persuasion is considered limited in compare to celebrity endorsements as celebrities have a wider circulation of identity and thus they receive consent from various communities throughout the world. Celebrities also transfer the meanings of their association to the brand with great radiance and accuracy creating a long term acquaintance with the product which they have developed from their re-appearance and intense participation. Interestingly, Bergstrom and Skarfstad(2004: unpub) discusses that celebrities gather the meanings of a powerful persona from their characters which they act in television, movie, athletes, politics, sports and other careers. These specific roles which they perform give them the opportunity to associate with various ranges of objects, persona and context which remains with the celebrity and are reflected in the advertisements making a meaning transfer from a character to the product / items. Stage 2: Endorsement Subsequently, the 2nd part of the meaning transfer process is endorsement where the celebrity and product are major variables and the meanings are transferred from the celebrity to the product making it a real endorsement. McCracken (1989) suggests that selection of a specific celebrity based on their characteristics is a challenging task. Advertising agencies choose the celebrities
  • 32. 32 based on the criteria that which kind of the characteristics the consumers are looking for from the product / brand and who are the celebrities making a ‘close fit’ in that quality circle for endorsement. Selection of the celebrity also takes into account the financial viability of the campaign. McCracken (1989) after celebrity selection the probable expectation would be that the advertising should identify the necessity of bringing the celebrity association to the product. However, care must be taken in this process as the celebrities carry a lot of meanings along with them but the advertisers should understand the ‘perfect match’ of the celebrity and product association eliminating the vague aspect of culture instead concentrating on the specific objective of the endorsement. Hence, to satisfy the process the advertisers uses people, objects, context which are parallel to have same meaning as the celebrity. Celebrities also take advantage of the advertisement where there is overreliance and the celebrity utilises this opportunity to refrain their image (Ibid). Additionally, McCracken (1989) asserts that the advertisement should be designed in such a way that there is a perfect symbiosis between the product and the celebrity association which initiates the consumers to take part in the meaning transfer process. In advertising theory copy testing is done to measure the success of the advert and when the advert is put forward to the consumers they realize the connection of the celebrity with the product which helps in the meaning transfer movement from celebrity to product. Stage 3: Consumption From a general conception consumers today are looking for meaning in everyday life and when consumption comes into play they are looking for the absolute value into it. Consumers come from various cultures and in all societies the life-style of the public is influenced by the current phenomenon which is happening in the surrounding of the people. In the 21st century when there is abundance of materials from various sources the consumers are bombarded with the product offerings and that makes confusion in the mind of the consumers about the consumption of the product. Celebrity association supports the buying behaviour of the consumers as it reflects reliability of the persona in the product endorsement.
  • 33. 33 McCracken (1989) suggest that the final stage of meaning transfer from the product to the consumer is the most complicated process. It is not just a matter of fact that consumers merely own the product and take possession of its meaning nor the meanings are automatically transferred back to the consumers. Consumers must incorporate the meanings into them and they have to claim the meaning transfer from the product to self and work along with it. They have to participate in the whole process of claiming the meaning where the use of the product will develop the process of meaning transfer and it can be assumed as a test examination where the consumers test the product quality and effectiveness along with the celebrity association and judge the viability of the association. Celebrities have already influenced the process of buying in the 1st stage of the meaning transfer where they have associated them along with the product and reflected their own life-style along with the product. Consumers have accepted what the celebrities has shown them in the initial phase and then only they have progressed into the final stage. Celebrity association is combined along with the objects, people and events around the consumer’s life-style and this phenomenon shows that celebrities built their own self well which is appreciated by the consumers. In an everyday life the consumers are interchanging among various consumer goods and therefore they are constantly changing various products / goods to construct the aspect of their self and world. They admire those characters that are also changing their characters depending on the situation of the life and can accomplish the changes well into the situation. As celebrities has already done the stage 1 of meaning transfer process, now the consumers are processing their mind in their own stage 1 process where they construct the self meaning out of the meaning provided by the celebrities and judge whether the meanings are accessible to them there. Additionally, McCracken (1989) states that the consumers simply do not admire the celebrity because of their association but the reason behind their liking is related to what the consumers wanted to see from the celebrity. When the celebrities enter into the endorsing process they make the meaning of the celebrity self out of the elements in the form of dramatic cultural disposition which is available in the materials form (products) for the consumers. McCracken (1989) illustrates that celebrities also plays the role of a ‘super consumer’. What actually happens in this phenomenon is that when a movie star is acting they take up a character based on the script and within the script they portray the individual based on the circumstances and situation of the story
  • 34. 34 line rather then depicting their own life-style. In most circumstances they carry the character of a person (imaginary) but they are quite similar to that of the human characters what we see in a daily life. If that character succeeds, then the celebrity becomes a known personality and posses a power of a new self which is accepted by the consumers. (E.g. the role of Kate Winslet in the ‘Titanic’ movie gave her the character of the survivor lady of the tragedy and she became associated along with the historic epic.) Thus celebrity world is such a imaginary world where the characters give new meaning to the person due to their association in a specific role and this trial method of the celebrities taking up different characters becomes a compelling source of meaning in marketing. Similarly, they are also termed as ‘superior customers’ as they gave meaning to a character and the association of the character with the tangible and intangible aspect becomes a matter of marketing. They capture the characters in a rational way which gives life to the characters and the product association along with the characters become a matter of new entrants in marketing terms. However, in the society certain groups of people are having higher affinity towards celebrity association due to their social supremacy and cultural hierarchy which makes a positive association of these consumers along with the celebrity life-style. Interestingly, these societal groups are followed by their societal subordinates who gather the knowledge of association of the celebrity from their pioneers and they do that not because they know about the celebrity but in order to associate along with the societal supremacy of their peers. Association can also differ from the generation to generation and also depend upon gender, class, personality and life-style in a culture of having higher individualism in people than collectivism, but individuals does have personal liking and when the consumers chosen character endorse the product the meaning transfer from product to the consumer becomes relatively easy. Therefore, McCracken (1989) advocates the celebrity endorsement operates as a method of meaning transfer from the phase when meaning moves into the persona of the celebrity following celebrity to the product and from product to the consumers where the celebrity becomes the key player of meaning transfer process. 2.2 The Process of Celebrity Selection:
  • 35. 35 In this section the researcher will entail with the theories which reflect on how the companies select the celebrities. Theory model discussed in this section are TEARS model, no TEARS approach and the stereotyping of the endorsers. 2.2.1 The TEARS model: Moreover, Shimp (2000) suggests that there are 2 general attributes which the companies should consider while endorsing a celebrity for marketing. These are the credibility of the character and the attractiveness of the celebrity which determines the effectiveness of the communiqué of the endorser to the target audience. Under the credibility characteristic trustworthiness and expertise of the endorser are also counted as sub- quality. Credibility refers to the celebrity’s judgment and reliability and expertise refers to the explicit skills, knowledge or capability that the endorser has about the brand (Ibid). Additionally, Shimp (2000) describes that attractiveness consists of 3 sub categories namely physical attractiveness, respect and similarity. An example of physical attractiveness is reflected when the Swiss watchmaker, Omega choose tennis player Anna Kournikova for their marketing campaign. However, Kournikova never won a tournament in her tennis career but the company’s marketing director believes that she is “really everything in one package” (Ibid). Secondly, celebrities are recognized by the publics for their athletic power, appealing personality and acting ability etc which earns them respect from the society and a consensus voting of recognition. The last attribute is similarity where the major concern is focused on the endorser and their capability to match along with the target group of consumers in terms of age, gender, ethnicity etc. (Ibid). However, Shimp (2003: 293) states that the reason behind taking attributes of the celebrity as a major issue is to “identify how brand managers and their agencies actually go about selecting celebrities, as to avoid the grief from making an unwise decision”. TEARS model of Celebrity Selection: Credibility Attractiveness Trustworthiness Expertise Attractiveness Respect Similarity
  • 36. 36 T E A R S Figure: 4.1 TEARS model Source: (Basu, 2009) Author’s creation The TEARS model consists of 5 major parameters based on which the companies select the celebrity for the advertisement campaign. These 5 parameters are: trustworthiness, expertise, attractiveness, respect and similarity. Trustworthiness: It is related to the fact, how reliable and dependable is the celebrity. As companies endorse the celebrity for enhancing their marketing campaign therefore the main objective of selection is based on the circumstances whether the celebrity carries the image in the society to convince the target audience. Celebrities earn their trust from the public due to their work and achievement in respective field and the marketers utilizes the trustworthiness of the celebrities in the advertisement. On the other hand if the celebrities are showing self interest in endorsing the product the persuasive effect of the endorsement can be negative and consumer’s reliability towards the celebrity falls but increasing reliability can be enhanced when the endorser is seen as a character having ‘zero’ interest in endorsing the brand. Expertise: Expertise relates to the specific skills and knowledge of the endorser in any particular field. The celebrities achieve these expertises from their prolonged association within any specific subject and also due to excessive media attention. Whether or not the celebrity is a real expert is unimportant but for companies what matters is the celebrity interference in changing the opinion of the consumers about their product / brand. Attractiveness: In this respect the attractiveness of the celebrity plays a vital role. Celebrity attractiveness in terms of physical attributes grabs a lot of public attention more than their achievement in acting or expertise. Marketers are clever manipulators to visage the mind of the consumers with the physical attractiveness as it becomes a prime role of getting general
  • 37. 37 consensus in pursuing the mass in various cultures. E.g. Leonardo Dicaprio known as a handsome actor and his association with TAG heuer, Jude Law and Dunhill, Dipika Padupune (Indian actress) and Kingfisher Airlines. Respect: Celebrities earn respect from the general audience due to their acting skills and their contribution to the society in sports, business, politics and their arguments in any concerning issues of the society. All these are counted as the personal qualities of the celebrity which earns then respect and the credibility of a spoke person. When a respected celebrity endorses a product their association enhances the brand’s equity due to the positive alliance of the celebrity. E.g. Shabana Azmi (Indian actress) endorsed the AIDS campaign in India and became the face of the WHO’S (world health organization) AIDS campaign in India. Similarity: Similarity relates to the fact how the celebrity relates them along with the age, gender, ethnicity, social class, creed, community and cultural variations. It is highly important for companies to consider because consumers admire the individuals who are similar to them in any of the mentioned attributes like from same ethnicity, gender or country. Shimp (2000) states that research on ethical minorities reveals that they show greater affinity to the spokesperson who comes from the same background as they matches with the audience’s liking and gain trust in endorsing a product / brand. (Adopted from Shimp, 2000 and modified by Basu, 2009) 2.2.2 The No TEARS Approach for celebrity selection: In compare to Shimp’s (2000) TEARS approach which shows the attributes of the celebrities and how companies select the celebrities based on the requirement of their advertising campaign, No TEARS approach of Shimp (2000) describes the correct procedure of celebrity selection by the managers / decision makers of an organization to avoid the unnecessary hazard of taking an unwise decision of selecting a wrong personality for marketing campaign. The TEARS approach only reflects on the attributes of the celebrities and the 1 st letter of the word describes the qualities of the characters based on their credibility and attractiveness but the “No TEARS” approach talks about the real quintessence of using the attributes in conjunction with TEARS.
  • 38. 38 According to Shimp (2000) the advertisers considers various factors while endorsing celebrities into their marketing campaign and some of the core aspects what they are looking from the celebrity and brand concurrence are: 1. Celebrity and target market match up 2. Celebrity and brand concurrency 3. Celebrity credibility 4. Attractiveness of the celebrity 5. Cost of endorsement 6. Working easy vs. difficulty factor 7. Endorsement dissemination 8. Celebrity association and risk of brand dilution All the above mentioned factors are essentials elements which the companies consider while endorsing a celebrity. Most important aspect of having the factorial analysis is to establish the brands association with the positive aspect of the celebrity association. Marketers are clever to establish this phenomenon and a well known idiom “when you are in Rome (do as Romans do)” reflects the ideology behind the strategy. The choice of ‘right celebrity’ to target the ‘right market segment’ and eliminating the celebrity as well due to their negative manifestation in the society is the ‘mantra’ behind celebrity selection by the companies in today’s economic scenario. However, a diagrammatic description of the factors essential for celebrity and brand congruency is established as follows:
  • 39. 39 Celebrity and target market match up Brand Factors in Celebrity and brand concurrency quest of Celebrity credibility Celebrity Endorsement Attractiveness of the celebrity Factors required Cost of endorsement Working easy vs. difficulty factor Endorsement dissemination Celebrity association and risk of brand dilution Figure: 5.1 Factors essential for Celebrity and Brand Congruency Source: (Basu, 2009) Author’s creation Celebrity and target market match up: Marketers always choose the celebrity based on the fundamental element whether the celebrity endorsement is going to work for the prospective target market where they want the advertisement to launch. Celebrity alignment has to be in parallel with the target audience. E.g. Sport Stars endorsing brands like Addidas, Nike, and Reebok etc. Celebrity and brand congruency: The reflection of the celebrity in relation to the brand values, decorum, principle and also the image required by the celebrity to enhance the brand advertised. E.g. Moneysupermarket.com and entrepreneur Peter Jones: a well knitted congruency where the celebrity’s association with the business world and financial assessment put forward the image of moneysupermarket.com. Celebrity credibility: It associates along with the reliability and dependability of the celebrity and the knowledge of the person about the product / brand and its effectiveness. If the celebrity trust is reflected in the brand and celebrity’s vow for the brand is significant then the advert is
  • 40. 40 considered valuable. E.g. the key statement of L’Oreal said by all the endorsers around the world “because I am worth it” Attractiveness of the celebrity: While choosing celebrities as spokesperson the companies evaluate the attractiveness of the person and in this relation attractiveness doesn’t means physical beauty but also the personality of the character and charisma of the person as an individual. E.g. Dipika Padupune, being the brand ambassador of Kingfisher airlines, India. Cost of endorsement: Another important consideration which all the companies and the advertising agencies are looking at is the cost of celebrity endorsement. As endorsement itself, is cost sensitive and accounts to huge amount of marketing budget, therefore companies are looking at the worthiness of the investment. In many occasion they choose the celebrities depending on the budget limitations. Subsequently, they also consider the aspect of the brands image and its association along with the consumer class, where popular celebrities’ appearance holds the identity of the brand in spite of the cost involved. Therefore, cost is not a fixed constraint for endorsement strategy but variable depending on the situation and the need for attention of the brand. E.g. Armani with David and Victoria Beckham (expensive endorsement) but its paying off Armani the return on investment due to the celebrities association. Companies always do a cost-benefit analysis in order to determine the celebrity as it relates to the justification of the fact that what is expected from the return in terms of sales and revenue for the product and this analysis establishes the decision of endorsement. Working easy vs. difficulty factor: There is a major concern for the advertisers about the celebrity endorsement and that relates to the attitude and professionalism of the celebrity. Companies prefer to deal with celebrities who are ‘hassle free’ and are specific about their routine. Unprofessional, arrogant, temperamental characters are hard to manage and are difficult people to work with as they follow the typical celebrity headed life-style. Endorsement dissemination: If a celebrity is overexposed into the media channel due to their association with various product / brand endorsement there is a possibility that the credibility of the celebrity as an endorser fades away. Over exposition of the celebrity reduces their perceived credibility and attains saturation among the consumers.
  • 41. 41 Celebrity association and risk of brand dilution: However, there are not always positive effects of celebrity association. Sometimes the celebrity association with the brand can dilute the brand image. The marketers and the advertisers are always concerned about the celebrities private life in which their relation with unsocial or trouble elements can hamper the brands position recognition failure. There are no set principles to illustrate why the brands suffers a pessimistic position when the celebrity endorsing the brand is convicted of any crime or unsocial affair. (Adopted from Shimp, 2000 and modified by Basu, 2009) 2.2.3 Celebrity endorsement and Cultural Dimension: On the other hand if we consider culture as a dimension to measure the impact of celebrity endorsement then it would be argued that the principles of marketing and the advertising doesn’t comply with the cultural difference which is predominant in the sentient world. Marketing and promotions for companies is a vital agenda for market development and their weapon to enhance the target market for the brand / product. But considering the fact that when all companies are going global and are operating throughout the world their products are also available to various countries in spite of cultural difference and consumers are also accepting the product / brand. The question arises how it is possible to penetrate the deep-rooted cultural ethos of various nations. While endorsing a celebrity for a product / brand marketers do consider the cultural dimension to evaluate the suitable personality who is going to be recognized and accepted in the prevailing culture and society. When it comes to the core essence of cultural dimension marketers study the structure and the societal make-up of the country they are willing to target. Moreover, Ginsburgh and Throsby (2006) suggest that there certain fundamental issues with culture which is denoted by the fact, how the people behave in other cultures, their customs, religion, beliefs, and societal hierarchy. From organization point of view the challenge is to investigate how well the public could be motivated to adopt the product, gaining trust among them, establishing the product / brand within the specific culture, technological advancement in the culture and its reach to the human population of that nation. Therefore, describing culture as a nucleus becomes a challenging task for marketers. Ginsburgh and Throsby (2006) describes that there are 4 main dimensions of cultural variations based on which the cultural segregation has been done from one culture to another.
  • 42. 42 Based on the assumption that a pragmatic approach to identify culture which nurtures the development and influences economic growth the 4 dimensions of culture are introduced. They prevail in the western competitive individualistic society as well as in idyllic closed society of solidarity. Casson (1993) in Ginsburgh and Throsby (2006) illustrates the 4 types of dimensions which are: 1. Individualism Vs. Collectivism 2. Pragmatism Vs. Proceduralism 3. Low trust Vs. High trust 4. High-tension Vs. Low-tension Individualism vs. Collectivism: Earl (1986) in Ginsburgh and Throsby (2006) suggests that people having individualistic approach believes that common people are autonomous in nature in that respect each and every individual values their own personal ‘lifestyle’ than that of others. In the individualistic culture the information required for coordination is widely distributed and the after shocks received by the individuals are very specific. In this approach people believe that ownership and control of resources should be invested in the individuals as individuals only have the ability to take decisions based on the information received. On the other hand, collectivist believes that common people are part of the community where they are born and they follow the communal structure more than their individual thoughts and judgement. Even if they have individual thoughts about specific matters, but they always tend to substitute that with the consensus from the communal hierarchy. Even adults seek opinion from their elders regarding survival issues. People having collectivist view also believe in group uniformity as in everyone is same and values group ideas. Information required for coordination is centralized based to the group and the after shocks are having collective impact. Ownership and control of resources in this approach is invested in group. [Ekelund and Tollison (1997) in Ginsburgh and Throsby (2006)] Pragmatism vs. Proceduralism: Pragmatists believes that sensitive judgements are based upon wide personal experience and should be based upon the grounded theory or practical world i.e. to say what is obvious to happen in circumstances of odd and even in human life and decisions
  • 43. 43 based upon these approaches tend to reflect successful decisions. In spite of the fact that there might be situations where intuition are very strong based on the circumstances but these perceptions can be tested through informal conversations with other people. Decisions should be based on individual judgements and needs prompt attention in the same. Individuals should be responsible for their own decisions. Proceduralists believes that good decisions are formed from closely knitted formal procedures, which are having a theory base and subsequently follows a systematic collection of objective information. Proceduralists believes that the decisions which are taken in the form of committees may be time consuming and lengthy, but the argument is that it is better to get the right decisions than taking random decisions within a short span of time. Ginsburgh and Throsby (2006) Low trust vs. High-trust: Cultures which are having the reliability based on high-trust believes that people and common public will be honest, work hard, loyal and generally keep their promises in situations of odd and even and in adverse conditions when they have little / no material inducement related with the subject / matter. In contrast, cultures having low trust appeal believe that common people are motivated to do certain things based on the material incentives and their motive is concerned with self attainment. Therefore, there might be tendency towards deceitful behaviour, cheating or elusion. High trust characteristics are a prominent feature of the individualistic society where the power of enforcement about any agenda is not the same as compared to collective society. Holmes and Sustein (1999) in Ginsburgh and Throsby (2006) High-tension vs. Low-tension: Subsequently, Scitovsky (1976) and Casson (2002) in Ginsburgh and Throsby (2006) assert that person with the attribute of a high-tension society will engage in ambitious projects whereas a person belonging from low-tension society prefers to have easy projects. High-tension people are more inclined to be stressed out as they are aiming high for their own achievement and are ashamed of failure. On the contrary, low-tension people are relaxed minded as their aim is comparatively low than others and they blame the situational factors for their failure i.e. ‘external locus of control’. Though, low-tension people tend to behave in an unstructured manner, which often has anti-social repercussion. 2.2.4 Acceptance of Celebrity Endorsement based on Cultural Difference: