Introduction

Celebrity endorsement has become an essential part of todays

advertisement world.Every big brand is using celebrities to promote their
brands.
This paper is the analysis of effect of celebrity endorsement on the purchase
behavior of consumers. This study is carried out on 50 respondents from
different courses in lovely professional university.

Review of literature
1.Factors predicting the effectiveness of celebrity
endorsement advertisements
Summary
This research examines whether consumers infer that celebrity endorsers like the products they
endorse, and presents a model using these inferences and other characteristics of the endorser to
predict attitudes toward the endorsed product.

2.Celebrity performance and endorsement value: the case of Tiger Woods

summary:
An interesting issue little explored in the celebrity endorsement literature is whether or not the
activities of a celebrity endorser affect company performance. We examine the impact of Tiger
Woodss tournament performance on the endorsing firms value subsequent to the contract
signing. We do not find a relationship between Tigerss tournament placement and the excess
returns of Fortune Brands (parent of Titleist).

3.The equity effect of product endorsement by celebrities: A conceptual

framework from a co-branding perspective
Summary:
The purpose of this study is to outline a conceptual framework that can be used to organise and
guide future research into how celebrity product endorsement creates equity for both the
endorsed product-brand and the endorsing celebrity. The central thesis is that both endorser
image and brand image serve as mediators in the equity-creation process of celebrity product
endorsement.

1. http://www.emeraldinsight.com/10.1108/03090560410560218
2. http://www.emeraldinsight.com/10.1108/03074350010766756
3. http://www.emeraldinsight.com/10.1108/03090560710718148

4.The naked truth of celebrity endorsement

Summary:
This case study examines the use of celebrity endorsement in the formation of the retail image of
leading European grocery distribution group J. Sainsbury, in particular, the process of
transference of celebrity images to the products image. The incorporation of Jamie Oliver (well
known as television celebrity The Naked Chef) into the promotions of one of Britains leading
grocery chains involves a high profile campaign that has been adopted in order to imbue the
companys products with an image of quality. The success of the campaign has been replicated in
New Zealand by another grocery retail giant, Foodstuffs, who have also adopted The Naked
Chef to endorse their products. The case draws on field research with consumers and key
informant interviews with advertising agency personnel who identified the criterion for the
choice of Jamie Oliver. The extent to which the market place recognises and consumers associate
themselves with the image Jamie projects as a celebrity endorser for J. Sainsbury is explored.

5.Celebrity Endorsement in Food - UK

This report assesses celebrity endorsement of food since the last Mintel report was published in
January 2005. Over the last three years increased media coverage of food and cookery has
propelled celebrity chefs into the limelight. At the same time issues such as healthy eating,
organic and free-range production values have come to the fore. The result is a much more
complex, wide-ranging relationship between celebrities and food. No longer simply endorsers of
food products, celebrities have become crusaders for the food sector, challenging consumers to
think before they eat and resulting in significant changes in purchasing behaviour.
.6.How

sports celebrity endorsements affect a company's branding

The effect of sports celebrity endorsements on a company's branding can not be underestimated.
Usually the effect is positive however at times it can backfire and cause an undesired outcome.
Throughout the past chundred and twenty five years or so we have seen sports and business

intertwined in the advertising world and the relationship grows stronger every year elevating
both brand and athlete to levels of public conciousness neither would likely realize on their own.

4. http://www.emeraldinsight.com/10.1108/00070700310477086
5. http://www.just-food.com/store/product.aspx?id=64297

6. http://www.helium.com/items/1142527-how-sports-celebrity-endorsements-affect-a-companysbranding?page=2

7. Celebrity Endorsement: Advertising Agency

Managers Perspective
This paper has explored on advertising agency managers point of view regarding celebrity endorsement
strategy. Findings revealed that managers see media clutter as the biggest challenge for marketing
communications practitioners nowadays and utilise a celebrity endorsement strategy to overcome this
challenge. A celebrity campaign to bring desirable campaign results must support a good idea and there
must be an explicit fit between celebrities and brands. While deciding on a particular celebrity, a range of
criteria are reported to be taken into account and these criterias importance was communicated to be
very similar in the UK, but it would differ across countries mainly because of cultural differences.

8.Celebrity Endorsement in Food - UK - April

2008
This report assesses celebrity endorsement of food since the last Mintel report was
published in January 2005. Over the last three years increased media coverage of
food and cookery has propelled celebrity chefs into the limelight. At the same time
issues such as healthy eating, organic and free-range production values have come
to the fore. The result is a much more complex, wide-ranging relationship between
celebrities and food. No longer simply endorsers of food products, celebrities have
become crusaders for the food sector, challenging consumers to think before they
eat and resulting in significant changes in purchasing behaviour.

9.Celebrity Endorsements
It is estimated that companies in the U.S. spent $800 million in 1998 toacquire talent
entertainers, athletes and other high profile personalities to spotlight in advertising,
promotion and PR campaigns (IEG Endorsement Insider)
Approximately 20% of all television commercials feature famous people.
Why do ads for some products feature celebrity endorsements while ads
for others do not? To answer this question, we develop a coordination model of
advertising in which firms choose both advertising levels and advertising format
ads with celebrity endorsements or ads without. We show that the equilibrium

formats are either ones that reach large audiences at low cost or that
coordinate well. The former provides a cost-based explanation for celebrity endorsements
that is consistent with experimental evidence showing that celebrities
enhance product recall. The latter provides an explanation for celebrity
endorsements consitent with evidence that they enhance consumer perception
of product value. For this latter case, we show that celebrity endorsements
are chosen for products that i) have large potential customer pools, ii) provide
large coordination returns to consumers or iii) require coordination across diverse
sets of customers. Our analysis also provides an explanation for the use
of fictional celebrities like Joe Camel.

http://fulltext.ausport.gov.au/fulltext/1999/cjsm/v3n3/erdogan&baker33.htm
http://academic.mintel.com/sinatra/oxygen/display/id=319432
www.rotman.utoronto.ca/ihorstmann/JEMS.2005-07-07.clark.pdf

Research design:

In this research we used exploratory design.

Exploration is a particularly useful when researchers lack a clear idea of the
problems they will meet during the study. Through exploration researchers
develop concepts more clearly, establish priorities, develop operational
definitions and improve the final research design. Exploration may also save
time and money.

Sampling design:

in this research we used convenience

sampling. Non probability samplings that are unrestricted are known as
convenience sampling. They are the least reliable design but normally the
cheapest and the easiest to conduct. Researchers or field workers have the
freedom to choose whomever they find , thus the name convenience .

Analysis
1: This is the analysis of no. of consumers who watch advertisement.
Statistics
Do you watch advertisement
N
Valid
Missing

50
0

Mean

1.00

Median

1.00

Mode

Std. Deviation

.000

D
o
yu
w
a
tc
h
a
d
v
e
rtis
e
m
n
t 'yes
Do you watch advertisement

Valid

'yes'

DATA findigs:

Frequency
50

Percent
100.0

Valid Percent
100.0

Cumulative
Percent
100.0

100% of respondents said that they watch advertisements.

Inference :
All the respondents say that they watch advertisements.

2.This is the analysis of response of consumers on celebrity endorsement

in advertisements
Statistics
Do you think that celebrity is required in an advertisement
N
Valid
50
Missing
0
Mean

1.20

Median

1.00

Mode

Std. Deviation

.404

Do you think that celebrity is required in an advertisement

Valid

'yes'
no

Frequency
40
10

Percent
80.0
20.0

Valid Percent
80.0
20.0

Total

50

100.0

100.0

Cumulative
Percent
80.0
100.0

D
o
y
u
th
in
k
th
a
c
e
lb
rity
s
re
q
u
ire
d
in
a
d
v
e
rtis
e
m
n
t'n
y
e
s
'
o
__

Data findings:
80% respondents says that celebrity endorsement is required for advertisements.
Inferences:
Majority of respondents
advertisements.

says

that

celebrity

endorsement

is

required

3. This is the analysis of choice of celebrity on the basis of gender.

Statistics
Is your favorlte celebrity is male or female
N
Valid
Missing

50
0

Mean

1.58

Median

2.00

Mode

Std. Deviation

.499
Is your favorlte celebrity is male or female

Valid

'male'
female

Frequency
21
29

Percent
42.0
58.0

Valid Percent
42.0
58.0

Cumulative
Percent
42.0
100.0

for

Total

Is
y
o
u
rfa
v
o
rlte
c
le
b
rity
s
m
a
le
o
rfe
m
a
le'fm
a
le
'
50

100.0

100.0

Data findings:
58% of respondents says that they like female celebrities in advertisements.
Inferences:
Majority of respondents favor female celebrity endorsement on the place of male celebrity.

5. This is the analysis of behavior of respondents for the uses of product due to celebrity
endorsement.
Statistics
Do you keep using a brand only because of the endorsing celebrity
N
Valid
50
Missing
0
Mean

1.76

Median

2.00

Mode

Std. Deviation

.431

Do you keep using a brand only because of the endorsing celebrity

Valid

'yes'
no

Frequency
12
38

Percent
24.0
76.0

Valid Percent
24.0
76.0

Cumulative
Percent
24.0
100.0

D
o
y
u
k
e
p
u
s
in
g
a
b
ra
n
d
o
n
ly
b
e
c
a
u
s
e
o
fth
e
n
d
o
rs
in
g
c
e
lb
i'n
ty
r
y
e
s
'
o
Total

50

100.0

100.0

Statistics

__

Data findings:

76% respondents said that they are not using a brand only because of
endorsing celebrity

Inferences:
majority of respondent use brands only according to their choice noy
because of celebrity endorsement in it.

6. This is the analysis of respondents preference while

purchasing any brand
Statistics
what makes you notice a brand
N
Valid
Missing

50
0

Mean

1.48

Median

1.00

Mode
Std. Deviation

1
1.035

what makes you notice a brand

Valid

Frequency
39
3

Percent
78.0
6.0

Valid Percent
78.0
6.0

Cumulative
Percent
78.0
84.0

endorsing celbrity

10.0

10.0

94.0

price

2.0

2.0

96.0

other

4.0

4.0

100.0

Total

50

100.0

100.0

'quality'
advertisement

w
h
a
tm
a
k
e
s
y
o
u
n
o
tic
e
a
b
ra
n
d'p
q
ith
ln
u
a
te
'o
y
d
ric
v
e
s
e
m
n
triy
lrb
n
g
c
__

Data findings;
78% respondents said that the give more value to the quality before
purchasing any particular brand.
While 2% respondents give price as more important factor than any other
while purchasing any brand.

Inferences:
Majority of respondents give preference to the quality of product of brands
while purchasing.

7. This is the analysis of consumer buying behavior due to

celebrity endorsement.

Statistics
celebrity
endorsem
ent
increases
the
trustworth
eness of
the
product or
services
50
0

celebrity
endorsem
ent is
essential
for product
or service
promotion
in the this
competitve
market
place
50
0

celebrity
endorsem
ent
increases
your
probability
to go and
purchase
a product
50
0

celebrity
endorsem
ent
decreases
the risk
related to
the
product or
service
50
0

celebrity
endorsem
ent is
essential
for
success of
product
and
services in
the market
50
0

Mean

2.40

2.58

2.46

2.48

Median

2.00

2.00

2.00

.969

.992

.952

Valid
Missing

Mode
Std. Deviation

celebrity
endorsem
ent
increases
the brand
recall
50
0

celebrity
endorsem
ent
increases
the
credibilty
of the
product or
services
50
0

celebrity
endorsem
ent alters
the buying
behaviour
of a
person in
a positive
way
50
0

celebrity
endorseme
nt attracts
individuals
attention
towards
the product
or services
advertised
50
0

2.36

2.48

2.46

2.32

2.20

2.00

2.00

2.00

2.00

2.00

2.00

.886

.942

.953

.952

.819

1.050

celebrity endorsement increases your probability to go and purchase a product

Valid

'strongly agree'
agree
neutral

Frequency
5
29

Percent
10.0
58.0

Valid Percent
10.0
58.0

Cumulative
Percent
10.0
68.0
88.0

10

20.0

20.0

disagree

6.0

6.0

94.0

strongly disagree

6.0

6.0

100.0

50

100.0

100.0

Total

celebrity endorsement decreases the risk related to the product or service

Valid

'strongly agree'
agree
neutral

Frequency
4
24

Percent
8.0
48.0

Valid Percent
8.0
48.0

Cumulative
Percent
8.0
56.0
84.0

14

28.0

28.0

disagree

10.0

10.0

94.0

strongly disagree

6.0

6.0

100.0

50

100.0

100.0

Total

celebrity endorsement is essential for success of product and services in the market

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

'strongly agree'
agree

6
24

12.0
48.0

12.0
48.0

12.0
60.0

neutral

12

24.0

24.0

84.0

disagre

14.0

14.0

98.0
100.0

strongly disagree
Total

2.0

2.0

50

100.0

100.0

celebrity endorsement increases the trustwortheness of the product or services

Valid

'strongly agree'
agree
neutral
disagree
strongly disagree
Total

Frequency
3
28

Percent
6.0
56.0

Valid Percent
6.0
56.0

Cumulative
Percent
6.0
62.0

13

26.0

26.0

88.0

8.0

8.0

96.0
100.0

4.0

4.0

50

100.0

100.0

celebrity endorsement is essential for product or service promotion in the this competitve market place

Valid

'strongly agree'
agree
neutral
disagree
strongly disagree
Total

Frequency
7
25

Percent
14.0
50.0

Valid Percent
14.0
50.0

Cumulative
Percent
14.0
64.0

13

26.0

26.0

90.0

6.0

6.0

96.0
100.0

4.0

4.0

50

100.0

100.0

celebrity endorsement increases the brand recall

Valid

'strongly agree'
agree
neutral

Frequency
6
22

Percent
12.0
44.0

Valid Percent
12.0
44.0

Cumulative
Percent
12.0
56.0
88.0

16

32.0

32.0

disagree

8.0

8.0

96.0

strongly disagree

4.0

4.0

100.0

50

100.0

100.0

Total

celebrity endorsement increases the credibilty of the product or services

Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

'strongly agree'
agree

3
31

6.0
62.0

6.0
62.0

6.0
68.0

neutral

18.0

18.0

86.0

disagree

8.0

8.0

94.0
100.0

strongly disagree
Total

6.0

6.0

50

100.0

100.0

celebrity endorsement alters the buying behaviour of a person in a positive way

Valid

'strongly agree'
agree
neutral
disagree
strongly disagree
Total

Frequency
5
29

Percent
10.0
58.0

Valid Percent
10.0
58.0

Cumulative
Percent
10.0
68.0

12

24.0

24.0

92.0

6.0

6.0

98.0
100.0

2.0

2.0

50

100.0

100.0

celebrity endorsement attracts individuals attention towards the product or services advertised

Valid

Frequency
13
22

Percent
26.0
44.0

Valid Percent
26.0
44.0

Cumulative
Percent
26.0
70.0

neutral

18.0

18.0

88.0

disagree

8.0

8.0

96.0
100.0

'strongly agree'
agree

strongly disagree
Total

4.0

4.0

50

100.0

100.0

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__

Data findings:
1. 29% respondents said that celebrity endorsement increases the
probability of product purchase.
2. 24% respondents said that celebrity endorsement decreases the risk
related to the product or services.
3. 48% respondents said that celebrity endorsement is essential for the
success of product in the market place.
4. 56% respondents said that celebrity endorsement increases the
trustworthiness of products.
5. 44% respondents said that celebrity endorsement increases the brand
recall.
6. 50% respondents said that celebrity endorsement is essential for
promotion of product and services in this competitive marketplace.
7. 58% respondents said celebrity endorsement alters the buying behavior in
positive way.
8. 62% respondents said that celebrity endorsement increases the credibility
of the product.
9. 44% respondents said that celebrity endorsement attracts individuals
towards thw product or services.

Inferences
Majority of respondents are in favor of celebrity endorsement and they think
that celebrity endorsement can definitely have effect on the buying behavior
of any brand.

Final findings:
100% of respondents said that they watch advertisements.
80% respondents says that celebrity endorsement is required for advertisements
58% of respondents says that they like female celebrities in advertisements.

76% respondents said that they are not using a brand only because of
endorsing celebrity
78% respondents said that the give more value to the quality before
purchasing any particular brand.
While 2% respondents give price as more important factor than any other
while purchasing any brand.
29% respondents said that celebrity endorsement increases the probability of
product purchase.
24% respondents said that celebrity endorsement decreases the risk related to the
product or services.
48% respondents said that celebrity endorsement is essential for the success of
product in the market place.
56% respondents said that celebrity endorsement increases the trustworthiness of
products.
44% respondents said that celebrity endorsement increases the brand recall.
50% respondents said that celebrity endorsement is essential for promotion of
product and services in this competitive marketplace.

58% respondents said celebrity endorsement alters the buying behavior in positive
way.
62% respondents said that celebrity endorsement increases the credibility of the
product.
44% respondents said that celebrity endorsement attracts individuals towards thw
product or services.

Chi-square test
H0- there is no significant difference between celebrity endorsement and
using a brand
H1- - there is significant difference between celebrity endorsement and
using a brand

Case Processing Summary

Cases
Valid
N
Do you think that
celebrity is required in
an advertisement * Do
you keep using a brand
only because of the
endorsing celebrity

Missing
Percent

50

Total

Percent

100.0%

.0%

Percent

50

100.0%

Do you think that celebrity is required in an advertisement * Do you keep using a brand only because of the
endorsing celebrity Crosstabulation
Do you keep using a
brand only because of
the endorsing celebrity
'yes'
Do you think that

'yes'

Count

no
12

Total
28

40

celebrity is required
in an advertisement
no

Expected Count

9.6

30.4

Residual

2.4

-2.4

Count
Expected Count
Residual

Total

Count
Expected Count

40.0

10

10

2.4

7.6

10.0

-2.4

2.4

12

38

50

12.0

38.0

50.0

Chi-Square Tests

Pearson Chi-Square
Continuity
Correction(a)
Likelihood Ratio

Asymp. Sig.
(2-sided)
.047

2.474

.116

6.239

.012

Value
3.947(b)

df

Fisher's Exact Test

Linear-by-Linear
Association

Exact Sig.
(2-sided)

Exact Sig.
(1-sided)

.092
3.868

.046

.049

N of Valid Cases

50
a Computed only for a 2x2 table
b 1 cells (25.0%) have expected count less than 5. The minimum expected count is 2.40.

Here p value is small than the .05 so we will reject the H0 and
accept the H1