Topics: Brand, Brand management, Null hypothesis Pages: 11 (2425 words) Published: December 5, 2012

Today 'Celebrity Endorsement' has become a trend and perceptible as a winning formula for product marketing and brand building. It has been established as one of the trendiest tools of promotion in recent time. It is easy to choose a celebrity but it is tough to establish a strong association between the product and the endorser. Firms invest huge amounts as advertising expenditure for hiring the right celebrity. However there lies uncertainty with respect to the returns that the company might be able to garner for the brand. Consumers perceive the brand as having superior quality because it has been endorsed by a credible source. This makes endorsement as one of the indictors of quality for any brand. Corporate credibility along with endorser credibility plays a significant role in the attitude of the consumer towards the brand and the advertisement respectively. Successful branding programs are based on the concept of singularity. The objective is to create in the mind of the prospect the perception that there is no other product on the market quite like your product.


The objective of this project is to investigate whether celebrity endorsement, act as a source of effective brand management, have impact over the purchasing behavior of customers, evaluate associated factors that contribute to the success or failure of the endorsement and explore what the concept represents in terms of new knowledge. For this I decided to conduct this very research and the objectives of my research are:

1 To do a study and analysis as to why and when brands use celebrities as endorses and what kind of risks are involved?

2 To identify the influence of celebrity endorsement on consumer buying behavior.

3 To study celebrity endorsement as a source of brand-building.

Research Hypotheses

This research considered following Hypothesis

Hypothesis No.1:- To find out whether celebrity endorsement is effective tool to persuade consumers in their buying decision


Celebrity Endorsement, Celebrity Credibility, Brand Personality, Brand Image.


An Indian family has at least one television set and a consumer is exposed to around 3000 ads per day. Likewise, there are more than hundreds of television channels in India broadcasting over 3 million television commercials each year in India. The media-explosion can thus be easily demonstrated. More over, people forget 80% of the information in just 24 hours! Just imagine the plight of the marketer to make his brand shout over the deafening clutter of all the brands! Some where in the 80’s, an Indian marketer found the solution, 'Celebrity Endorsement' for the brand! Since then, Indian advertising has metamorphose hosed into a strategic tool that enhances sales, siphons more profits and helps in the process of brand-building and product promotion. With this evolved a strategy that tried to benefit from the emotional attachment of the admirers or the fans of the celebrities in the form of celebrity endorsement. It does help in creating instant awareness and visibility; but for a cost. This paper tries to look beyond the obvious benefits that might be derived out of celebrity endorsement. It tries to understand the process of consumer psychology and impact of celebrity endorsement on the overall process of brand building.

Mechanism and Theories of Celebrity Endorsement

Grant McCracken has explained in his Meaning Transfer Theory. The theory explains that a celebrity encodes a unique set of meanings which if well used can be transferred to the endorsed product. Such a transfer takes place in three stages – encoding meanings, meaning transfer, meaning capture (Figure 1).

I. Encoding Meanings: Each celebrity has a unique set of meanings, which can be listed by age, gender, race, wealth, personality or lifestyle. In this way, the celebrities encode a set of meanings in their image. For example Preity Zinta...
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