A study on consumer perception for celebrity & non celebrity endorsement in television commercials for fast moving consumer goods

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1 Page1 ISSN: Vol. 3 (2): 1-11 A study on consumer perception for celebrity & non celebrity endorsement in television commercials for fast moving consumer goods Bhaveshkumar J. Parmar Gujarat Technological University, India bjpspce@gmail.com Rajnikant P. Patel Sardar Patel University, India Abstract In the present era of information explosion and media influence, advertisements play a major role in changing perception or thinking of consumer. Across the world, celebrities have been used for a wide variety of brands. Celebrity endorser is extensive; nevertheless there is limited study on Consumer perception of celebrity versus non celebrity advertisement on television commercials for the products come under FMCG. The aim of the study is to assess consumer s perception regarding to use celebrity and non celebrity endorsement in advertisements. The findings show there is a significant difference for all FMCG categories between advertisements for celebrity and non celebrity. Keywords: Celebrity endorsement; non-celebrity endorsement; consumer perception; television commercials; fast moving consumer goods Citation: Parmar, B. J. and Patel, R. P. (2014). A study on consumer perception for celebrity & non celebrity endorsement in television commercials for fast moving consumer goods., 3(2): 1-11.

2 Page2 1. INTRODUCTION Celebrity endorsement is the way to maximize advertising effectiveness. Popular celebrities like cricketers and film stars are considered as god by their lovers, but it is essential for marketers to establish the link between a product and celebrity by considering the type of product. Significantly it is also important for advertiser to check suitability of celebrity before selecting. Sometimes non celebrity endorsement if the best approach for reducing cost of advertising. 1.1 Celebrity advertising Although the audience is getting smarter and smarter and the modern day consumer is getting resistant to the exaggerated claims made in a majority of advertisements, advertisers are focused on celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing-up various celebrities for advertising of their respective products, which consist of all sorts of advertising including, television advertisements, on net or even print advertisements. How effective these advertisements are, that is something that each consumer can determine on their own. So, those were the most effective and popular kinds of advertising used today. Each of the advertisement types mentioned has its own effectiveness. Therefore it is the job of people who associate with advertisement department to figure out which type of and which medium is the best and the most feasible for their brand. A company needs to reach potential benefits of endorsers either celebrity or common man to ensure that they are not in conflict with an organisation s value system or likely to generate negative publicity. Celebrities should add worth to the brand s taxonomy. In Fast Moving Consumer Goods (FMCG), we have been witnessed of both endorsements in the advertisements in any media. Not much work has been seen in the Indian perspective for comparative study of both on the various product categories. Indian consumer attitudes are changing at a rapid pace and they are becoming more aware of the products that they use. The research is carried out to obtain a view amongst Indian Consumers about celebrity and non celebrity endorsement. Most advertisements, be it of any form, majorly focuses on the specific consumers therefore their perception about the celebrity endorsed form of advertisement is of utmost importance, also getting to know the attitude, that provides the knowledge of the most current incidents or attitudes of any country. 2. LITERATURE REVIEW Celebrities are well-known individuals (Television stars, movie actors and actresses, famous athletes, pop stars, entertainers, etc.) who be obliged their fame to their achievements.

3 Page3 McCracken (1989) defines a celebrity endorser as any individual who enjoys public recognition and who uses the recognition on behalf of a consumer good by appearing with it in an advertisement. Friedman and Friedman (1979) define a celebrity as an individual who is known to the public (actor, sports figure, entertainer, etc.) for his or her achievements in areas other than that of the product class endorsed There are two forms of celebrities in advertising: celebrity license and celebrity endorsement (Mistry, 2006). The former is not used often, as it tends to be a long-term, co branding commitment by both the corporation and the celebrity as the celebrity adds his/her likeness or name directly to a product. The crux of this relationship is that the celebrity and the product are directly associated with each other. This can be either strength or a weakness depending on the status of the celebrity and the quality of the product/brand. Celebrity endorsements are the more widely used strategy of using celebrities as a promotional tool for products. These endorsements can have celebrities giving expert opinions, being a spokesperson for a product, or just being associated with a product (McCracken 1989; Seno and Lukas, 2007). 2.1 Review of celebrity endorsement contracts in product advertising Although many studies analyze the use of celebrity endorsement contracts in product advertising, the primary focus has been to examine how celebrity endorsements influence consumer behavior. For example, theories of credibility or physical attractiveness examine the impact of perceived trustworthiness, expertise, familiarity, and likability of the celebrity ( for ex. Sachin Tendulker, Amitabh bacchan, Shahrukh Khan, MS Dhoni etc.) (Kamins, 1990). Theories of identification address the extent to which an individual perceives they share values with the celebrity (Basil, 1996; Greene and Adams-Price, 1990; Williams and Qualls, 1989). In this context, other relevant research examines contingent conditions that may influence the processes of identification, credibility or attractiveness. Examples include the attractiveness of the celebrity (Kahle and Homer, 1985), the celebrity s expertise of the product (Buhr, Simpson, and Pryor, 1987; Ohanian, 1991), and the number of products endorsed and/or number of exposures (Mowen, Brown, and Schulman, 1979; Mowen and Brown, 1981; Tripp, Jensen, and Carlson, 1994). As argued by Chaney, Devinney and Winer (1991), much of the previous marketing and strategic management research focuses on evaluating consumers responses to advertisements that created images of celebrities. The need remains to identify whether or not favourable changes in consumer attitude and behavior justify the costs associated with such a strategy (Agrawal and Kamakura, 1995). Several studies have employed event study methodology to examine how changes in a firm s

4 Page4 advertising affect firm value. Mathur and Mathur (1996) also examine the market value impact of a firm s decision to initiate new advertising agency-client relations. They find a negative impact (Tiger woods scandal) for firms announcing new accounts with an existing agency. Till and Shimp (1998) examine the potential impact of negative information about a celebrity endorser on consumer s evaluations of the endorsed product. They find that, when a consumer s knowledge structure about the brand and/or about the celebrity is less than fully developed, negative celebrity information can have a significantly negative impact on consumer s brand evaluation. They conclude that such endorsement relationships, which are full of potential benefits, are not without risk. We focused much on the non celebrity advertisement, to those of the products which have more brand name, low involvement on product and not need to endorse with celebrity. There are several examples of using non celebrity/ unknown person in the advertisement we have been. These are Close-Up tooth paste advertisement, mobile handset to several FMCG products. 2.2 Information in advertisements and matched effect of celebrity Consumer s perceptions for price, quality and value of product are considered as vital determinate of shopping behaviour and product choice; Lee and Lou (1995). To relate this research with celebrity endorsement, consumer having positive effect in the celebrity endorsement because of transfer of the meaning (McCracken, 1989); in the product through advertisement. There are several characteristics affecting credibility of endorsers such as trustworthy, knowledgeable, believable, objectivity and expertise that were tested in the various studies (Aaronnson, et al., 1963; Bergin, 1962; Friedman and Friedman, 1979; Kamins, 1990). The endorser s credibility positively can be enhanced by properly matching with the products being endorsed and those of celebrity. Further there have been a number of studies that have examined whether and under what conditions celebrities make appropriate endorsers for products. For example in India, film star Salmankhan endorsed Revital brand energy supplements. 2.3 Celebrity and non celebrity endorsement in advertising It has-been noticed that more than fifty years using of celebrity in advertisement, Research has shown that the use of celebrities endorsement can have a positive influence on the trustworthiness, remembrance of message, memory and likeability of the advertisements, hence finally on purchase intentions of consumer (Menon and Rogers, 2001; Pornpitakpan, 2003; Pringle and Binet, 2005; Roy, 2006). Presently, there is no doubt inspired by the declining effectiveness of the different marketing communications (Roozen and Claeys, 2010). The advertising industry is ready to pay more and more to the celebrities. On the other

5 Page5 hand, companies have limited control over the celebrity s persona which can also result in high risk and no gain situations (e.g. the scandals sur-rounding celebrities like Michael Jackson, Kate Moss, Britney Spears, Paris Hilton). Useless to argue that it is well worth to investigate the relative effectiveness of using celebrity endorsers compared to using noncelebrity spokespersons. Some of the research focused on celebrity advertisement is as follows: Till and Busler (1998) found that there should be a congruence between the celebrity and the product in terms of characteristics such as image, expertise or attractiveness Which was supported by Baker and Churchill (1977) and Kahle and Homer (1985). Kamins (1990): The celebrity-product match model states that attractive endorsers are more effective when promoting products that was used to enhance one s attractiveness and this impact will be not significant in the case of a product that is unrelated to attractiveness. Kahle and Homer (1985) found that in the case of attractiveness related products the use of physically attractive celebrities increased message recall; product attributes, and purchase intention. Till and Busler (1998): An attractiveness of celebrity will be also more effective for low involvement products such as low price, than for high involvement products. For products having in technical nature, the expertise factor of the celebrity is a significantly more important factor. That was focused by (Till and Busler, 1998). However, congruency among product and those who is endorsed by celebrity, that is in terms of characteristics such as image, expertise (Till and Busler, 1998) or attractiveness (Baker and Churchill, 1977) plays an important role for the effectiveness of the advertisement (Kahle and Homer, 1985) and an most favourable match between the celebrity endorser and the product. Non celebrity-branded Products in India, In the FMCG (Fast Moving Consumer Goods) category, some products are neither branded with the celebrity s name. For example, Close- Up, tooth paste. The popular TVC slogan is Pass aavo na, prevalent in the food related category like Bingo. Another example is Cadbury s five-star chocolate & endorsed by two male character Ramesh & Suresh. The use of non celebrity branding seems to be most prevalent in the food related category like Bingo. As the number of products endorsed increases, consumers perceptions of celebrity credibility, celebrity likeability and attitude

6 Page6 toward the ad become less favourable (Tripp, Jensen, & Carlson, 1994). This is all happened with film star Amitabh bacchan. The questions that naturally arise from these examples are as follows: 1. To what extent does the celebrity endorsement affect the performance of product? (Because of multiple brands endorsing as well endorsement of those products, which are not matched with celebrity s expertise. For example: Amitabh Bacchan and Dhanuka s Pesticides, Shakti water pumps) 2. In what circumstances, non celebrity endorsement preferable? 2.4 FMCG product categories There are mainly 4 product categories in FMCG: 1. Home and Personal 2. Foods and Beverages 3. Cigarettes 4. Alcohol We have selected only first two categories for this research. 1a. Household Care: It can be divided into the following categories Fabric wash - Laundry soaps and Synthetic detergents 1b. Personal Care: It can be divided into the following categories Oral Care - Toothpaste Skin Care - Creams, Lotions, Gellies Hair Care - Hair Oil, Shampoos 2a. Foods: Bakery products - Biscuits, bread, cakes,snack food, Chocolates 2b. Beverages: Tea & Soft drinks 2.5 Objectives of the study To study perceptions of consumers for celebrity & non celebrity advertisements. To study the influence of demographic factors on customers perception for celebrity & non celebrity endorsers in advertisements. To study the influence of psychological factors on customers perception for celebrity & non celebrity endorsers in advertisements.

7 Page7 3. RESEARCH METHODOLOGY AND DATA The study area was confined to North Gujarat region of Gujarat state (India). A nonprobability sample in the form of convenience sampling was used. The focus was on the customers perception for celebrity & non celebrity endorsers in Television commercial (TVC) for FMCG products. The questionnaires were distributed to a sample population of 300 respondents. The questions are on the base of advertisement, selected those products where celebrity and non celebrity advertisement observed. (Example: In toothpaste Shahrukh khan endorsed Pepsodent while Close-up brand endorsed by non celebrity) Data collection comprises of primary data and secondary data. The primary data has been collected through questionnaires and secondary data from related journals and publications. The questionnaire was based on the initial research model and propositions. Primary data were collected through questionnaire survey. SPSS V.16 was used for data analysis. 4. DISCUSSION AND ANALYSIS 4.1 Respondent demographic profile Gender Male 171 Female 129 Student 64 Professional 30 Occupation Service/Job 80 Business 38 Housewife 80 Marital status Married 185 Unmarried 115 Below to Monthly family Income to to More than Below hour 19 Daily time duration of 1 hour to 2 hour 144 watching television More than 3 hour 137 Table 1. Demographic profile of respondents. (Source: Primary data collection) 4.2 Study hypotheses This research was conducted to determine the celebrity and non celebrity endorsement in Television commercial and influence on consumer for FMCG product categories. These measures will form the basis against which the following hypotheses are tested

8 Page8 H1: There is a significant difference between celebrity endorsement with relate to non celebrity endorsement for Household care products in television commercial. H2: There is a significant difference between celebrity endorsement with relate to non celebrity endorsement for Personal care products in television commercial. H3: There is a significant difference between celebrity endorsement with relate to non celebrity endorsement for Food products in television commercial. H4: There is a significant difference between celebrity endorsement with relate to non celebrity endorsement for Beverages in television commercial. 4.3 Analysis FMCG Product category Household Care Personal Care Foods Beverages Mean T df p Celebrity Endorsement Non Celebrity Endorsement Celebrity Endorsement Non Celebrity Endorsement Celebrity Endorsement Non Celebrity Endorsement Celebrity Endorsement Non Celebrity Endorsement Table 2. Endorser type on FMCG advertisement and other dependable measures. (Significance level: 0.05) Time duration of watching television among 300 respondents are, 137 (45.7%) watching more than two hour in a day while 144 (48%) watching two to three hour. For testing first hypothesis, compare to effectiveness of celebrity & Non celebrity advertisements on Household care products the result showing that respondents were able to differentiate between celebrity (M=6.27) and Non celebrity (M=5.18) where t=3.93 at p<0.00. The second hypothesis related to Personal care category, the result showing that respondents were able to differentiate between celebrity (M=4.58) to those of non celebrity (M=3.08) where t=3.98 at p<0.00. The third hypothesis related to foods, showing less difference as indicate results in table-2. However in the hypothesis four - significantly, individual who shows more favourable preferences in beverages category towards ad (M=5.06) than those who viewed the advertisements with non celebrity endorsement (In result: M=3.69; t=0.95, p<0.30). This results supports with research of & Claeys (2010), they pointed out that the use of attractive non-celebrity endorsers could be as effective in influencing attitudes and purchase intentions as the use of celebrity endorsers across very different products.(roozen & Claeys, 2010). However for technical products the expertise

9 Page9 factor of the celebrity is a significantly more important factor than the attractiveness factor (Till and Busler, 1998, 2000; Kamins, 1990; Bower and Landreth, 2001). Non Celebrity endorsements in this study did not result in more favorable advertisement ratings and product evaluations as suggested by other earlier studies (Cooper, 1984; Dean and Biswas, 2001). Nevertheless, what was surprising was that there was a significant difference in the response of the Celebrity endorsement & non celebrity advertisement in TVC for FMCG products. The significant difference occurred for the Beverages, where the advertisement with a celebrity scored significantly higher. This suggests that even though the celebrity did not add weight on other behavioral or attitudinal variables, it created a strong positive attitude towards the brand. For any income group, perception of celebrity and non celebrity endorsement for FMCG products has a positive image. The income is a good source of checking out the behavior of a customer. Celebrity endorsed advertisement captures the consumer s attention easily, Words of endorsement about a product from a favorite celebrity is accepted as a testimonial by the consumers, celebrity endorsed advertisement creates a long lasting impact in the consumer s mind, using celebrity helps me make the buying decision rather than non celebrity endorsement, using celebrity increases acceptance of endorsed brands rather than non celebrity endorsement. Celebrity endorsement advertisement positively influences consumers to purchase that brand. The reason can be that the more TVC build positive image of the FMCG products in the mind of viewers, because viewers can think that the company which brand is commercialize on TV. The results indicated that each of the independent variables (celebrity and non celebrity s credibility, attractiveness, expertise) was correlated with each of the dependent variables (attitudes toward the TVC and for interest in a FMCG categories). 5. CONCLUSION AND LIMITATIONS 5.1 Conclusion This paper explores the reactions of respondents to advertising utilizing a celebrity endorser against non celebrity. The findings show that there is a significant difference for all FMCG categories advertisements that have a celebrity endorser and those that don t. 5.2 Limitations The sampling that was carried out was based on convenience sampling and limited to North Gujarat region of Gujarat State (India). This may limit the findings. Study was the restriction to include national celebrities. Such study should be conducted at regional levels to understand the nature of celebrity.

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