AN EMPIRICAL STUDY ON IMPACT OF CELEBRITIES ENDORSEMENT WITH REFERENCE TO FMCG PRODUCT AT JAIPUR RAJASTHAN

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1 AN EMPIRICAL STUDY ON IMPACT OF CELEBRITIES ENDORSEMENT WITH REFERENCE TO FMCG PRODUCT AT JAIPUR RAJASTHAN Prof. (Dr.) Sudhinder Singh Chowhan Professor, Nims Institute of Management, Nims University, Jaipur Rjasthan In India, there is an increasing trend of using cosmetic products by the young consumers. With the passage of time cosmetic product became an important part of one s conceit. The aim of the research paper to find out the response for following queries. What is most important is using the right marketing strategy to launch the product. What other would be safer than launching a product with the renowned celebrity? Celebrities in advertising influences the customers brand preferences, brand attitude, brand awareness, brand associations, purchase intentions and brand loyalty. Key words: Celebrities, Brand endorsement, Brand Image and Brand Value. Although globalization has delivered convergence of technology, media and income, consumer behavior in these markets cannot be conceded homogenous due to the significant differences in national culture (Mooij & Hofstede, 2002). In order to succeed, foreign retailers entering into emerging countries have to learn to adapt to the tastes and preferences of the local consumers. Rudd and Lennon (2000) says that apparel and cosmetic are no different from each other. He defines dress as an item to construct personnel appearance. Dress and cosmetic product together can be the products are same. Cheong (2005) states that in present scenario female customers starts to purchase and use cosmetic products at young age. Extensive research has been done to examine the attitudes and preferences of the consumer of the developed countries. However, very little academic attention has been paid to the consumer of the emerging countries such as India (Kumar, Lee, & Kim, 2009). Moreover, although several recent studies have examined consumer attitudes towards foreign brands in China, research about Indian consumers is scant with only a few exceptions (e.g., Batra & Niehm, 2009; Kumar, Garg, & Rahman, 2010; Kumar et al., 2009). India is the second largest untapped retail market after China, and it has been ranked within the top five countries in terms of retail development (Kearney, 2010), warranting more research on consumers and the retail industry in this country. Brand According to The American Marketing Association defines brand as a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from the competitors. According to Keller (2003), Brand is something that has actually created a certain amount of awareness, reputation and prominence and so on in the market place and branding attaches intangible extra meaning and clarifications towards the tangible products to enhance the brand image (Cowley, 1991; Redeem and Swat, 93

2 1998). Brand is the most valuable assets of any company and promoting the product of that company through a brand ambassador can enhance brand value or equity (Padmasee, 2007). Brand Equity Pride & Ferrell, 2003, p.299, defines brand equity as the marketing and financial values linked with brand s strength in the market including actual proprietary brand assets, brand name awareness, and brand loyalty, perceived brand quality and brand associations. Brand equity is a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm and/or to that firm's customers. It has also been defined as the effect of brand knowledge on consumer response to the brand. As such, brand equity is the value of the brand name that has the potential of being extended either in the form of line extensions or in conjunction with other brand names as in co-branding (Washburn, 2000). Aaker (1991) conceptualized brand equity as an aggregate variable of the five dimensions of the brand assets: brand loyalty, brand awareness, perceived quality, brand association, and other proprietary assets. Since then, brand equity has generally been defined as the incremental utility with which a brand endows a product, compared to its non-branded counterpart (Wang et al., 2003). Brand Association The proposed study uses four different models namely- source attractiveness model (McGuire 1985), source credibility Model, (Hovland and Weiss 1952), Match-up Hypothesis (Kamins and Gupta 1994), Meaning Transfer Model (McCracken 1986) regarding celebrity endorsement I order to check their impact on consumer buying behavior Figure 1 Impacts of brand association on celebrity endorsements. Figure 1: Brand Association 94

3 Brand Awareness ATTACHMENT Loyalty, sense of community, engagement RATIONAL EVALUTION Brand value, credibility EMOTIONAL EVALUATION Feelings, social approval, selfrespect FUNCTIONAL IMAGE AND BENEFITS Physique (design), Quality, reliability, service, Price EMOTIONAL IMAGES AND BENEFITS Who, when, how, where used personality, history BRAND AWARENESS DEPTH AND BREADTH Depth (Unaided recall, aided recall, or recognition) and breadth (When?) Figure 2: Brand Awareness Pyramid The Brand awareness Pyramid Brand awareness has to be thought of as a continuous range from an uncertain feeling that a brand is recognized to a belief that it is the only one in the product class. Various aspects of brand management 1. Brand building: - There are seven factors who built a brand, Quality, Positioning, Repositioning, Usual balanced communication, Credibility, Long term perspective, internal market. 2. Branding strategies: - A Brand is a promise to consumers that they can rely onto guide their choices. a. The product brand. b. The Line brand. 95

4 c. The Range brand d. The Range brand e. The Umbrella brand. f. The Source brand. g. The endorsing brand. 3. Brand extensions:-it refers to the use of a successful brand name to launch a new or modified product in a new market. Two types: - Extension into related categories and Extension into unrelated activities. 4. Brand positioning:- The act of designing the company s offer and image so that it occupies a distinct and valued place in the target customer s mind s. 5. Brand identity: - The total proposition that a company makes to consumers, the promise it makes. 6. Brand valuation: - The process of estimating the total financial value of the brand. 7. Brand loyalty:- Consumers commitment to repurchase the brand and can be demonstrated by repeated buying of a product or service. 8. Brand association: - Anything that connects the consumers to the brand. 9. Brand revitalization: - A process wherein a brand which is on the verge of retirement, is bought back to life to regain markets. 10. Global branding: - An achievement of Brand penetration For the purpose of research the researcher will study the effect of celebrity endorsement in relation with brand association. Aaker (1991) and Low and Lamb (2000) defines Brand association as the virtual concepts that stores in person s memory and connected with a specific brand. It is structured in ones memory in respect of different conditions which an individual have come over and experienced the brand (Supphellen, 2000). Aaker strongly believes that brand equity and brand associations strongly interrelated because brand association enhances the memory of particular brand. According to Keller (1993) brand associations is an informational nodes linked to the brand node in memory and contain the meaning of the brand for the consumers. He classifies brand association in three categories: Attributes, Benefits and Attitude He states that associations may be based on product experience, product attributes, positioning of brand in promotional communications, price information s, packaging, perceived typical user imagery or other sources. Research Methodology The objectives of my study are: To understand how personal attributes of a celebrity advertised products, affect the endorsement s. Sampling design: A random sampling covering age group of years and income levels will be chosen from the various regions of Jaipur. Sample size: For the proposed study a sample size of about 80 respondents is proposed to be collected from Jaipur. 96

5 Product: Head and shoulders shampoo SAIF ALI KHAN Calculation of sample size: Note the problem is to determine how many respondents should be included in the sample for the study, if one need to be 95% certain (confidence level) that the error of estimation does not exceed 0.05 (confidence interval=5). Data collection: To collect the Primary data a structures questionnaire using a seven point likert scale will be developed including all dimensions above. Likert scales are non-comparative scaling technique and are no dimensional in nature. Data analysis and Interpretation Celebrity endorsement The following sentences describe your perception towards SAIF ALI KHAN as an endorser for HEAD AND SHOULDER SHAMPOO. As an HEAD AND SHOULDER SHAMPOO endorser respondent feel SAIF ALI KHAN.. Graph No 1: Celebrate Endorsement vs. Variable Interpretation: Extremely very low Respondents are highly disagrees and strongly agrees i.e. 0% - 4%. Most of the respondent perceive that celebrate should be fashionable, reliable, trustworthy, sincere and handsome. 97

6 Brand Association Perception towards HEAD AND SHOULDER SHAMPOO after SAIF ALI KHAN employed as an endorser. Graph No2: Brand Association vs. Variable Interpretation: No one Respondents are strongly agrees i.e. 0%. and only 8% is highly disagrees Most of the respondent perceive that brand association should be with positive feeling. Conclusion: Celebrate Endorsement is generally affected with the factors like Reliable, Trustworthy, Sincere, believable, attractiveness and fashionable. Brand association is generalized with Recollect the image in mind the brand easily, Positive feeling towards the Brand and good quality. Brand awareness is a factor contributing to brand equity. It is the ability of a potential buyer to recognize or recall that a brand is a part of a product category. Customer should be able to identify a firm s product in the retail stores or to be able to recall its brand whenever he or she thinks of the product class. 98

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