Celebrity Advertising in Indian Culture-Emerging Trends & Challenges Under Globalization
Celebrity Advertising in Indian Culture-Emerging Trends & Challenges Under Globalization
Companies are finding it really tough to achieve their marketing products and services they can sell in foreign cultures but also in
objectives. The 4P’s of marketing namely Product, Price, Place communicating with them. Advertising is often the most
and Promotion are to be blended in the right proportion to do effective way to communicate with potential buyers and create
justice to their marketing attempt. markets in other countries.
Globalization has made the world more nearly a single, Advertisers can encounter problems with the connotative
homogeneous, market place, but there will always be economic, meaning of sign and symbols used in their messages. Pepsodent
geographic, cultural and technological difference. tooth paste was unsuccessful in South East Asia because in its
Standardization and localization are the two marketing advertising campaign it promised “White Teeth” to a culture
communication strategies used in international marketing where black and yellow teeth are symbol of prestige.
communication.
Another dimension of culture that is very important for
Companies are concentrating on international markets for a international marketers to understand is ‘Values’. Cultural
number of reasons. Many companies in the United States and values are beliefs and goals shared by members of a society
Western Europe have recognized that their domestic markets regarding ideal end states of life and modes of conduct.
offer them limited opportunities for expansion because of slow
population growth, saturated markets, intense competition and Cultural values in the United States place a major emphasis on
unfavourable marketing environment. individual activity and initiative, while many Asian countries
stress co-operation and conformity to the group. Indian value
1.2 International Environment system gives importance to family bonding, togetherness and
Companies engaging in international marketing must carefully respect for elders. This is to be reflected in the advertising
analyze the major environmental factors of each market in which campaign to successfully connect with the culture of the target
they compete, including economic, demographic, cultural audience.
political and legal variables. These factors are important in
evaluating the potential of each country as well as designing and Japan is one of the most difficult markets for many American
implementing a marketing and promotional strategy. marketers to understand because of its unique values and
customs. The Japanese have a very strong commitment to the
Forces in International Marketing Environment group, social interdependence and collectivism are as important
Companies stepping out of their comfort zone from their place of to them as individualism is to most Americans. Advertising
origin to explore the opportunities in other countries must take stressing individuality and nonconformity have traditionally
note of the following factors while developing their marketing not done well in Japan. Of late, westernized values have become
and promotional strategy. more prevalent in Japanese advertising in recent years.
Table 1 : Forces in International market Environment
As advertisers turn their attention to China, more consideration
ECONOMIC ENVIRONMENT CULTURAL is also being given to understanding the cultural system and
ENVIRONMENT values of the world’s most populous country. Chinese values are
• Stages of Economic • Language centered on Confucianism that stresses loyalty and interpersonal
Development • Life style relationships.
• Economic Infrastructure • Values
• Standard of Living • Norms and India is a unique country in terms of the cultural diversity. It
• Per capita Income Customs becomes very challenging for advertisers and their advertising
• Distribution of wealth • Ethics and Moral agencies to establish their brand in the market and connect with
• Exchange rates standards their target audience. Many MNC’s and domestic players in
• Taboos India are now looking to hire famous celebrities (especially
DEMOGRAPHIC POLITICAL/LEGAL Hindi film stars) to endorse their brands in order to connect with
ENVIRONMENT ENVIRONMENT their target audience.
• Size of Population • Government
• Number of Households Policies
• Age Distribution • Laws and
2. Emerging Trends in Marketing Communication
• Occupation Distribution regulations
• Education Levels • Political Stability
In today’s dynamic and intense by competitive market situation,
• Employment Rate • Nationalism survival for the fittest is the new mantra. There has been a shift
• Income Levels • Attitude towards from the traditional concept of “seller’s market” to the new and
MNC’s emerging concept of “buyer’s market”. The customer is the king
in today’s context and in India both the MNC’s and the domestic
1.3 Understanding Cultural Environment players are leaving no stone unturned to connect with their
In cultural variables, marketers must consider language, custom, target audience.
tastes, attitudes, lifestyles, values and ethical/moral standards.
Almost every nation exhibits cultural traits that influence not The concept of Integrated Marketing Communication (IMC)
just needs and wants of consumers but how they go about has added a new dimension in the way companies are trying to
satisfying them. connect with their target audience. With brands becoming “me-
too” in terms of features, quality etc. it became all the more
Marketers must be sensitive not only in determining what challenging for companies to connect with target audience. The
“Celebrity Advertising in Indian Culture-Emerging Trends & Challenges Under Globalization” 181
traditional promotional mix concept is to be replaced by the new consumer's attitude towards brands. In this respect, the
and emerging Integrated Marketing Communication concept. credibility of an advertisement plays an important role in
convincing the target audience of the attractiveness of the
Every brand is trying to create its own identity in the market and company's brand.
advertisers and their advertising agencies are trying to figure out
and highlight the Unique Selling Proposition (USP) of the Pursuing a celebrity endorsement, strategy enables advertisers
brand to their target audience in order to create their own to project a credible image in terms of expertise, persuasiveness,
identity and thereby gain competitive advantage. trustworthiness, and objectiveness. Marketers have been
leveraging celebrity appeal for a long time.
Brands are relying on different advertising appeals be it rational
or emotional in their advertising campaign to connect with their One can still remember brands like Vimal, Thums-Up, Gwalior
target audience. The advertiser’s are highlighting patriotism and Dinesh using star-appeal in the early days of mass
appeal, fun appeal, health appeal and fear appeal etc. to advertising. There was a burst of advertising, featuring stars like
persuade their target audience to try out their brand or stay with. Tabassum (Prestige Pressure-cooker), Jalal Agha (Pan Parag
Pan-masaala) etc.
3. Role of Advertising Media
5. Present Scenario in India
In order to reach the target audience with their advertising
message to inform and persuade them, companies are relying on The dawn of the 21st century saw the phenomenon of celebrity
the different mass media as their medium of communication. endorsement gaining increasing prominence in our country.
The world of media comprising of print media, electronic media Multinationals as well as domestic companies are going the extra
and outdoor media as well as new and emerging media like the yard to sign up leading hindi film stars for endorsing their
Internet and the mobile is assuming greater importance in the brands.
business of advertising and helping advertiser and their
advertising agency to successfully communicate their message In recent times, we had the Shah Rukh-Santro campaign with
to their target audience. the objective of overcoming the hindrance that an unknown
Korean company (Hyundai Motors) faced in the Indian market.
In any advertising campaign, a combination of media is selected The objective was to earn faster brand recognition, association
by the advertiser and their advertising agency for two basic and emotional unity with the target group.
reasons. First, no one media is good enough to penetrate the
entire target market and secondly features of one medium A study by AdEx India, a division of TAM Media Research finds
cannot be replicated by another. that there has been 49 per cent growth in celebrity endorsement
ad volumes on TV during 2007 compared to 2006.
This media boom and development in communication have
made the task of advertiser’s really challenging and Film celebrities accounted for 81 per cent share of overall
globalization has added a new dimension to it. celebrity endorsement on TV during 2007, with male actors
accounting for 50 per cent share and female actors 31 per cent.
4. Emerging Trends in Celebrity Advertising Sports and TV personalities followed the film celebrities in the
endorsements race with 14 and 5 per cent share respectively. The
Celebrities are those people who are successful in their own table (Table 1) clearly shows the top Indian celebrities with
profession, who enjoy public recognition and have huge fan maximum number of endorsements in 2007 as per a study
following and media attention. Celebrities have the following conducted by AdEx India (A division of TAM Media research).
types of association with the customers of a brand:
i) Psychographic Connect: Stars are loved and adored by their
fans and advertisers use stars to capitalize on these feelings
to sway the fans towards their brand.
ii) Demographic Connect: Different stars appeal differently to Figure 1
various demographic segments (age, gender, income group,
occupation etc.).
iii) Mass Appeal: Some stars have a universal appeal to
generate interest among the masses.
The following trends are evident in celebrity advertising- meaning transfer model as an alternative. The findings
• Overshadowing the product - The target audience may highlighted how meanings pass from celebrity to product and
focus their attention on the celebrity and may fail to notice from product to consumer as per this model. The paper also
the brand. Company should select a celebrity who can mentions that according to this model the secret of celebrity
attract attention and convince the target audience, yet not endorsement is largely cultural in nature.
overshadow the brand.
• Over-exposure - In the beginning of the 21st century, it is A study was conducted by Ohanian and Roobina (1990) on
common to see celebrities endorsing more than one brand. construction and validation of a scale to measure celebrity
Multiple brand endorsement is common among Indian endorsers’ perceived expertise, trustworthiness and
celebrities and this often brings to light the concept of attractiveness. Accepted psychometric scale-development
celebrity over exposure. procedures were followed which meticulously tested a large
• Celebrity branding is a type of branding or advertising, in pool of items for their reliability and validity. Further, use of this
which a celebrity uses his or her status in society to promote scale can improve the understanding of how consumers in
a product, service or charity. Celebrity branding can take different situations react to different sources and how source
several different forms from a celebrity simply appearing in credibility influences purchase intentions.
advertisements for a product, service or charity to a celebrity
attending PR events, creating his or her own line of products The study also revealed that since large sums of money are spent
or services and using his or her name as a brand. on celebrity advertising, advertisers should use the scale as an
• At present there has been a trend towards celebrity voice- integral part of their effectiveness testing and tracking. The scale
overs in advertising. Some celebrities have distinct voice is simple to use and convenient for large-sample
which are recognizable even when they not present on- administrations. For segmentation strategies, the wisdom of
screen. Mr. Amitabh Bachchan in Indian context is one such using a celebrity and the spokesperson's effectiveness for
example. This is a more subtle way to add celebrity branding different demographic and psychographic consumer groups can
to a product or service. be evaluated by applying this scale.
• Target Audience Receptivity-In any celebrity endorsement
deal proper match of the celebrity with the target audience This concept also has applications beyond the use of celebrity
profile is very essential to establish the right connects with spokespersons: the scale can be applied effectively in choosing
the target audience. the most appropriate "average consumer" as a spokesperson.
• Risk to Advertiser - There have been a lot of instances of Finally, the dimensions of a celebrity endorser's credibility,
leading celebrities getting caught in controversies in their along with consumer demographic and psychographic, can be
personal life. This is an important aspect that needs to be used as potential predictors of attitude toward and intention to
taken into consideration and a moral clause should be purchase a specific product.
implemented to deal with this issue.
As per Jagdish Agrawal & Wagner A. Kamakura (1995) a
Beauty brands and fragrance houses have traditionally aligned research on “The Economic worth of Celebrity Endorsers”: An
themselves to celebrities. Sometimes that association surpasses Event Study Analysis has typically focused on theories
the endorser's original claim to fame and we see an actress make explaining how celebrity endorsements influence consumers'
headlines not for her craft but for her endorsement. attitudes and intentions. The authors assess the impact of
celebrity endorsement contracts on the expected profitability of a
Celebrity endorsement is a costly proposition. It's a subject that firm by using event study methodology.
never fails to stir debate. Hindi film stars earn enormous amount
of money through brand endorsements. Most of the leading film The study also highlighted that celebrity endorsement has
stars from Bollywood are endorsing not just one but multiple become a prevalent form of advertising in the United States.
brands in different product categories Globalization has drawn Despite extensive literature on the effects of celebrity
major players from world over to explore the vast Indian market. endorsements on consumers' brand attitudes and purchase
Hence, understanding and appreciating the culture of the Indian intentions, little is known about the economic value of these
target audience is very essential to successfully operate in this endorsements.
country.
The study revealed that the announcement of a celebrity
6. Literature Review endorsement contract is usually widely made known in the
business press, and is used as information by market analysts to
As per Atkins and Block (1983) a research on effectiveness of evaluate the potential profitability of endorsement expenditures,
celebrity endorsement found that celebrities may be influential thereby affecting the firm's expected return.
because celebrities are viewed as dynamic with both attractive
and likeable qualities. In addition to this, their name and fame Announcements of 110 celebrity endorsement contracts were
thought to attract attention to the product or service they are analyzed. Findings of the study indicate that the impact of these
endorsing. announcements on stock returns is positive and suggest that
celebrity endorsement contracts are generally viewed as a
Another study by Mc.Cracken (1989) who is the celebrity worthwhile investment in advertising.
endorser? Cultural foundations of endorsement Process, offers a
new approach to celebrity endorsement. He criticized the source A study conducted by Erdogan (1999) on "Celebrity
credibility and source attractiveness model and proposed the Endorsement: A Literature Review" focused on how can
“Celebrity Advertising in Indian Culture-Emerging Trends & Challenges Under Globalization” 183
companies select and retain the right celebrity among many exploring this issue in India with Indian celebrities (especially
competing alternatives and simultaneously manage this with Hindi Film Stars from Bollywood). In India, celebrity
resource, while avoiding potential pitfalls? This paper seeks to endorsement is becoming very popular and companies are also
explore variables which may be considered in any celebrity trying to rope in leading Hindi film stars for endorsing their
selection process. The study gave emphasis on ‘Q’rating brands.
technique.
The significance of this study lies in the fact that it is aimed at
This paper has identified factors from the academic literature identifying the emerging trends in celebrity advertising and
which may have managerial importance for selecting celebrity determining the challenges faced by advertisers in connecting
endorsers. Notably, effectiveness of celebrity endorser is found with the target audience of diverse cultural background and
to be moderated by several factors in the literature; celebrity selecting a celebrity for brand endorsement and providing
attractiveness and credibility, product-celebrity match, message guidelines to them (technique that may be adopted) to help select
and product type, level of involvement, number of the right celebrity because huge amount of money and other
endorsements by celebrities, target audience characteristics, and resources are at stake.
overall meanings (e.g. personality; values, standards) attached to
celebrities. 8. Study Objectives
Besides these factors, economic visibility of endorsers, regulative The objectives of this research paper is to
issues, compatibility with overall marketing strategy, and • First highlight the emerging trends noticed in marketing
potential risks must be simultaneously considered. communication and celebrity advertising in India.
• Secondly identifying the challenges encountered by
Mohan K. Menon et al.(2001) study on "Celebrity Advertising: advertisers in regard to celebrity advertising.
An Assessment of its Relative Effectiveness" examines difference • Finally under present global scenario providing strategic
between advertisement with celebrity and corresponding input to advertisers in selecting the right celebrity to connect
advertisement with non-celebrities. The paper in order to assess their brand with their target audience of diverse cultural
the relative effectiveness of celebrity advertisement, two types of background.
advertising executions, celebrity versus non-celebrity, were
tested across print advertisement for six products: American
9. Celebrity Advertising - Challenges encountered in India
Express, Apple Computers, Avon Cosmetics, Milk, Pepsi-Cola
and Ray Ban Sunglasses. The sample comprised of students at
Selecting the right and appropriate celebrity for brand
south eastern University. Overall, the results from this study do
endorsement is really a challenging proposition. The various
not support the view that using celebrity advertisement is more
dimensions of challenges faced by the advertiser and their
believable or effective than non-celebrity advertisement for
advertising agencies regarding celebrity selection in India may
brands tested in this study.
encompass the following aspects-
• Celebrity’s fit with the brand image
According to Sejung Marina Choi et al. (2005), the study
• Celebrity target audience cultural match
analyzed television commercials featuring celebrities from two
• Celebrity’s familiarity among the Target audience
different countries-the United States and Korea based on two
• Celebrity’s popularity among Target audience
different cultural dimensions. First low versus high context and
• Cost associated with getting a celebrity
secondly individualism versus collectivism. The findings
• Celebrity credibility
highlighted that celebrities in the U.S advertisement’s often
• Physical attractiveness
portrayed themselves (i.e. they served as spokesperson), while
• Celebrity product match
the majority of Korean celebrities acted in roles. Another
• Celebrity’s past endorsement history
interesting finding of the study was that many Korean celebrities
• Celebrity endorsing multiple brands.
appeared to promote more than one brand.
In Indian cultural context identifying the cultural parameters in
Though some research work on celebrity endorsement has been
respect to differences in languages of people of different regions,
carried out in the United States and other western countries
lifestyle variations between people of different region, value
there is ample scope to explore this concept from different
systems, norms and customs followed by the people over the
perspective especially in Indian context.
years and ethics and moral standards are to be appreciated and
given due importance while developing a communication
Globalization has added new dimension in the ways companies
strategy.
are trying to position their brand before the target audience and
celebrity advertising is becoming very popular in India. This
Therefore, identifying and selecting a celebrity who can connect
paper tried to explore the celebrity advertising phenomenon in
with the target audience of diverse culture is a challenging
Indian cultural context.
proposition. This research paper is aimed at suggesting a
technique called “Q”score to identify the most familiar and
7. Scope and Significance popular celebrity based on the findings of an empirical study in
Kolkata.
The phenomenon of celebrity endorsement is assuming
increasing importance world wide. During the course of review ‘Q’ SCORE Technique - The phenomenon of celebrity
of literature it was clearly evident that there is ample scope of endorsement is spreading across the globe in a big way. Many
184 IMS Manthan - Volume V, No. 1, June 2010
marketers believe strongly in the value of celebrity in touching teachers, business men housewife and respondent belonging to
people and hence the amount of money paid to them continues to other occupations.
escalate. Companies are looking to hire celebrities who will
attract viewers’ attention and enhance the image of the company Second Phase - In the second phase the popularity of the selected
or brand. celebrities among the different respondent group was studied
and with that overall ranking of the 10 celebrities were found out
The question of selecting the right celebrity for endorsement has using ‘Q’ score technique.
attracted lot of attention world wide. Some companies rely on the
instinct and gut feeling of their executives whereas others turn to Based on the studys objectives mentioned above, the research
research findings that measures a celebrity’s appeal as well as methodology comprised of both Primary Research and
other factors that will provide valuable insight into his or her Secondary Research activities as mentioned below-
warmth, trust and credibility among the target audience.
10.1 Secondary Research
‘Q’ Score – To help choose the right celebrity endorser A list of 10 film stars is prepared from the Hindi film industry in
Mumbai who are endorsing multiple brands at present for the
‘Q’ Score is normally used by companies to select the right purpose of the study. Hindi film stars are selected for the study
celebrity for endorsing their brand and finding the ranking of the because of their huge popularity and fan following throughout
celebrity as per the consumers’ response. the country.
The ‘Q’ score answers the question, “how appealing is the person After formulating the research problem, next the research design
among those who do know him or her?” To help select the right was framed. A research design is the conceptual structure within
celebrity endorser many companies and their ad agencies can which the research is to be conducted. It deals with the collection,
rely on “Q” rating that are calculated by conducting surveys measurement and analysis of data.
among the respondents.
10.2 Sample Design
The respondents are asked to indicate two things firstly – Primary Research is conducted to find out the consumer’s
Whether they have seen /heard about the selected celebrities? response regarding the study objectives discussed earlier.
Secondly, If yes - then the respondents are asked to rate the
celebrities on a scale that includes-One of my Favourite, Very Sample Size - A Sample size of 100 individuals, both male and
Good, Good, Fair, or Poor. female in the age group between 18-45 years belonging to
different categories such as students, teacher, businessmen,
What does ‘Q’ rating indicate? housewife etc. is considered.
• The Familiarity score indicates the percentage of people
who have heard of the celebrity. Sampling Type - Judgmental and convenience sampling is done
• While “one of my favourite” score is an absolute measure of to select the respondents.
the appeal or popularity of the celebrity.
10.3 Data Collection
Calculating ‘Q’ ratings - Data is collected by Personal Interview Method from the
respondent, in Kolkata. Research Instrument used for the study
‘Q’ rating is calculated by taking the percentage of respondents was a structured Questionnaire.
who indicate that a celebrity is “one of my favourite” and
dividing that number by the percentage of respondents who Data analysis and Interpretation – Primary data collected
indicate that they have heard of that person. during the course of the study is analyzed using simple
percentages and ‘Q’ score of the selected celebrities were found
‘Q’ ratings are also broken down on the basis of various out to determine the familiarity and popularity of the selected
demographic parameters such as respondent’s age, income, celebrities.
occupation, education and gender. This will give a clear idea to
different companies and their advertising agencies about how a 10.4 Findings
celebrity’s popularity varies among different groups of The sample survey conducted in Kolkata to determine the ‘Q’
consumers. score of the 10 selected celebrities brings to light some interesting
findings.
10. Research Design
The study objective relating to the familiarity of the celebrity
among the respondents shows that all the Hindi film stars from
Exploratory study is conducted to get clarity of the objective by
Bollywood have 100% familiarity among the respondents. (Table
interacting with the respondents. Huge amount of money is
2)
spent on celebrity endorsement to reach the target audience
belonging to different demographic profile. Therefore it is very
Findings regarding the study objective relating to popularity of
important to find out the familiarity and popularity of the
the celebrities among the respondents shows that among all the
selected celebrities among the respondent &.
Hindi film stars Amitabh Bachchan and Shah Rukh Khan both
are having the maximum popularity (47%) followed by Amir
First Phase - Finding the awareness and familiarity of the 10
Khan (41%), Rani Mukherjee (38%), Hrithik Roshan (33%),
celebrities among different respondent group such as students,
“Celebrity Advertising in Indian Culture-Emerging Trends & Challenges Under Globalization” 185
Salman Khan (20%), Aishwarya Rai Bachchan (19%), Preeti Zinta Table 4 showing the familiarity score, popularity score
(17%), Juhi Chawla (12%) and Saif Ali Khan (11%). (Table 3) & ‘Q’ score of the celebrities (Total number of respondents 100)
Findings regarding the final study objective clearly brings to Sr.No Celebrities Familiarity Familiarity Popularity Popularity ‘Q’
Score Percentage score Percentage Score
light the ‘Q’ score of the 10 Indian Celebrities. Among all the (%) (%)
selected celebrities Amitabh Bachchan and Shah Rukh Khan are 1 Amitabh 100 100 47 47 47
Bachchan
both having the highest ‘Q’ score (47) followed by Amir Khan
2 Shah Rukh 100 100 47 47 47
(41), Rani Mukherjee (38) etc. (Table 4) Khan
3 Amir khan 100 100 41 41 41
Finally, based on the ‘Q’ score overall ranking of the 10 celebrities 4 Salman 100 100 20 20 20
Khan
is done and Amitabh Bachchan and Shah Rukh Khan emerged as 5 Hrithik 100 100 33 33 33
the topmost celebrity (Rank1) followed by Amir Khan (rank 3) Roshan
6 Saif Ali 100 100 11 11 11
and Rani Mukherjee in 4th place and Saif Ali Khan is having the Khan
lowest rank. (Table 5) 7 Rani 100 100 38 38 38
Mukherjee
8 Preeti Zinta 100 100 17 17 17
9 Juhi Chawla 100 100 12 12 12
10 Aishwarya 100 100 19 19 19
Rai
Bachchan
advertisers in selecting a celebrity for brand endorsement to 3. “Celebrity endorsement ads on TV up 49% during 2007’’,
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“Celebrity Advertising in Indian Culture-Emerging Trends & Challenges Under Globalization” 187
Appendix (B)
Name
Gender Male Female
Age (years) (18-25) (26-35) (36-45)
Occupation Students Teacher Business Men House wife Others
Income
(per month/Rs.) Less than5000 5001-15,000 15,001-25,000 above25,000
Education Up to Class X Class XII Graduation PG Ph.D.