A ON Effectiveness of Commercials On Brand Recall by Aditya Juneja - H19062 Pragati Jain - H19093 Shivani Singh - H19106 Sonal Gandhi - H19110

A
REPORT
ON
Effectiveness of commercials on brand recall
By
Aditya Juneja – H19062
Pragati Jain – H19093
Shivani Singh – H19106
Sonal Gandhi – H19110
A report submitted in fulfillment of the

requirements of the course Social Research Methods HRM19-3
ABSTRACT
In this project, we are studying the impact of celebrity endorsement on the purchase intention of
customers by selecting consumer perception of quality and brand loyalty as the mediator
variables, which also affect the purchase intention. We are using a measure of negative publicity
as a moderator variable to see how it impacts the same. We have selected celebrities with very
different reach and audience, namely Salman Khan, Ranveer Singh, and Virat Kohli for the same
category of product (chips), to see if different kinds of celebrities have a different impact on
purchase intention. We have used the Ohanian scale questionnaire to create a survey to measure
the results of our study. The findings indicate that a celebrity endorser who has attributes such as
attractiveness, trustworthiness, and familiarity has a positive influence on consumer perception
of quality, purchase intentions, and brand loyalty. However, celebrity endorser’s negative
publicity had no moderation effect on consumer purchase intention. This paper serves as a tool
for companies that market chips products to understand the impact of their celebrity endorsement
and will help them in deciding what works for their product.
Introduction
“A brand for a company is like a reputation for a person. You earn reputation by trying to
do hard things well.” - Jeff Bezos
The cutthroat competition across industries and lenient copyright laws has led to similar product
portfolios among competitors. Thus, firms must go beyond product innovation to create a
difference. Marketing plays a crucial role here, and it is not limited to short term sale benefits but
extends to long term strategies like creating a brand value to lay the groundwork for future
products and increasing the potency of companies in creating a unique selling proposition. The
best business leaders understand the importance of defining, creating, and growing their brand.

One of the major brand recall activity is advertisements, where companies invest
lakhs/crores of rupees in coming up with innovative ad campaigns involving celebrities, to
create awareness for their products. It is, therefore, important to understand the correlation
between various characteristics associated with these celebrities that can help them
understand the utility of these advertisements.
There have been studies about how celebrity endorsement creates a brand alliance, where both
parties enjoy the benefits of associating with each other (Elina Halonen‐Knight, Leila
Hurmerinta 2010). The celebrity endorser’s credibility has an effect on the connection shared by
consumers with the brand and, thus, on brand equity. So, companies can use celebrities to
develop better connections with their consumers (Abhishek Dwivedi, Lester W. Johnson, Robert
E. McDonald 2015). The celebrities also reap the fruit of a positive image related to the brand, so
the increasing brand equity also increases the equity of the celeb, making the whole partnership
acts as an exercise of co-branding (Diana Seno, Bryan A. Lukas 2007). Another important
characteristic of this relationship is that it doesn’t vary with the type of branding used. Features
of celebrity- attractiveness, expertise, and trustworthiness build their credibility, and even if it’s
moderately low, it can build a brand (Amanda Spry, Ravi Pappu, T. Bettina Cornwell 2011).
Further studies have shown that the user-brand and brand–celebrity congruence in personality
has a significant impact on attitude towards a brand and customer purchase intention (Debasis
Pradhan, Israel Duraipandian & Dhruv Sethi 2016). Another study also confirmed that
congruence, identification, and consumers’ attribution styles have an impact on consumers’
purchase intention and attitude towards the brand (Nam-Hyun Um 2018). If congruence is not
right, it can have bad results for a brand; this is the reason that many companies are often
worried that their celebrity endorser can overshadow the brand and, in turn, harm brand’s recall
value. This is generally referred to as “The vampire effect”, which is a decrease in brand recall
for an ad featuring a celebrity endorser versus one with an unknown yet equally attractive
endorser (Carsten Erfgen, Sebastian Zenker, Henrik Sattler 2015). Thus, it is important to select
the right celebrity if one opts for a celebrity endorsement.
Nature of Research problem
Our study focuses on assessing and analysing the correlation between features of a celebrity,
namely attractiveness, expertise, and trustworthiness with the purchase intent of customers
towards chips, and the impact they have on brand loyalty and perceived quality. The use of
celebrities to market products is a very old notion, and with the advent and exponential
progression of social media, it is only bound to increase. There has already been a lot of research
to study its impact on social media marketing and microblogging. Thus, in today’s scenario, this
study offers so much potential to get market data on how celebrity endorsement impacts
purchase intention and whether/how this notion varies with different types of celebrities. This
will help companies in getting the maximum out of their celebrity endorsement by helping them
pick the right celebrity for their product and target audience.
Hypotheses
H1: Celebrity endorsement influenced by expertise, trustworthiness, and attractiveness

will undoubtedly influence purchase intention
H2: Celebrity endorsement in relation to attractiveness, trustworthiness, and expertise is

likely to affect the consumer’s perception of the quality of the brand positively.
H3: Celebrity endorsement in relation to attractiveness, trustworthiness, and expertise is

likely to affect the brand loyalty of the consumer.
H4: Consumers’ perception of quality is likely to impact the brand loyalty of a consumer
positively.
H5: Consumers’ perception of quality is likely to impact the purchase intention of a

consumer positively.
H6: Consumer’s brand loyalty is likely to have a positive influence on his or her purchase
intention.
H7: Purchase intention is likely to be negatively impacted by the negative publicity of a

celebrity endorser.
Significance of the study
Most of the companies today, especially for the industry used in our study, use celebrities to
advertise their product. They spent a huge amount of money on these initiatives, but do these
initiatives have any significance on their performance as a brand is unclear. This study serves as
market research to understand whether their money is being put to the right use and do they have
the right brand ambassador. The study also analyses if the negative publicity attached to these
celebrities has any impact on their customers’ purchase intention. This is an important metric
given the nature of today’s celebrities, with more than often scandals and controversies, this
study will serve as a base for them to strategize how ready do they need to be to handle any
controversy related to their endorser.
Scope of the study
We intend to answer the following questions, with the results of our study: -
1. Does the attractiveness, expertise, and trustworthiness serve as ab effective way to

measure the impact of celebrity endorsement?
2. Do the factors celebrity endorsement, brand loyalty, customer perception of quality
affect the purchase intention of customers?
3. Does celebrity endorsement, customer perception of quality affect brand loyalty?
4. Does celebrity endorsement affect customer perception of quality?
5. Is there any impact of a celebrity’s negative publicity on the purchase intention
towards the goods that they endorse?
6. Does the nature of a celebrity affect these results?

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A

Effectiveness of commercials on brand recall

Aditya Juneja – H19062

Pragati Jain – H19093

Shivani Singh – H19106

Sonal Gandhi – H19110

A report submitted in fulfillment of the

Nature of Research problem

H1: Celebrity endorsement influenced by expertise, trustworthiness, and attractiveness

H2: Celebrity endorsement in relation to attractiveness, trustworthiness, and expertise is

H3: Celebrity endorsement in relation to attractiveness, trustworthiness, and expertise is

H5: Consumers’ perception of quality is likely to impact the purchase intention of a

H7: Purchase intention is likely to be negatively impacted by the negative publicity of a

Significance of the study

Scope of the study

1. Does the attractiveness, expertise, and trustworthiness serve as ab effective way to

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