Celebrity Endorsement: An Analytical Review

INTRODUCTION

The practice of celebrity endorsements has proliferated over time. In the past decade celebrity advertisement has been the most prevalent and successful form of advertising. Reason for this is that celebrities are considered to demonstrate a number of dynamic personalities. Now a day it has become a pervasive element of advertising industry especially in India. Who are Celebrities?

OBJECTIVE OF THE STUDY

To make a review model of factors effecting celebrity endorsement and its impact

The Research Design of the present study is Descriptive. Data is collected from various Online sources including e-journals mainly from the websites such as Google Scholar, SSRN, J-store, relevant literatures and through discussions. The results of various studies conducted on the topic were intensively analyzed to draw a review based model for the factors effecting celebrity endorsement. Further the impact of celebrity endorsement on the performance of the company was portrayed with help of model.

In the wake of existing literature different determinants of celebrity endorsement have been identified and further all the determinants are classified into four major factors: Celebrity Related, Customer Related, Product Related and other strategic factors. These are the key factors which result in the success of this mode of advertising. • CELEBRITY RELATED: To achieve the objectives of the organization managers must take celebrity related factors into consideration like celebrity‘s liking for the product, Reputation of endorsing celebrity, celebrity charisma etc. • CUSTOMER RELATED: Customer perceptions about celebrity endorsement have been of big interest by researchers .The result analyzed shows that one of the main advantage of involving celebrity for advertising is to build a relationship with customer and to retain them . As customer is the king of market , their attitude towards endorser and exposure towards celebrity endorsed advertisements need to be kept in mind while going for celebrity endorsement. • PRODUCT RELATED: Before signing on celebrities to endorse their product, companies need to ensure that they pay attention to these product related factor like match between product brand and celebrity personality ,type of product to be endorsed, cost of product ,previous product performance etc. • OTHER STRATEGIC FACTOR: Companies should also monitor other

√ Competitor promotion strategy – By keeping an eye on competitor celebrity endorsement policy, company can match performance of competitor celebrity and their own celebrity. √ Timing of endorsement- It is a vital determinant in celebrity endorsement. Though right celebrity has been chosen but if timings are not right for endorsement, it can bring negative results for the company. √ Endorsement announcement Specificity- Proper and formal endorsement communication channel contribute to the success of celebrity endorsement.

Explanation The impact of celebrity endorsement is like a two edged sword having both positive and negative impact. In this paper, a model is been formed showing the impact of celebrity endorsement .It is known as 3P‘s corresponding to 3 C‘s. These are as follows – 1. Profit-It is related to the monetary benefit that the company gain by using celebrity endorsement. Celebrity endorsement impacts the sales of the product and public expectations about the company which in turn affect the market share price of company. The returns or cash flows can enter into organization directly or indirectly. 2. People – Celebrity endorsement will not only get you knew customers, it will also help to retain existing customer. Effective celebrity endorsement improves social status of company, Create purchase intention in customer and bring brand loyal customer. 3. Promotion- Celebrity acts as a medium between company and customer. They communicate product information and create awareness among consumers .Moreover, them to recall the brand.

This study offers interesting ideas about celebrity endorsement. From the given literature, Researchers suggested many important factors affecting celebrity endorsement that the company need to study while hiring the celebrity for their advertisement. This paper is intended to design a model categorizing these factors under 4 important heads namely celebrity related, customer related, product related and other strategic factors. Advertiser has to be aware of the complexities underlying celebrity endorsement by gaining clarity on these described factors. Further, this research shows that endorsing a celebrity who is trustworthy and expert in his field impacts Company by bringing 3P‘s for the company i.e Profit, People and Promotion. Profit stands for Cash flow, People as customer and Promotion as Communication. So, these also reflect 3C‘s namely Cash flow, Customer, Communication corresponding to each P. Celebrity endorsement if used effectively impacts positively in the way it makes the brand stand out, galvanize brand recall and induce customer to buy company product. But to achieve this, the marketer needs to be really disciplined in choice of a celebrity. Finally, it contributes to the factor affecting celebrity endorsement model with the descriptive analysis that investigates previous theories related to this type of research.

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Assistant Professor, Commerce, Sh. L.N. Hindu College, Rohtak, Haryana, India chaviluthra@gmail.com