EFFECT OF CELEBRITY ENDORSEMENT ON

CONSUMERS: A STUDY OF SELECTED FMCG

PRODUCTS
A
Thesis
Submitted for the Award of Ph.D. degree of
UNIVERSITY OF KOTA
in the
Faculty of Commerce and Management
Doctor of Philosophy
by
Amit Mathur

Under the supervision of

Dr. Anukrati Sharma
Associate Professor
Department of Commerce and Management
Faculty of Commerce and Management
UNIVERSITY OF KOTA,
KOTA (RAJ)

September 2017
 Candidate’s Declaration

I hereby certify that the work, which is being presented in the thesis, entitled
“Effect of Celebrity Endorsement on Consumers: A Study of Selected FMCG
Products” in partial fulfillment of the requirement for the award of the Degree of
Doctor of Philosophy, carried under the supervision of Dr. Anukrati Sharma and
submitted to the Department of Commerce and Management, University of Kota,
Kota, represents my ideas in my own words and where others’ ideas or words
have been included. I have adequately cited and referenced the original sources.
The work presented in this thesis has not been submitted elsewhere for the award
of any other degree or diploma from any Institutions. I also declare that I have
adhered to all principles of academic honesty and integrity and have not
misrepresented or fabricated or falsified any idea/data/fact/source in my
submission. I understand that any violation of the above will be cause for
disciplinary action by the University and can also evoke penal action from the
sources which have thus not been properly cited or from whom proper permission
has not been taken when needed.

Amit Mathur
(Research Scholar)
Reg. No. F-6 () /Res/UOK/2014/25235-36

Date:

This is to certify that the above statement made by is correct to the best of my
knowledge.

Date: Dr. Anukrati Sharma

Associate Professor
(Research Supervisor)
Department of Commerce and Management
University of Kota, Kota

i
 Supervisor Certificate

I feel great pleasure in certifying that the thesis entitled “Effect of Celebrity
Endorsement on Consumers: A Study of Selected FMCG Products” by Amit
Mathur Reg. No. F-6 () /Res/UOK/2014/25235-36 under my guidance. He has
completed the following requirements as per Ph.D. regulations of the University.

(a) Course work as per the University rules.

(b) Residential requirements of the University (200 days).

(c) Regularly submitted Annual Progress Report.

(d) Presented his work in the Departmental Committee.

(e) Published / accepted minimum of one research paper in a Referred Research

Journal.

I recommend the submission of the thesis.

Date: Dr. Anukrati Sharma

(Associate Professor)
Department of Commerce and Management
University of Kota, Kota

ii
 Thesis Approval for Doctor of Philosophy

This thesis entitled “Effect of Celebrity Endorsement on Consumers: A Study

of Selected FMCG Products” by Amit Mathur Reg. No. F-6 () /Res/ UOK/2014/
25235-36 Submitted to the Department of Commerce and Management,
University of Kota, Kota, is approved for the award of degree of Doctor of
Philosophy.

Examiners

Supervisor (s)

Chairman DRC

Date:

Place:

iii
 Acknowledgement

During the research work as an individual, I could have never reached the heights
of this research work without the blessings, help, guidance, encouragement and
support of numerous people including my research supervisor, professors, family
members, friends and various institutions. At this moment when my research
work has been accomplished, it is a pleasure to convey my gratitude to all who
contributed in development of this thesis and create a remarkable experience for
me.
Firstly, I would like to pay my sincere thanks to my family and dedicated this
thesis to them. This work wouldn’t complete without their blessings.
I deeply pay gratitude to my research supervisor Dr. Anukrati Sharma
(Associate Professor, Department of Commerce and Management, University of
Kota, Kota) for her valuable support, guidance, encouragement. Her ideas,
thoughts, understanding, enthusiasm help me to make significant this research
work. Under her guidance, I have gained my practical knowledge as well as
theoretical knowledge. Working with her was an enriching experience for me.
My special thanks and gratitude to Prof. P.K. Dashora (Hon’ble Vice
Chancellor, University of Kota, Kota) who has given me a chance to do the
research work and to gain some new knowledge.
I am extremely thankful to Prof. Rajeev Jain (Dean, Department of Commerce
and Management, University of Kota, Kota) for providing necessary infrastructure
and resources to complete my research work. I am very thankful to him for
relevant suggestion and motivation.
I would like to thank Dr. O.P. Rishi (Director of Research, University of Kota,
Kota) for his support, guidance and cooperation. His valuable suggestion helped
me at the time of formulation of research work. I would like to thank staff
members of the Directorate of Research, Dr. Vipul Sharma and all library staff
members for their support. And heartily thank to all for making it happens.

Amit Mathur

iv
 Abstract

The world is moving fast, most of the companies are going global. To match with
the speed of the growing competition today, it is important for the advertisers to
focus more on their promotional strategies.

This thesis is closely related to marketing and promotional activities, used by

advertisers and manufacturers. Main objective of this thesis is to find how the
advertisements done by celebrities affect the buyers and consumers. As we know,
many celebrities play an important role in advertising. Selling of product and
service is purely elastic and depends on celebrity image in consumer perception.
Any positive or negative effect of celebrity may lead to dramatic changes in sales.
Researcher tried to find out buying behavior of consumer regarding FMCG
products.

According to the researcher, advertisers may focus on the formulation and

implementation of the advertisements as per the requirements of the customers.
While planning the advertisements the advertisers have to keep in the mind the
mental status, education level etc. of the customers. Other than this the researcher
strongly believes that the celebrities play vital role in the promotion of the
products in comparison of non – celebrity endorsed advertisements.

This thesis comprises six chapters:

The first chapter titled “Conceptual Framework of Advertising and Celebrity
Endorsement”, based on advertising history, types of advertisement, ethics of
advertising, celebrity and their selection. It also discusses about celebrity and
brand relationship. Second chapter “Effect of Celebrity Endorsement on
Consumer Behavior With Special Reference to FMCG Products”, explain about
the FMCG Sector, segment of FMCG products, FMCG companies, FMCG in
India and other relevant information. And this chapter also describe about
consumer behavior. Third chapter of the thesis is “Review of Literature”.
Literature review is a text written by someone to consider the points of current
knowledge including basic findings, as well as theoretical and methodological
contributions to a particular topic. “Research Methodology” is the fourth chapter

v
of thesis, describes about various methodological tools which have been used for
collecting various data, tabulation and interpretation of data and testing hypothesis
by proper tools. Research Methodology is the way in which researchers identify
how they are going to receive again all useful data and information that
companies will need to make important decisions. Fifth chapter is “Data Analysis
and Interpretation”. The results of the research have been presented objective wise
along with the analysis and discussion in this chapter. And last sixth chapter titled
“Findings and Suggestions”, in this chapter suggestive mechanism and some
useful recommendation were given. This chapter deals also with brief conclusion
of whole thesis. With the use of various methodological tools, researcher tries to
get knowledge about relationship between FMCG product and consumers
behavior through role play of celebrity in advertisement.

And finally, this thesis concludes, Celebrity endorsement is a very powerful tool
for product promotion and it creates an attraction for the product but ethical
behavior is an important factor in product promotion. In FMCG sector,
advertisements are only beneficial in the promotion of new product, after long
time the celebrity effect on the product starts diminishing and customers tend to
pay more attention to the quality of the product. Overall advertisements and
celebrity endorsements are always useful in promotion but somewhere this
promotion tool is also the reason for the increase in price of the product(s).

vi
Effect of Celebrity Endorsement on Consumers: A Study
of Selected FMCG Products
Candidate’s Declaration i
Supervisor Certificate ii
Thesis Approval for Doctor of Philosophy iii
Acknowledgement iv
Abstract v
Table of Content vii
List of Figures and Graphs xi
List of Tables xiii
List of Images xvi

Table of Content
Chapter 1 Conceptual Framework of Advertising and Celebrity
Endorsement

1.1. Introduction of Marketing --------------------------------------1

1.2. Marketing Strategy-----------------------------------------------2
1.3. Marketing Mix----------------------------------------------------3
1.3.1. Product
1.3.2. Price
1.3.3. Place
1.3.4. Promotion
1.4. Integrated Marketing Communication------------------------4
1.4.1. Advertisement
1.4.2. Personal Selling
1.4.3. Sales Promotion
1.4.4. Public Relations
1.4.5. Direct Marketing
1.5. Advertising -------------------------------------------------------7
1.6. Types of Advertising Media ----------------------------------15
1.6.1. Print Advertising

vii
 1.6.2. Outdoor Advertising
1.6.3. Broadcast Advertising
1.6.4. Other Advertising
1.7. Ethics of Advertising-------------------------------------------24
1.8. Product Endorsement-------------------------------------------28
1.9. Celebrity Endorsement-----------------------------------------29
1.9.1. Introduction
1.9.2. Concept of Celebrity
1.9.3. Attributes of Celebrity
1.9.4. Endorser and Types of Endorsers
1.10. Brand-------------------------------------------------------------33
1.10.1. Meaning of Brand
1.10.2. Characteristics of Brand
1.11. Celebrity Endorsement for Brand----------------------------34
1.12. Celebrity Values------------------------------------------------35
1.13. Celebrity Endorsement as Strategy--------------------------35
1.14. Selection of Celebrity------------------------------------------37

Chapter 2 Effect of Celebrity Endorsement on Consumer Behavior

With Special Reference to FMCG Products

2.1. Introduction to FMCG-------------------------------------------43

2.1.1. Market Size of FMCG Sector in India
2.1.2. FMCG Products Segment
2.1.3. Characteristics of FMCG
2.1.4. FMCG in India
2.1.5. Rising in Urbanization
2.1.6. FMCG in Urban Area
2.1.7. FMCG in Rural Area
2.1.8. Market Share of Urban and Rural Market
2.1.9. Major Players of FMCG’s in India
2.1.10. Impacts of FMCG Sector in India
2.1.11. Challenges in FMCG Sector

viii
 2.1.12. Opportunities in FMCG Sector
2.2. Consumer Buying Behaviour-----------------------------------52
2.2.1. Factors of Consumer Buying Behaviour
2.2.2. Buying Participants
2.2.3. Consumer Buying Decision Process

Chapter 3 Review of Literature

3.1. Introduction------------------------------------------------------64
3.2. Research Gap----------------------------------------------------64
3.3. Study of Previous Researches---------------------------------65

Chapter 4 Research Methodology

4.1. Meaning of Research---------------------------------------------90

4.2. Statement of Problem---------------------------------------------90
4.3. Objectives of Research-------------------------------------------91
4.4. Hypothesis of Research Work-----------------------------------91
4.5. Research Design---------------------------------------------------91
4.6. Sampling Framework---------------------------------------------94
4.7. Data Collection Method------------------------------------------99
4.8. Types of Questionnaire-------------------------------------------99
4.9. Introduction of Likert Scale------------------------------------100
4.10. Statistical Tools Used in Research Work---------------------100
4.11. Design Analysis and Interpretation of Data------------------100

Chapter 5 Data Analysis and Interpretation

5.1. Role of Data Analysis and Interpretation--------------------103

5.2. Sections of Analysis and Results------------------------------103
5.2.1. Demographic Factors
5.2.2. Advertisements and Celebrity Endorsements
5.2.3. FMCG and Satisfaction Level of Consumers
5.2.4. Ranking Method

ix
 5.2.5. Calculation and Interpretation of Hypothesis by Chi
Square Test

Chapter 6 Findings and Suggestions

6.1. Findings on the Basis of Data Analysis-----------------------140
6.2. Findings on the Basis of Hypothesis Testing----------------148
6.3. Conclusion -------------------------------------------------------148
6.4. Suggestions ------------------------------------------------------149
6.5. Limitations of the Study----------------------------------------153
6.6. Scope for Further Research------------------------------------153

Appendix
Bibliography
Questionnaire
Research Papers published during the Research work
Paper Presented in Conferences
Course Work Certificate

x
 List of Figures and Graphs
Figure No. Title Page
No.

Figure1.1 Diagram of Integrated Marketing Communication 5

Promotional Tools

Figure 1.2 Global Expenditure of Media and Marketing 8

Figure 1.3 Types of Advertising 15

Figure 1.4 Agencies Involved In Self Regulation 24

Figure 1.5 Source Credibility Model 31

Figure 2.1 FMCG Industry Category Breakup 45

Figure 2.2 Rising in Urbanization 47

Figure 2.3 Urban/Rural Industry Break-Up 49

Figure 2.4 Factors of Consumer Buying Behaviour 53

Figure 2.5 Consumer Buying Decision Process 59

Graph5.1 Gender of the Respondents 104

Graph5.2 Age of the Respondents 105

Graph5.3 Marital Status of the Respondents 106

Graph5.4 Education Level of the Respondents 107

Graph5.5 Occupation of the Respondents 108

Graph5.6 Monthly Income of the Respondents 109

xi
Graph5.7 Popular Medium of Marketing 110

Graph5.8 Preference of media advertisement for FMCG products 111

Graph5.9 Types of Advertisement of FMCG Products Liked by 112

Respondents

Graph5.10 Involvement of Celebrity for Endorsement of FMCG 113

Products is a Good Idea

Graph5.11 Preference of Celebrity Endorser 114

Graph5.12 Increase Product Attraction through Advertisement 115

Graph5.13 Celebrity Attraction Factor in FMCG Product 116

Advertisement

Graph5.14 Impact of Celebrity Endorsement on FMCG Product 117

Selling

Graph5.15 Level of Trustworthiness of FMCG Products 118

Information Endorsed by Celebrity

Graph5.16 Peer Review Discussion of Advertised Products 119

Graph5.17 Effect of Negative Advertising on Celebrity Image 120

Graph5.18 FMCG Products Purchased More by Respondents 121

Graph5.19 Frequency of Purchasing FMCG Products 122

Graph5.20 Factors Influence While Purchasing FMCG Products 123

Graph5.21 Recommendation Preferred While Purchasing FMCG 124

Products

Graph5.22 Purchase Preference of Endorsed FMCG Products 125

Graph5.23 Reasons Which Attract Towards An Advertisement 126

xii
Graph5.24 Frequency of Print Media ads Using Celebrity 127
Endorsement for FMCG Products

Graph5.25 Frequency of Electronic Media ads Using Celebrity 128

Endorsement for FMCG

Graph5.26 Satisfaction Level of Food and Beverage Products 129

Endorsed by Celebrities

Graph5.27 Satisfaction Level of Personal Care/ Beauty Products 130

Endorsed by Celebrities

Graph5.28 Satisfaction Level of Household Products Endorsed by 131

Celebrities

Graph5.29 Advertisement Seen in Daily Lives (Rank Wise) 132

Graph5.30 Celebrity Potential in FMCG Products (Rank Wise) 134

Figure 6.1 Impact of celebrity endorsement on some product 143

Figure 6.2 Success Model of Advertisement 147

List of Tables

Table Title Page

No. No.

Table Category of FMCG Products 46

2.1

Table FMCG Companies Operating in India 50

2.2

Table Sample Size 97

4.1

Table Sample Profile 97

4.2

xiii
Table Five Advantages of Surveys 101
4.3

Table Gender of the Respondents 104

5.1
Table Age of the Respondents 105
5.2

Table Marital Status of the Respondents 106

5.3

Table Education Level of the Respondents 107

5.4

Table Occupation of the Respondents 108

5.5

Table Monthly Income of the Respondents 109

5.6

Table Popular Medium of Marketing 110

5.7

Table Preference of media advertisement for FMCG products 111

5.8

Table Types of Advertisement of FMCG Products Liked by 112

5.9 Respondents

Table Involvement of Celebrity for Endorsement of FMCG 113

5.10 Products is a Good Idea

Table Preference of Celebrity Endorser 114

5.11

Table Increase Product Attraction through Advertisement 115

5.12

Table Celebrity Attraction Factor in FMCG Product 116

5.13 Advertisement

Table Impact of Celebrity Endorsement on FMCG Product Selling 117

5.14

Table Level of Trustworthiness of FMCG Products Information 118

5.15 Endorsed by Celebrity

xiv
Table Peer Review Discussion of Advertised Products 119
5.16
Table Effect of Negative Advertising on Celebrity Image 120
5.17
Table FMCG Products Purchased More by Respondents 121
5.18

Table Frequency of Purchasing FMCG Products 122

5.19

Table Factors Influence While Purchasing FMCG Products 123

5.20

Table Recommendation Preferred While Purchasing FMCG 124

5.21 Products

Table Purchase Preference of Endorsed FMCG Products 125

5.22

Table Reasons Which Attract Towards An Advertisement 126

5.23

Table Frequency of Print Media ads Using Celebrity Endorsement 127

5.24 for FMCG Products

Table Frequency of Electronic Media ads Using Celebrity 128

5.25 Endorsement for FMCG

Table Satisfaction Level of Food and Beverage Products 129

5.26 Endorsed by Celebrities

Table Satisfaction Level of Personal Care/ Beauty Products 130

5.27 Endorsed by Celebrities

Table Satisfaction Level of Household Products Endorsed by 131

5.28 Celebrities

Table Advertisement Seen in Daily Lives (Rank Wise) 132

5.29

Table Celebrity Potential in FMCG Products (Rank Wise) 134

5.30

Table Calculation of Chi Square (Food and Beverage Products) 136

5.31

xv
Table Calculation of Chi Square (Beauty / Personal Care 137
5.32 Products)

Table Calculation of Chi Square Formulation (Household 138

5.33 Products)

Table Calculation of Chi Square (Strategy and Development of 139

5.34 Ethical Advertising)

LIST OF IMAGES

Image Title Page

No. No.

Image Zandu Honey Purity Test 69

3.1

Image 1) Top Ramen Noodle and NECC Promotes by Saina Nehwal 71

3.2

Image 2) Unethical promotion 145

6.1

xvi
 Chapter – One

Conceptual Framework of Advertising and

Celebrity Endorsement
 Chapter – One
Conceptual Framework of Advertising and Celebrity
Endorsement

1.1. Introduction of Marketing

Marketing is a very common word in this era. Marketing involves all processes
regarding selling of products and services. It has been assumed that marketing is
just about advertising or selling of products and services. In fact marketing word
is quite beyond this. Marketing is a key management that ensures producers of
goods and services interpret consumer desires and match. The marketing process
is pivotal to the business performance of organizations or companies, both large
and small, because it addresses the most important aspects of the market.
Marketing is all about understanding the competitive marketplace, and help to
reaching consumers with the right product at the right price, place and time.
Marketing is a process of management responsible for anticipating, identifying
and satisfying consumer/ customer requirements profitably.

According to Baker (2006), “Marketing is a mutually satisfying exchange

relationships”. Kotler et al., (2009), said that, “Marketing is everywhere, formally
or informally, people and organizations involve in a vast number of activities that
we can say marketing”. Good marketing has become an increasingly vital
ingredient for business success. Our daily routine is deeply affected by marketing.
It is involved in everything we do from the clothes we wear, to the websites we
click on and to the advertisements we see.

Kotler (2008), further explained that Marketing is a collective process by which

individuals and groups obtain what they need and want through creating, offering
and freely exchanging products and services of value with others.

Thus, it is said that marketing means whole economic, managerial and social
process by which human needs and wants are evolved in demand of products and
services that satisfy customer needs, involving pricing, distribution, promotion,

1
publicity and after sale of services so as to improve the living standards and
quality (Sharma and Saxena 2010).

In this era, Marketing is a process that directly or indirectly affects our lives. We
are consumers, but many of us are part of marketing like wholesalers,
salespersons, rivals, Raw material suppliers and so on and so forth. In support of
Kotler’s views Rahnama & Beiki (2013), the word marketing is defined as
activities that create exchange value between two or more parties. In simple
words, marketing concept is such a philosophy of management which guides
market activities. Concept of the marketing is a philosophy that firms should
analyze the desires and needs of their buyers and then make decisions to satisfy
those desires and needs.
According to Adam smith (1776), in his book “The Wealth of Nations”, he wrote
that the desires of producers should be considered only with regard to meeting
desire of consumers.

Rehnama and Beiki (2013), further defined that the modern marketing is a new
thought that represents the desires and values of society and costumers, not just
corporate and benefits. Companies seek their advantages and they do not care
about basic principal that what kind of goals and values individuals and society
have. The marketing concept does not target to maximize their profit through
sales volumes but it is based on generating profits through customer satisfaction.
In short, Marketing concepts are built and developed to satisfy the needs and
wants of customers.

1.2. Marketing Strategy

Definition of strategy is viewed in different ways by different organisations.
Actually strategy word was originated of military for planning critical situation.
According to Oxford Dictionary, “Strategy is an art of planning and directing an
operation in a war or campaign or skill in planning or managing any matter well,
or a plan or policy designed for a particular purpose”.
Marketing strategy beholds businesses all marketing goals. Marketing strategy is
an organizational plan. This plan should be product, market specific and may be

2
companywide. Marketing strategy is, ideally, built around market research to
create an ideal product mix to achieve maximum profit potential. According to
Kotler et al., (1999), “Marketing strategy is the marketing logic by which the
firms or business units tries to achieve its marketing objectives”. Marketing
strategy is the best chance to recognize and satisfy unfulfilled customers desires.
In short, market strategy is a common method, which helps a company to achieve
its objectives.

1.3. Marketing mix

Marketing mix describes the set of tools that can be used to impact sales.
Marketing mix is the set of marketing tools that the firm uses to pursue its
marketing objectives in the target market. Marketing mix or variables divided into
four distinct categories makes it easier to implement a proper marketing strategy.
In year 1960, E. Jerome McCarthy compressed marketing mix into the 4 P’s of
marketing that categorized; (1) product, (2) place, (3) price, (4) promotion.

1.3.1. Product
The product can be defined in many ways. As per marketing terms, product is
defined as physical products and services offered, and ideological actions of the
business unit. One of the most important marketing mix tools is product, which
stands for the firm’s tangible offer to the market including the, design, variety
features, product quality, branding, packaging, warranties, services, etc.
Consumers expect benefit(s) at the time of purchasing products. The expectations
are based on their own needs and the product is purchased to satisfy those needs.
As per Kotler (2001), “A product is any offering that can satisfy want, need or
such as one of the followings basic offerings of goods, services, experiences,
places, properties, organizations, events, persons, information, and ideas”.

1.3.2. Price
A mostly critical marketing mix tool is price. Price is defined as the amount of the
products and services. This is the amount of money that customers have to pay for
purchasing the product. The word price includes all of the pricing related terms
which are retail prices, volume discounts, and terms of payment, discounts, and

3
credit policy. Kotler (2008), also explained that Price is the one element of the
marketing mix that produces revenue for the organization. It is the most important
determinant of the probability of the business. Pricing is very important to
manufactures and customers, it is easy to compare between same products and
services provided by different manufacturers.

1.3.3. Place
According to Kothari et al., (2008), the main purpose of marketing in current
scenario is to make product available to the consumer at the appropriate proper
time, place and price, which is possible by efficient distribution activities of the
organizations. In simple words, place means the availability of the product and
service, where it sells. This marketing mix tool refers to distribution. It also
includes exposure, channel type, transportation, and location. A product needs to
be available to the client, when and where he wants it.

1.3.4. Promotion
The fourth and last marketing mix tool stands for the various activities, of the
company. Company targets and persuades customers to buy their product or
services through product Advertisement, sales promotion, personal selling and
public relations. According to Armstrong and Kotler (2005), promotion is
concerned with telling the target market or others in the channel of distribution
about the “right” product. Sales are part of promotion and can be either personal
or mass selling. Personal Selling is a traditional activity of promotion and mass
selling is related to advertisement and publicity.

1.4. Integrated Marketing Communication

The role of integrated marketing communication is to inform, remind, and
persuade the target audience about a particular product or service. Today many
companies are using different marketing communication tools. According to
Kotler (2008), “The concept under which a company cautiously integrates and
coordinates its many communications channels to deliver a clear, consistent
message”. Raman and Naik (2005), defined the Integrated Marketing
Communication in following words, “An Integrated Marketing Communication

4
program plans and executes various marketing actions with consistency so that its
total impact exceeds the sum of each actions”. In fact, Integrated Marketing
Communication is a strategy in which several communication tools - public
relations, sales promotion, direct marketing, advertising and personal selling work
together to maximize the communication impact on target consumers.
Advertising, personal selling, publicity, and public relations form the components
of the marketing communication or promotional mix.

Advertisement

Direct
Public Relation
IMC Marketing
and Publicity
Promotional
Tools

Sales Personal Selling

Promotion

Figure 1.1: Integrated Marketing Communication Promotional Tools (2010)

(Source:https://www.mbaknol.com/marketing-management/different-tools-of-integrated-
marketing-communications-imc, Modified by Researcher)

1.4.1. Advertisement
In the word of Belch and Belch (1990), “Advertisement is any paid form of
nonpersonal communication about product, service, idea or an organization by an
identified sponsor”. The “paid” word refers to the time or space for an advertising
message. And the word “nonpersonal” refers to the mass media like -Television,
Magazine, Newspaper, Radio, and Social Media. Mass media can transmit a
message to large groups of individuals at the same time advertising is the well
known and mostly discussed form of promotion. It is very important and useful

5
promotional tool, specially for companies whose products and services are
targeted at mass consumer markets such as automobile manufacturers, packaged
goods.

1.4.2. Personal Selling

It is a mutual communication approach of marketing that involves seller and
buyer. This interaction may occur between the two parties, by any person, by
Telephonic, Email and more. Personal selling involves a two-way flow of
communication between a seller and buyer or even vice versa. This is designed to
influence a person(s) or group(s) purchase decision (Berkowitz 2000). Personal
selling is a personal dealing between two or more people, so each person can
observe the other needs and make quick adjustments. For an example, insurance
company where company uses their sales force.

1.4.3. Sales Promotion

This type of integrated marketing communication consist of other types of
promotion, such as- coupons, contests, games, mail offers, etc. Sales promotions
are often developed to get customers to take quick action for large purchases and
repeat purchases. Present time, many stores are using products coupon to
encourage consumers to select a particular brand and products. There is a similar
term of sales promotion, trade promotion. Mostly trade promotion word is widely
used in business to business market. Trade promotions include sponsorships,
event marketing, trade shows, incentives given to retailers, such as extra money
and prizes.

1.4.4. Public Relations

Public Relations (PR) is the practice of managing the spread of information
amongst an organization, individual or such as a business, government agency,
public or a nonprofit organization. As per Institute of Public Relations, USA,
“Public Relations is purposeful, planned and continual effort to establish and
maintain mutual understanding between an organization and its publics”. It helps
improve and promote an organizations/ brand image and products by putting a
positive spin on news stories. Many Companies are using Personal Relations to
promote products. Public relations materials include press releases, publicity,

6
product placement, and sponsorships. Many companies have public relation
departments or they hire public relation firms to find and manage public relations
opportunities for them.

1.4.5. Direct Marketing

Direct marketing is direct communication with targeted individual consumers to
obtain a quick response. Direct Marketing is selling product(s) directly to the
consumer / end-user, rather than through a distributor or wholesaler. Direct
marketing includes pamphlets, telemarketing, Internet etc. Direct marketers also
need to understand the buying behaviour of the target audience.

1.5. Advertising
The world is moving fast most of the companies are going global. To match with
the speed of the growing competition today, it is important for the advertisers to
focus more on their promotional strategies. All marketers are trying to grip on
markets and customers by constantly working on how to best use mass media in
the new communication environment. Advertisement is one of the most important
tools in mass media communication. These are advertisements, sales promotion,
public relation, event and publicity. Among these mass media tools advertisement
is the most demanding tool.

Advertising is most effective non personal promotion for many firms and
manufacturer. In fact advertising is a paid, non personal sales communication
usually directed at a large number of potential buyers. Top five countries who
dominate worldwide advertising market are US, China, Japan, UK and Germany.
As per emarketer report (27 October 2016), advertisement spending growth will
hover between 5% and 9% each year of the forecast, with total spending climbing
to approx ₹ 46417 bn in 2020.

According to India brand equity fund (December 2016), It is estimated that by

2018, the share of ad spending in India’s GDP will be around 0.45 percent. And
India’s digital advertisement market is expected to grow at a compound annual
growth rate (CAGR) of 33.5 per cent to cross the ₹ 25,500 crore mark by 2020.

7
Figure 1.2: Global Expenditure of Media and Marketing
(Source: Bradley Johnson, advertising age India (2015), http://www.adageindia.in/marketing/
news/What-You-Need-to-Know-About-the-Global-Ad-Market/articleshow/50071645.cms)

Today in newspaper and any website and any magazine, we don’t read only
current affairs, current knowledge, sports, other activities etc., but also several
information or messages about some product or services. For an example- Motor
bike, television, oils, transport, insurance policy and many more. Such
information is also seen in television, radio, roadside hoarding etc. All these
information’s makes aware about the products or services, about its price and
features. Whenever we feel requirement of these products or services we try to go
to the place of its availability. Look at the quality, price and features and
purchase, if it matches our requirements. For an example if we see new product on
television like New “Old spice deodorant”, when we go to market and ask this
product to shopkeeper. If we like the fragrance and find the reasonable price, we
can purchase for our use. There are many different features like car dealer sells car
on installment and shopkeeper allows discount on particular product. It is
necessary that giving any information is to make the customers aware about any
product or service and motivate to buy. Manufacturers, service providers and
traders, who want to give such information to attract customers for promoting
sales. This whole activity is called by “Advertising”.

8
Advertising is a form of communication for marketing. It is used to persuade,
encourage or manipulate an audience (may be viewers, readers or listeners) to
continue or take some new action. Most commonly, the desired result is to drive
consumer behavior with respect to a commercial offering, although social and
political advertising is also common.

Advertisement is necessary for both the sellers and the buyers. Although it is more
important for the sellers but it is also useful for buyers. In the modern age of
market, manufacturer cannot think of pushing sale of their products without
advertising them. Advertising is the communication link between the seller and
the buyer/ consumer. As a means of forceful communication, advertising
promotes the sales of goods, services and ideas through information and
persuasion.

One thing may be well understood that advertising by itself unable to sell the
product. It is not able to sell those products which too much costly and poor
quality. Advertising only can helps in selling product(s) or service(s).

Advertising word comes from the Latin word "advertere”. This refers to “turn the
minds towards”. In a very simple word, advertisement is a “public
announcement”. In earlier times advertise meant merely to announce or to inform.
Some more definitions are following.

1.5.1. Concepts of Advertisement

Advertisement has huge aspect so many authors and societies give many
definitions. Some are-
(a) According to American Marketing Associations (AMA), “Advertising is
any paid form of non personal presentation and promotion of ideas, goods
and services by identifying sponsor”.

(b) According to Kotler and Keller (2006), “Advertisement is any paid form
of non personal presentation and promotion of idea, goods or services by
identifying sponsor”. It may be cost effective way to publicity of a
messages, whether to build brand preferences or aware people.

9
 (c) According to Subroto Sen Gupta (2003), “Advertising is the discovery and
communication of persuasive difference for a brand to target prospect”.

(d) As per to Sidney Bernstein (1990), “Advertising is a substitute for the

human salesman”.

So we can say advertising consist of all activities involved in presenting a

sponsored message regarding an idea, a product or service.

1.5.2. History of Advertisement

Advertising, as we understand it present time, was not used until about 200 year
ago. The form of advertising for the transmission of information dates back into
ancient Greece and Rome. Archaeologists have discovered many such signs and
designs, especially in the ruins of ancient Rome and Pompeii. During the middle
age, sign of advertisement were used very extremely. These sign consisted of
symbols of product which was advertised.
In about 17th century, news paper advertising began developing when newspaper
appeared in many parts of the world. It was a very important phase of advertising.
Because it is very easy and low cost form of advertising. At the end of 17 th
century, newspaper was published in England and many countries on commercial
basis. First advertisement was broadcast by radio in New York, on the WEAF
radio station in 1922.

In India, history of advertisement is very old. Relics of Harappa, Mohenjodaro

indicates names engraved on exquisite earthen, stone or metal works which is
comparable to the present trade mark system (Chauhan 1998).

According to James (7 October 2010), In year 1780, Hickey present first news
paper in India, “Hickey's Bengal Gazette” (Calcutta), advertisements appear for
the first time in print in Hickey's Bengal Gazette newspaper.

Although modern advertising is creativity of Americans but also it had its root in
England. The industrialist revolution led the expansion of mass manufactured
goods in European Union and America.

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1.5.3. Objective of Advertising
(a) To Educate Customers- The main objective of advertising is
educate the customers about the benefits of particular product. For
example when we see advertisement of Garnier Herba shine hair
colour cream, they present it as “ammonia free”.
(b) To Create Demand for New Product and Service- when we see
a advertisement of new product like new kind of toothbrush which
is introduced in market. Which is very unique and efficient and
easy to remove germs. This kind of advertisement motivates us to
buy and create new demand for itself.
(c) To Retain Existing Customer- Advertisement is very important
for product or service to retain its existing customer. Many times
companies are using advertisement for retaining customers.
Example- Offers, Coupons, etc.
(d) To Increase in Sales- As we know advertisement helps to create
new demand and this new demand helps to increase in sales. So if
we do create demand in market, the sale of product increases
respectively.
(e) To Help of Salesman- Advertisement tells about product benefits
and quality, so that salesman can quickly explain and sell it.

1.5.4. Features of Advertising

With the use of definitions and meanings of advertisement we can assume
following features of advertising
(a) Paid Form of Communication- In this type of advertising, manufacturer
communicates with their prospective customers through different media.
For example- Television, Radio, Magazines, Hoardings, print media, etc.
In this kind of communication manufacturer has to pay an amount for
using some space on a time in all those type of media.
(b) Non Personal Presentation- In this type of advertising there is no direct
contact with customers.

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 (c) Information- Advertising informs the buyers about the benefits of that
product. And ensure all given information is complete and true.
(d) Persuasion- The advertiser expects to create a favorable attitude which
will lead to favorable actions. Any advertising process efforts at changing
the prospects into customers. It is thus an indirect salesmanship and
essentially a persuasion technique.
(e) Profit Maximization- In fact advertising does not create maximizing
profits by increasing the cost. But it helps to increase in demand for profit
maximization.
(f) Choice Maker- Advertisement enables customers to buy goods as per
their budget requirement and choice.
(g) Creativity Element- A lot of creativity is involved in advertisement
campaign. If message of the manufacturer or advertiser matches the
expectations of consumers, manufacturer or advertiser expectation will be
satisfied.
(h) Science, Art and Profession- Advertising is a science because it has a
organized body or structured program. Advertising is also an art because it
represents a field of creativity and imagination. In now days, advertising is
profession with its professional bodies and regulations.

1.5.5. Active Participant in Advertisement

(a) The Advertisers- Advertisers may be manufacturer or retailer or
distributor. The advertiser may be a public sector in undertaking. It could
be a government department or an official body. It can be a voluntary
organization.
(b) Target Audience- Advertising messages are given about particular
products, services and ideas to its target audience like- readers, listeners,
viewers and actual and potential buyers.
(c) Media Owners- These are publishing of news papers and magazines.
They are also publish directory, year book, and other print material. In
broadcast media, we have seen television and radio. And there are
outdoors and transit advertisement contractors.

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 (d) The Advertising Agencies- Advertising agency helps to create advertising
campaigns. This agency may be company own or other.
(e) Free Lancers- generally they are professional of good track record. They
are singers, radio jockey, artists, technical writers, etc.
(f) Public Relation Consultants- We can find them in public relation
department of advertising agencies or independent. They have got an
association: Public relations society in India.
(g) Auxiliary Services- They are also needed to create advertisement. They
may be studio, printing service, photographic service and other supporting
services.

1.5.6. Advertising Agencies

Organizations handle advertising in different ways. In small companies
advertisement is handled by certain person or marketing department who works
with advertising agency. Many large companies, set up own advertisement
department. Most companies use an outside advertising agency to help create
advertising campaigns and to select purchase media. Today, advertising agencies
are redefining themselves as communication campaigns.

According to Megan Crouse (2010),‘Volney Palmer’ was first advertising agent

who created such a network in 1841, he proclaimed himself as an advertising
agent in Philadelphia and then created similar offers in Boston and New York.
About 20% of the commission for media brokers was paid to the publishers.

In word of Vikram Chawla (August 2009), in year 1905, first advertising agency
was established in India, B. Dattaram and Company, after that The India
Advertising Company was established in year 1907 and Calcutta Advertising
agency was established in year 1909 (Surya, September 2011). In 20th century
foreign advertising agencies entered in Indian market with mergers and
acquisitions.

1.5.6.1. Types of Advertising Agencies- There are generally five types of

advertising agencies.

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 (a) Full Service Agencies
 Big agencies.
 Manage various advertisement stages.
 Experts are used for several departments.
(b) Interactive Agencies
 Modernized modes of communication are used.
 With the help of online advertisements, sending personal messages
on cell phones, etc.
 The ads produced are having very new ideas, designs. In fact very
innovative.
(c) Creative Boutiques
 Very creative and innovative ads.
 No other function is performed other than the creating actual ads.
 Small scale agencies with their own directors, copywriters and
creative people.
(d) Media Buying Agencies
 Buy place for advertising and sells it to the advertisers.
 Also sells the time in which advertisement will be broadcast.
 Schedules time slots at different television channels and radio
stations.
 And finally checks and observes whether the advertisement has
been broadcast at opted time and place or not.
(e) In- House Agencies
 Set up their own advertising agencies internally.
 Make efforts to reduce costs and maintain greater control over
agency activities.

1.5.7. Life Cycle of Product Advertising

Product advertising is divided in following stages
(a) Informative Advertising- This is first stage of product
advertising. It is created to build initial demand for new product. In
fact it is an introducer stage of a product.

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 (b) Persuasive Advertising- It is used to improve the competitive
status of a product and idea.
(c) Comparative Advertising- This makes direct comparisons with
other competitive product.
(d) Reminder Advertising- This stage is used in the declining stages
of the product life cycle. It attempts to keep a product name in
front of the consumers to remind importance of concepts.

1.6. Types of Advertising Media

Advertisement is a very simple word but it contains many types of exposures and
promotions of certain product, service and idea. Advertising may be of many
types but here we are focusing on media advertising.

Types of Advertising Media

Print advertising Outdoor advertising Broadcast advertising Other Advertising

Newspaper Billboards Television Covert
Periodical Kiosks Radio Surrogate
Brochures Trade shows (Event) Internet Public service
Celebrity

Figure 1.3: Types of Advertising

(Source: Hanekom J. and Scriven C. (2002), “Traditional and Online Advertising; An Explanation
of Current and Future Trends”, Communicatio, ISSN: 0250-0167)

1.6.1. Print Advertising

Advertising in the print media is the oldest and largest in terms of advertising
billing. From the beginning print media has always been a popular choice of
advertising. It is the cheaper and faster way to produce and place ads in print. It is
very commonly used by businessman and traders. It includes news papers,
magazines, journals, pamphlet, and more. As published Livemint E-newspaper
(2016), In year 2015, print media contributed at ₹16,935 crore’.

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(a) News Paper- Today news paper is very common thing in our life. Many
people read newspaper. Newspaper is also published in many languages
like Hindi, English and other local languages. News paper is a very
common medium of advertising. The advertisers and manufacturers
communicate their message through news paper which reaches plenty of
people.

Advantages-
 News papers normally have wide circulation and quickly reach a large
number of people.
 The cost of the advertisement is low rather than other medium of
advertisement.
 Newspapers are published on daily basis, so that advertisers can remind
their customer continually.
 The content of news paper is short and simple so customer can easily
understand its features.
 Newspaper is published for certain area. So it is easy to target certain area
customers.

Limitations-
 In today’s busy life many people are unable to give proper time to read
newspaper.
 Illiterate people are unable to read newspaper. Therefore they are not
affected by newspaper.
 Newspaper has very short life and also poor production quality in
newspapers.

(b) Periodicals and Magazines- Periodicals and magazines are published

regularly but not on daily basis. These are published on a weekly, monthly,
bimonthly, quarterly, half yearly, yearly, etc. Generally seen many
magazines like India today, Femina, Grihashoba, Meri Saheli, etc. All
these Periodicals and magazines have a large number of readers. Thus
advertisements are published in them regularly.

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 Advantages-
 Periodicals have much longer life than newspaper. These are preserved for
a long period for reading again.
 Periodicals have a selected readership so advertisers can know about their
target customers. For example- Grihshobha magazine is published for
women. We can see woman related advertisement products. And very rare
advertisement of those products which are used by men.

Limitations-
 Advertising in periodicals are costly.
 Number of people approach is less than newspaper.
 Some waste circulation.

(C) Brochure and Pamphlet- Brochure is also an important part of print media.
It is a small print paper which contains all details and information, which
advertisers want to show. It is very common idea used by many advertisers
for promotion in target place.

Advantages-
 Brochures or pamphlets are much cost effective rather than other types of
advertising.
 We can target specific people at particular place. Like if we want to
promote education related information we can distribute it near schools or
coaching.
 We can get all information on a single paper.

Limitations-
 Approach in people is very low rather than other types of advertisement.
 Some waste distribution. Because many people do not read it.

1.6.2. Outdoor Advertising

Outdoor advertising is oldest form of advertising. The use of signs in advertising
dates back to the days of ancient Rome and Greece. In that time, signs and

17
allusions were used to mark the location of mercantile establishment. It makes use
of several tools and techniques to attract the customers outdoors. Today outdoor
media is not limited to only poster or sign but it includes many forms of
advertising. The most common examples of outdoor advertising are billboards,
kiosks, and also events and trade-shows organized by the company.
(a) Billboards- Outdoor advertising is mostly billboard advertising. The word
“billboard” has originated out of “Bills” that were pasted on “wall or
boards”. In beginning the playbill was pasted outside the theatre or circus,
so that passersby could see it. Now with the modern printing press big size
of posters can print easily. The bigger posters called by the “Bleed
Posters”. Posters can be illuminated or non-illuminated (normal).

Advantages-
 Posters are 24-hours medium of advertisement.
 Billboards give us flexibility of ads offers long life.

Limitations-
 May be spoiled by bad weather condition.
 Limited area approach.

(b) Kiosk-Kiosk is a small open-fronted hut or it may be in cubicle from

where newspapers, refreshments, tickets, are sold. And we can also get
information about certain things or product. We easily can see kiosk at
roadside, near at shopping mall and outside the building. Kiosk displays
information for people walking by.

Advantages-
 Live presentation of product.
 Sell /registration of product/ service at same location.
 Easy to move.

Limitations-
 Limited coverage area.
 Many visitor only act as an audience, not as a customer.

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 (C) Trade Show- According to entrepreneur Media Inc. (Magazine), An
exhibition for companies in a specific industry to showcase and
demonstrate their new products and services. Generally trade shows are
sponsored by trade associations for specific industries, and there are many
associations running trade shows in every year. Trade show is a good idea
to find customers to help in business growth. Trade shows have become
very popular, and it is easy to find one, that is suitable for industry and
companies requirement.

Advantages-
 Attract more customer or perspectives.
 Live demonstration.

Limitations-
 More trade shows don’t happen in public area.
 Maximum invitation is only given to certain industries members and
media groups.

1.6.3. Broadcast and Electronic Advertising

In present days, broadcast advertising is a very popular advertising medium. It
constitutes several kinds of sources like television, radio or internet. Cost of
broadcast advertising often depends on the duration of the advertisement, the time
of broadcast, Sometimes it depends on show which will be broadcast.
(a) Television- In India television was introduced in 1959. Televisions have
acknowledge people that world is so more rather than a country.
Television established himself topped in all media of advertising.
Television has put/ creates effective impact on people by their eye and ear.
Product can be shown, uses can be demonstrated and features can be told
over television. Television commercial is the advertising message that is
carried in a limited time span, may be 10 seconds, 30 seconds and 60
seconds.

Advantages-
 It is most effective source of advertisement. It has visual- audio impact.

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 With attractive slogans, song and dance steps television advertisement has
long impact.
 In regional languages channel any person even illiterate can understand it
by seeing and hearing.
 Advertisers can reach national and international market.
 By viewing and listing buyers easily understand about products.
 Television succeeds in building a brand image.

Limitation-
 Setup of television is not easy to movable.
 In India, a lot of houses/families who have not television.
 Wait for commercial on television.
 Television advertising is usually expensive.
 People often change channels when they see any commercial
advertisement on television.

(b) Radio Advertising- We all very well know the importance of radio and
also listen to programs and advertisements. In radio very short
advertisement are aired during the programs. In radio advertising, various
products are promoted by their slogans and jingles. For an example- Ghadi
detergent powder and cake slogan is “Pahle istemaal kare, phir viswash
kare”. According to Nitya Menon (May 2014), in India, July 1924, it was
the first day when the first voice emerged from a radio set in Chennai. FM
is the rebirth of radio. FM channels have become more popular among old
channels.

Advantages-
 It is more effective as people hear it on regular basis.
 It is also useful for those people who can’t read.
 We can easily listen when we are busy in other work.

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 Limitations-
 In comparison to Television, There is no visual effect. So advertisers are
unable to show visual features of their products Example- We cannot see
visual features of mobile phones in radio advertising.
 Only regular basis listener right time of right program. Occasional
listeners are not known what program is hearing by them.

(c) Internet Advertising- Internet is biggest invent in 21st century. The world
has changed with tremendous speed after arrival of internet we are very
well aware about the internet and its application, with the use of computer
we can search a lot of things at one place. All information is just a click
away. Internet is being used more than 150 countries. Advertisers can put
their messages on the internet pages. Now many mobile operators are
providing internet on mobile phone which enables us to use internet, on a
nominal cost. Through internet we can go to the website of many
manufacturers and service providers. And get information about them.

Advantages-
 Information of all over world in a second at one place.
 Through portable devices it can be movable anywhere.

Limitation-
 It is not accessible without internet enable devices.
 It is not very suitable for general people specifically illiterate people.

1.6.4. Other Advertising

(a) Covert Advertising (Advertising in Movies) - Covert advertising is
a different kind of advertising. In this type of advertising, a product or a
brand is included in some entertainment and television channels like
movies, television shows or sports. This type of advertising is not
commercial advertising as such use in the entertainment but the brand or
the product is easily showcased in the entertainment show. For example
‘Nokia Lumia’ mobile phone which was shown by ‘Shahruk Khan’ in the

21
 movie ‘Chennai Express’. Other example of covert advertising, In movie
'Mission Istanbul' They promote ‘Mountain Dew’ soft drink with a punch
line “Darr ke aagey jeet hain”.

Advantages-
 Advertisers promote their product as celebrity choice.
 Every time we see this ad while watching a movie.

Limitation-
 Many people far away from watch movie.
 Many viewers don’t understand it is promotion or something else.
 Limited area approach

(b) Surrogate Advertising (Advertising Indirectly) - Surrogate

advertising is unique type of advertising where advertisers promote their
product indirectly to customers or consumers. In surrogate advertising
cases it is used for a particular product that is banned by law.
Advertisement of some products like cigarettes or alcohol which are
injurious to health and prohibited by law. Hence these companies come up
with several other products that have the same brand name and indirectly
remind people of the alcohol and cigarettes of the same brand by
advertising the other products. Common examples include Kingfisher
brands shown as “mineral water and soda”. Other example alcoholic
beverage Baccardi present “Music CD” of dance party. And other famous
example of famous cigarette Red & white present as “Red & white bravery
award”. This kinds of brands often promoted with the help of surrogated
advertising.

Advantages-
 Advertisers promote injurious product or brand without breach of laws.
 Remind customers of product existence.

Limitations-
 Promoters have to present other product in market.
 Difficult to understand.

22
 (c) Public Service Advertising- Public service advertising is a technique
used in advertising as an effective communication source to convey
socially relevant messages. It talks about important matters and social
causes like AIDS, energy conservation, illiteracy, poverty and so on. Now
days, public service advertising is being increasingly used in a non-
commercial fashion in order to promote various social causes. For an
example- Amitabh Bachachan is featuring in ‘Clean India’ promotion
campaign and ‘Polio drop’.

Advantages-
 Create awareness among people.
 Motivates people for ethical behavior.

Limitations-
 Many People does not follow moral responsibility.

(d) Celebrity Advertising- Today, audience is getting smarter. So advertisers

using celebrities for advertising involves celebrities for campaigns, which
consist of all kinds of advertising including, television advertisements or
even print advertisements.

Advantages-
 Celebrity play role model for people so people want to be like them
 Celebrity creates new demand in their followers.

Disadvantages-
 Hire or contract with famous celebrity is too costly.
 Sometimes, it creates negative demand in customers.

Some Other Classification of Advertising-

(a) Area Coverage – Local, Regional, National, International
(b) Audience- Consumer, Industrial, Trade, Professional

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1.7. Ethics of Advertising
Ethics means “good conduct” or “conduct which is right view of the society and
the time period”. In fact ethics is choice between good or bad. Besides the
external rule and regulations or laws, the advertisement needs internal controls
and self regulation by advertisers. In this globalized world, every producer wants
to become market leader and try for high sales. Advertisement is very common
tool for producers for showing his products. But producers with higher aspirations
try to use unethical advertisement for this leadership. Self regulation in
advertisement is matter of high importance. Absence of particular law, rules and
regulations this is very useful ethics for advertisement.

1.7.1. Agencies Involved in Self Regulation for Ethical Behaviour

Number of agencies are involved. These can be classified into the
following:

Agencies

Advertising Trade Associations Individual Media and Media Groups

Advertising Standards Council of India (ASCI) Code for commercial advertising on Doordarshan
Advertising Association of India (AAAI) All India Radio Code for commercial advertising
Press Council of India
Prasar Bharti

Figure 1.4: Agencies Involved In Self Regulation

(Source: Sheetal Kapoor (2010), http://www.exchange4media.com/e4m/media_matter/omnibus.asp)

In India, Advertising Standard Council of India (ASCI) is playing crucial role. It

is effective redressal machinery for stoppage of untruthful and unfair
advertisement. Advertising Standard Council of India (ASCI) was set up in
October, 1985 and register as non-profit organization under section 25 of the
Indian companies act 1956. The main aim of Advertising Standard Council of
India (ASCI) is to maintain and enhance public confidence in advertisement.

24
1.7.2. Principles of Advertising Ethics
Institute of Advertising Ethics (IAE) has created eight principles and practices.
They are based on all forms of communications, including advertising, should
always do what is the right for customers/consumers.
(a) Advertising, public relations, marketing communications, news and
editorial all share a common objective of high ethical standards and truth
in serving the public.
(b) All promoting communications professional have obligation to do the
highest individual ethics in the spreading and formation of commercial
information to consumers.
(c) Advertising should clearly distinguish advertising, public relations and
corporate communications from news and editorial content and
entertainment, both online and offline.
(d) Advertisers should clearly disclose all material conditions like payment or
receipt of a free product, identity of endorsers and transparency and
affecting endorsement in social and traditional channels.
(e) Advertisers should treat consumer fairly based on the nature of the
audience to whom the ads are directed and the nature of the product and
service advertised.
(f) Consumer’s personal privacy never should compromise by advertisers in
marketing communications, and their choices. And information should be
transparent and easily made.
(g) Advertisers should follow advertisement laws, and cooperate the industries
self regulatory programs for the resolution of advertisement practices.
(h) Advertisers, advertising agencies and members of team creating
advertisements should discuss privately potential ethical concerns.

1.7.3. Advertising Standards Council of India (ASCI)

The Advertising Standards Council of India (ASCI), established in 1985. Main
purpose of establishing is regulation in Advertising and to ensure the protection of
the interests of consumers. This council was created with the support of all four
sectors connected with advertising like advertisers, advertising agencies, media

25
(both broadcasters and press), market research companies and public relation
agencies, etc.
The consumer complaints council is Advertising Standards Council of India
(ASCI) heart and soul.

1.7.4. Social Impact

Advertisement is so visible therefore many of the criticisms focus on the style of
advertising and saying it is manipulative and decoy. It is a reason of developing
harmful habit in people, and entices people to buy useless product for them. Still it
may be the most criticisms of advertising because there is no question why
producers spent a lot of money in advertisement? Except this, advertisers spend a
lot of amount trying to convince people their product will make them healthier,
sexier, attractive and successful. All over, advertising support marketers who
want to sell their products. Other criticisms focus on social impact of advertising.
Social issues can be instance where advertising tend to violate. Marketing
professionals closely believe in the benefits that advertising bring to society.
Critics of advertising might agree with some benefits of advertisement, but not all
of them.

1.7.5. Social Responsibility and Advertisement Ethics

When advertisement violates one of the basic assumption like deception,
manipulation etc. some corrective action is needed. There is large number of laws
related to what practice allow and disallow in advertising.
Ethics means what advertiser doing, morally right in present time. Social
responsibility means doing what society views as best for the welfare of people in
general or for a specific community. Ethics and social responsibility can be seen
as the moral obligation of advertisers, which are designed not to break our basic
and social assumption.

Advertisers and their agencies must be sure advertisement does not cross limit of
legal and social norms. Public policy makers have developed a substantial body
regulations and laws to govern advertisement. As under United State laws,
advertisers make not false claims. They must avoid false demonstrations.

26
1.7.6. Two Component of Ethics
(a) Traditional action.
(b) Society established rule
Both are based on individual attitudes, feeling, emotion, belief.

1.7.7. Rules Against Mislead Advertising

As per the news report of “The Indian Express written by Utkarsh Anand (2016)”,
If celebrity is found in misleading advertisement or endorsing misleading content,
he / she has to be ready for legal provisions. Celebrity brand ambassadors have to
deep think before endorsing product. Because make unrealistic claims responsible
to fetch them in jail for 5 years and along penalty of ₹ 50 lakh.

According to Section 17 of the revised Consumer Protection Bill (2015) explain

“endorsement” as any message, verbal statement or any other form of depiction to
show a celebrity’s “likeness” for a product, which leads the consumer to believe
that it reflects the celebrity’s opinion, finding or experience.

Section 75A makes a manufacturer and service provider also legally responsible
for any false and misleading advertisements, and prescribes penalties in the same
manner in which celebrity brand ambassadors have been made liable.

According to section 75B of the new bill any “false or misleading” endorsement
which is adverse to the interest of any consumer is a penal offence and punishable
with a jail term of up to two years and ₹ 10 lakh fine. For the second time there is
a provision of five year imprisonment along with a fine of ₹ 50 lakh.

As per this bill, celebrity have to prove their innocence, this term assume as
defence, the burden would be on celebrity brand ambassadors to prove their
innocence. But mistaken belief shall not be a “defence”, states the Law Ministry
draft of the new law.

27
1.8. Product Endorsement
A product endorsement is a form of testimonial from someone which indicates
that they like or approve a product. Generally, product endorsements are requested
from people who are very well known, allowing companies to advertise their
products with statements as used by actor or an actress. Because most companies
keep their endorsements front and center so that they are always in the people’s
mind so product endorsement in advertisements.

The concept of product endorsement is quite ancient. As an example in England,

many companies have been advertising themselves as by appointment to the
queen for many years, indicating that they enjoy the protection of the royal
family. At the time of purchasing of a product, consumers are often imagining
who endorse it, wealthy or famous person. The consumer wants to become
affiliated person, who endorses it.

Modern product endorsements can come with contracts worth substantial amounts
of money. In an endorsement contract, celebrity may agree to use the product
publicly and they may be restricted from using of other competitive manufacturers
products.

Product endorsement doesn’t say that a product is always good. It only means that
the any company has managed to work its public relations connections to get a big
name engaged with it. Some endorsements take the form of written testimonials,
where individuals write about how the product makes changes in daily lives. In
past days, such testimonials were often printed on the product packaging directly.
Companies also use photos of well-known people on their products to make a
visual connection between the endorser and the product.

Four Types of Endorsements:

 Explicit (person endorses the product)

 Implicit (person uses the product)

 Imperative (person impel the product)

28
  Co presentational (merely appearing with the product)

1.9. Celebrity Endorsement

The term of ‘celebrity’ is refers to a famous person. These famous persons are
mostly associated with sports and entertainment area. When any company or
manufacturer using celebrity fame in advertisement to promote a product or
service, it is called by celebrity endorsement. A person may become celebrity by
their controversial actions, lifestyle, richness, and connection to a famous person,
through media attention.

1.9.1. Introduction
Celebrity endorsement is most popular way of advertising in present time. It has a
very popular trend and winning formula for marketing and brand building. Today
we see a lot of celebrities supporting and endorsing many products and telling this
is right product for consumer / customer. In new age of world, people tend to
ignore all kind of advertisements in the magazines and newspapers or viewing
television. But thereafter, the glamour of a celebrity can’t be ignored. So using of
celebrity in advertisement is most successful tools for keeping the customers to
stay with the product. People are also attracted by celebrity living style, beauty
and talent therefore people are more influenced by celebrity. Advertisers often use
celebrities in advertising because of their famous attributes (beauty, talent,
athleticism, power, etc.) that often represents the attractions desired for the brands
they endorse. In fact celebrities are the most influential icons that people admire.
Among the most common reasons why companies use celebrities to endorse their
products, those are- increase attention, shining image, brand introduction, brand
repositioning etc.
Advertisers pay a lot of amount to celebrity and hope they will create magic to
product and service and make them successful. So advertisers think this is most
successful idea to impress people and aware about their product. Furthermore,
consumers may like the brand because they like the celebrity who endorses it.

The history of celebrity endorsement of products began from 1760 by

“Wedgwood". “Murad Cigarettes” used Fatty Arbuckle and Harry Bulger to

29
promote its product in 1905 (Celebrity Endorsement–Throughout the Ages,
2004). British actress “Lillie Langtry” appeared on package of pears soap in 1893.
And she became first celebrity endorser. Celebrity endorsement is using a famous
person’s face to sell products or services by focusing on the person’s money,
popularity or fame to promote the products or services. “If a famous person
permits his or her image to be used for advertisement, it’s called celebrity
endorsement” (Business Directory). According to Lafferty and Goldsmith, (1999),
“The importance of using a credible source in a company marketing
communications has been a widely researched topic for decades. Most of this
research has focused on celebrity endorsers”. In addition, using celebrities in
advertising increases awareness creates positive feelings towards the brand
(Soloman 2002).

1.9.2. Concepts of Celebrity

Celebrity refers to popular fame and public attention in the media, usually applied
to a person or group of people (celebrity couple, family etc.), or occasionally, to
animals or fictional entities. Celebrity status is often associated with wealth and
fame can often provide opportunities to make money.
According to Friedman (1979), "Celebrities are people who enjoy public
recognition by a large share of a certain group of people. According to Johansson,
J. & Sparredal, J. (2002), “Celebrity” refers to 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. McCracken (1989), defines celebrity
endorser as “any individual or person who enjoys public recognition and who uses
this recognition on behalf of a consumer good by appearing with it in an
advertisement”. According to Kurzman et.al (2007), “Celebrity is an omnipresent
feature of society, blazing lasting impressions in the memories of all who cross its
path”. In word of Banyte et al. (2011), Celebrity endorsement is a prevailing
advertising technique.

30
1.9.3. Attributes of Celebrity
(a) Attractiveness- As per Chaiken (1979), “Physically attractive
communicators are more successful in changing beliefs than are
unattractive communicators. Attractiveness includes many number of
characteristics that receivers may perceive in an endorser are personality
properties, lifestyle, athletic prowess and other good character. In modern
era, people are eager to attractiveness. And most advertisements are using
attractive models.

(b) Credibility- The word “credibility” refers to the tendency to believe or

trust someone. When an information source such as an endorser, is
perceived as credible the source can change attitudes through a
psychological process. Two important quality of endorser credibility are
expertise and trustworthiness. Expertise refers to the knowledge,
experience or skills an endorser as they relate to the communications topic.
Hence, sport persons considered to be experts when it comes to the
endorsement of those products which are related to sports.
Trustworthiness refers to the integrity, honesty and believability of a
source. Endorser’s trustworthiness depends primarily on the audience’s
perception of his or her endorsement motivations. Trustworthiness can
turn customer’s perception in to positive thought and promotes more
favorable attitudes towards the advertised brand.

Source Credibility Model

Trustworthiness Attractiveness Expertise

 Dependable  Similarity  Expert
 Honest  Familiarity  Experience
 Reliable  Likeability  Knowledge
 Sincere  Qualified
 Trustworthy  Skilled

Figure 1.5: Source Credibility Model

(Source : Ohanian, R. (1990), “Construction And Validation Of A Scale To Measure Celebrity
Endorser’s Perceived Expertise, Trustworthiness And Attractiveness”, Journal of advertising, No.
3, P. 39-52)

31
1.9.4. Endorser and Types of Endorsers
Meaning of Endorser: According to Lawdictionary.com, “Person or firm who
signs a negotiable instrument to transfer ownership of the instrument or the
property involved to a named receiver (endorsee)”. In a simple word defined by
Freedictionary.com, “Endorser is use to express approval of or give support to,
especially by public statement”.

Types of Endorser: Endorser can be classified in following categories

(a) Celebrity- Celebrity is a famed or well known person, particularly related
to entertainment or sport based activity. Most of celebrities come from
this, for endorsement.
(b) Expert- A person who is expert in a particular area and the target
population is considered as having adequate knowledge.
(c) Unknown person – Unknown person may be fictitious or actual. They are
unknown individuals or persons, which are selected to closely enabling the
target segment to identify with the message and the endorser.
(d) Animate – Animation is a use of new technology and graphics for
endorsement. In this type of endorser, marketers can use special effects,
cartoon characters and any other designs.

According to Miciak and Shanklin (1994), An endorser, one has to fulfill all the
FREDD principle, which are- Familiarity, Relevance, Esteem, Differentiation and
Deportment. FREDD is the result of a study interviewing many people around the
world to find out why brands and their advertising efforts succeed and fail.

(a) Familiarity- The first essential component of an effective endorser is

familiarity. The target market must perceive them as friendly, likeable and
trustworthy.
(b) Relevance- There should be some connection between the promoter and
the product, as well as between the promoter and the audience.
(c) Esteem- Consumers must have the utmost respect for the celebrity in
order for the commercial or promotion to be credible. It means credibility
to mass.

32
 (d) Differentiations- The public must see the endorser as different from all
the rest. In all his projections, he is seen to be one among the masses.
Overall concept is based on “He is different”.
(e) Deportment- The deportment principle explains about behavior of the
celebrity.

1.10. Brand
Brand creates a name, symbol, design that differentiates and identifies a product
from other product. This process is mainly through advertisement campaigns.
Main aims of branding established significant presence in the market.

1.10.1. Meaning of Brand

According to American Marketing Association (2007), brand may be a name,
term, design, symbol, or any other feature(s) that identifies one seller's product/
service distinct with other sellers. Trademark is legal term for brand. Brand is the
most valuable asset of any company or firm. Among the advertisers, general faith
is that brand communication messages delivered by well known personality or
celebrity generate a higher appeal, and attention rather than those delivered by
unknown or non-celebrity.

Celebrities also have been in demand for successful in being effective to grabbing
the attention and focus of the consumer. They also succeed in creating an
aspiration in the minds of the consumer to acquire what their ideal celebrity
endorses.

As per Economics Times (25 March 2009), in 2007, only 88 brands endorsed by
celebrities, while in 2008, more than 98 brands were endorsed by celebrities.
According to Muruganantham, G. and Kaliyamoorthy, S. (2005), “As a result of
the increase in celebrity advertisements in various media, India has become a
celebrity-obsessed society”.

Some products are created as a brand in themselves, like Ayurveda products.

These products needn’t or very less promotion and celebrity endorsement. These
products are made famous by people’s perception towards a particular item.

33
1.10.2. Characteristics of Brand
Brand have some unique characteristics/ features and differentiate themselves
from other products. According to Kothari et al. (2008), characteristics of brand
are followings
(a) Brand is the name of product
(b) It includes any symbol, term, design or a combination of them
(c) Brand is used for purpose of identification of marketers products or
service
(d) It is used to differentiate the product or service from those competitors
(e) The brand name is vocalized part of brand
(f) Every brand has its own personality
(g) When brand is registered it becomes trademark

1.11. Celebrity Endorsement for Brand

Today, use of celebrities as part of marketing communication strategy is fairly
common practice for major firms in supporting corporate or brand imagery. The
instrument of celebrity endorsement has nowadays become a pervasive element in
advertising and communication management.

In this new environment of marketing, consumers are surrounded by thousands of

voices and images in magazines, billboards, newspapers, websites and other
electronic media. Every brand is trying to steal a few time of a person to inform
him or her of the amazing and different attributes of the product. To hold
customer attention, celebrity endorsement is widely used in marketing strategy.
As per Katyal (2007), “Marketers and advertisers spend a lot of amounts on
celebrity endorsement contracts based on the belief that celebrities are effective
spokesmen for their brands or products”. As per Kambitsis et al. (2002),
“Celebrity Endorsement is seemed as a huge amount industry in present scenario”.
Celebrity endorser is a person who advertises a product, a person well known for
his/her achievements in areas which are different from the advertised product
category (Friedman and Linda 1979).

34
Endorsement is a method of brand communication. In endorsement, celebrity acts
as the brand’s spokesman and endorses the brand’s claim and position by
extending his/her popularity, personality, stature in the society or specialization in
the field to the brand. Celebrity endorsement may be used in market for national
and international brands, for making differentiation among them. From a long
time, many brands have been using concept of celebrity endorsement.

In modern age, people tend to ignore all kind of advertisements in the magazines
and newspapers or viewing TV. But thereafter, the glamour of a celebrity seldom
goes unnoticed. So that celebrity endorsement in advertisement and its impact on
the overall brand is of great significance. Every product creates their own image
and consumer tries to consume a brand which is closely related with his/her own
personality/image. So, celebrities are really the most influential icons that attract
people.

Many companies are investing large amount to align their brands and themselves
with endorsers. These endorsers are looking as proactive with both attractive and
likeable Ideal qualities and companies plan that these qualities are transferred to
the products by celebrity endorsement.

1.12. Celebrity Values

Celebrity branding is totally about the transfer of the value from the person to the
product. There are two aspects from celebrity. First he/ she maintains his
popularity and second depend on his/ her lifestyle. If celebrity is found in any
kind of scandal, that would change in the brand. Amitabh Bachchan and Shahrukh
Khan campaigning for ‘Pulse Polio’ which reflects the transfer of celebrity values
to the brand, creating an impact that generates recall.

1.13. Celebrity Endorsement as Strategies

The choice of suitable celebrity is very complex. The celebrity should have high
recognition and high positive affect. Sunney Leone is high recognition but she
may have a negative impact in many groups. Amitabh Bachchan, Sachin

35
Tendulkar, Shahrukh Khan could successfully advertise a large number of
products. Because they have high rating of credibility, familiarity and reliability.
Brands often use celebrities to get impact. Because they are seen by the public as
credible source of information about product or company and People aspire to the
values and lifestyles of celebrities. Celebrity endorser is a person who enjoys
high reputation and prestige, being known to most people. According to Raluca
(2012), “Celebrity endorsement is a relevant strategy for the product categories
which improve the image such as fashion, perfumes or cosmetics”. According to
Ericsson and Hakansson (2005), “Advertisers often use celebrities in advertising
due to their famous attributes (beauty, talent, athleticism, power, etc.) that often
represents the attractions desired for the brands they endorse”. According to
McCracken (1989), “Celebrity endorsement is an easy way to connect with
consumers”. As per Muruganantham and Kaliyamoorthy (2005), potentials of
celebrities may help the consumers to connect with the brand to purchase the
products at outlets and celebrities can reduce the time for consumer to move from
awareness to action.

Marketers want to turn celebrities in their relevant area. For example most of the
actors and actresses are engaged in fashionable and beauty relevant product, most
of the sportsmen are engaged in health related products. Besides endorsement,
celebrity can play major role in designing and positioning of product. For
marketers, using of celebrity endorsement may be little difficult. Contract fee of
celebrity may be very expensive.
Celebrity might lose their popularity when they are caught in scandal or unwanted
situation. For an example when Aamir Khan given statement in opposite of nation
(intolerance), many online campaign start to remove Snapdeal application from
their mobile phones, so snapdeal have to breach the contract with Aamir Khan,
and Incredible India (Tourism Campaign), Amitabh bachachan and Priyanka
Chopra replace Aamir Khan.

1.13.1 Types of Strategies-

(a) Endorse with celebrity
(b) Non- celebrity endorsement

36
 (c) And other ideas

1.13.2. Relationship between Celebrity and Brand

Celebrity endorsement is as one of the most popular tools of advertising in present
time. Celebrity endorsement has become a trend and looks as a winning formula
for product marketing and also helps in brand building. Celebrities help in
recognition of brand names, create positive attitudes toward the brand and create a
personality for the endorsed brand. The various point of celebrity endorsement, It
may be good and negative things that brings to endorsed brand.

1.14. Selection of Celebrity

Selection of right celebrity for a particular product is very complex for any
marketers. Some time wrong selection may reduce the worth for any product. The
selection of appropriate celebrity for advertisement is a complicated issue. The
Indians idolize their bollywood actors and cricketers. The advertisers see this as
an opportunity to grab and work on so as to expand their operations and promote
their product. Shimp (2000), put forward five factors in order of decreasing
importance namely, First celebrity credibility, Second celebrity and audience
match-up, Third celebrity and brand match up, Fourth celebrity attractiveness,
and Fifth miscellaneous considerations.

Selection Criteria
(a) Celebrity Product Match – Celebrity should match with endorsed
product. Celebrity is a mirror of endorsed product. So celebrities always
match with product features. For example Jhon Abraham image is
perceived like a macho man so he is more eligible for motor bike
advertisement.
(b) Celebrity Target Audience Match- Selection of Celebrity always
according to targeted audience.
(c) Celebrity Popularity- Celebrity popularity is always chance to encash
people’s attraction for advertisers or product manufacturer.
(d) Celebrity Credibility- Celebrity should be credible.

37
(e) Celebrity Values –Value of celebrity is always an important factor for
selection of celebrity.
(f) Celebrity Physical Attractiveness- Physical attraction of celebrity is a
primary criterion for selection. A good looking and physical fitness is first
impression of celebrity. It gives an image of product.
(g) Celebrity Regional and international Appeal Factors
(h) Others – Many other criteria should be match like-
 Costs of Acquiring the Celebrity
 Fit with the Advertising Idea
 Celebrity Availability
 Celebrity should be Brand User
 Previous Endorsements
 Interest of endorser
 Unique Idea of promotion

38
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advertising.html#ixzz2cRIWyxNa
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Updated-Estimates-Forecast-20152020/2001916)

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42. http://www.entrepreneur.com/encyclopedia/trade-shows
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 Chapter – Two

Effect of Celebrity Endorsement on Consumer

Behaviour with Special Reference to FMCG

Products
 Chapter – Two
Effect of Celebrity Endorsement on Consumer Behavior
with Special Reference to FMCG Products

2.1. Introduction to FMCG

FMCG (Fast Moving Consumer Goods) are those goods which are purchased by
the consumers/ buyer for their use and purchased regularly. FMCG Products are
non durable and perishable product. They have very short life time. Life time of
FMCG products may be less than one year. For example some are- Dairy
products, toilet soap, packaged foodstuff, detergent, toothpaste, cosmetics,
shaving products, shampoo and household accessories and it may extend to
certain electronic goods. FMCG products are also known by “packed goods” and
“Consumer packaged goods” that are sold and consumed at regular and small
duration. Buyers/ consumers are buying these products on daily basis or weekly
basis in little quantity. The price of such products per unit is low. FMCG products
consumption is very high due to requirement of every one on regular basis and
large in number of consumers. The transformation of the retail market is likely to
have a long-lasting impact on wholesale trade and the distribution of FMCGs.
Logistics companies that provide a wide range of complementary services will
play an increasingly more important role in the distribution of FMCGs (Srinivasu,
2014).

India’s FMCG sector creates employment for more than 30 lakh people in
downstream activities. FMCG products are household care, personal care and
food and beverages. According to The Indian Express (2013), present time FMCG
sector worth approximately ₹ 3710 billion, contributing 4.8 per cent to the GDP
and market size of the Indian FMCG sector is expected to reach approximately ₹
9400 billion by year 2020. According to Financial Express (May 2008), Fast
Moving Consumer Goods (FMCG) industry is achieved 14.5 per cent growth in
sales during year 2007-08. In present time, it maintains a good growth rate. The
biggest change in the FMCG industry was the ‘sachet’. In recent year many

43
biscuit companies, shampoo companies, hair oil companies, chocolate companies,
detergent companies and many others FMCG companies have introduced
products in smaller package, for lower price. By these strategies producers
enhance their product in more hand.

Concepts of FMCG
According to Kotler (2003), this sector is characterized by products having low
unit value and requiring frequent purchases and consumer behavior reflecting less
loyalty, impulse buying, and low involvement.
As per to businessdictionary.com, FMCG products are frequently purchased
essential or non-essential goods such as food, toiletries, soft drinks, disposable
items.

2.1.1. Market Size of FMCG Sector in India

According to India Brand Equity Foundation (article updated 2017), the overall
fast moving consumer goods (FMCG) market is expected to increase more than
14.7 per cent growth rate during 2012-2020. The rural FMCG market will be
touch approximately ₹ 6400 billion during 2012-2025. According to The Indian
Express (2013), FMCG sector worth approximately ₹ 3710 billion, contributing
4.8 per cent to the GDP and market size of the Indian FMCG sector is expected to
reach approximately ₹ 9400 billion by year 2020.

2.1.2. FMCG Products Segments- FMCG Products are divided in three main
categories respectively House hold, Personal & Health care and Food & beverages
products. According to India Brand Euity Foundation (article updated on 2017)
Food products is the leading segment, covered around 43 per cent of the overall
FMCG market and other 22 percent market covered by Personal care products.

(a) Household Care- Household care segment is featured by intense

competition and high level of penetration. This segment has 10 per cent
part of total FMCGs industry. Local and unorganized players account for a
major share of the total volume of this market. With rapid growth in
urbanization and emergence of small pack size (sachets) the demand for

44
 the household care products is on boom. Major players are HUL, Nirma,
Henkel and Proctor & Gamble.
(b) Personal Care- This segment includes personal wash products, hair care
products, oral care products, cosmetics etc. It has 20% market share of all
FMCGs sector. Indian skin care and cosmetics market is valued approx
$274 million and major players are HUL, Colgate Palmolive, Gillette India
and Godrej.
(c) Food and Beverages- Market share of this segment is 53% among
FMCGs industry. This is very huge rather than other. This segment
includes food processing industry, health beverage industry, bakery
products, confectionery item, mineral water and packed drinking water
and frozen items. The three largest consumed categories of packaged
foods are packed tea, biscuits and soft drinks. The major share of tea
market is dominated by unorganized players. Major leading branded tea
players are HUL and Tata Tea. Big players in food segment are HUL, ITC,
Amul.

Figure 2.1: FMCG Industry Category Breakup

(Source: Federation of Indian Chambers of Commerce and Industry (2009), http://ficci.in/)

45
FMCG Category and Products- We can easily see following category of FMCG
products.

Category Products

Food and Beverages Health beverages, Soft drinks, Bakery products, Snack foods,
Chocolates, Ice creams, Tea, Coffee, Soft drinks, Fruit,
Vegetable, Dairy products, Bottled water, Branded flour,
Branded rice, Branded sugar, Juices, etc.

Household care Fabric wash (Laundry soap and Detergent), Household cleaners
(Dish cleaners, Floor cleaners, Air fresheners, Insecticides,
Mosquito repellants) Metal and furniture polish, etc.

Personal Care Oral care, Health care, Skin care, Soap, Cosmetics, Toiletries,
Deodorants, Perfumes, Paper products, Feminine hygiene, etc.

Table 2.1: Category of FMCG Products

(Source: India Brand Equity Foundation (2016), http://www.ibef.org/industry/fmcg-presentation)

2.1.3. Characteristics of FMCG- Researcher describe about two side of

characteristics of FMCG which are following

(a) Buyer Side

 Quick buy
 Low price
 Less think
 Purchase few unit of goods

(b) Marketer Side

 Sale volumes are high
 Low profit
 Huge networks

46
2.1.4. FMCG in India
India is one of the fast developing economies in the world. Population and area is
very large of India. Population of India is more than 125 crore and it is approx
17% of whole world. According to Gupta and Roy (2012), India represents
world’s 12th largest consumer market and the FMCG Industry in India is worth
more than approximately ₹ 832 billion making it the fourth largest sector in the
economy. According to Mckinsey Global Institute report (2007), “The Bird of
Gold: The rise of India’s Consumer Market”, predicts that by 2025 India will
become world’s fifth largest consumer market.
After liberalization in India, Indian market has witnessed outstanding growth. The
government has always been proactive in its strategies to make the future of
Indian market lucrative and attractive. The industries are of different types and
markets can be different types as urban, sub- urban and rural markets. The rural
market is very wide in India. Now many transport facilities are available but still
it is difficult to cover whole area. Approx 70% of Indian population is living in
rural areas. It is a big opportunity for companies in Indian markets including
FMCG sector for the companies in Indian markets. FMCG sector is the fourth
largest sector in the Indian economy and creates employment for more than 3
million people in downstream activities (Solomon 1995).

2.1.5. Rising in Urbanization

India has 70% of its population living in rural areas. Due to rising of urbanization,
more people will have exposure to modern products and brands and their tendency
shift to branded and packaged goods and products.

Figure 2.2: Rising in Urbanization

(Source: Federation of Indian Chambers of Commerce and Industry (2009), http://ficci.in/)

47
By 2015, an additional 7.50 crore consumers will have moved into cities, not only
buying FMCG products for themselves but also act as a pipeline for information
and goods to their families still in rural India.

2.1.6. FMCG in Urban Area

In India, urban sector represents 67 percent of total FMCG sector. And growth of
urban market is at 8 percent in 2013. Total market size of urban market is
approximately ₹ 1900 billion. Urban consumers will continue to be affected by
the macroeconomic environment.
Urban consumers are looking to actively improve their lifestyles and provide their
families health and wellness. According to Nielsen survey report, ‘In year 2013,
among the emerging categories were health and wellness focused categories like
olive oils (36% value growth), milk foods (19%), sugar substitutes (19%) and
breakfast cereals (14%).

Indian urban consumers have access to over 800 TV channels and are inundated
by over 3000 messages a day across online and offline media. The more than 5
crore smart phone users have access to content on their fingertips. In urban India,
17% of consumers have a smart phone. Up to 41percent of online FMCG
consumers access the internet as part of their pre purchase ritual.

2.1.7. FMCG in Rural Area

Rural marketing is a very wider term in itself. It is the marketing which is
specially meant for the rural people and the products. Villages are heart of Indian
Markets where farm products and other products are produced. Later, these
products are sent to targeted consumer markets like shopping center, super
markets. Indian rural market with its huge size and on the demand base it offers a
big opportunity that companies cannot ignore. India is a country with more than
125 crore people of which 70% live in rural areas which means more than 85
crore people live in around 6,00,000 villages (Sharif 2011). The government of
India designs a new road map for the development of Indian agricultural sector
that will facilitate growth of rural FMCG industry. Indian government take
decision to waive off loan (Union Budget 2008-2009) of 60,000 crore rupees

48
would help for better crop production in India. Growth will come from rural
inhabitants that are expected to see increase in more spendable incomes due to the
direct cash transfer scheme. Several companies are trying to reach out to rural
consumers and exploring alternative cost effective channels. Direct selling
through company delivery vans and also focus on setting up of temporary stalls in
Rural Fair / Haat Bazar. BPCL specially designed Vehicle, which moved from
villages to villages to fill cylinders on spot.

2.1.8. Market Share of Urban and Rural Market in India

According to India Brand Equity Foundation (IBEF, July 2017), in India, with the
special references to FMCG market, Urban market account approx 60 percent and
rural market size is 40 percent to the overall revenue generated by the FMCG
sector in India . Urban market growth rate is 8 percent while rural market growth
is more than urban market, at 12.2 percent.

Figure 2.3: Urban/Rural Industry Break-Up

(Source: India Brand Equity Foundation (2016), https://www.ibef.org/industry/urban-market-
india.aspx)

2.1.9. Major Players of FMCG in India

Major Players in this sector include Dabur India, Nestle India, GCMMF (AMUL),
Britannia Industries, Asian Paints (India), Proctor & Gamble Hygiene and Health
Care, Hindustan Unilever Ltd., ITC (Indian Tobacco Company), Marico

49
Industries, Nirma, Coca-Cola, Pepsi, Cadbury India. And a new emerging player
in Indian FMCG market ‘Patanjali Ayurved’ with the value of approximately ₹ 30
billion in 2015-2016. Analysis by ASSOCHAM, Hindustan Unilever Ltd and
Dabur India derived half of their sales from rural India. And Colgate Palmolive
India and Marico constitutes nearly 37% respectively, however Nestle India Ltd
and GSK Consumer originated 25 per cent of sales from rural India, (Singh 2014).

FMCG Companies Operating in India

Companies Electronics Brand FMCG Retail Outlets
in India Operating in India

Britannia ITC LG Food world

Procter & Gamble Heinz Samsung Subhiksha

Coca-Cola Reckitt Nokia Landmark

Benckiser
PepsiCo Nestle Motorola Health & Glow

Wilkinson Unilever Sony Shahnaz Hussain

Lakme Tata Tea Videocon Samsung

Amul Marico Panasonic

Dabur Philips

Kissan Canon

Parle

Table 2.2: FMCG Companies Operating in India

{Source: Nagarajan G. and Sheriff J. Khaja (2013),“Emerging challenges and prospects of FMCG
product development in India”, International journal of marketing, financial services &
management research, vol.2, no. 1, ISSN 2277- 3622)

2.1.10. Impacts of FMCG Sector in India

All sectors are helping in the growth of economy at their level. According to
Federation of Indian Chambers of Commerce and Industry (FICCI), FMCG is also

50
contributing on very large scale for growth and development of Indian economy
and social development. FMCG sector is helping in following area.
(a) Employment- India has a big market of “Kirana Shop”. Approx 90 lakh
retail shops are Kirana Shop. Thus this sector provide livelihood to 1.30
crore people.
(b) Social Contribution- This sector helps to create employment for those
people who have low educational qualification. It encourages many to set
up their Kirana shop. Apart from this, some FMCG companies undertake
specific project for development like ITC e-choupal, HUL Shakti Amma
Network, Hariyaali Kisaan (DCM shriram).
(c) Generate Tax Revenue - FMCG sector is India’s fourth largest sector and
contain approximately 4.5 percent of GDP so it generate a huge amount of
tax revenue by direct or indirect taxes.

2.1.11. Challenges in FMCG Sector

Federation of Indian Chambers of Commerce and Industry (FICCI) also explained
that in FMCG sector face many issues and challenges. Few challenges faced by
FMCG sector players in India are as follows.
(a) Tax Structure- Complicated tax structure, high indirect tax, lack of
uniformity, entry tax, high octroi and changing tax policies.
(b) Infrastructural Bottlenecks- Agriculture infrastructure, power cost,
transportation infrastructure and cost of infrastructure.
(c) Cyclical of Rural Demand- In India, rural demand is cyclic in nature and
it totally depends on monsoons or weather conditions.
(d) Low Export Level- Highly demand is raised by product quality and price.
Many products do not fulfill foreign desire or their terms. So it creates low
export of FMCG products.
(e) Counterfeits – Lack of literacy of consumer so manufacturer can churn
easily. According to research agency AC Nielson, FMCG Industry which
ends up loses approximately 15% of its revenue around 2500 crore.
(f) Emergence Competitor – The biggest fear is facing the competition of
same competitor.

51
 (g) Regulatory Constraints - Requirement for multiplicity of permits and
licenses. The Indian labor laws were drafted in the 1940s and take no note
of modern manufacturing methods and strategies. Obtaining of
manufacturing licenses is such a long and complex process. Generally it
takes approximate one year to get multiple licenses and to set up a
manufacturing unit. Reservation of jobs for employees creates many
problems. Export procedures are very complex and lengthy.
(h) Price of Inputs- Due to weather condition raw material prices fluctuate, it
create difficult to finalize price of the product. Indian consumers are more
price-sensitive and value conscious, making it difficult for FMCG firms to
pass on the increased costs, leading to depressed margins.

2.1.12. Opportunities in FMCG Sector

(a) Large Market- India has second largest population, approx 1.20 billion.
According to estimates India will surpass china population in 2025. And
become world’s largest populated country. FMCG industry is directly
related with population. But we have to maintain proper growth in this
sector.
(b) Huge Rural Market- In India, more than 70% population lives in
villages. And cover approx 50% of FMCG market.
(c) Low Cost of Labour- India has one more advantage that is low labour
cost. It helps to present product at low cost rather than other countries.
(d) Increase in Income Level- In India income level of consumer is growing
and it helps in enhancing the purchasing power. So consumer is more
demanding for FMCG products.
(e) Large Young Generation- India has a big pool of young generation. They
are moving to change their life style and become more materialistic.

2.2. Consumer Buying Behavior

In present scenario, study of consumer behavior has become the most important
factor for marketers and manufacturers. Present days consumers are kings of
markets. No business organization can run without consumers. All the activities of
the business are focused on consumers and consumer satisfaction. Buying

52
behaviour is the decision process and activity of people involved in buying and
using products. For marketers, consumer behaviour is most important part in
marketing. The study of consumer behavior helps the marketer to understand
about consumers thinking, feel and select from alternatives products, brands and
how the consumers are influenced by their environment, reference groups, family,
and salespersons, reference groups and others. In the word of Solomon (1995),
“Consumer is the study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or experiences to
satisfy needs and desires”.

2.2.1. Factors of Consumer Buying Behaviour

The main purpose of companies is maximizing market share and profit of their
products. Making of marketing strategies is very difficult as it is affected by many
factors related to consumer behavior. Here are describing four main factors which
affect consumer behavior. Buying decision is the result of each and every one of
these factors.

Cultural

Consumer
Social Buying Behavior Psychological

Personal

Figure 2.4: Factors of Consumer Buying Behaviour

(Source : Rani P. (2014), “Factors influencing consumer behavior”, Excellent Publishers, int. J.
Curr. Aca. Rev. 2014;2(9): 52-61)

(a) Cultural Factors

Cultural sub cultural and social class is very important factor in purchasing
decision. These factors have affected on consumer buying behavior
 Cultural- Cultural factors have a lot of importance when it comes to
understanding the needs and behaviors of and individual. Generally,

53
 culture is the part of every society. An individual is influenced by his,
family, friends, society, cultural environment that will teach him values,
preferences. For a brand, it is important to understand the cultural factors.
Understanding of cultural factors is also useful for adapting its marketing
strategy. Influence of culture on buying behavior may vary from country
to country. So marketers have to be cautious in analyzing the culture of
different groups, regions or countries. Many companies are using
marketing strategies considering that, cultural behavior of consumers. For
example, so many foreign brands, like KFC has been moving its strategy
according to local preferences in India. It would appear that KFC,
synonymous with chicken across the world, is turning 'vegetarian' in India.
Not only KFC's is moving to introduce vegetarian products but also KFC
competitor McDonald's is too using this strategy. McDonald's is offering
veggie items such as McAloo Tikki Burger, McVeggie and more.
 Sub-Cultures - Society is a bucket of several subcultures in which people
can identify. This subculture may be based on religions, geographic
regions, nationalities, racial groups etc. Marketers are using these groups
as a segment in different markets. So marketers can design various
products according to the needs of a focused group. For example Horlicks
is a famous brand in India for health and nutrition supplement, is now
targeting different age and gender group like Junior Horlicks, Women
Horlicks, Mothers Horlicks etc. And other famous brand Emami beauty
cream is also targeting their customer according to gender wise like fair &
lovely for women and fair and handsome for men.
 Social Class is defined as a heterogeneous or very less homogeneous
group in a country, region or geographical area or in society. This class is
determined by income, wealth, lifestyle, education. The consumer buying
behavior may also change according to social class. Those consumers who
belong to lower class, they are more focused on price. While those
consumers who belong to high class they are focused on product quality.
Price does not affect on them. For example car makers, they launch their
product according to class of customers.

54
(b) Social Factors
It explains the outside factors which influences of others on consumer/ buyer
purchase decisions which may be direct or indirect. Social factors are among the
factors influencing consumer behavior significantly. It includes- family, social
roles and status and reference groups.
 Family - Family is one of strong factor which can highly impact the
consumer of his/her purchasing decision. Family is the most influencing
factor for an individual. So marketers are trying to find out the roles and
influence factors. In Indian scenario we perceive that father, mother or any
elder person in family take decision for their children. Consumers accept
this family decision as a mutual consent.
 References Group - These groups are usually related to its social origin,
age, place of residence, work, hobbies, leisure, etc. Within a reference
group that influences the consumer buying behavior, several roles have
been identified - Initiator is person who suggests buying a product or
service. Influencer is a person whose advice will influence the buying
decision. but on which group members rely on. Decision-maker: the
person who will choose which product to buy. In general, it’s the
consumer but in many cases it may be another person. For example, a
leader of a group decides to purchase same dress for their group. Buyer: is
a person who will buy the product.
 Social Roles and Status - Every person has a different status in the
society and this position of an individual within his family, work, country
club and group of relatives etc. for example a celebrity or a famous person
does not fit with small and inexpensive cars like maruti Suzuki alto would
be taken less seriously by its followers or customers than if he is driving a
luxury car. This kind of behaviors and influences can be found at every
level and role and social status.

(C) Personal Factors

These factors also affect on consumer behavior. Personal factors that influence the
buying behavior are: age and life cycle, Occupation, economic situation,
personality, lifestyle, and self concept.

55
 Age and Life Cycle- It has positive impact on the consumer buying
behaviour. The age of consumers is determined by the type of clothes,
music, food and other activity which he/she likes. A consumer does not
buy the same products or services at 20 or 70 years. Life cycle is shown
different stages such young singles, married couples, unmarried couples
etc. It helps marketers to develop suitable products for each stage. For a
manufacturer or shopkeeper have to identify, understand, measure and
analyze what are the criteria and personal factors that influence the
shopping behavior of their customers. For example, it is easily possible
that two different cities consumers do not have the same behavior and
purchasing habits. For a manufacturer or retailer, have a deep
understanding about these differences to increase sales.
 Occupation- Occupation is one of the significant impacts on consumer for
his buying behavior. For example a manager of MNCs will try to purchase
business suits while a low level worker in the same will purchase normal
work clothes.
 Economic Situation- Economic situation may put high impact on
consumer’s behaviour. If a customer economic condition is good, he can
purchase expensive products. While a person whose economic condition is
not good, he will prefer cheaper products.
 Personality- This is a crucial factor which can change from person to
person, time to time and place to place. It can greatly influence the buying
behavior of customers. According to Kotler et al., (2009), Personality is a
set of differentiating psychological characteristics that lead to relatively
consistent a long lasting response to environmental stimuli.
 Lifestyle- This is an important factor consumer buying behavior. Lifestyle
refers to expression of a person by the things in his/her surroundings.
Lifestyle is determined by customer interests, activities, opinions etc.
 Self Concept- Individuals have a specific perception and image of
themselves. These self concept or self image is closely connected to the
personality of the product or service patronized by him. Each individual
self image will be unique based on his/ her background and experience and

56
 knowledge. This knowledge is gained from various persons over a long
period.

(d) Psychological Factors

Psychological factors are internal to an individual and generate forces that
influence consumer/ buyer buying behavior. It affect our purchase decision
including - Motivation, perception, learning, beliefs and attitudes.
 Motivation – Person has many needs at different times, some basic needs
are air, water, cloth, food and shelter for living a life. A motive is a need
that is sufficiently pressing the drive in a person to act (Kotler 2008).
Consumers at any particular time are generally influenced by a set of
motives rather than just one motive.
 Perception - Perception is very important factor that influence on
consumer buying decision. This is a process by which people select,
organize and interpret information in the mind. Perception of a situation at
a given time may decide if and how the person will act. Three different
perceptual processes which are selective attention, selective distortion and
selective retention. Selective attention is a process by which marketer tries
to attract the customer attention. Selective distortion leads people to
interpret situations in order to make them consistent with their beliefs and
values. Selective retention refers to the marketers try to retain information
that supports their beliefs (Asifo Shah, 2010). Perception of two person
may be different. Because each individual will have a different perception
based on his experience, state of mind, beliefs and attitudes.
 Learning- This is viewed as a relatively permanent change in behaviour
occurring as a result of information and experience. As per Schiffman and
Lazar (1987), this is a process by which a person acquires consumption
and purchase knowledge, and experience they apply to future related
behavior. If we get bad affect after drinking cold drinks, we have a
negative experience. We learn that we should not drink cold drinks.
Therefore, we don’t buy cold drinks in future. Consumer behavior is
affected by external and internal influences. External influence include

57
 cultural and social factors, while internal influences include consumption
choice such as age choice etc.
 Beliefs and Attitudes- Customer have distinct belief and attitude towards
various products. These beliefs and attitudes make up brand image and
affect consumer buying behavior. So marketers are interested in this belief
and attitudes. Marketers can change the beliefs and attitudes of customers
by launching special campaigns.

2.2.2. Buying Participants

It is very difficult task for marketers to identify actual buyers who makes final
decision of buying. Marketers have to identify their targeted customers to make a
good strategic plan. Active buying participant are-
(a) Influencer- Many people are connected with product purchase decision.
But they all are not consumers. So influencer is a last decision making
person, whose advice is important at the time of product purchasing.
(b) Initiator- First person, who think purchase or buying product and service.
(c) Gatekeepers- Whose recommendation and information about a particular
product and service. They could be friends, family members and others.
(d) Decider- Actual person who take decision about the product or service,
what to buy, where to buy, How to buy it.
(e) Buyer- A person who pays amount for purchasing a product or service.
(f) User- User is a final person who consumes the product or service.

2.2.3. Consumer Buying Decision Process

Behaviour of consumers towards products and services may be different. It is very
complex process for marketers to understand consumer’s needs. Final goal of
marketers is customer’s satisfaction, so marketers main work is develop product
and service according to customers need and satisfaction. The theories of
consumer decision making process assume that the consumer’s buying decision
process depend on the steps through which the buyer passes in purchasing a
product and service. It may be possible that some steps are not involved in this

58
process but generally, when a customer purchases any product, he goes through a
decision process.

Problem and Need Recognition

Information Search

Evaluation of Alternatives
Purchase Intention Non Purchase
Decision
Purchase Decision

Post Purchase Behaviour

Figure 2.5: Consumer Buying Decision Process

(Source: Maria (2009), “The buying decision process and types of buying decision behavior”,
Sibiu Alma Mater University Journals, Series A. Economic Sciences – Volume 2, No. 4)

Consumer Buying Decision process is sequential process and based on consumer

desires and based on further action towards a product or service. Process of
consumer buyer decision process is following

(a) Stage 1: Problem and Need Recognition

This Process starts when buyer becomes aware of an unsatisfied need or problem.
This problem and need can come up with internal as well as external stimuli. This
is a result when buyer recognizes a difference between perceived benefits and
actual benefits derived from a product or service. Internal stimuli may be hunger
thirst etc. External stimuli may be from outside environment that impact on you to
'do' something. For an example, when a new mobile launch in market or
commercial advertisement, buyers try to buy it. According to Kotler et al. (2009),
sometimes many advertisers try to create new or different kind of need and
problems for consumers to initiate the decision making process. This situation can

59
be created to make customer unhappy with his current status. Marketers can
develop this situation by gathering information from consumers.

(b) Stage 2: Information Search

After recognizing the existence of unsatisfied need the next stage is information
search and identification of alternatives. Information is to know about a service,
prices, stores and other things. After having a particular problem or need, a
consumer second step is how to resolve it. Generally two types of information
search, first is heightened attention and second is active information. A consumer
simply becomes more observant information, advertisement, purchase by friend
and conversation about the subject in question. Asch and Wolfe (2001), describe
about four types of consumer information source which are- personal source,
commercial source, experiential source and public source. Generally consumers
get maximum information through commercial source which includes
advertisements, display etc. Each source may have a different purpose in affecting
buying behavior. Marketers should identify this information source. Which helps
to prepare effective marketing communication to targeted consumers.

(c) Stage 3: Evaluation of Alternatives

After gathering information on occurred problem a consumer must evaluate the
alternatives which are available. This is buyer activity to compare alternatives
cautiously on the basis of certain criteria. Sometimes it is very hard decision to
select alternatives, because there are many alternatives.

(d) Stage 4: Purchase Decision

Fourth stage of the consumer decision-making process is purchase decision. This
decision is the result of evaluation, and involves the process of selecting the most
desirable alternative from a set of options. This is the stage when the consumer
prefers the most promising brand in many brands. That a consumer has generated.
The most suitable choice is the one that comes closest to the evaluation criteria
formulated by the consumer. The most attractive brand, that can offer more
benefits in relation to price paid, is selected by comparing one brand with other.
Purchase decision involves many sub decision which are: brand decision, vendor
decision, quantitative decision, time decision and payment decision

60
(e) Stage 5: Post Purchase Behaviour
Post purchase behaviour of customer/ consumer is a very important factor. The
term “Post Purchase Behaviour” refers to customer/consumer behaviour exhibited
after the purchase decision. Consumer experienced a level of satisfaction or
dissatisfaction after purchasing any product. This satisfaction or dissatisfaction
level is very important for marketers to get feedback about the product. This
satisfaction level is a function of the closeness between buyer’s expectation and
product performance (Priscilla and Mazursky, 1983). If consumer is satisfied with
these products, there will be higher probability of purchasing same product. And
if he feels dissatisfied with the product, he will not purchase same product next
time. This phenomenon is called cognitive dissonance. This phenomenon helps to
attract user and convert in their brands.

61
References

Books, Journals, Newspapers and Magazines

1. Asch, D. & Wolfe, B. (2001), “New economy – new competition : the rise
of consumer”, Palgrav, New York
2. Gupta, R. & Roy, R. (2012), “Ingredient branding: A differentiation
strategy for FMCG companies”, Asian Journal Of Management Research,
ISSN 2229 – 3795, Volume 2, Issue 2
3. Kotler, P. (2003), “Marketing Management”, 11th Edition, New Delhi,
Prentice Hall India.
4. Kotler, P. (2008), “Marketing Management”, Pearson Education Inc,
Singapore, P. 195
5. Kotler, P., Keller, K., Koshy, A. & Jha, M., (2009), “Marketing
Management : A South Asian Perspective”, 13th Edition, Pearson Prentice
Hall, New Delhi.
6. Maria (2009), “The buying decision process and types of buying decision
behavior”, Sibiu Alma Mater University Journals, Series A. Economic
Sciences – Volume 2, No. 4
7. Nagarajan, G. & Sheriff, J. (2013),“Emerging challenges and prospects of
FMCG product development in India”, International journal of marketing,
financial services & management research, vol.2, no. 1, ISSN 2277- 3622
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Consumer Satisfaction / Dissatisfaction: The Dynamic Aspect of The
Cognitive Process”, Journal of Marketing[25]
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Edition, Prentice Hall Inc, P 142
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 Availability) in reference to FMCG Companies in Rural India. (A Case
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Websites

15. http://ficci.in/
16. http://ezinearticles.com/?Factors-Affecting-Consumer-Behavior&id=
4602848
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ficci/312211/
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costefficiency/
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25. www.thehindubusinessline.com/

63
 Chapter – Three

Review of Literature
 Chapter - Three
Review of Literature

3.1. Introduction
Relevant literature study is very useful in understanding the research problems.
This is useful to get what research exploration others have done. How they have
dealt with related research problems. It is a explanation of the literature relevant to
specific topic or field. It creates a picture that what has been said by others, what
are the current theories and hypotheses, what questions are being asked in which
form are appropriate.
A literature review is a text written by someone to consider the points of current
knowledge including substantive findings, as well as theoretical and
methodological contributions to a particular topic. Researcher has used much
knowledge of other authors, findings and conclusions, which is relevant to the
research work. These findings and conclusions were collected from various
sources.
This section covers all related written topics like books, newspaper article,
journals, historic report, old thesis, and electronic or other published or non
published data.
Following are main purposes of using review of literature:
 It gives meaningfulness and importance in research work.
 It provides a way for future research work.
 Literature of review helps in understanding the variables which are used in
research work.
 It also describes about contradiction and gap in particular topics or
research work.

3.2. Research Gap

In this manuscript the researcher conducted suitable research which covers and fill
the gap in the review of literature. This study introduces the literature of celebrity
impact on consumers especially in FMCG goods. Most of the previous researches
64
 on the Impact of celebrities through advertisement were focused on celebrity
positive effect on consumers/ customers but there has been limited research in the
area of FMCG sector especially to consumer desires and marketing strategies,
trustworthiness of celebrity and satisfaction level towards FMCG products. Most
of the researchers have focused on the traditional marketing mix concept and
ignored closely impact of recommendation aspect while formulating the
marketing plans. This study focus on consumers desires in advertisements and
consumer behaviour in purchase of FMCG products to fill this gap.

Previous Researches/ Literatures Research Gap Desired

 Usability of celebrity  Level of trustworthiness

 Credibility of celebrity
endorsement in product(s) of celebrity statement to
endorsement to promote
introduction/information support FMCG product
FMCG product(s)
 Positiveness of celebrity endorsements
 Negative impact on
appearance in promotion  Formulation, implication
celebrity image after
of FMCG product(s) and evaluation of ethical
promotion of misleading
 Importance of the strategies for avoiding
advertisements
relationship between the misleading
 Viewers connectivity with
characteristics of the advertisements endorsed
advertisements by
celebrity and the qualities by celebrity especially
electronic/ print/ other
of the FMCG product(s). FMCG products
media of advertising
 Satisfaction level of
 No usages / lack of
consumers towards
implication of ethics in
FMCG products as
celebrity endorsement
endorsed by celebrity
advertising to FMCG
product(s)  Importance of other
 Lack of implication of factors of marketing,
recommendations of except celebrity
previous researches. endorsements.

Figure: Research Gap Model of the Study

(Source: Field survey)

3.3. Study of Previous Researches

 Jain V. (2011), in his dissertation “Celebrity Endorsement And Its Impact
On Sales: A Research Analysis Carried Out In India” focuses on
examining the perception of these Indian Consumers about the celebrity
endorsement process and the subsequent impact on their purchase
decisions. Indians assume and search their idol in many bollywood
65
 actors/actress and cricketers. And advertisers see this perception of people
as big opportunities to grab and work on so as to expand promote their
product. This study implies that Celebrity Endorsement has an impact on
sales only to a small extent and that Celebrities should not always be used
to endorse brands of various products. Although, this study has a positive
inclination towards the belief that people are motivated to buy products as
a result of celebrity endorsement. Moreover the respondents also strongly
agree that celebrities bring brand equity. This research also indicates that
celebrity endorsement helps in brand promotion. Finally he concludes that
there’s no harm in using celebrities for the endorsements. In my study, I
observed that many people assume celebrity endorsement is useful for
introduction of new product. In Indian context, where people like
celebrity’s style and want to become like them, so advertisers use this
strategy for selling their product(s).

 Stonkiene E., Banyte J. and Piligrimiene Z. (2011), in their study in

“Selecting Celebrities In Advertising: The Case Of Lithuanian Sports
Celebrity In Non Sport Product Advertisement” Seeks to explore the
stages of the whole process of celebrity selection by drawing together
strands from the literature. Celebrity endorsement is a prevailing
advertising technique. The study is based on these questions, 1 How to
select the right celebrity. 2 How to avoid the potential pitfalls with the
celebrity endorsement. As the results of these efforts, they present
“conceptual three-stage model” for selection of celebrity endorsers. The
first stage involves identification of the possibility of using the celebrity
endorsement and embraces such points of consideration as meaning
transfer, product differentiation level, consumer involvement level,
questions of brand positioning and repositioning, introduction of new
brand, entering global campaigns and other. The second stage involves an
evaluation of celebrity’s suitability for product / brand endorsement. It
embraces eight main criteria for celebrity selection, like audience match
up, brand match up, attractiveness, respect, familiarity, trustworthiness,
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 expertise, and liking. The third stage covers the assessment of possible
risks, related with the use of celebrity endorser. The model involves not
only the celebrity selection criteria, but also identification of possibility for
using celebrity endorsement and evaluation of potential risks related with
the endorser. Another purpose of this paper was to explore the consumer’s
perspective on celebrity endorsement. In present scenario these three
stages help to select suitable celebrity for a particular product, like in
Pepsi advertisement, they show young generation is more advanced
rather than aged people. Young generation prefers to use some of these
products (Coca Cola, Pepsi, Perfume/ Deodorant) for style and symbol.

 Sahay A. and Abhishek (2013), in their paper “Role Of Culture In

Celebrity Endorsement: Brand Endorsement By Celebrities In Indian
Context” they use the lens of culture to develop propositions on how
customer attitude towards celebrity endorsements is a function of cultural
parameters in emerging countries like India. Culture has long been
believed to be the force that influences people in a society to follow the
norms of their collective identity. The purpose of this paper was to review
and synthesize the literature on celebrity endorsements in the light of
widely differing practices in nature and quantity of use of the phenomena
between developed and emerging markets and to develop a set of
propositions that explain the difference using the lens of culture. This
paper contributes to the notion of congruence between the celebrity and
the consumer as a driver of effectiveness of celebrity endorsements and by
offering propositions using the dimensions of culture (like individualism-
collectivism, power distance and long term orientation) to suggest ways in
which this congruence manifests itself. Mc Donald present different
menu country to country, in America, pork and beef is most in their
menu, while in India, Mc Donald selected vegetarian in their menu. And
both vegetarian and non vegetarian items cooking process is separate.
And coca cola also shows an advertisement that glorifies hospitality. For
example the advertisement of Coke featuring Deepika Padukone sitting
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 at a guest’s home and shamelessly consuming a bottle of Coke without
paying much attention to the host. In Indian culture which is practically
not acceptable and not welcomed. So these types of advertisements look
unrealistic and unacceptable.

 Rosca V. (2010), in this study “Celebrity Endorsement In Advertising”

aims to study the particularities of tennis endorsements using the case of
Roger Federer, one of the best tennis players in history and one of the best
business partners in the world of sports for sponsoring companies.
Endorsement is the most profitable income source for professional
athletes. In tennis, where athletes are individuals, not playing or
contributing for teams or clubs, endorsement is the main sponsoring
possibility of a player. For some professional tennis players, endorsement
deals are an important income source. Endorsements help the athletes gain
more money and mostly build them a positive brand image. In my study,
where many respondents choose athlete person and sport person for
endorsement products. Endorsement is main source of earning of any
celebrity for an example after cricket world cup 2011. Mahendra singh
Dhoni emerging India's biggest celebrity, Mahendra Singh Dhoni made
an unprecedented $2.65 crore. Only a small portion of that payout, about
$35lakh, comes directly from Dhoni's on-field play (Article published
on26 july, 2012 in forbes).

 Okorie N., Oyedepo T. and Akhidenor G. (2012), in their paper in “The

Dysfunctional and Functional Effect of Celebrity Endorsement on Brand
Patronage” The use of celebrity endorsement as a functional approach in
brand communication becomes successful when the organization has
invested in planning, research and brand monitoring. Also, the use of
celebrity endorsement must be accompanied by a powerful idea, effective
and impeccable positioning to promote the brand in an excellent light. In
an advertisement of Zandu Pure Honey, Featuring with Sakshi Tanwar,
she ensures us ‘No Added Sugar Honey’ which we can test. It is purest

68
 honey that has been scientifically tested and also proof for the same that
we can check. Sakshi Tanwar shows barcode in this advertisement,
which is a proof of safety assurance of Zandu Pure Honey.

Step 1

Step 2

Step 3

Image 3.1: Zandu Honey Purity Test

(Source: Adopted from www.youtube.com, modified by researcher)

 Mukherjee D. (2009), according to his paper, “Impact of Celebrity

Endorsements on Brand Image” the foundation of the impact of celebrity
endorsement. Celebrity endorsement is always a two edged blade, First if
properly matched it can do wonders for the company and Second if not it
69
may produce a bad image of the company and its brand. This paper uses a
wide range of accepted principles of how consumers brand attitudes and
preferences can be influenced, how buyer's behavior can be influenced and
moulded. His study also shows that consumers report higher self-brand
connections for brands with images that are consistent with the image of a
celebrity that they aspire to be like, particularly in the case when the image
of the celebrity and the brand match. Study also examines how self-brand
connections are formed. In the case of aspirational celebrities, the positive
effect of image congruency is stronger for those brands that are perceived
to communicate something symbolic about the brand’s user compared to
those brands that do not. In his study, he found an important demonstration
that consumers are motivated by self-needs to utilize brand associations
derived from celebrity endorsement in a contingent fashion to construct
and present their self-identities. Many celebrities are useful for a
particular product. On other hand, if celebrity does not match the brand
image than it may demolish product’s attraction. For example- Saina
Nehwal promote Top Raman noodle. Saina Nehwal is a very popular
sports person and Badminton champion while noodles are kind of junk
foods. Instant noodles contain saturated fats which if consumed
excessively or regularly can raise the level of cholesterol in the blood
and also risk of diabetes. According to Dr. Sunil Sharma (General
Physician and Head of Emergency, Madan Mohan Malviya Hopsital,
New Delhi) “In most cases Monosodium Glutamate (MSG) as well as
tertiary-butyl hydroquinone (TBHQ) a chemical preservative derived
from the petroleum industry may be present in instant noodles for their
taste enhancing and preserving properties”. As published by
Washington Post, South Korean study conducted on the effects of
instant noodles on human health. “Although instant noodles is a
convenient and delicious food, there could be an increased risk for
metabolic syndrome given high sodium, unhealthy saturated fat and
glycemic loads”, So these type of noodles or Junk foods are non-
healthier products. So junk foods not matched with Saina Nehwal
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 personality as a sport person. Apart from these junk foods she should
have to promote energy drink or other healthier products which are good
for health and fitness. In another advertisement she promotes Egg in
NECC (National Egg Co-ordination committee), which is a rich source
of protein and good for human body.

V/S

Image 3.2: Saina Nehwal promoting Top Raman and NECC

(Source: Image adopted from www.google.com)

 Muruganantham G. and Kaliyamoorthy S. (2005), in their research

paper on “Celebrity Effect on Brand Positioning: A Study With Reference
To Female Personal Care Products” studied the effect of celebrity

71
 endorsements on the brand positioning of selected female personal care
products through television advertisements. This research provided
insights into the celebrity effect on the brand positioning of Lux Soap and
Pantene Pro V Shampoo among consumers. Successful positioning
depends on communicating the brand’s differential advantage effectively.
Therefore all of the advertising efforts and other forms of promotions
should attempt to communicate the brand’s position to consumers. For an
example the advertisement of “Veet hair removing cream” specially
made for women and marketing it.

 Clinton A., Holmes G. and Strutton D. (2008), in their paper on

“Exploring The Relationship Between Celebrity Endorser Effects And
Advertising Effectiveness A Quantitative Synthesis Of Effect Size” they
provide a quantitative summary of the relationship between celebrity
endorser source effects and effectiveness in advertising. The source
credibility model mix up of celebrity attractiveness, celebrity
trustworthiness, and celebrity expertise, appears to capture the three most
influential source effects on purchase intentions, brand attitudes and
attitudes towards the advertisement. Results suggest negative celebrity
information can be extremely detrimental to an advertising campaign. The
effectiveness of celebrity endorsements is subject to reduction by
advertising clutter, selective attention, and the time available to identify
and evaluate the advertisement.

 Chiosa (2012), research paper on “Celebrity Endorsement Strategy” study

that brands often use celebrities to get impact, because they are seen by the
public as credible source of information about product or company.
Celebrity endorsement becomes one of the famous and used
communication strategies in marketing to build combination between
brand image and consumers. This paper also presents types, techniques
and models of analysing celebrities’ efficiency in endorsing
brands/products. These endorsement techniques are - Print ads in
72
 magazines, TV commercials, Products used in films and television
programs, Photos of celebrities paid to use certain brand products, inviting
celebrities to be co-creators in product design, Naming the products after
the name of celebrities. (Kapil palmolive dev, and Jammy dravid).This
review was performed to provide a deeper understanding of celebrity
influence and consumer behavior.

 Francis D. and Yazdanifard R. (2013), in their study on “The Impact of

Celebrity Endorsement and its Influence Through Different Scopes On
The Retailing Business Across United States and Asia” they notice
Celebrity endorsements have been one of the key marketing strategies that
a retail company has done. In their research paper, they will look into the
retail brand perception and the customer satisfaction after applying the
celebrity endorsement model. Readers can understand the similarities and
the differences in the endorsements based on the Asian and American
culture. This research will be focusing on case studies and cross-cultural
comparisons from the American perspective and the Asian perspective,
most notably South Korea, Japan, India and the Middle East. In the 21st
century, celebrities are seen as global icons and a symbol of power and
status. Celebrity endorsement in the United States contribute to about 20%
of television. Where in India, celebrities are being worshipped like “idols”.
In their conclusion, celebrity endorsement can be a truly profitable
advertisement for retail companies to fully harness. Companies realize that
the brand should be bigger than the celebrity itself, otherwise it will
overshadow the product and it defeats the purpose of brand awareness and
exposure. Finally they explain, the endorsement strategy based on the
current season and trends, in other words, “strike it when the iron’s hot”.

 According to Zipporah M. and Mberia H. (2014), in their paper “The

Effects OF Celebrity Endorsement in Advertisements”, celebrities are very
well known by among peoples by their credibility and their attractiveness.
Marketers use these attributes of celebrities to influences purchasing

73
 decision of consumers. The main purpose of their study is to test the effect
of celebrity endorsement in advertisement on consumers’ perceptions of
the endorsed brand or products. If celebrity endorsement used effectively,
makes the brand outstanding. Sometimes celebrity endorsement in
advertisement has negatively impact the audience ranging from the morals,
norms and behaviours in the society. For example, a large numbers of
viewers have abandoned their normal way of living as per the set cultural
standards of the society. In an advertisement, celebrity appearance,
credibility and knowledge of the celebrity are also highly correlated with
advertising trustworthiness. In their study they suggested that in order to
have businesses and organizations thrive well in the market they need to
choose the right marketing channels, media and celebrities to use so as to
make the communication effective.

 Atay E. (2011), in his study on “Celebrity Endorsements and Advertising

Effectiveness: The Importance of Value Congruence”, millions of dollars
are spent on celebrity contracts each year by assuming that the benefits of
using celebrities will exceed the costs. Author explained that value
congruence with unfamiliar celebrities was more effective than value
congruence with familiar celebrities for generating more favourable
attitudes toward advertisement and brand. Author also suggested that the
congruence between celebrity and product values plays an important role
in advertising effectiveness. According to author, low wages celebrities
are also successful in generating positive outcomes. Companies with low
advertising budgets preferred low wages celebrities because they will
probably charge less than well known celebrities.

 Makumbura U. (2015), in his study “The Power of Celebrity

Endorsements Today”, so far it believed that celebrity endorsements to be
longstanding agreements. In modern era, changes in celebrity culture have
forced both sides to become more flexible in their approach. As per the
author, celebrity’s attributes can transfer to a product with use of the
celebrity endorsement, but as soon as the relationship ends between brand
74
 and celebrity this connection also finished. Besides, celebrity endorsement
provides the boost to a company needs at the time of launch, relaunch and
repositioning of its products. It is helpful in entering the market with
immediate brand value. The increase of social media in particular has
created a vastly improved scope for celebrity endorsement tactics.

 Kumar V. and Hunda B. S. (2015), in their study on “Customer

Perception towards Celebrity Endorsement”, celebrity endorsement has
become very popular element in the advertisement nowadays. The purpose
of their research paper is to explore customer perception towards celebrity
endorsement. Authors described about nine factors were manipulated in
his research paper: attractiveness, trustworthiness, physical appearance,
popularity, image/goodwill, aspiration, reliability, negative role of
celebrity and brand for result. In their study, they find that consumer
buying behaviour is positively affected by product as compare to celebrity
endorsement. Authors also concluded that attractiveness of a celebrity
endorsing a particular product strongly influence a customer perception.
and this impact of products are more positive on the customer buying
decision.

 Makwana K., Pathak A. and Maheshkar C. (2015), in their study on

“Impact of Celebrity Endorsement on Branding of FMCG Products in
Indian Small Towns”, they described value of information explosion and
media power, the advertisement plays a major role in changing customer
perception about brands. It argued in the previous researches that FMCG
companies did some mistakes when they were entered in the rural market.
These companies treated rural market as an existing urban market. But the
rural Indian consumers' demographic and psychographic variables differ
from those of urban consumers. The purpose their study is to find out the
impact of celebrity endorsement on branding of FMCG products in Indian
small towns. FMCGs are low involvement products, celebrities do
influence on consumers towards brand. Rural consumer is different from
urban consumers as- lifestyles and other kind of choices they made is also
75
 different from urban consumers. Therefore same strategy of celebrity
endorsement is not a guarantee of success in both markets.

 As per the study of Shukre A. and Dugar N. (2013), on “Effect of

Celebrity Endorsements on Consumers’ Decision-Making Processes: A
Study of Television Advertisements for Selected FMCG Products”, today
celebrity endorsement is one of the most popular tactics of FMCG
advertising. Marketers use celebrity endorsement to help in easy brand
recall especially at the time of consumers purchasing situations. Main
purpose of his study is to specify the impact of using celebrity endorsers in
advertisements on purchase intentions of customers with special references
to FMCG products. They concluded from the study that celebrity
endorsements are gaining more and more popularity. Authors described
some important factors of celebrity endorsement are image, style, attitude,
popularity, physical appearance, performance, suitability with the product
etc. Marketers should take care of the gender of the celebrities endorsing
the product as it is an important factor in regard to the consumer.

 According to Randhawa A. and Khan J. A. (2014), in their study on

“Impact of Celebrity Endorsement on Consumer Buying Behaviour”,
advertising is an effective marketing tool available to marketers to create
and promote awareness for their products. It also help to position their
products differently among the minds of their customers. Consumers come
in contact with many advertisements every day. Every advertisement is
highlighting the features of the respective products. Now days,
advertisement is a tricky job, with involvement of huge risk, with the help
of celebrity endorsement advertisement plays gamble. In their study
authors find that most of the respondents believe that frequent changes in
celebrity for advertising the product can change the purchasing decision of
customers. The purchase attitude is influenced by the quality of the
products rather than endorsement factors, price of the product, discounts
and offers etc. A large number of respondents believes that the quality of
Goods advertised by celebrities may be are may not be good in quality.
76
 Wang, Cheng and Chu (2012), in their study on “Effect of celebrity
endorsements on consumers purchase intentions: Advertising effect and
advertising appeals as mediators”, advertising has become the most
efficient way to provide information in consumers. In their study, result
shows that celebrity endorsements, advertising appeal and advertising
effect significantly and positively impact on consumer purchase
intensions.

 In the study of Chaudhary U. and Asthana A. (2015), “Impact of

celebrity endorsements on consumer brand loyalty: Does it really matter?”
celebrity endorsements now play an important role from the perspective of
brand building. Celebrity endorsement is increase the effect of a campaign
but the word of caution to be followed seriously. Celebrity does not
guarantee of success nor does a great advertising campaign or the best
possible product. It is the combination of several factors especially the
price and other elements that work together for the success of a brand. In
present days, consumers became more aware and well educated; they
know celebrities are being paid for these endorsements. This knowledge
makes consumers more practical in their judgment about products.
Authors concluded that celebrity endorsement does not necessarily
influence consumer brand loyalty.

 Sabunwala Z. (2013), in her study on “Impact of Celebrity Brand

Endorsements on Brand Image and Product Purchases -A Study for Pune
Region of India”, celebrity endorsement is the most popular tools of
advertising in current scenario. It has become perceived as a winning
formula for product marketing and brand building. Main purpose of the
research was to examine the relationship between celebrity endorsements
of brand. And study about impact on consumer's buying behaviour in
beverage industry in India. She concluded that most of the beverage user
associate themselves with the brand and establishes congruence between
their personality and brand. Another major conclusion from the study is
that celebrity endorsement significantly impact brand Image.
77
 According to Srivastava S. (2013), in her study on “Factors Affecting
Buying Behavior of Consumers in Unauthorized Colonies for FMCG
Products”, fast Moving Consumer Goods (FMCG) sector is the fourth
largest sector in India touching everybody’s life every day. In this era,
Indian consumers profile and mindset changing according new
environment. So FMCG sector has a constructive potential in the form of
semi urban, urban slums and emerging rural segment. Main purpose of her
study to examine the socio economic factors, followed by product
preferences generic or branded under various heads of FMCG product
categories, reasons for such preferences followed by factors affecting the
buying behaviour. She finds from the study that consumers in such
backward or low economic areas prefer brands over generic products. At
the same time reliability, product features and socio economic factors have
a large impact on buying behaviour along with promotional offers. She
also finds that factors like reliability and product attributes plays a very
important role for this low income and price conscious respondents. A big
amount of monthly income is spent on buying grocery (including FMCG
products). Promotions and offers have considerable impact on larger
household and young adults. Whenever they purchasing generic products,
they also aspiration for branded products. But due to their financial
circumstances, this does not happen.

 Ericsson L. and Hakansson E. (2005), advertisers often use celebrities in

advertising because of their famous attributes (beauty, talent, athleticism,
power, etc.) that often represents the attractions desired for the brands they
endorse.

 According to Zheyin J. G. (2005), celebrity endorsement can be used as

long-term or short-term strategies. A firm’s long-term celebrity
endorsement strategy affects its product quality and price. A firm’s short-
term celebrity endorsement strategy is affected by the market awareness
level of its product. Finally, no matter whether for long-term or short-term

78
 celebrity endorsement, a firm should use a more popular celebrity endorser
when the information dispersion effect is stronger and when the demand
inter correlation effect is weaker.

 Khatri Puja (2006), in her paper on “Celebrity Endorsement: A Strategic

Promotion Perspective” The celebrity endorser is a panacea for all
marketing woes. It is today a frequently used approach in marketing for all
brand building exercises.

 Roozen I. and Claeys C. (2010), in their study on “The Relative

Effectiveness of Celebrity Endorsement for Print Advertisement” The
experiment shows that celebrity endorsement is not always effective. This
result was also found for the advertisements with the endorsement of
celebrities who were found to match best with the products at hand.

 Roy Subhadip (2012), in his paper “To Use the Obvious Choice:
Investigating the Relative Effectiveness of an Overexposed Celebrity
Author” Whether having an overexposed celebrity in an endorsement
would have a more positive impact on consumer attitudes than an
underexposed celebrity. Major results suggested that an overexposed
celebrity was not more effective than an underexposed celebrity.

 Escalas J. E. and Bettman J. R. (2003), in their study on “Connecting

with Celebrities: Celebrity Endorsement, Brand Meaning, and Self-Brand
Connections”, finds that celebrity endorsement enhances self-brand
connections when consumers aspire to be like the celebrity, but harms
them when consumers do not; this effect is more pronounced when the
brand image is congruent with the celebrity’s image.

 Nagarajan G., Sheriff J. and Khaja (2013), in their study on “Emerging

Challenges and Prospects of FMCG Product Development in India” It
focused on some of the fundamental issues relating to the emerging
prospects and challenges marketing FMCG products in India.
79
 Fundamental issues of the customer and their expectations involve around
three questions 1 What more? 2. What next? 3. What else? When the
marketers want to fulfill the customer need and desire they come up with
challenges which are new and unseen past years. Emerging trends,
especially in new product launch of FMCG products, has seen big and
innovations particular in India. The most common and complex challenges
in FMCG product marketing and proposed strategies to identify address
them.

 Rallabandi Srinivasu (2014), in his study on “Fast Moving Consumer

Goods Retail Market, Growth Prospect, Market Overview And Food
Inflation In Indian Market – An Overview” he has focus on competitive
conditions operable in the FMCGs retail trade sector. This study also
focused on the analysis of competition within the sector, and draws lessons
for competition policy. In India, retail market is competitive. There are no
or less legal restrictions on entry. Prices across retail formats differ
substantially for a market operating on a very low profit margin. However,
these differences are likely to stem from cost differences.

 Khan S. and Khan Y. (2012), in their paper on “Rural Marketing & Its
Impact on FMCG” effort has been done to know about the rural markets
and their impact on FMCG products. The factors responsible for the rural
boom, major problems in tapping the rural market, FMCG consumption in
rural India through premium brands, focus on urban categories and
strategies for selling in rural India has been highlighted through the 4 A’s
approach. They focused on many factors, which are- Rural India is a huge
untapped market and scope for the expansion of FMCG products. The
producers have to realize the importance of adopting differential marketing
techniques than they use for the urban markets. Rural market is not
familiar with some products. There is huge deficiency in the amount of
products and services available in the market. Quality and Pricing are the

80
 main mantras to success in rural India. And rural population is also prefers
those products which are available in small packages.

 Celen A., Erdoan T. and Taymaz E. (2005), in their paper on “Fast

Moving Consumer Goods Competitive Conditions and Policies” they
focused on modern retail formats, like supermarkets and chain stores,
have rapidly wide spread in at least in many urban areas. Their study is
also focused on the analysis of competitive dynamics (inter-firm rivalry,
pricing and non-price policies, barriers to entry, regulatory conditions,
etc.) within the sector, and draws lessons for competition policy. The
modification of the retail market is a long lasting impact on wholesale
trade as well as FMCG’s distribution. Many traditional wholesalers have
lost their position and markets, because large retailers are purchasing
directly from suppliers. Logistics companies are also playing an important
role in the distribution of FMCG products. These trends are likely to have
a positive impact on product diversity and the quality of products/services
offered by retail stores. In Indian context, many chain stores and
supermarkets work, like Best price, Metro. We can purchase many
FMCG products under one roof.

 Savalasang A. S. (2014), in his paper on “The Changing Face Of FMCG

Marketing In Rural Sector” His paper critically examined the current
status of Indian rural marketing in present economic scenario. It focused
and analyzed the problems prevailing in the rural marketing. It has also
glossed upon the opportunities, rural marketing strategies and problems
along with challenges existing in rural marketing. Due to the media
explosion and increasing literacy levels, people in rural areas are
becoming conscious about their lifestyles and demanding a better life.
Increasing disposable income is also big factor for the rural consumer.
They have become more demanding & choosier in their purchase
behavior. The phenomenal growth of the FMCG industry especially in the
tier II and tire III cities in India is mostly due to the improvement in the

81
 standard of living of the people of such cities and the rise in the level of
disposable income. Major growth drivers of the FMCG sectors in rural
India are - Higher incomes, government Initiatives for rural development,
distribution networks, awareness and access and FDI Inflow. In Rural
marketing, there is less communication mix, so most of the product is
known by mouth publicity. Now many FMCGs company are moving to
rural markets because there is high potential market for sale. For an
example SHAKTI project by Hindustan Unilever.

 Gupta R. and Roy R. (2012), in their study on “Ingredient Branding: A

Differentiation Strategy For FMCG Companies” FMCG market is seeing a
plethora of brands with little or no differentiation in terms of product
offerings. Ingredient branding is a marketing technique which helps
companies to build a differentiated brand image for their products. This
paper analyses the scope of Ingredient branding in creating sustainable
differentiation advantage for FMCG companies. In 1991 Intel Corporation
applied the Ingredient branding concept and launched Intel inside
campaign. Within 1st year it resulted in 63% growth in the sales and by
the 10th year (2001) Intel was listed as sixth most valuable brand. They
also suggest that careful planning must be done before entering into a
relationship in order to maximize the benefits of any Ingredient branding
strategy. Consumer’s quality sensitivity and their ability to evaluate
quality must also be considered.

 Jain A. and Sharma M. (2012), in their study on “Brand Awareness and

Customer Preferences for FMCG Products in Rural Market: An Empirical
Study on the Rural Market of Garhwal Region” The purpose of their study
is to examine the brand awareness in rural area and to study the interest of
consumers in branded products of Fast Moving Consumer Goods
(FMCG). Brand awareness is the scale of familiarity among consumers
about. It is measured as ratio of niche market that has former knowledge of
brand. The preferences of consumers are explained as the individual tastes,
82
 as measured by usefulness of various kinds of products. They permit the
consumer to rank these bundles of goods according to the levels of utility
they give the consumer. Those preferences are independent of income and
prices. In rural areas, brand awareness particularly showing is an
increasing tendency, regarding to beauty care and health care products.
People are not worried about the price of the product. Customers are
showing willingness to spend higher price when they realize that they can
afford to spend.

 Kishori Jagdish Bhagat (2012), in his paper on “Consumer Behavior of

Teenagers with Reference to Fast Moving Consumer Goods (FMCG) in
the Mumbai Region – Maharashtra” He examines that the consumers are
affected from some individual and environmental factors like- motivation,
personality, perception, learning, values, beliefs, attitudes, life style,
personal influence, reference group, family influence, social class and
culture in their buying decision process. The aim of his study is to focus
on affecting factors on the consumer buying behavior in teenage consumer
market, because teenage consumers are one of the important market
segments of companies. The marketer must be aware of these factors in
order to develop an appropriate Marketing Mix for its target market.-
Personal Factors, Psychological Factors, Social Factors. The consumer
behaviour of college going teenagers in specific with regards to Fast
Moving Consumer Goods depends on external influence rather than the
rational purchases. Where rational purchases would mean quality,
durability and cost.

 Mahalingam S. and Nandha P. K. (2012), on their study “A Study on

Consumer Behaviour Towards Selected Fast Moving Consumer Goods in
Coimbatore City”. Almost half of the FMCG market representing brand up
package homemade product. This presents a tremendous opportunity for
the markets of branded product. The study on the consumer behavior
towards the products of FMCG has received a pivotal position in the
83
 market for paste, soap, shampoo although there are many competitors in
the market. He examined that introduction of new products in the market
to satisfy the consumer is also an important reason for FMCGs to hold the
top in the consumer market. It is clear from the study that FMCG acquire a
major share in the consumer goods market the manufacture as to provide
quality goods at reasonable.

 Jethwarey Jaishri and Jain Shruti (2006), in their book on “Advertising

Management” Advertising is a tool of marketing that disseminates
information about a brand which is aimed at a large number of people at
the same time. To reach the masses, advertising has to buy space or time in
one or more media of mass communication such as radio, television, news
paper, and magazines.

84
References

Books, Journals, Newspapers and Magazines

1. Atay, E. (2011), “Celebrity Endorsements and Advertising Effectiveness:
The Importance of Value Congruence”, Retrived from https://
scholarsbank.uoregon.edu/xmlui/bitstream/handle/1794/11566/GurelAtay_
Eda_ phd2011sp.pdf;sequence=1
2. Celen, A.., Erdoan, T. & Taymaz E., (2005), “Fast Moving Consumer
Goods Competitive Condi tions and Policies”, ERC Working Papers in
Economics 05/03 June 2005
3. Chaudhary, U. & Asthana, A. (2015), “Impact of celebrity endorsements
on consumer brand loyalty: Does it really matter?” International Journal of
Scientific and Research Publications, Volume 5, Issue 12, ISSN 2250-
3153 p. 220-225
4. Chiosa, (2012), “Celebrity Endorsement Strategy, Annals Of The
Constantin Brâncuşi” University of Târgu Jiu, Economy Series,
“ACADEMICA BRÂNCUŞI” PUBLISHER, ISSN 1844 – 7007
5. Clinton, A., Holmes, G. & Strutton, D. (2008), “Exploring The
Relationship Between Celebrity Endorser Effects And Advertising
Effectiveness A Quantitative Synthesis Of Effect Size, International
Journal Of Advertising, 27(2), P. 209–234
6. Ericsson, L. & Hakansson, E., (2005), “Athletes As Celebrity Endorsers”,
Case Studies From Sweden, Lulea University of Technology, Sweden,
http://www.epubl.ltu.se, etc.
7. Francis, D. & Yazdanifard, R. (2013), “The Impact Of Celebrity
Endorsement And Its Influence Through Different Scopes On The
Retailing Business Across United States and Asia”, IRACST –
International Journal of Commerce, Business and Management (IJCBM),
ISSN: 2319–2828 Volume 2, No.1
8. Gupta, R. & Roy, R. (2012), “Ingredient Branding: A Differentiation
Strategy For FMCG Companies”, Asian Journal of Management Research,
ISSN 2229 – 3795, Volume 2 Issue 2

85
9. Jain, A. & Sharma, M. (2012), “Brand Awareness and Customer
Preferences for FMCG Products in Rural Market : An Empirical Study on
the Rural Market of Garhwal Region”, VSRD International Journal of
Business & Management Research Vol. 2 (8), 2012, ISSN No. 2319-2194
10. Jain, V. (2011), “Celebrity Endorsement And Its Impact On Sales: A
Research Analysis Carried Out In India”, Global Journal of Management
and Business Research, ISSN: 0975-5853, Volume 11 Issue 4 Version 1.0
11. Jethwarey, J. & Jain, S. (2006), “Advertising Management”, Oxford
University Press, Second Impression
12. Khan, S. & Khan, Y. (2012), “Rural Marketing & Its Impact On FMCG”,
International Journal of Retailing & Rural Business Perspectives Volume
1, Number 1
13. Khatri, P. (2006), “Celebrity Endorsement: A Strategic Promotion
Perspective”, Indian Media Studies Journal, Volume 1, No.1
14. Kishori, J. B. (2012), “Consumer Behavior of Teenagers with Reference
To Fast Moving Consumer Goods (FMCG) in the Mumbai Region –
Maharashtra, India”, Proceedings of the International Conference on
Business Management & Information Systems
15. Kumar,V. & Hunda B. S. (2015) “Customer Perception towards Celebrity
Endorsement”, Pacific Business Review International Volume 8, Issue 5,
Retrived from http://www.pbr.co.in / November2015/6.pdf
16. Mahalingam, S. & Nandha, P. K. (2012), “A Study On Consumer
Behaviour Towards Selected Fast Moving Consumer Goods In
Coimbatore City”, Indian Journal of Education And Information
Management, Volume 5, Issue 11, ISSN 2277-5374
17. Makumbura, U. (2015), “The Power of Celebrity Endorsements Today”,
Retrieved from https://cdn2.hubspot.net/hubfs/211508/The_Power_of_
Celebrity_Endorsements.pdf?t=1461152996975
18. Makwana, K., Pathak, A. & Maheshkar, C. (2015) “Impact of Celebrity
Endorsement on Branding of FMCG Products in Indian Small Towns”,
Pacific Business Review International Volume 8, Issue 4, October 2015,
Retrieved from http://oaji.net/articles/2016/3050-1456460547.pdf
86
19. Mukherjee, D. (2009), “Impact of Celebrity Endorsements on Brand
Image”, Social Science Research Network Electronic Paper Collection
20. Muruganantham, G. & Kaliyamoorthy, S. (2005), “Celebrity Effect On
Brand Positioning: A Study With Reference To Female Personal Care
Products”, The International Journal of Applied Management and
Technology, Volume 7, Num 1
21. Nagarajan, G., Sheriff, J. & Khaja (2013),“Emerging challenges and
prospects of FMCG product development in India”, International journal
of marketing, financial services & management research, vol.2, no. 1,
ISSN 2277- 3622
22. Okorie, N., Oyedepo, T. & Akhidenor, G., (2012), “The Dysfunctional and
Functional Effect of Celebrity Endorsement on Brand Patronage” Online
Journal of Communication and Media Technologies Volume 2, Issue 2
23. Randhawa, A. & Khan, J., A. (2014) “Impact of Celebrity Endorsement on
Consumer Buying Behaviour”, International Journal of Business
Management, Vol. 1(2), ISSN No.:2349-3402 p. 170-189
24. Roozen, I. & Claeys, C. (2010), The Relative Effectiveness of Celebrity
Endorsement for Print Advertisement”, Review of Business and
Economics Literature, Volume 55, Issue 1
25. Sabunwala, Z. (2013) “Impact of Celebrity Brand Endorsements on Brand
Image and Product Purchases -A Study for Pune Region of India”,
IMPACT: International Journal of Research in Business Management,
ISSN (E): 2321-886X; ISSN(P): 2347-4572 Vol. 1, Issue 6, Nov 2013, p.
37-42
26. Sahay, A. & Abhishek, (2013), “Role Of Culture In Celebrity
Endorsement: Brand Endorsement By Celebrities In Indian Context, IIMA
INDIA Research and Publications, W.P. No. 2013-07-01
27. Savalasang, A. S. (2014), “The Changing Face Of FMCG Marketing In
Rural Sector”, International Journal of Business and Administration
Research Review, ISSN 2348 – 0653, Volume 1, Issue 5

87
 28. Shukre, A. & Dugar, N. (2013), “Effect of Celebrity Endorsements on
Consumers’ Decision-Making Processes: A Study of Television
Advertisements for Selected FMCG Products”, International Journal of
360o Management Review, Vol. 01, Issue 01, April 2013 ISSN: 2320-
7132
29. Srinivasu, R. (2014), “Fast Moving Consumer Goods Retail Market,
Growth Prospect, Market Overview And Food Inflation In Indian Market
– An Overview, International Journal of Innovative Research in Science,
Engineering and Technology, ISSN: 2319-8753, Vol. 3, Issue 1
30. Srivastava, S. (2013), “Factors Affecting Buying Behavior of Consumers
in Unauthorized Colonies for FMCG Products”, Global Journal of
Management and Business Studies. ISSN 2248-9878 Volume 3, Number
7, pp. 785-792
31. Stonkiene, E., Banyte, J. & Piligrimiene, Z. (2011), “Selecting Celebrities
In Advertising: The Case Of Lithuanian Sports Celebrity In Non Sport
Product Advertisement, Economics And Management, ISSN 1822-6515
32. Wang, Cheng & Chu(2012), “Effect of celebrity endorsements on
consumers purchase intentions: Advertising effect and advertising appeals
as mediators”, Retrieved from http://onlinelibrary.wiley.com/doi/ 10.1002/
hfm.20336
33. Zipporah, M. & Mberia, H. (2014), “The Effects OF Celebrity
Endorsement in Advertisements”, International Journal of Academic
Research in Economics and Management Sciences, Vol. 3, No. 5 ISSN:
2226-3624

Websites
34. http://bschool.nus.edu/departments/Marketing/papers%20for%20seminars/
jane%20paper.pdf
35. http://elab.vanderbilt.edu/Documents/PDF/Connecting%20with%20Celebr
ities%20-%20Celebrity%20Endorsement,%20Brand%20Meaning,%
20and%20Self-Brand%20Connections%20%5BEscalas,%20Bettman
%5D.pdf
88
36. http://jrconsumers.com/Academic_Articles/issue_22/SubhadipRoy-
AcademicArticle.pdf
37. http://www.forbes.com/sites/chrissmith/2012/07/26/ms-dhoni-sachin-
tendulkar-lead-the-worlds-highest-paid-cricketers/#3bcbddcd403d
38. www.ceeol.com
39. www.google .com
40. www.youtube.com

89
 Chapter – Four

Research Methodology
 Chapter – Four
Research Methodology

4.1. Meaning of Research

Research is the systematic investigation into existing or new knowledge. It is used
to establish or confirm facts, reaffirm the results of previous work, solve new or
existing problems, support theorems, or develop new theories. Research is a
careful inquiry or investigation. According to Creswell (2008), “Research is a
process of steps used to collect and analyze information to increase our
understanding of a topic or issue”. As per the Oxford Dictionary of English, “A
careful investigation or inquiry, specially through search for new facts in any
branch of knowledge”.
Research methodology is a systematic process to solve the problems. In research
methodology steps are followed one by one to study research problems and logic
behind them. It is very important for any researcher to know research methods
along with methodology.

4.2. Statement of Problem

(a) Celebrity endorsement is a popular idea in present scenario; apart from
this FMCG goods have very low margin and low price value. The
company(s) hire expensive celebrity to endorse the products. It enhances
the cost of the product which is ultimately a burden on the
consumer/buyer.
(b) FMCG products are used and purchased on daily basis without any
intensive thinking, then what is the need to use celebrity endorsement. On
the another side it has been considered that there is a positive relation
between celebrity endorsement and FMCG products, they increase the
product attraction and sale.
(c) Impact of celebrity endorsement on consumers’ buying behaviour for
FMCG products is a reality or a myth.

90
4.3. Objectives of Research
(a) To know the factors influencing the selection of the celebrity endorsement
advertisement in FMCG companies.
(b) To know about the trends of buying behavior and awareness in consumers
regarding FMCG companies.
(c) To find out what are the changes and effects on consumer buying behavior
after seeing the advertisement of FMCG products endorsed by the
celebrity.
(d) To find out the ethical factors of the advertisements presented through
celebrity of any FMCG products.

4.4. Hypothesis of Research Work

The hypothesis of the research are

(a) H1: There is high potential of celebrities in advertising world and in spite
of efforts by the advertisers it is not fully satisfying the customers.

(b) H2: The advertiser has not adopted appropriate strategies for the ethical
development of advertisements even if it includes celebrity endorsement.

(c) H3: The viewers are not fully satisfied with the celebrity endorsed
advertisements shown by the different FMCG companies.

4.5. Research Design

The basic concept of research methodology refers to the way in which firm or
organization conduct their research and how they collect the data
required. Research methodology typically involves a full breakdown of all the
options that have been chosen by the firm or organization in order to investigate
something. This would include the procedures and techniques used to perform the
research. A firm may need to decide which format of research they want to use
before the investigation starts. For example, if a company wants to sell a
particular product, it needs to a launch research to find out how effective or
desirable the new product is? In primary research, company will collect data and
information themselves first hand.

91
Alternatively, a firm can acquire figures or statistical findings available from an
external source. This is known as secondary research, and this area of research
involves published journals, newspapers and other relevant materials.

Many areas of research methodology may simply be referring to a generic path or

method that a firm or organization will apply in order to retrieve the information
they need. It is the way in which researchers specify how they are going to receive
data and information that companies will need to make important decisions.

Research is very useful to confirm facts or establish, reaffirm the results of

previous work, solve new or existing problems, support theorems, and develop
new theories. Research work can be an extension of previous work carried out in
the same field. In order to test the validity of instruments, procedures, or
experiments, research may replicate elements of prior projects, or the project as a
whole. The primary purposes of basic research are documentation, discovery
interpretation, search and development of methods and system for the
advancement of human knowledge.

There are different forms of research:

 Scientific
 Social
 Economic
 Humanities
 Artistic
 Business

4.5.1. Research Methodology of the Study

Conducting the research by in a systematic plan is called research methodology.
Research methodology includes objectives of the research, statement of problem,
hypothesis, survey, observation of respondents, and primary and secondary data,
statistical models to test hypotheses and other are followings:
 Statement of Problem: FMCG products have very low margin and low
price value, in spite of this companies hire expensive celebrity. While this
may be the reason for the increase in the value of the product and

92
 researcher wants to find out is the positive relation between celebrity
endorsement and FMCG product selling.
 Objectives: To know about the factors which influence in selection of
celebrity endorsement in FMCG products with buying awareness of buyer
and also focused on consumer buying behaviour after seen advertisements.
And find out the ethical factors of the advertisements presented through
celebrity of any FMCG products.
 Hypothesis of Research Work: In this study Hypothesis are based on
consumer satisfaction level where FMCG companies try different
strategies to attract consumers like celebrity endorsement.
 Type of Research: Type of research in this research is descriptive in
nature.
 Sample Size: Sample size has been taken from Kota city and Jaipur city,
where number of respondents in both cities were 400 (200 respondents in
each city).
 Statistical Tool: Chi Square method has been used for testing hypothesis.
 Data Interpretation: Answers to all questions are explained with the help
of tables, graphs and charts in percentage form.
 Findings: On the basis of the various responses given by respondents,
many findings presented in this portion.
 Conclusion: In this part, researcher concluded summary of the research /
study, which has been done by him.
 Suggestions: Researcher given several suggestions on celebrity
endorsement and advertisement regarding to FMCG products on the basis
of responses given by respondents and review of literature.

4.5.2. Types of Research

The basic types of research are the following among which the researcher is opted
some
(a) Descriptive – The Research is descriptive in nature. The main
characteristics of this research are description of the state of developments
and new trends in Advertisement industry. This research is based on fact

93
 finding activities. The main purpose of researchers is to report what has
happened and what is happening in that sector. According to Malhotra
(2004), descriptive research is structured and preplanned based on many
representative samples.

Descriptive research is based on followings

 Describe the characteristics of various groups, like- salesperson,
consumers, firm /company and market areas.
 Establish the perceptions of product characteristics
 Make a degree, which are associated to marketing variables.
 Do appropriate predictions.

(b) Applied – It is carried on to find solution to a real life problem requiring

an action or policy decision.

(c) Empirical Research –It relies on experience or observation alone, often

without due regard for system and theory. It is data-based, coming up with
conclusions capable of being verified by observation or experiment.

(d) Analytical – It is a system of procedures and techniques of analysis

applied to quantitative data. It aims at testing hypothesis and specifying
interpretation relationship.

(e) Fundamental- Research is mainly concerned with generalizations and

with the formulation of a theory.

(f) Conceptual- Conceptual research depends on some abstract idea or

theory. Basically it is used by thinkers and philosophers to create new
concepts or to reinterpret existing ones.

4.6. Sampling Framework

Sampling is an important step in research work. Sampling frame work is data
collection of all those within a population who can be sampled, it may contain
individuals, others. According to Burney and White (2009), “A population is the
entire collection of individuals being considered for a study”. Sampling is a
process of getting information from a large group. Overall it means that sample is

94
a selection of respondents chosen in such a way that they represent the total
population as feasible as possible. Sampling framework is following:

4.6.1. Universe and Area of Research Work

It is a target population where all research work has to be conducted. This study is
focused on FMCG products consumed by consumers of Kota and Jaipur cities.
This research was conducted in Kota and Jaipur city of Rajasthan state. These two
cities were selected because of easy access from other states and availability of
facilities as well as transportation and connectivity. Many FMCGs dealer and
manufacturer are also available and working in Jaipur. The main reason of
selection of Kota was its reputation as the educational and coaching hub of India.
Many students belonging to several different states of India stay here for an
extended duration hence making it a multicultural city. In other words it has
become a miniature India. These students and their parents consume many
FMCGs products and are aware of the term 'celebrity'. It was also convenient for
the researcher as the research center is also located at Kota i.e. University of Kota.

4.6.2. Sampling Unit

Researcher categorised respondents in different categories - male and female
consumers, qualification group, age group, occupation group and income group.

4.6.3 Sampling Technique

This study is based on both non probability and probability sampling technique.
First step was selection of cities. Cities were selected by convenience sampling.
This is a non probability technique used for easy availability, cost and time
constraint. The second step was selection of respondents. Respondents were
selected by simple random sampling method.

4.6.4. Sample Size

According to Jon Zamboni (April, 2017), sample size measures the number of
individual samples measured or observations used in a survey or
experiment. Sample size refers to the total number of units to be selected from
target population. The size of a sample must be most favourable, neither too large
nor too small.

95
Formula of sample size:

Where:
n= Sample Size
p = Prevalence of Satisfaction
z = Standard normal Variant
ME= Margin/Absolute error

Calculation of Sample Size by Pilot Study

Pilot study refers to small scale study. It helps in identifying design issues before
the main research is done. Pilot study is a small scale preliminary study conducted
in order to evaluate cost, time, feasibility, adverse events and predict an
appropriate sample size. Pilot study was conducted in Kota and Jaipur cities to
find out satisfaction level of customers/ consumer. Researcher opted total 40
respondents in total (20 respondents from Kota and Jaipur each). Researcher
found that 20 (50%) respondents were satisfied among 40 respondents. So 50%
response were considered as prevalence of satisfaction.

As per the formula of sample size:

n= Sample Size
p = Prevalence of Satisfaction (50% or 0.50 from pilot study)
z = Standard normal Variant (1.96)
ME= Margin/Absolute error (10% of prevalence of satisfaction)
n= 0.50*0.50*(1.96)2 / (0.050)2
n= 384.1
Sample size is 384.1 in round off 400 respondents.

96
 Sample Size Allocation for Both Cities:
Formula
nh = n/K
nh =400/2 = 200 in each city Where:
nh = Number of respondents in each city
n =Sample size
K =Number of city

Sample Size- Number of respondents

Cities No. of Respondents

Kota 200
Jaipur 200
Total No. of Respondents 400
Table 4.1: Sample Size
(Source: Field Survey)

Sample Profile- The demographic characteristics of sample used for the research
problem are
Variables Respondents
In Number In Percentage
Gender
Male 223 55.75
Female 177 44.25
Total 400 100
Age of respondents (in years)
Below 18 104 26
18-25 84 21
26-40 144 36
41-60 64 16
Above 60 4 1
Total 400 100

97
Marital status
Married 204 51
Unmarried 196 49
Total 400 100
Education level (class wise)
Less than V 4 1
VI – X 98 24.5
XI –XII 82 20.5
Graduation 136 34
Post graduation and above 80 20
Total 400 100
Occupation
Service 165 41.25
Business 30 7.50
Professional 24 6
Student 144 36
Housewife 32 8
Other 5 1.25
Total 400 100
Monthly income (in Rs.)
Less than 10000 130 51.18
10001-20000 54 21.25
20001-30000 40 15.74
30001-50000 22 8.66
Above 50000 8 3.17
Total 254 100
Table 4.2: Sample Profile
(Source: Field Survey)

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4.7. Data Collection Method
Meaning of Primary Data and Secondary Data
According to Hox and Boeije (2005), “Primary data are collected for the specific
research problem by using procedures that fit the research problem best. And
secondary data is that data which created by other researchers and use by whole
researchers in the world”.

For proposed research the data was collected from both primary and secondary
sources.
4.7.1. Primary Data- This is collected from 400 consumers (FMCG products
consumers) through structured Questionnaire containing predetermined and
definite questions based on expert’s advice.
4.7.2. Secondary Data- Secondary data collected from Government published
materials, research articles, published scholarly papers, books, journals, speeches,
newspapers, annual reports, database available on various websites.

4.8. Types of Questionnaire

Questionnaire is a set of questions asked in two forms; one in written form and
other in verbal form. Generally three types of questionnaires are employed, such
as:
4.8.1. Structured Questionnaire:
These are based on closed ended questions where a researcher provides a suitable
list of responses (all responses given by researcher, either ‘yes’ or ‘no’).
4.8.2. Unstructured Questionnaire:
Unstructured questionnaire have only or large number of open ended questions. In
open ended questions researcher doesn’t provide any list of responses.
Respondents answer depending on his/her opinion. In open ended question data is
more qualitative rather than close ended question.
4.8.3. Semi Structured Questionnaire:
This questionnaire is based on both open ended and closed ended questions. In
this researcher receives both quantitative and qualitative data. Researcher has used
structured questionnaire for responses.

99
4.9. Introduction of Likert Scale
The name ‘likert scale’ originated from ‘Rensis Likert’, a sociologist at the
University of Michigan. He developed this technique. His original report titled “A
Technique for the Measurement of Attitudes” was published in the Archives of
Psychology in 1932. In response to the difficulty of measuring character and
personality traits, Likert (1932) developed a procedure for measuring attitudinal
scales. The inventive Likert scale used a series of questions with five responses
which are- Strongly Approve (1), Approve (2), Undecided (3), Disapprove (4),
and Strongly Disapprove (5). This is a statistical method which describes
quantitative value to qualitative data, to make it responsive to statistical analysis.

4.10. Statistical Tools Used in Research Work

Main function of hypothesis is to suggest new experiments and observations.
Many experiments are carried out by the intentional object of testing hypothesis.
Researchers often face situations wherein they are interested in testing hypothesis
on the basis of available information. In this study, researcher has used chi square
(x2) test for testing hypothesis, for the result of the study approved or rejected.
This is used for testing relationships on categorical variables.In this research
work, researcher uses Weighted Value and chi square for hypothesis testing.

Chi Square Formula:

Where:
∑ = Summation
χ2 = Chi-Square Test

4.11. Design Analysis and Interpretation of Data

The data collected from primary as well as secondary source analyzed
scientifically by using statistical tools and techniques. The same will be classified
tabulated and analyzed to draw the logical conclusion from them. Graphs and
diagrammatic representation will also be made through pie and bar diagrams for
making data clear and presentable.

100
Five Advantages of Survey
Advantage Description

Provides standardization All respondents react to questions

worded identically and presented in the
same order. Response options (scales)
are the same, too.

Easy to analyze Large sample size and computer

processing allows quick tallies, cross-
tabulations, and other statistical
analysis.

Easy to administer Interviewers read questions to

respondents and record their answers
quickly and easily. In some cases, the
respondents fill out the questionnaires
themselves.

Reveals subgroup differences Respondents can be divided into

segments or subgroups for comparisons
in the search for meaningful
differences.

Gets “beneath the surface” It is possible to ask questions about

motives, circumstances, sequences of
events, or mental deliberations.

Table 4.3: Five Advantages of Surveys

(Source : Burns, A.C. & Bush, R.F., (2006), “Marketing Research”, 5th Edition, Pearson
Education, London)

101
References

Books and Journals

1. Boone, H. N. & Boone, D. A. (2012), “Analyzing Likert Data”, Journal of

Extension, Volume 50, Number 2
2. Burns, A. C. & Bush, R. F. (2006), “Marketing Research”, 5th Edition,
Pearson Education, London
3. Creswell, J. W. (2008), “ Educational Research: Planning, Conducting and
Evaluating Quantitative and Qualitative Research”, 3rd Edition, Upper
Saddle River
4. Hox & Boeije (2005), Data Collection, Primary vs. Secondary,
Encyclopedia of Social Measurement, Volume I, Elsevier Inc.
5. Malhotra, N. K. (2004), “Marketing Research: An Applied Orientation”,
New Jersey: Pearson Education
6. Mc Burney & White (2009), “Research Methods”, 8th edition,
Wadsworth: Cengage Learning

Website
7. http://sciencing.com/meaning-sample-size-5988804.html

102
 Chapter – Five

Data Analysis and Interpretation

 Chapter – Five
Data Analysis and Interpretation

5.1. Role of Data Analysis and Interpretation

Once the Primary data is collected, it needs to be analyzed in order to arrive to
valid result and conclusions. Data analysis is a process of summarizing,
transforming data, relevant information, suggestion and conclusion.
Objective of the research can be achieved by analysing the collected data,
examining the responses and opinions of the respondents. Data has been analyzed
by the review of literature and objectives of study.

Key area which were analyzed on the basis of data collected are-
 Effect of celebrity endorsement on consumers
 Personal preferences of respondents on purchase decision
 Appropriate relationship between product and celebrity
 Negative impact of celebrity.
 Product quality and consumer satisfaction according to product, especially
FMCG products.
After analyzing all questions, Hypothesis testing exercise was undertaken to draw
out relevant result of the study. Statistical tools were used for hypothesis testing.
Just after use of hypothesis testing, researcher started interpretation. This helps to
make inferences. All these processes help in research findings and conclusions.

5.2. Sections of Analysis and Results

This chapter is divided in five segments according to questionnaire. Which are the
following:
5.2.1. Demographic Factors
5.2.2. Advertisements and Celebrity Endorsements
5.2.3. FMCG and Satisfaction Level of Consumers
5.2.4. Ranking Method
5.2.5. Calculation and Interpretation of Hypothesis by Chi Square Test

103
5.2.1. Demographic factors

Table No. – 5.1

Gender of the respondents

Sr. No. Gender No. of Percentage of

Respondents Respondents
1 Male 223 55.75
2 Female 177 44.25
Total 400 100
Table 5.1: Gender of the Respondents
(Source: Field Survey)

Graph 5.1: Gender of the Respondents

Interpretation:
According to the above table, out of total 400 respondents, 223 respondents
(55.75%) are male and remaining177 respondents (44.25%) are female.

104
 Table No. – 5.2
Age of the respondents

Sr. No. Age of Respondents (in years) No. of Respondents Percentage of

Respondents
1 Below 18 104 26
2 18-25 84 21
3 26-40 144 36
4 41-60 64 16
5 Above 60 4 1
Total 400 100
Table 5.2: Age of the Respondents
(Source: Field Survey)

Graph 5.2: Age of the Respondents

Interpretation:
In this table, out of total 400 respondents, 144 respondents (36%) are in 26-40
years age group while 104 respondents (26%) below 18 years, 84 respondents
(84%) are in 18-25 years age group. 64 respondents are under the 41-60 years age
group and rest 4 respondents are above 60 year age group.

105
 Table No. – 5.3
Marital status of the respondents

Sr. No. Marital Status No. of Percentage of

Respondents Respondents

1 Married 204 51

2 Unmarried 196 49

Total 400 100

Table 5.3: Marital Status of the Respondents

(Source: Field Survey)

Graph 5.3: Marital Status of the Respondents

Interpretation:
According to this table, out of total 400 respondents 51% are married while 49%
are unmarried in both genders. Approximately both genders are equal number in
composition of married and unmarried.

106
 Table No. – 5.4
Education level of the respondents

Sr. No. Education Level (class wise) No. of Percentage of

Respondents Respondents
1 Less than V 4 1
2 VI – X 98 24.5
3 XI –XII 82 20.5
4 Graduation 136 34
5 Post graduation and above 80 20
Total 400 100
Table 5.4: Education Level of the Respondents
(Source: Field Survey)

Graph 5.4: Education Level of the Respondents

Interpretation:
According to this table, out of total 400 respondents, 136 respondents (34%) are
graduate followed by 98 respondents (24.50%) are under VI to X class group. 82
respondents (20.50%) are in XI to XII class group, number of postgraduate
respondents are 80(20%) and only 4 respondents (1%) are below class V.

107
 Table No. – 5.5
Occupation of the respondents

Sr. No. Occupation No. of Percentage of

Respondents Respondents
1 Service 165 41.25
2 Business 30 7.50
3 Professional 24 6
4 Student 144 36
5 Housewife 32 8
6 Others 5 1.25
Total 400 100
Table 5.5: Occupation of the Respondents
(Source: Field Survey)

Graph 5.5: Occupation of the Respondents

Interpretation:
Out of total respondents, 165(41.25%) respondents are in service class. 30(7.50%)
respondents are engaged in business. 32(8%) respondents are housewives,
144(36%) respondents are student, 24(6%) respondents are professionals. And
other 4(1%) respondents are in other category.

108
 Table No. – 5.6
Monthly income of the respondents

Sr. No. Monthly Income (in Rs.) No. of Percentage of

Respondents Respondents
1 Less than 10000 130 51.18
2 10001-20000 54 21.25
3 20001-30000 40 15.74
4 30001-50000 22 8.66
5 Above 50000 8 3.17
Total 254 100
Table 5.6: Monthly Income of the Respondents
(Source: Field Survey)

Graph 5.6: Monthly Income of the Respondents

Interpretation:
According to this table total 254 (63.50%) respondents engaged in earning out of
400 respondents. In out of 254 respondents who are earning, 130 (51.18%)
respondents are earning less than 10000 Rs. in a month wheares 54 (21.25%)
respondents are in 10001 to 20000 Rs. group, 40 (15.74%) respondents in 20001
to 30000 Rs. group. 22 (8.66%) respondents under 30001 to 50000 Rs. income
group while only 8 (3.17%) respondents have an income above 50000 Rs.

109
5.2.2. Advertisements and Celebrity Endorsements

Table No. – 5.7

Popular medium of marketing

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Advertisement 190 47.5
2 Sales promotion 36 9
3 Event 18 4.5
4 Social media 76 19
5 E-marketing/ Telemarketing 80 20
Total 400 100
Table 5.7: Popular Medium of Marketing
(Source: Field Survey)

Graph 5.7: Popular Medium of Marketing

Interpretation:
Out of total 400 respondents, 190 (47.50%) respondents think advertisement is
very popular medium of marketing while 80 (18%) respondents assume electronic
marketing/ telemarketing is popular medium of marketing. 76 (19%) respondents
choose social media. Sales promotion is chosen by 36 (9%) respondents and
remaining 18 (4.50%) respondents select event, as a popular medium of
marketing.
110
 Table No. – 5.8
Preference of media advertisement for FMCG products

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Print advertising 28 7
2 Radio advertising 32 8
3 Television advertising 214 53.50
4 Internet advertising 96 24
5 Outdoor hoardings/ billboards 30 7.50
Total 400 100
Table 5.8: Preference of Media Advertisement for FMCG Products
(Source: Field Survey)

Graph 5.8: Preference of Media Advertisement for FMCG Products

Interpretation:
On the basis of above table, 214 (53.5%) respondents like television advertising.
96 (24%) respondents are interested in internet advertising. 32 (8%) respondents
like radio advertising while 30 (7.50%) respondents like outdoor hoardings /
billboards. Remaining 28 (7%) respondents like print advertising.

111
 Table No. – 5.9
Types of advertisement of FMCG products liked by respondents

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Celebrity 214 53.5
2 Non- celebrity 24 6
3 Animation 70 17.5
4 Containing social message 36 9
5 Depends on advertisement 56 14
Total 400 100
Table 5.9: Types of Advertisement of FMCG Products Liked by Respondents
(Source: Field Survey)

Graph 5.9: Types of Advertisement of FMCG Products Liked by Respondents

Interpretation:
Out of total 400 respondents, majority of respondents 214 (53.50%) like celebrity
in advertisement. 70 (17.50%) respondents like animations in advertisement, 56
(14%) respondents think it depends on advertisement. 36 (9%) respondents prefer
those advertisements which have social messages. Rest 24 (6%) respondents like
non-celebrity advertisement.

112
 Table No. – 5.10
Involvement of Celebrity for endorsement of FMCG products is a good idea

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Always 76 19
2 Oftenly 82 20.50
3 Sometimes 166 41.50
4 No 40 10
5 Can’t say 36 9
Total 400 100
Table 5.10: Involvement of Celebrity for Endorsement of FMCG Products is a Good Idea
(Source: Field Survey)

Graph 5.10: Involvement of Celebrity for Endorsement of FMCG Products is a Good Idea

Interpretation:
Out of total 400 respondents 166 (41.50%) respondents think celebrity
endorsement is a mixed idea. Sometimes it is very good idea. 82(20.50%)
respondents think, it is oftenly a good idea. 76 (19%) respondents assume it is
always very good idea. 40 (10%) respondents think it is not good idea. And 36
(9%) respondents are neutral about this.

113
 Table No. – 5.11
Preference of celebrity Endorser

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Actor 56 14
2 Actress 116 29
3 Athlete/ Sport person 124 31
4 Musician 52 13
5 Other 52 13
Total 400 100
Table 5.11: Preference of Celebrity Endorser
(Source: Field Survey)

Graph 5.11: Preference of Celebrity Endorser

Interpretation:
Out of total 400 respondents, 124 (31%) respondents prefer athlete/ sport person
as a celebrity in advertisement. 116 (29%) respondents prefer actress in
advertisement. 56 (14%) respondents prefer actor in advertisement. Musicians are
preferred by 52(13%) respondents. And rest 52 (13%) respondents prefer other.

114
 Table No. – 5.12
Increase of product attraction through advertisement

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Always 128 32
2 Oftenly 106 26.50
3 Sometimes 132 33
4 No 18 4.50
5 Can’t say 16 4
Total 400 100
Table 5.12: Increase of Product Attraction through Advertisement
(Source: Field Survey)

Graph 5.12: Increase of Product Attraction through Advertisement

Interpretation:
Out of total 400 respondents, 132 (33%) respondents think sometimes
advertisement can increase product attraction. 128 (32%) respondents assume
advertisement always increases product attraction. 106 (26.50 %) respondents say
it is oftenly, while 18 (4.50%) respondents think it does not increase product
attraction and 16 (4%) respondents couldn’t comment on it.

115
 Table No. – 5.13
Celebrity attraction factor in FMCG product advertisement

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Always 108 27
2 Oftenly 90 22.50
3 Sometimes 140 35
4 No 38 9.50
5 Can’t say 24 6
Total 400 100
Table 5.13: Celebrity Attraction Factor in FMCG Product Advertisement
(Source: Field Survey)

Graph 5.13: Celebrity Attraction Factor in FMCG Product Advertisement

Interpretation:
Out of total 400 respondents, 140 (35%) respondents are sometimes attracted by
celebrity. 108 (27%) respondents are always attracted by celebrity in
advertisement by their styles, dressings and looks, respondents sought them as an
icon. 90 (22.50%) respondents are oftenly attracted by celebrity. 38 (9.5%) totally
deny that they are attracted by celebrity. And only 24(6%) respondents were
neutral in this regards.

116
 Table No. – 5.14
Impact of celebrity endorsement on FMCG product selling

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Always 88 22
2 Oftenly 108 27
3 Sometimes 124 31
4 No 52 13
5 Can’t say 28 7
Total 400 100
Table 5.14: Impact of Celebrity Endorsement on FMCG Product Selling
(Source: Field Survey)

Graph 5.14: Impact of Celebrity Endorsement on FMCG Product Selling

Interpretation:
124 (31%) respondents believed that celebrity can increase product selling
sometimes not always. Because there are many factors which can directly affect
on product. 108 (27%) respondents believe that celebrity can oftenly increase
product selling. 88 (22%) respondents think it is always a good decision for
product selling, by using celebrity(s). 52 (13%) respondents say no on this
question. And rest 28 (7%) respondents couldn’t comment on it.

117
 Table No. – 5.15
Level of trustworthiness of FMCG products information endorsed by celebrity

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Always 43 10.75
2 Oftenly 55 13.75
3 Sometimes 155 38.75
4 No 113 28.25
5 Can’t say 34 8.50
Total 400 100
Table 5.15: Level of Trustworthiness of FMCG Products Information Endorsed by Celebrity
(Source: Field Survey)

Graph 5.15: Level of Trustworthiness of FMCG Products Information Endorsed by celebrity

Interpretation:
Out of total 400 respondents, 155(38.75%) say sometimes all given information is
right. In this context 113 (13.75%) respondents did not believe that all information
are right in advertisement. 55 (13.75%) respondents think given information is
oftenly right. 43 (10.75%) respondents assume information in advertisement is
always right. Advertisers cannot betray the consumer in this scenario, where all
consumers are aware about product. And rest 34 (8.50%) respondents couldn’t
comment on it.

118
 Table No. – 5.16
Peer review discussion frequency regarding celebrity endorsement of FMCG
products

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Always 64 16
2 Oftenly 64 16
3 Sometimes 146 36.50
4 No 66 16.50
5 Can’t say 60 15
Total 400 100
Table 5.16: Peer Review Discussion of Advertised Products
(Source: Field Survey)

Graph 5.16: Peer Review Discussion of Advertised Products

Interpretation:
Out of total 400 respondents, 146 (36.50%) respondents discussed about product
with others sometimes when they are attracted or impressed by them. 66 (16.50%)
respondents are not interested to discuss with others about a product. 64 (16%)
respondents are always interested to tell others about product and discussed about
it, and same number of respondents 64 (16%) oftenly discussed with others. And
60 (15%) respondents are neutral in this case.

119
 Table No. – 5.17
Effect of negative advertising on celebrity image

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Always 148 37
2 Oftenly 76 19
3 Sometimes 100 25
4 No 40 10
5 Can’t say 36 9
Total 400 100
Table 5.17: Effect of Negative Advertising on Celebrity Image
(Source: Field Survey)

Graph 5.17: Effect of Negative Advertising on Celebrity Image

Interpretation:
Out of total 400 respondents, 148 (37%) respondents say negative advertising
always damages celebrity image. It may harm the credibilty of the celebrity
among consumers/ customres. 100 (25%) respondents supposed it happened
sometimes. 76 (19%) respondents think it happened oftenly. 40 (10%)
respondents say no about it. And only 36 (9%) respondents can’t say about it.

120
5.2.3. FMCG and Satisfaction Level of Consumers

Table No. – 5.18

FMCG products purchased more by respondents

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Food and beverage 190 47.50
2 Household 126 31.50
3 Personal care 84 21
Total 400 100
Table 5.18: FMCG Products Purchased More by Respondents
(Source: Field Survey)

Graph 5.18: FMCG Products Purchased More by Respondents

Interpretation:
Out of total 400 respondents, most of the respondents 190 (47.50%) accept that
they purchase foods and beverages. 126 (31.50%) respondent purchase household
products amongst FMCG products. Only 84 (21%) respondents purchase personal
care products.

121
 Table No. – 5.19
Frequency of purchasing FMCG products

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Daily 36 9
2 Weekly 144 36
3 Monthly 160 40
4 Half yearly 28 7
5 Yearly 32 8
Total 400 100
Table 5.19: Frequency of Purchasing FMCG Products
(Source: Field Survey)

Graph 5.19: Frequency of Purchasing FMCG Products

Interpretation:
Out of 400 respondents, 160 (40%) respondents purchase FMCG products on
monthly basis. 144 (36%) respondents purchase FMCG products on weekly basis
while 36 (9%) respondents purchase on daily basis, 32 (8%) respondents accept
that they purchase FMCG product on yearly basis and 28 (7%) respondents admit
it on half yearly.

122
 Table No. – 20
Factors influence while purchasing FMCG products

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Price 100 25
2 Packaging 44 11
3 Brand name 176 44
4 Ingredients / Contents 54 13.5
5 Celebrity Endorsement 26 6.5
Total 400 100
Table 5.20: Factors Influence While Purchasing FMCG Products
(Source: Field Survey)

Graph 5.20: Factors Influence While Purchasing FMCG Products

Interpretation:
On the basis of the above table, it is concluded that the factors which influence the
most while buying the FMCG products is brand name which is selected by 176
(44%) respondents. Price factor is selected by 100 (25%) respondents. Ingredients
/ contents of products were considered by 54 (13.50%) respondents. 44 (11%)
respondents selected packaging, when they purchase something. Remaining 26
(6.5%) respondents clearly selected celebrity endorsement when they purchase
something.

123
 Table No. – 5.21
Recommendation preferred while purchasing FMCG products

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Own 106 26.50
2 Family 140 35
3 Friend 76 19
4 Shopkeeper 56 14
5 Online asking 22 5.50
Total 400 100
Table 5.21: Recommendation Preferred While Purchasing FMCG Products
(Source: Field Survey)

Graph 5.21: Recommendation Preferred While Purchasing FMCG Products

Interpretation:
Recommendation is very important at the time of purchasing. Out of total 400
respondents, 140 (35%) respondents discuss with family while purchasing.
106(26.50%) respondents take self decision at the time of purchase. 76 (19%)
respondents prefer friends recommendations. 56 (14%) respondents purchase on
recommendations of shopkeepers. And rest 22 (5.50%) select online asking for it.

124
 Table No. – 5.22
Purchase preference of endorsed FMCG products

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Always 80 20
2 Oftenly 64 16
3 Sometimes 142 35.50
4 No 70 17.50
5 Can’t say 44 11
Total 400 100
Table 5.22: Purchase Preference of Endorsed FMCG Products
(Source: Field Survey)

Graph 5.22: Purchase Preference of Endorsed FMCG Products

Interpretation:
Out of total 400 respondents, 142 (35.50%) respondents sometimes prefer those
products which are promoted by celebrity endorsement. 80 (20%) respondents
always prefer those products which are endorsed by celebrity. 70 (17.50%)
respondents do not prefer those products which have a celebrity endorsement. 64
(16%) respondents choose it oftenly, while 44 (11%) are unable to say about it.

125
 Table No. – 5.23
Reasons which attract respondents towards an advertisement

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Celebrity endorsement 120 30
2 Non celebrity presence 28 7
3 Music / jingle of advertisement 112 28
4 Theme of advertisement 70 17.50
5 Content of advertisement 70 17.50
Total 400 100
Table 5.23: Reasons Attract Towards an Advertisement
(Source: Field Survey)

Graph 5.23: Reasons Attract Towards an Advertisement

Interpretation:
Out of total 400 respondents, 120 (30%) respondents are attracted by celebrity
endorsement in advertisement whereas 112 (28%) respondents are attracted by
music/ jingle of advertisement. 70 (17.50%) respondents select theme of
advertisement and same number of respondents select content of advertisement.
Only 28 (6.87%) respondents are not attracted by celebrity presence.

126
 Table No. – 5.24
Frequency of print media advertisements using celebrity endorsement for FMCG
products

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Less 18 4.50
2 Plenty 168 42
3 Sufficient 132 33
4 Not sufficient 52 13
5 Can’t say 30 7.50
Total 400 100
Table 5.24: Frequency of Print Media Advertisements Using Celebrity Endorsement for
FMCG Products
(Source: Field Survey)

Graph 5.24: Frequency of Print Media Advertisements Using Celebrity Endorsement for
FMCG Products

Interpretation:
Out of total 400 respondents, 168 (42%) assume there are a plenty print media ads
using celebrity endorsement. 132 (33%) respondents supposed there are sufficient
ads on print media which are using celebrity endorsement. 52 (13%) respondents
assume it is not sufficient, while 30 (7.50%) respondents are unable to say about
it. And 18 (4.50%) respondents think endorsement by celebrity in print media is
less.
127
 Table No. – 5.25
Frequency of electronic media advertisements using celebrity endorsement for
FMCG products

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Less 18 4.50
2 Plenty 124 31
3 Sufficient 166 41.50
4 Not sufficient 68 17
5 Can’t say 24 6
Total 400 100
Table 5.25: Frequency of Electronic Media Advertisements Using Celebrity Endorsement
for FMCG Products
(Source: Field Survey)

Graph 5.25: Frequency of Electronic Media Advertisements Using Celebrity Endorsement

for FMCG Products

Interpretation:
Out of total 400 respondents, 166 (41.50%) assume there are sufficient electronic
media ads using celebrity endorsement. 124 (31%) respondents suppose there are
plenty ads on print media which are using celebrity endorsement. 68 (17%)
respondents assume it is not sufficient, while 24 (6%) respondents are unable to
say about it. And 18 (4.50%) respondents think endorsement by celebrity in print
media is less.
128
 Table No. – 5.26
Satisfaction level of food and beverage products endorsed by celebrities

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Highly satisfied 43 10.75
2 Satisfied 106 26.50
3 Not sure 61 15.25
4 Dissatisfied 139 34.75
5 Highly dissatisfied 51 12.75
Total 400 100
Table 5.26: Satisfaction Level of Food and Beverage Products Endorsed by Celebrities
(Source: Field Survey)

Graph 5.26: Satisfaction Level of Food and Beverage Products Endorsed by Celebrities

Interpretation:
Out of total 400 respondents, 139 (34.75%) respondents were dissatisfied with
food and beverage products which were endorsed by celebrity. 106 (26.50%)
respondents were satisfied with these products. 43 (10.75%) respondents were
highly satisfied with these products which are endorsed by celebrity while 61
(15.25%) respondents are not sure about it. And 51 (12.75%) respondents were
highly dissatisfied with food and beverage products.

129
 Table No. –5. 27
Satisfaction level of personal care/ beauty products endorsed by celebrities

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Highly satisfied 60 15
2 Satisfied 132 33
5 Not sure 54 13.50
3 Dissatisfied 114 28.50
4 Highly dissatisfied 40 10
Total 400 100
Table 5.27: Satisfaction Level of Personal Care/ Beauty Products Endorsed by Celebrities
(Source: Field Survey)

Graph 5.27: Satisfaction Level of Personal Care/ Beauty Products Endorsed by Celebrities

Interpretation:
Out of total 400 respondents, 114 (28.50%) respondents were dissatisfied with
personal care/ beauty products which were endorsed by celebrity. 132 (33%)
respondents were satisfied with these products. 60 (15%) respondents were highly
satisfied with personal care / beauty products which are endorsed by celebrity
while 54 (13.50%) respondents were not sure about it. And 40 (10%) respondents
were highly dissatisfied with these personal care / beauty products.

130
 Table No. – 5.28
Satisfaction level of household products endorsed by celebrities

Sr. No. Response No. of Percentage of

Respondents Respondents
1 Highly satisfied 63 15.75
2 Satisfied 130 32.50
5 Not sure 52 13
3 Dissatisfied 113 28.25
4 Highly dissatisfied 42 10.50
Total 400 100
Table 5.28: Satisfaction Level of Household Products endorsed by Celebrities
(Source: Field Survey)

Graph 5.28: Satisfaction Level of Household Products Endorsed by Celebrities

Interpretation:
Out of total 400 respondents, 113 (28.25%) respondents were dissatisfied with
household products which were endorsed by celebrity. 130 (32.50%) respondents
were satisfied with these products. 52 (13%) respondents were not sure about it.
42 (10.50%) respondents were highly dissatisfied with these household products
while 63 (15.75%) respondents were highly satisfied with household products
which were endorsed by celebrity.

131
5.2.4. Ranking Method

Table No. – 5.29

Please rank following type of advertising which you see in your daily lives.
Lesser Higher
1 2 3 4 5 6 7 8 9 10

Sr. No. Advertising type Rank Position

1 Newspapers 9 2
2 Brochure 4 7
3 Periodicals (Magazines) 5 6
4 Billboards 7 4
5 Kiosks 3 8
6 Tradeshows (Events) 2 9
7 Television 10 1
8 Radio 6 5
9 Internet 8 3
10 Other 1 10
Table 5.29: Advertisement Seen in Daily Lives (Rank Wise)
(Source: Field Survey)

Graph 5.29: Advertisement Seen in Daily Lives (Rank Wise)

132
Interpretation:
According to above table, large number of advertisements viewed by television,
which is established top in amongst all type of advertising. Advertising by
newspaper is stable on 2nd position in this category. Present time internet is very
common in people so internet advertising is fixed on 3rd position. Billboards get
4th position in advertising. Radio advertising get 5th position. And remaining 6, 7,
8, 9 10 position respectively are awarded to periodicals, brochures, kiosks,
tradeshows and other types of advertising.

133
 Table No. – 5.30
Please rank following celebrities potential in FMCG products endorsement
Lesser Higher
1 2 3 4 5 6 7 8 9 10 11

Sr. No. Celebrity Name Rank Position

1 Amitabh Bachchan 11 1
2 Shahruk Khan 4 8
3 Salman Khan 5 7
4 Varun Dhawan 3 9
5 Aishwarya Rai 6 6
6 Kareena Kapoor 2 10
7 Shilpa Shetty 1 11
8 Sachin Tendulkar 10 2
9 Mahendra Singh Dhoni 9 3
10 Virat Kohli 8 4
11 Alia Bhatt 7 5

Table 5.30: Celebrity Potential in FMCG Products (Rank Wise)

(Source Field Survey)

Graph 5.30: Celebrity Potential in FMCG Products (Rank Wise)

134
Interpretation:
According to above table, Amitabh Bachchan is very powerful celebrity so that a
large number of respondents gave him top rank in product endorsement. Sachin
Tendualkar is a powerful personality as a sport person and he got 2nd position in
this category. Mahendra Singh Dhoni and Virat Kohali are also good sport person
and they stay on respectively 3rd and 4th position on the table. In female category,
actress Alia Bhatt (5th position) and Aishwarya Rai (6th position) have been
considered as good in celebrity potential in the product endorsement. Salman
Khan has got 7th position by respondents and just behind was Shahruk Khan with
8th postion in above table. Kareena Kapoor, Shilpa Shetty both are considered as
less potential in celebrity endorsement in FMCG product according to respondents
and got respectively 10th and 11th position in the table. And last Varun Dhawan is
assuming average celebrity by respondents in the product endorsement and got 9th
position in above table.

135
5.2.5. Calculation and Interpretation of Hypothesis by Chi Square Test

Testing of Hypothesis:
1. Testing of H1& H3 according to Food and beverage products
H0: Consumers are not fully satisfied with FMCG products (Category- Food and
Beverage)
Ha: Consumers are fully satisfied with FMCG products (Category- Food and
Beverage)

Male Female
Chi Square Chi Square
Level of satisfaction F(o) F(e) value F(o) F(e) value
Highly satisfied 19 23.97 1.03 24 19.03 1.30
Satisfied 53 59.10 0.62 53 46.91 0.79
Not sure 37 34 0.26 24 26.99 0.33
Dissatisfied 82 77.50 0.26 57 61.50 0.32
Highly Dissatisfied 32 28.43 0.44 19 22.57 0.56
Total 223 223 2.61 177 177 3.30
Table 5.31: Hypothesis Testing by Chi Square Test (Food and Beverage Products)
(Source: Field Survey)

Chi square value =2.61+3.30 = 5.91

Degree of freedom: (r-1) (c-1) Note : R stands for Row
(5-1) (2-1) = 4 C stands for Colum
Alpha level of significance (0.05) is 9.49

Interpretation:
Here chi square value (5.91) below the value for 0.05 probability level (9.49) so
we have to accept the null hypothesis (H0: Consumers are not fully satisfied with
FMCG products) and reject alternative hypothesis (Ha).

136
2. Testing of H1& H3 according to beauty and personal care products
H0: Consumers are not fully satisfied with FMCG products (Category- Beauty/
Personal care)
Ha: Consumers are fully satisfied with FMCG products (Category- Beauty/
Personal care)

Male Female
Level of Chi Square Chi Square
satisfaction F(o) F(e) value F(o) F(e) value
Highly satisfied 28 33.45 0.88 32 26.55 0.41
Satisfied 84 73.60 1.47 48 58.41 1.80
Not sure 24 30.10 1.23 30 23.89 1.56
Dissatisfied 63 63.55 0.004 51 50.44 0.006

Highly dissatisfied 24 22.30 0.129 16 17.71 0.163

Total 223 223 3.713 177 177 3.939
Table 5.32: Hypothesis Testing by Chi Square Test (Beauty / Personal Care Products)
(Source: Field Survey)

Chi square value =3.713+3.939 = 7.652

Degree of freedom: (r-1) (c-1) Note : R stands for Row
(5-1) (2-1) = 4 C stands for Colum
Alpha level of significance (0.05) is 9.49

Interpretation:
Here chi square value is (7.652) below the value for 0.05 probability level (9.49)
so we have to accept the null hypothesis (H0: Consumers are not fully satisfied
with FMCG products) and reject alternative hypothesis (Ha).

137
3. Testing of H1& H3 according to Household products
H0: Consumers are not fully satisfied with FMCG products (Category Household)
Ha: Consumers are fully satisfied with FMCG products (Category- Household)

Male Female
Level of Chi Square Chi Square
satisfaction F(o) F(e) value F(o) F(e) value
Highly satisfied 29 35.12 1.06 34 27.87 1.34
Satisfied 83 72.46 1.53 47 57.52 1.92
Not sure 23 28.99 1.23 29 23.03 1.55
Dissatisfied 63 63 0 50 50 0

Highly Dissatisfied 25 23.43 0.10 17 18.58 0.13

Total 223 223 3.92 177 177 4.94
Table 5.33: Hypothesis Testing by Chi Square Test (Household Products)
(Source: Field Survey)

Chi square value =3.92+4.94 = 8.86

Degree of freedom: (r-1) (c-1) Note : R stands for Row
(5-1) (2-1) = 4 C stands for Column
Alpha level of significance (0.05) is 9.49

Interpretation:
Here chi square value (8.86) below the value for 0.05 probability level (9.49) so
we have to accept the null hypothesis (H0: Consumers are not fully satisfied with
FMCG products) and reject alternative hypothesis (Ha).

138
4. Testing of H2 : The advertiser has not adopted appropriate strategies for
the ethical development of advertisements.
H0: As per given information in advertisement, advertisers do not follow ethical
behavior and development with celebrity endorsement
Ha: As per given information in advertisement, advertisers follow ethical
behavior and development with celebrity endorsement

Male Female
Level of Chi Square Chi Square
satisfaction F(o) F(e) value F(o) F(e) value
Highly satisfied 21 23.97 0.36 22 19.02 0.46
Satisfied 32 30.67 0.05 23 24.33 0.07
Not sure 80 86.42 0.47 75 68.58 0.60

Dissatisfied 69 62.99 0.57 44 50.00 0.72

Highly Dissatisfied 21 18.95 0.22 13 15.04 0.27
Total 223 223 1.67 177 177 2.12
Table 5.34: Hypothesis Testing by Chi Square Test (Strategy and Ethical development of
Advertising)
(Source: Field Survey)

Chi square value =1.67+2.12 = 3.79

Degree of freedom: (r-1) (c-1) Note : R stands for Row
(5-1) (2-1) = 4 C stands for Column
Alpha level of significance (0.05) is 9.49

Interpretation:
Here chi square value is (3.79) below the value for 0.05 probability level (9.49) so
we have to accept the null hypothesis (H0: advertisers do not follow ethical
behavior) and have to reject alternative hypothesis (Ha).

139
 Chapter – Six

Findings and Suggestions

 Chapter – Six
Findings and Suggestions

Findings, Suggestions and Conclusions

Present study is an attempt made to know the effect of celebrity endorsement on
consumers buying behavior with respect to FMCG products. And to find the
consumers views on celebrity endorsement. On the basis of all data and
hypothesis testing it is clear there no significant effect of celebrity endorsement on
consumers buying behavior regarding to FMCG products.
As per this study, it founds that the celebrity endorsement is a very useful
marketing communication tool and also useful for creating new product
information and brand recall among consumers. In India, many celebrities treated
as a sovereign and influence the people to buy the products. But overall impact of
celebrity is very low in FMCG products.

6.1. Findings on the Basis of Data Analysis

On the basis of the various responses given by respondents, many findings
concluded. These are following
 Out of total 400 respondents, 136 (34%) respondents are graduate
followed by 98(24.50%) respondents are under VI to X class group. 82
(20.50%) respondents are in XI to XII class group, number of postgraduate
respondents are 80(20%) and only 4(1%) respondents are below class V.
This clearly shows that, most respondents are from the Graduate category.
so it is very clear that more respondents are aware and conscious about
advertisement. And they also aspire to be like the celebrity, especially
sportsmen and film actors/ actress.

 Out of total respondents, 190 (47.50%) respondents think advertisement is

very popular medium of marketing, this shows large number of
respondents believe advertisement is very suitable and easy for presenting
a new product in market.

140
 On the basis of obtained data, 214 (53.50%) respondents like television
advertising. Because television is an important part in our daily life.
Consumers or customers get knowledge without moving anywhere. 96
(24%) respondents are interested in internet advertising. In today’s
scenario most of people have mobiles phone and laptop, and are using
internet facility on it.

 Most of respondents, 214 (53.50%) like celebrity(s) in advertisement.

Many buyers or consumers perceived celebrity as an icon, they want to
become as well as celebrity and follow their comment, dialogue and
personality. Celebrity endorsement is very useful for new product
introduction and product recall.

 About 166 (41.50%) respondents think celebrity endorsement is a good

idea. It contributes to increase demand of product.

 Out of total respondents, 124 (31%) respondents prefer athlete/ sport

person as a celebrity in advertisement. Many people are attracted by their
fitness. On second position, 116 (29%) respondents prefer actress due to
large number of household and beauty products.

 Out of total 400 respondents, 132 (33%) respondents think sometimes

advertisement can increase product attraction and 128 (32%) respondents
assume advertisement always increases product attraction.

 About 140 (35%) respondents are sometimes attracted by celebrity. While

108 (27%) respondents are always attracted by celebrity in advertisement
by their styles, dressings and looks, respondents sought them as icon.

 In this study about 124 (31%) respondents believed that celebrity can
increase product selling sometimes not always. Because there are many
factors which can directly or indirectly affect the sale of product.

 In any advertisement, given information should be true and relevant.

Advertisers should not mislead the viewers or consumers. It is closely
relevant to ethical behavior of advertisers and manufacturers. As per

141
 survey conducted under this study, Out of total 400 respondents, 152(38%)
say sometimes all given information is right. In this context 110 (27.50%)
respondents don’t believe that all information is right in advertisement.
Most of the respondents believed that not all, but a lot of information has
been given in the advertisement are true. Advertisers cannot betray the
consumers in this scenario, where all consumers are aware about the
product.

 Out of total 400 respondents, 146 (36.50%) respondents discussed about

product with others sometimes when they attract or impress them.

 Negative advertising is like a threat for celebrity image. It can harm the
credibilty among the consumers/ customers. Out of total 400 respondents,
148 (37%) respondents say negative advertising is nightmare for celebrity
image. It can create a contrasting image for the celebrity than what was
desired.

 It is found that majority of respondents 190 (47.50%) accept that they

purchase foods and beverages. 126 (31.50%) respondents purchase
household products amongst FMCG products. Only 84 (21%) respondents
purchase personal care products. This shows food and beverage products
are purchased at large scale rather than other FMCG products.

 Majority of respondents, 160 (40%) respondents purchase FMCG products

on monthly basis. 144 (36%) respondents purchase FMCG products on
weekly basis. Data shows frequency of purchasing FMCG product is
neither very short nor very long. It is purchased as per their requirement.

 On the basis of survey data, it can be concluded that the factors which
influence the most while buying the FMCG products is brand name which
is selected by 176 (44%) respondents. Brand name is very useful for any
FMCG products. Quality products create very good image and establish as
a brand they do not need to promote themselves in future. They are known
by their names, like apple mobile phone, gadgets. About 100 (25%)
respondents believe that the price is big factor at the time of purchasing.

142
 Because price of a particular product may be or may not affordable to
customer. It has been found that use of celebrity does not put any impact
on consumer purchase decision when the brand name and price is
concerned especially in FMCG products.

 It is clearly found that recommendation is very important factor when

planning to purchase a product. In 400 respondents, most of respondents,
140 (35%) respondents discuss with family while purchasing. Because in
this study approx 49% are married and they discuss with their family,
whenever they are buying the product.

 According to this survey, 142 (35.50%) respondents sometimes prefer

those products which are promoted by celebrity endorsement. 80 (20%)
respondents always prefer those products which are endorsed by celebrity.
When a new product intorduces to the consumers with the use of celebrity
endorsement, customers don’t think too much and easily accept the
statement of celebrity.

 Most of the respondents are attracted by celebrity in advertisement. About

120 (30%) respondents are attracted by celebrity endorsement in
advertisement where 112 (28%) respondents are attracted by music/ jingle
of advertisement.

 In print media, around 168 (42%) respondents assume a plenty ads are
using celebrity endorsement. 132 (33%) respondents suppose there are
sufficient ads on print media which are using celebrity endorsement.
Respondents believe that using of celebrity in print media is on a very
large basis.

 In electronic media, around 166 (41.50%) assume there are sufficient

electronic media ads using celebrity endorsement. 124 (31%) respondents
believe there are plenty ads on print media which are using celebrity
endorsement. Respondents suppose that using of celebrity in print media is
on a very large basis.

143
 In FMCG products category, majority of respondents, 139 (34.75%)
respondents were dissatisfied with those food and beverage products
which were endorsed by celebrities. Majority of respondents, 132 (33%)
respondents were satisfied with beauty / personal care products. And
majority of respondents, 130 (32.50%) respondents were satisfied with
household products. Many consumers also believe that the products are
not as worthwhile as claimed by the celebrities. Most of the respondents
believed, consume of soft drink doesn’t make them strong/ daring as
endorsed in advertisement. Beauty/ personal care products cannot do a
dramatic changes in their life but it help to living with a new era of
lifestyle. In all over context, respondents feel satisfy with all these
products when it is promoting with ethical behavior.

 It is revealed that most advertisement are viewed on television, which is

established at the top amongst all the sources. Newspaper is stable on 2 nd
rank. Now days internet facility is easily available on mobile phones and
become a important part of human lifestyle, it is fixed on 3rd rank.
Billboards get 4th rank. Radio remains on 5th position. And remaining 6, 7,
8, positions are respectively held by periodicals, brochures and kiosks.
Trade Shows and other source of advertisement are least viewed.

 It is revealed that Amitabh Bachchan is most preferred celebrity as far as

endorsement of FMCG products. Large number of respondents gave him
top rating in the product endorsement. In female category, actress Alia
Bhatt and Aishwarya Rai have been considered as good (respectively 4th
and 5th position) in celebrity potential in the product endorsement. Sachin
Tendulkar and Mahendra Singh Dhoni are also favorite celebrities among
respondents as a sport person. Both stable on 2nd and 3rd position in
celebrity potential by most of the respondents regarding to the product
endorsement. Salman Khan has got 7th position and just after Shahruk
Khan got 8th position in their potential in FMCG products. Varun Dhawan,
Kareena Kapoor and Shilpa Shetty are considered average celebrity by
respondents in the product endorsement. Amitabh Bachchan and Sachin

144
 Tendulkar are the most powerful endorsers as their name has never been
embroiled in any controversy and as such they carry a clean image
amongst the consumers.

 It has been found that unethical and contradictory promotion has been
done by celebrities. For an example the advertisement shown below
endorsed by Lara Dutta is contradictory to the previous advertisement of
the same product.

Picture shows the unethical and contradictory promotion of a reputed

brand


Image 6.1: Unethical Promotion

(Adopted from- www.google.com/)

145
 Example of some products which were affected and not affected by celebrity
endorsement
1. Positive Impact of Celebrity Endorsement on Product

Sales
Before Celebrity Endorsement Profit After Celebrity Endorsement

Example- Parker Pen endorsed by Amitabh Bachchan, According to Jain D.K.(Chairman

and President, Luxor Writing Instruments Pvt. Ltd.), “Using face and fame of Amitabh
Bachachan as our brand ambassador has helped in increase our brand image and recall
within the target audience," (Interview to Brand Speak on exchange4media.com)
(Source: http://www.thehindubusinessline.com/todays-paper/tp-brandline/the-evergreen-celebrity/article2204206.ece)

2. Negative impact of Celebrity Endorsement on Product

Sales
Before Celebrity Endorsement After Celebrity Endorsement
Profit

Example- Got Milk commercials became a popular spot for celebrities after its
beginnings in 1994. Product featured with many celebrities like- Taylor Swift, Reggie
Bush, David Beckham, Carrie Underwood, Shaq, and Demi Lovato. Print advertisements
were seen in magazines around the world. In 2004, MilkPEP board chose to add the
Olsen twins sister (Mary Kate and Ashley Olsen) to their array of celebrities. After the
advertisement was published the bottom fell out for milk mustache lovers
everywhere. Rumors were already spreading that Olsen twins addict to drugs. Apart from
this, both were not looking too healthy.
(Source: http://www.therichest.com/expensive-lifestyle/entertainment/10-most-humiliating-celebrity-endorsement-flops/)

146
 3. No Impact of Celebrity Endorsement on Top Ranked Product

Sales
Before Celebrity Endorsement Profit After Celebrity Endorsement

Example- As per to ‘indianewsandtimes.com’1 Vicks in India stands on first position in

selling consumer healthcare over the counter brand and Vicks multi pain relief gel is
endorsed by Virat Kohali. As per ‘drugstorenews.com’2 (Feb 2016) Private-label cough-
cold brands Vicks is the most searched product when consumers are seeking remedies
for their sniffles, coughs and stuffiness online.
(Source 1: http://www.indiannewsandtimes.com/2014/10/10/vicks-offers- virat-kohlis- secret-pain-relief-
formula/)
(Source 2 : http://www.drugstorenews.com/sites/drugstorenews.com/files/Cough- Cold_ 020816.pdf)

4. No Impact of Celebrity Endorsement on Lower Ranked Product

Sales
Before Celebrity Endorsement After Celebrity Endorsement
Profit

We can take example of Henko LINTelligent (Detergent powder), According to author

‘Ram Sharma’ posted in trendingpost.com (December 2016), the product ‘Henko
LINTelligent’ (Detergent powder), has been represented by Madhuri Dixit. Still the
ranking of the product was ranked 10th among the ten best detergent powders in India.

(Source: http://www.trendingtopmost.com/worlds-popular-list-top-10/2017-2018-2019-2020-
2021/product/best-selling-detergent-brands-india-famous-cheapest-expensive-reviews)

Figure: 6.1 Impact of Celebrity Endorsement on Some Product

147
 Researcher also elaborated new kinds of advertisements to promote the
products. Which are following
(A) Digital Sign Board is referred to use of technologies in billboard
advertisements. Advertisers use lighting or moving objects in this
boards for attract customers.
(B) Live Performance is referred to act/perform at particular place. This
act is done to promote a product. For an example Nukkad Natak.
(C) Body Tattoo is referred to body modification where a design is made
by inserting ink, dyes and pigments, either indelible or temporary, into
the dermis layer of the skin. It could be a new kind of promotion where
any advertisers and marketers approach someone for make product
tattoo on their body to promote it, with terms of paid or unpaid.
(D) Bird View (Crop Circle) is composed/design of big size compositions
on the surface of the earth that can be easily seen from the sky or
height. Marketers can also promote their product in such a way. Where
it can be visible by drones, airplanes and other gadgets.

6.2. Findings on the Basis of Hypothesis Testing

On the basis of hypothesis testing the following major research findings
are revealed
 There is no significant impact of celebrity endorsement on consumer
buying behaviour and consumer satisfaction. Majority of respondents were
less satisfied with endorsed FMCG products.

 Advertisers do not adopt appropriate strategy for the ethical development.

Many respondents think many advertisers give wrong information about
the product and do mislead the consumers.

6.3. Conclusion
According to the research and previous studies on celebrity endorsement it
has been analyzed that brand managers should focus on quality rather than
increasing their cost by hiring international/expensive celebrities for
endorsement. There is no doubt that celebrity endorsement has effects on

148
 marketing effort but it is not necessary to hire expensive celebrities to
accomplish the purpose of sale of FMCG product. Celebrity endorsement
enhances product information but in the long run consumer depends on
product quality and utility. Large number of respondents believes that
celebrities are not using those products which they themselves endorse and
in backward and rural areas where less communications mix was
available, population get informed by “Word of Mouth”.
The findings of the current study showed that consumers have favourite
brands that they buy again and again. And they are agreed that even if
there will be no celebrity endorsement on particular product(s) they will
continue to buy the product based on their satisfaction and brand loyalty.
The present research draws a conclusion that positive celebrity
information regarding to the FMCG product given through celebrity
endorsed product(s) and good celebrity image can improve the
product/brand image. But at the same time, negative information can
destroy the product/brand image. In order to get market share cost
effectiveness and true information about the product should be given to
customers, because ethical behave is a long term factor to make product
image between consumers for sustainability especially in FMCG products.
The study revealed that celebrity endorsement is very useful for new
FMCG product launch. The advertisers have to keep in mind that the
customers are quite aware about their rights so adoption of unethical
promotion of FMCG products through celebrity endorsement should not
be used.

6.4. Suggestions
 FMCG companies should make qualitative products rather than high
expenses on endorsement.
 Firms should also develop quick response contingency plans.
 Measuring awareness levels achieved or attitudes changed of the
customers towards products or services prior celebrity endorsement and
after celebrity endorsement.

149
  Marketers should know about consumer’s desire prior to taking the
decision of endorsement by celebrity.
 Make the message fit the goal.
 Make product which is more relevant to consumer’s usability.
 Marketers should not be promoted too much to any product. Consumers
believe that the product is not successful in the market, hence this strategy
has to be used more by marketers to influence the consumer. This strategy
only suitable and useful at the time of product launching or decline stage.
 Too much advertisement and promotion is an important factor of increase
in cost of a product, therefore marketers should focus on the product
quality rather than promotional activities.
 Ethical content is an important factor in celebrity endorsement. This
should be kept in mind by marketers (as see in Image no 6.1, Unethical
Promotion, page no.-145) advertisement endorsed by Lara Dutta of a
reputed toothpaste brand).

Celebrity Endorsement Advertisement Model

Advertisement plays a very important role in promotion of any product or
services. With the help of advertisement, advertisers or manufacturer can increase
product awareness among people. This awareness is helpful in increasing product
sale and recall. Advertisements should be carefully created to ensure they do no
decrease or damage product attraction.
On the basis of research study researcher suggest a model of advertisement for
advertisers to help in make/ present suitable advertisement of a FMCG product(s)

150
 Celebrity Endorsement Advertisement Model

Before Advertisement After Advertisement

Needs, Wants & Desire of Feedback

Customers/ Consumers A
d

Delicate Factors v
e Approach to Satisfaction with Collection of
the Targeted Time of the Data Viewership
r
Preferences of Celebrity According Audience Broadcasting/ Reader/Listeners/
t
Yes/ Not Presenting Viewers of the
to the Product i
Particular Product
s
e
Preferred Pattern/ Type of
m Research to Find Out the Attraction
Advertisement
e
Point of the Advertisement
n
Targeted Profit Margin t
Difference/ Actual Profit Margin

Feedback (Concluded)

Negative
Response
Change/Revise Positive Response

Repeat the Same Advertisement

Figure: 6.2 Success Model of Advertisement

(Source: Researcher)

1. Suggestions Before Advertisement

Firstly, the advertisers must aware about customer/ consumer needs, wants
and desires for the particular product or service. It helps to make a suitable
product and also help to get knowledge about customer mindset. After this
advertiser should provide a free sample, discount and other delicate lucrative
factors offer to attract the consumers for buying the products. After this

151
 process, main stage is a selection of right celebrity for a particular product.
Each celebrity has his own attributes, so the advertiser must aware which one
attribute is closely related or matched with the product. For example,
Amitabh Bachchan has very powerful voice and shows sincerity, so the
advertiser can use his voice as product presentation. Main attributes of Alia
Bhatt are cute and chunky looks. So advertisers can use her name or face in
advertisement for watch, footwear, beauty products and accessories. After
selecting of celebrity for endorsement, advertisers should investigate and
analyse consumer preferences about what pattern of advertisement will suit
on the particular celebrity. After selection advertisement pattern, advertisers
estimate about their target profit margin before using of celebrity in the
advertisement.

2. Suggestion After Advertisement

Once the product advertisement is created, the first thing for advertisers is to
collect the feedback from approach to the targeted audience, time of the
broadcasting/presenting and collection of data viewership reader/listeners/
viewers of the particular product For an example, the advertiser wants to
advertise their blankets, then their target audience should be linked to the
cold areas otherwise their advertisement will not have any impact. The Next
step is time of broadcasting of advertisement. The broadcasting time is very
important so that more viewers can watch or notice the advertisement. After
this step, advertiser should find out the number of viewers of the
advertisement so that he ascertain level of awareness among the viewers
who aware about the product. A good slogan or punch line is soul of the
advertisement. Punch line and slogan is helpful in taking the product one
step further and also helpful in mouth publicity. Advertisers can estimate the
product's prominence with the help of these slogans. Now the main work of
advertisers is to compare between assume and actual profit margin. So they
can estimate about profit or loss properly. Advertisers can collect responses
or feedback from respondents. If negative feedback received about the
advertisement then he has to go on first steps, where the wishes of the

152
 customer and other steps should be ascertained. If advertisers received
positive feedback, as well as increase in profit means “advertising is
successful” and continue with same advertisement.

6.5. Limitations of the Study

Although every effort was made to conduct survey as rigorously as possible but
certain limitations are unavoidable and such limitations are as follows:
 The main limitations of this study are constraints of resources, access to
information. Researcher intends to answer these questions considering
only limited size of samples and area. The material resources needed for a
large sample size for this study is inadequate.

 Language is also another access limitations for most of the people in both
cities. Questionnaire provided to them was bilingual (English and Hindi).

 In addition, the study is also constrained by time. It is conducted within an

academic time range.

 Much of the information represents opinions of customer using FMCG

products endorsed with the celebrity or without celebrity, rather than
concrete facts established by detailed market research.

6.6. Scope for Further Research

 In depth study of advertisement management for FMCG products

 A critical evaluation of ethical advertising.

 Comparative study between celebrity endorsement and non celebrity

endorsement.

 Scope of celebrity endorsement in modern era for FMCG, Automobile and

other sectors.

153
 Appendix

Bibliography
Questionnaire
Research Papers published during the Research work
Paper Presented in Conferences
Course Work Certificate
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xxiv
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 www.youtube.com

xxv
 QUESTIONNAIRE

Dear Sir/Madam,

Hello. I am conducting a survey on “Effect of Celebrity Endorsement on

Consumers : A Study of Selected FMCG Products” Kindly spare some of your
valuable time to go through the questionnaire and give your valuable views on the
topic. Please answer the questions carefully and thoughtfully. I want to assure you
that I am not selling any product and the information provided by you would be
kept confidently and will be used for this survey only.
Please ( ) in appropriate box.

Section I

Q.1 Name of the respondent?

___________________________________

Q.2 Gender of the respondents?

(A) Male
(B) Female

Q.3 Age of the respondents?

(A) Below 18 years
(B) 18- 25 years
(C) 25-40 years
(D) 41-60 years
(E) Above 60 years

Q.4 Marital status of the respondents?

(A) Married
(B) Unmarried

Q.5 Education level of the respondents?

(A) Less than V
(B) VI – X
(C) XI – XII
(D) Graduate
(E) Post graduate and above
xxvi
 Q.6 Occupation of the respondents?
(A) Service
(B) Business
(C) Professional
(D) Student
(E) Housewife
(F) Other(than specify: _________________)

Q.6(A) If earn, then monthly income?

(A) Less than 10000 Rs.
(B) 10001- 20000 Rs.
(C) 20001- 30001 Rs.
(D) 30001-40001 Rs.
(E) 50000 and above Rs.

Section II

Q.7 According to you, what is the popular medium of marketing?

(A) Advertisement
(B) Sales Promotion
(C) Event
(D) Social media
(E) E- marketing / Telemarketing

Q.8 Which type of media advertising do you like?

(A) Print advertising
(B) Radio advertising
(C) Television advertising
(D) Internet advertising
(E) Outdoor Hoardings /Billboards

Q.9 Which type of advertisement of FMCG products you like much?

(A) Celebrity
(B) Non- celebrity
(C) Animation
(D) Containing social message
(E) Depend on advertisement

xxvii
Q.10 Do you think that involvement of celebrity endorsement is good idea for
FMCG Products?
(A) Always
(B) Oftenly
(C) Sometimes
(D) No
(E) Can’t say

Q.11 Which celebrity endorser you prefer to see in FMCG product

advertisement?
(A) Actor
(B) Actress
(C) Athlete and sport person
(D) Musician
(E) Cartoon character

Q.12 In your opinion, does advertisement increase FMCG product attraction?

(A) Always
(B) Oftenly
(C) Sometimes
(D) No
(E) Can’t say

Q.13 Are you attracted by celebrity, who are seen in FMCG products
advertisement?
(A) Always
(B) Oftenly
(C) Sometimes
(D) No
(E) Can’t say

Q.14 Do you think that celebrity can improve in FMCG product selling?
(A) Always
(B) Oftenly
(C) Sometimes
(D) No
(E) Can’t say

xxviii
 Q.15 Do you think that all the information given in advertisement
which has endorsed by celebrity are trustworthy?
(A) Always
(B) Oftenly
(C) Sometimes
(D) No
(E) Can’t say

Q.16 Do you discuss about advertise FMCG products with others which are
endorsed by celebrity?
(A) Always
(B) Oftenly
(C) Sometimes
(D) No
(E) Can’t say

Q.17 Do you think that negative advertising can damage the image of the
celebrity?
(A) Always
(B) Oftenly
(C) Sometimes
(D) No
(E) Can’t say

Section III

Q.18 What type of FMCG product you Purchase more?

(A) Food and beverage
(B) House hold
(C) Personal care

Q.19 Frequency of Purchasing FMCG products?

(A) Daily
(B) Weekly
(C) Monthly
(D) Half yearly
(E) Yearly

xxix
Q.20 Which Factor affect / influence you more while purchasing FMCG
products?
(A) Price
(B) Packaging
(C) Brand Name
(D) Ingredients / Contents
(E) Celebrity endorsement

Q.21 Whose recommendation you prefer more, while you are purchasing
FMCG products?
(A) Own
(B) Family
(C) Friend
(D) Shopkeeper
(E) Online asking

Q.22 Do you prefer those FMCG product which are endorsed by any
celebrity?
(A) Always
(B) Oftenly
(C) Sometimes
(D) No
(E) Can’t say

Q.23 What reason attracts you towards a FMCG advertisement?

(A) Celebrity endorsement
(B) Non celebrity presence
(C) Music / jingle of advertisement
(D) Theme of advertisement
(E) Content of advertisement

Q.24 Do you feel the number of print media ads using celebrity endorsement
for FMCG products are………?
(A) Less
(B) Plenty
(C) Sufficient
(D) Not sufficient
(E) Can’t say

xxx
Q.25 Do you feel the number of electronic media ads using celebrity
endorsement for FMCG products are………?
(A) Less
(B) Plenty
(C) Sufficient
(D) Not sufficient
(E) Can’t say

Q.26 Do you feel satisfied when a food and beverage product is endorsement
by the celebrity?
(A) Highly satisfied
(B) Satisfied
(C) Not Sure
(D) Dissatisfied
(E) Highly Dissatisfied

Q.27 Do you feel satisfied when a personal care / beauty product is endorsed
by the celebrity?
(A) Highly satisfied
(B) Satisfied
(C) Not Sure
(D) Dissatisfied
(E) Highly Dissatisfied

Q.28 Do you feel satisfied when a household product is endorsed by the

celebrity?
(A) Highly satisfied
(B) Satisfied
(C) Not Sure
(D) Dissatisfied
(E) Highly Dissatisfied

xxxi
Section IV

Q.29 Please arrange following type of advertising which you seen in your daily
lives.

Higher Lesser

1 2 3 4 5 6 7 8 9 10

S. N. Advertising Type Rank

1 Newspaper
2 Brochures
3 Periodical (magazines)
4 Billboards
5 Kiosks
6 Trade shows (Event)
7 Television
8 Radio
9 Internet
10 Other

Q.30 Please arrange following celebrities on their potential in FMCG products.

Higher Lesser

1 2 3 4 5 6 7 8 9 10 11

S. N. Celebrity Name Rank

1 Amitabh Bacchan
2 Shahruk Khan
3 Salman Khan
4 Varun Dhawan
5 Aishwarya Rai
6 Kareena Kapoor
7 Shilpa Shetty
8 Sachin Tendulkar
9 Mahendra Singh Dhoni
10 Virat Kohli
11 Alia Bhatt

DATE SIGNATURE

Thanks for your valuable time and co-operation

xxxii
22683 Amit Mathur and Anukrati Sharma/ Elixir Marketing Mgmt. 68 (2014) 22683-22687

Available online at www.elixirpublishers.com (Elixir International Journal)

Marketing Management
Elixir Marketing Mgmt. 68 (2014) 22683-22687

A Study on Buying Behavior of Rural Consumers towards FMCG Products

with special reference to Indian Rural Consumers
Amit Mathur1 and Anukrati Sharma2
1
University of Kota ,Rajasthan.
2
Faculty of Commerce and Management, University of Kota.

ARTICLE INFO A B S T RA CT
Art i cl e h i st ory : India is large population country; approximately 12.6 billion live in India. More population
Received: 1 October 2013; of India approximately 70% live in villages. So manufacturer huge focused on rural market.
Received in revised form: With more type of promotion manufacturer penetrate in this market. They clearly know that
15 March 2014; more sale generate more revenue. Now buyer /consumer are more conscious about product
Accepted: 26 March 2014; so they purchase anything very carefully. FMCGs (Fast moving consumer goods) are very
short in life like daily uses thing like Beverages, bakery, sugar, detergent soap. FMCG are
Ke y w or d s also called by consumer packaged goods. Although FMCGs product are non-durable goods
FMCG, buyer don’t think so much for purchase it. But presence of lot of competitor in this market,
Consumer, Buyer is always aware what he or she going to purchase. Buyer behavior and perception is
Buying Behavior, very much affected on product. The objective of this paper analyze to buyer behavior
Purchase, towards FMCG product in rural markets. The paper also highlights the major FMCG
Perception. products used by the consumers.
© 2014 Elixir All rights reserved

Introduction totality is projected to grow at an CAGR of 10% to carry

FMCG products have short life time. And they are also non forward its market size to over Rs.1,06,300 crore from present
durable goods and also perishable. Which are sold very less level of Rs. 87,900 crore, according to an analysis carried out by
margin. Mostly FMCG goods are define short term period like the Associated Chambers of Commerce and Industry of India
less than one year life. FMCG supplied in the retail marketing as (ASSOCHAM).
per daily demand of a consumer. What is consumer behavior- consumer behavior be defined
Now consumers are more aware to purchase FMCG as- The decision process and physical activity, individual engage
product. So they prefer more relative product for them. A very in when evaluating, acquiring, using and disposing of goods and
small mistake can effect largely on its demand. service. The following figure provides the growth of FMCG
With the presence of population approx 72% in the villages sector in India 2003-2010 and estimated growth for 2015.
of India, the Indian rural FMCG market is something no one can
overlook. Increased focus on farm sector will boost rural
incomes, hence providing better growth prospects to the FMCG
companies. According to FICCI Technopak Report 2009,FMCG
industry is projected to grow by 12% and reach a size of US $
43 billion by 2013 and US $74 billion by 2018.
The Indian FMCG sector with a market size of USD 14.8
billion is the fourth largest sector in the economy. The FMCG
market is set to double from USD 14.7 billion in 2008-09 to
USD 30 billion in 2012. FMCG sector will witness more than
60% growth in rural and semi-urban India by 2010. Indian
consumer goods market is expected to reach USD 400 billion by
2010.
Major Players in this sector include HUL (Hindustan The above figure clearly indicates that, there is a steady
Unilever Ltd.), ITC (Indian Tobacco Company), Nestlé India, growth in the market size of FMCG sector in India over the last
GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury ten years. The market size was around Rs. 50000 cores in 2003,
India, Britannia Industries, Procter & Gamble (P&G) Hygiene it is around 120000 cores in 2010 and if the same trend
and Health Care, Marico Industries, Nirma, Coca-Cola, Pepsi continues, it will reach around 180000 cores in 2015.
and others. Consumer Behavior
FMCG Rural Growth The term of consumer behavior comprises of two words
In a Press Release on January 3rd 2010, The Associated consumer and behavior, here consumer refer to an individual
Chambers of Commerce and Industry in India (ASSOCHAM) who is engaged in various purchasing process. And behavior
have forecasted an extremely robust growth in the FMCG refer to perception and related activity of purchase of an
sector. The Press Release is detailed below: Fast Moving individual.
Consumer Goods (FMCG) will be witnessing more than 50% of More than a century ago the pattern of our nation, Mahatma
growth in its Rural and Semi-Urban Segments by 2012 which in Gandhi, has made a visionary and deep meaningful statement at
Tele:
E-mail addresses: anukratisharma81@gmail.com
© 2014 Elixir All rights reserved
22684 Amit Mathur and Anukrati Sharma/ Elixir Marketing Mgmt. 68 (2014) 22683-22687

South Africa 1890- “A customer is the most important visitor on 4. Celebrity endorsement have positive impact on buying
our premises.” Now we can see many developments and decision.
changes taking place around us with all the industries and firms Analysis and interpretation
within each industry trying to keep pace with the change and Through the help of structured questionnaire, the study has
diverse need of the people. Main challenges for marketers to been done. Each of the question covers the valid reasons to find
understand diversity of consumer behavior towards product. out the factors, influences and demand of FMCG products in
Today the company image is built and made by its customer. Rural markets. The analysis of the table is as follows:
The success of firm will be determines by how affective it has Table 1
been meeting the diverse consumers needs and wants by treating Age of Respondents
each customer unique and offering products and service to suit Response Number of Respondents Percentage
his or her needs. Less than 20 years 20 16
Need for studying consumer behavior – consumer behavior 21 – 30 years 40 32
can be said to be the study of how individuals make decision on 31 – 40 years 25 20
how to spend their available resources on various consumption 41-50 years 20 16
related items. Marketers specially focusing on following. 50 years above 20 16
1. Who buy products and services? Total 125 100
2. How do they buy products and services?
3. Where do they buy them?
4. When do they buy them?
5. Why do they buy them?
FMCG Category and products
1.Household Care Fabric wash (laundry soaps and synthetic
detergents); household cleaners (dish/utensil cleaners, floor
cleaners, toilet cleaners, air fresheners, insecticides and
mosquito repellents, metal polish and furniture polish).
2 Food and Health beverages; soft drinks; staples/cereals;
Beverages bakery products (biscuits, bread, cakes); snack food;
chocolates; ice cream; tea; coffee; soft drinks; processed fruits,
vegetables; dairy\products; bottled water; branded flour; The first question was designed to find out the age of the
branded rice; branded sugar; juices etc. respondents from who preferred were engaged in this study
3 .Personal Care Oral care, hair care, skin care, personal .The above table and the graph shows that most of the
wash(soaps); cosmetics and toiletries; deodorants; perfumes; respondents are 21-30 Yrs. of age mainly involved in the
feminine hygiene; paper p research work for concluding the right market strategy and to
Objectives- find out the rural market environment.
The objectives of this study were the following – Table 2
1. To find out the trends and growth of FMCG in India and Gender of Respondents Participated in the Study
Rural Markets. Response Number of Respondents Percentage
2. To know the motivational factors of rural consumer towards Male 55 44
FMCG product Female 70 56
3. To give suggestions to increase the rural market of FMCG Total 125 100
products
4. To elaborate the popular tool of marketing and promotion in
rural markets of FMGC products
5. To find out that celebrity endorsement have an impact on
purchasing decision
Research Methodology-
For making this research realistic and successful, a
questionnaire was structured. Through the help of the
questionnaire, primary data has been collected. This research
also includes secondary data which has been collected by
various websites, books, research papers etc. The study is an
empirical study. The table and graph 2 reveals that female respondents were
Sample size- Total 200 rural consumers were interviewed and higher than the male respondents. So marketers should be
distributed the questionnaire in March 2013 .Out of 200 minding them.
respondents around the area of Kota (Rajasthan) researchers got Table 3
the responses of 125 respondents. Monthly Income of Respondents
Hypothesis Response Number of Respondents Percentage
1. Awareness about the FMCG products in rural market is Less than 10,000 20 16
satisfactory Rs . 10 ,001 - 20,000 40 32
2. Family, Price and Celebrity endorsements are the prime Rs . 20 ,001 - 30,000 25 20
motivators which influence the buying behavior of rural Rs. 30,001- 40,000 20 16
consumers. Rs.40,001- 50,000 15 12
3. Advertising is the most popular tool of marketing of FMCG More then 50,000 5 4
products in rural India. Total 125 100
22685 Amit Mathur and Anukrati Sharma/ Elixir Marketing Mgmt. 68 (2014) 22683-22687

Table 6
It is analyzed that the monthly income of people who shop Purchasing Duration of Respondents
is maximum in the between range of Rs . 10001–20000 which Response Number of Respondents Percentage
indicates that the respondents are willing to make expenditure Daily 20 16
on the FMCG purchasing of products Weekly 25 20
Table 4 Every Six Months 12 9.6
Education Level of Rural Buyers Occasionally 18 14.4
Response Number of Respondents Percentage Monthly 30 24
Less than V 0 0 Yearly 20 16
VI – VIII 10 0.8 Total 125 100
IX - X 25 20
XI – XII 25 20
Graduate 50 40
Post Graduate 15 12
Total 125 100

Table and graph 6 show that all time FMCGs product sell is
more in monthly period. Because FMCGs products have short
life.
Table 7
Popular Media of Marketing and Promotion
The said table analyzed the education level of the buyers Response Number of Respondents Percentage
(respondents) who have been involved in the research. It clearly Personal Selling 35 28
shows that most of the respondents are having education upto Advertisement 50 40
Graduate. So it can be concluded that they are able to Contest 20 16
understand the language, content, terms and conditions of the Discounts 19 15.2
product while shopping. Tele Marketing 1 0.8
Table 5 Total 125 100

Motivational Factors Behind Purchasing

Response Number of Respondents Percentage
Family 25 20
Price 25 20
Brand /Company 15 12
Content 2 1.6
Message 10 8
Celebrity Endorsement 30 24
Language 3 2.4
Packing 15 12
Total 125 100
The table and graph 5 reveals that the celebrity
endorsement, Family and price are more affecting factor for
Table 7 analyzed that respondents were more interested to
consumer at purchasing time of product.
purchase in advertisement and personal selling. Advertisement
huge source of knowledge about any know product and exist
22686 Amit Mathur and Anukrati Sharma/ Elixir Marketing Mgmt. 68 (2014) 22683-22687

product. Customer prefer that thing earlier which he seen more 7. Press Release on January 3rd 2010, Associated Chambers of
and regularly. Commerce and Industry of India (ASSOCHAM)
Table 8 8. KC Behura et. al / VSRD International Journal of Business &
Impact of Celebrity Endorsement Management Research Vol. 2 (2), 2011
Response Number of Respondents Percentage 9. Asian Journal of Management Research Online Open Access
Postive 105 84 publishing platform for Management Research article by Gupta
Negative 20 16 Ranu1©, Roy Rishu2
Total 125 100 10. Pförtsch, Waldemar; Müller, Indrajanto : Die Marin der
Marke - Bedeutung und Macht des Ingredient Branding,
Springer 2006
11. Desai, Kalpesh K. and Kevin L. Keller (2002), “TheEffects
of Ingredient Branding Strategies on HostBrand
Extendibility,”Journal of Marketing, 66(1), 73-93.
12. FMCG, available at
http://www.ghallabhansali.com,accessed during January 2012.
13. Havenstein, Moritz: Ingredient Branding, Deutscher
University verlag 2004
14. Aaker, D.A., (2003), The power of the branded
differentiator. MIT Sloan Review 45, pp 83–87.
15. Bengtsson, A., (2002a), Unnoticed Relationships:
DoConsumers Experience Co-branded Products?, Advances in
Consumer Research, 29
The above table reveals that the number of respondents are 16 Desai, K. K. and Keller, K. L., (2002), The Effects of
higher and positive in regards Ingredient Branding Strategies on Host Brand Extendibility,
Table 9 Journal of Marketing, 66, pp 73-93
Preference Celebrity 17 Kapferer, J.N., (2001), Reinventing the brand. Cantop brands
Name of Celebrities Number of Respondents Percentage survive the new market realities? London.
Amitabh Bachhan 12 9.6 Questionnaire
Shahruk khan 15 12 Hello Sir/Mam
Kareena Kapoor 12 9.6 I, Amit mathur, with the guidance and support of my supervisor
Salman Khan 25 20 I am here to conduct a research survey on the topics “Rural
Amir Khan 16 12.8 consumer behavior towards FMCGs product”. Please give
Katrina Kaif 20 16 your honest opinion and understand that this information
Mahendra Singh Dhoni 25 20 collected will be purely confidential and will not be shared for
Total 125 100 any purpose other than research.
Name –
(Please tick below)
1. Age -
1) Less than 20 Yrs.
2) 21– 30 Yrs.
3) 31– 40 Yrs.
4) 41– 50 Yrs.
3) Above 50 Yrs.
2. Gender –
1) Male
2) Female
3. Income-Group (Monthly) –
The last table and graph number 10 shows that most of the 1) Less than 10,000
respondents Prefer that product which endorsement by Salman 2) 10,001 - 20,000
khan and Mahendra singh dhoni. 3) 20,001 - 30,000
References 4) 30,001 - 40,000
1. Khosla, Swati (2010). "Consumer psychology: The essence of 5) 40,001 - 50,000
Marketing” 6) More than 50,000
2. Howard, J., Sheth, J.N. (1968), “Theory of Buyer Behavior”, 4. Education Level -
3. SRABANTI MUKHERJEE “CONSUMER BEHAVIOUR ” 1) Less than V
4. Product Management in India. 2) VI - VIII
5. Noor-e-Hira Naveed: “Role of Social Media on Public 3) IX - X
Relation, Brand Involvement and Brand Commitment”, 4) XI – XII
Foundation University Islamabad, Interdisciplinary Journal of 5) Graduate
Contemporary Research in Business, JANUARY 2012, VOL 3, 6) Post Graduate
NO 9 5. Which motivational factors affect on you behind
6. Philip kotler Kevin keller (Marketing management Third purchasing?
impression 2007) a) Family
b) Price
22687 Amit Mathur and Anukrati Sharma/ Elixir Marketing Mgmt. 68 (2014) 22683-22687

c) Brand /Company a) Contest

d) Content a) Discounts
e) Message a) Tele Marketing
f) Celebrity Endorsement 8. Do you think any impact of celebrity endorsement on
g) Language consumer behavior?
h) Packing a) Positive
6. Duration of purchasing FMCGs product? b) Negative
a) Daily 9. Which celebrity, you more prefer or follow?
b) Weekly a) Amitabh Bachhan
c) Every six month b) Shahruk khan
d) Occasionally c) Kareena Kapoor
e) Monthly d) Salman Khan
e) Yearly e) Amir Khan
7. What is popular media of marketing and promotion? f) Katrina Kaif
a) Personal Selling g) Mahendra Singh Dhoni
b) Advertisement
ISSN 2320-5407 International Journal of Advanced Research (2015), Volume 3, Issue 9, 755 - 773

Journal homepage: http://www.journalijar.com INTERNATIONAL JOURNAL

OF ADVANCED RESEARCH

RESEARCH ARTICLE

Mobile Advertising: An Empirical Study on Utility for Small and Local Traders of
Kota Rajasthan

Amit Mathur1, Dr. Anukrati Sharma2

1. PhD candidate University of Kota, Kota, Rajasthan, India
2. Associate Professor Department of Commerce and Management Researcher School of Heritage, Tourism and
Museology University of Kota, Kota, Rajasthan, India

Manuscript Info Abstract

Manuscript History:
Globalization is a buzzword in the present era. Mobile phone and internet for
Received: 15 July 2015 connecting people easily and speedily that too at a very cheap cost. Every
Final Accepted: 22 August 2015 manufacturer wants to produce and sell their products worldwide. But
Published Online: September 2015
without knowing of particular market or buyer, it is hard to sell. Earlier
manufacturers and advertisers were able to approach the target customers
Key words: only through limited mediums in limited areas, but after introduction of
Globalization, Advertisement, M- television and radio their accessibility for target audience have augmented at
Advertising, Small & local traders, great extent. However, it is much expensive for smaller & local traders.
Generation, Dwell Nowadays advertisers and manufacturers has found a new idea
for promotion of their products or services that is advertisement through
*Corresponding Author mobile phones. Customer is always unknown to new products and services.
Mobile phones are probably the biggest medium to inform and
Amit Mathur communicate about the products /services to the potential buyers. New
generation dwell so much time on mobile phones and internet. Thus,
the usages of mobile advertising could be a better opportunity to push &
promote new products through mobile phones rather than the traditional
marketing. In this study we will focus on how advertisement by mobile
phones like SMS’s, Voice calls, push messages, mobile internet and other
applications are helpful for local and small traders to promote their products
and service in target market. The paper will also highlight the satisfaction
level of the small and local traders regarding m-advertising strategies.
Moreover, it an attempt has been made to present few models of m-
advertising by the researchers.

Copy Right, IJAR, 2015,. All rights reserved

INTRODUCTION
Advertisement is a new concept or idea to introduce new and existing product in market. Advertisers and
manufacturers try to find new-new practice for introduce their product, for easily sale. So they have to focus on
that’s things which are very popular in buyers or peoples. In this technological era, mobile phone is a great
invention. Today mobile phones are use much more than just making and receiving calls. Apart from voice calls,
mobile users have access to data services with Short message service (SMS), apps download, pictures messaging
and also mobile internet. If advertisers focus on advertising by mobile phones they can target a large number of
people. The concept of Advertisement by mobile phones is introduced recently decades in world. It is very novel
and innovative idea for Indian market.

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Mobile advertising can be considered as subset of mobile marketing, is a medium of advertising or communicating
about products & services through mobile phones to mobile phone users.
M- advertising is a emerging sector that’s providing strategic way for agencies and marketers to connect with
consumers, directly on their mobile phones. This form of advertising, product & services are promoted through
SMS, MMS, advertising within mobile games & mobile videos, during mobile TV receipt, Mobile Web Banner or
Poster as top of page or bottom of page, and audio advertisements that can be the form of a punch line/ jingle before
a voice call such as movie ticketing or directory support. These media channels take both content and advertisement.
Thus, mobile advertising is providing a platform and useful base for manufacturer, advertiser or marketer to promote
their product and build brand image in a strategic manner at low cost.
At the point of view of marketing, Nysveen et al. [2005] explain a grid of mobile internet services classification that
work on four primary axe, Which are person-interactive versus machine-interactive, and goal-oriented versus
experiential services[3].

Goal oriented Experiential

Person Interactive Information Messaging

Machine interactive Payment Gaming

Figure 1 : Classification of mobile Internet services

Source : Nysveen, Pedersen, and Thorbjornsen

Objectives of Study
1. To provide an outline of the fundamentals of mobile advertising.
2. To find out the benefits of the small traders through mobile advertising.
3. To highlight the satisfaction of the Small and local traders who are using mobile
advertising.

Review of literature
According to Taezoon Parka et al.(2008) discussed in their study about the effect of mobile advertising, three groups
of factors, which are- advertisement, audience, and environment [4]. Mobile advertisement focused on targeting
audience. As per said by Nitin Mathur that mobile is last on the mindset for most advertisers[9]. According to
Naveen Tewari, analysis will drive mobile advertising as it will make the ads more accurate and effective [9].
According to Praveen Sharma, advertisers are trying to control the growth of mobile and are still trying to figure out
how to exploit this[9]. Mobile is today the only medium that can deliver high reach, high engagement and high
efficiency–all of this in a personalized manner (C.V.L. Srinivas, 2014)[15]. According to Evelyne Cleff (2005) The
availability of physical location, personal information and other related data are seen to be the most valuable unique
characteristics of mobile advertising which allow for one-to-one marketing strategies [7]. Any transaction with a
monetary value that is conducted via a mobile telecommunications network (Muller-Versee, F. 2000) [2]. M-
Commerce is the buying and selling of goods and services, using wireless hand-held devices such as mobile
telephones or personal data assistants (PDAs)” (UNCTAD, 2002, 2004) [17]. As per the study of Sadeh (2002)
characterizes m-commerce more broadly, as the emerging set of applications and services people can access from
their Internet-enabled mobile devices[5]. According to rajnish tiwari et al. A vast field of business opportunities is
about to be created for technology providers who could offer mobile solutions to the service providers. SMEs from
related technology fields may be ideally positioned for they possess competitive advantage by the virtue of their
flexibility and specialization [6]. Kalstrom o (2003) M Commerce as a value-added service that enables mobile end-

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users to conduct reliable and secure transactions through specifically-designed mobile applications [1]. Mobile
advertisement is based on mobile phones via internet services and network providers.

Research Methodology
The paper is an empirical research study , the data has been collected from both primary and secondary sources.
The primary data has been collected through the structured questionnaire filled by the 80 small and local traders of
Kota city, Rajasthan. The secondary data has been gathered from various secondary sources like research articles,
published and unpublished scholarly papers, books, journals, speeches, newspapers, annual reports, databases
available on various websites.
Sample Size
The data has been collected from Kota city of Hadoti region, Rajasthan. The questionnaire has been filled by
80(N=80) small and local traders of Kota.
Research Instruments
Descriptive statistics used as frequency counts and percentages were gathered. Analyses has been made using, mean
and median scores to find out whether there is a significant difference in the advertising through traditional methods
and mobile advertising. In questions 8 and 9, 5-point Likert type scale ranging from 1 (Highly Satisfied ) to 5
(Highly Dissatisfied).
Hypotheses
H1:More usages of mobile advertising more growth rate of small and local business.
H2: Positive impacts on local small traders and potential customers.

Scope- The present study focuses upon M-advertising benefits and challenges which has been faced by the small
and local traders at Kota city while adopting the m-advertising . Research is emphasized on finding out the level of
usages and satisfaction of m-advertising.
Status of Telecom Industry in India
India is second largest telecom network in the world with its high population and development potential. Airtel,
Vodafone, Idea, Reliance, Tata, Docomo, Bsnl, Tata Indicom, MTNL are major operators in India. India public
sector telecom company BSNL is the 7th largest telecom company in India. According to telecom regulatory
authority of India (TRAI) there are more than 90 crore mobile phone subscribers in India out of approx 121 crore
populations. Its means here is more than 70 percent population are use mobile phones. According to the internet and
mobile phone association of India (IAMAI) reports here is approx 4 crore are active mobile internet users in India.
In all worlds there are 2.4 bn internet users, of which 1.5 bn access the internet through their mobile phones as a
primary or secondary device. Average time spent on mobile (non-voice call) globally has grown 82 minutes per day.
Indian mobile advertising is a Rs.26000 crore market. According to research firm IMARC group expects this market
to grow at a CAGR of around 36% during 2013-2016. According to analyst at IMARC group “Mobile phone is an
extremely personal device that accompanies the user all the time”.

Table: 1. Composition of Telephone Subscribers

Wireless subscribers

Total wireless Subscribers 867.80 Million

Urban Subscribers 525.30 Million

Rural Subscribers 342.50 Million

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GSM Subscribers 794.03 Million

CDMA Subscribers 73.78 Million

Tele-density 70.85 Million

Urban Tele-density 140.67 Million

Rural Tele-density 40.23 Million

Source: Telecom Regulatory Authority of India Report (January- March 2013)

Small businesses are generally based on privately owned corporations, partnerships, or proprietorships. What
constitutes "small" in terms of government support and tax policy varies depending on the country and industry.
Small businesses range from 15 employees under the Australian Fair Work Act 2009, 50 employees according to the
definition used by the European Union, and fewer than 500 employees to qualify for many U.S. small business
Administration programs. In the Indian context Micro, small and medium enterprises as per the MSME
Development Act, 2006 are defined based on their investment criteria in plant and machinery for manufacturing
enterprise and on equipments for service enterprises. According to the Micro, Small and Medium Enterprises
(MSME) Development Act of 2006, (India) a micro enterprise is where the investment in plant and machinery does
not exceed 25 lakh rupees. A medium enterprise is where the investment in plant and machinery is more than 5 crore
rupees but does not exceed 10 crore rupees. A small enterprise is where the investment in plant and machinery is
more than 25 lakh rupees but does not exceed 5 crore rupees [10].
Definition of small business in India According to the latest Micro, Small and Medium Enterprises Development
Act,2006, small enterprises are classified as-

Table 2: classification of Micro, Small and Medium Enterprises, MSME Development Act, 2006
Manufacturing enterprises Service enterprises
Unit Investment criteria Unit Investment criteria
Micro <25 lakh Micro <10lakh
Small 25 lakh – 5 crore Small 10 lakh- 2 crore
Medium 5 crore – 10 crore Medium 2 crore – 5 crore
Source : http://www.msme.gov.in

How do small traders benefit from Advertisement by Mobile phones –

Small traders or local traders
Mobile advertising part of m-commerce, is a very cost efficient technology for small traders. It can reach the large
number of target audience anywhere anytime. So it is easier and most cost efficient medium of promotion of
products and services rather than other traditional methods as print media or television for small traders who concern
about money & advertising expenditure.
1. Easy approach to consumers- Mobile advertise is a new concept for Indian market, it is also very useful
for small traders for connect consumers in local area or anywhere. Through mobile advertising traders
hasn’t spend lot of time of advertisement campaigning. They can connect with their consumers on one
touch service.
2. Reasonability- Advertisers or traders can advertise their product at very reasonable cost. They haven’t
spend lot of amount on expensive advertisement. They can also send bulk messages through internet on
their exist consumers mobile number.
3. Always usable device- In spite of other device like computer or television, Mobile phones are always on.
Just few people turn off their phone when they need to charge it batteries. People do always on their mobile
phones so it is a good advantage for traders or advertisers that their advertisement will be seen easily by the
mobile users.

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4. Immediate response by consumers- Through mobile phones, it is very cheap to reply by consumers to
traders or advertisers. When any advertisers or traders post their advertise through mobile phones,
customer can reply if he is interested. For example if any customer searching loan for study or purchasing
something he can immediately reply to traders.
5. Easier to access- Peoples are mostly use their mobile phones for searching address, for price comparison
because it is easier to access rather than desktop. Because customer not have to sit at same place, he can
use this service at different-different place.

How Mobile advertising better than other media sources-

Following are the different reasons which define the advertisement by mobile phones is much better than other
media sources.
1. Easy availability- Mobile is a very personal popular device among peoples, which carried and accessed
every moment with their wallet. Today mobile phones handset & prepaid recharge card are available at
affordable price according to consumer needs & preferences. So advertisers have big opportunity for
connect with users or consumers easily through mobile technology.
2. Connect to target consumers- By mobile phones advertisers can target local or broad market users like,
he can select proper market or area which he want to introduce their product. For example a local cab
service provider easily approach their target audience through advertise via mobile within their service
area.
3. Cost effectiveness- Small traders are not able to supply on large scale. They don’t want to spent a lot of
money in market on advertisement. Other media source of advertisement are too costly for him like-
Television advertisement, radio advertisement. So advertisement by mobile phones like SMS’s is also cost
relevant for advertisers or manufacturer.
4. Reminder - Access of mobile Phones is very easy for us. We can easily check old SMS’s or App’s and
also can read or view it latter, when we get free. It is a instrument who enable to remind old thing and we
can’t miss through it.
5. Measurement- Mobile phones is also enable tracking and measurement at a micro level compared to
traditional medium. Like, advertisers can track the no. of seconds of a consumers dwell viewing video and
consumers percentage.

Flow of advertisement
The flow of advertisement is very crucial issue while designing any advertisement. Actually the flow and the flow
less communication between the advertisers and customers is the backbone of advertisement.
Advertisement process depend on communication between advertiser / trader to customers / prospective.
Communication between both traders and customers should be easy and frequent. Initially advertisers / traders have
to select way to approach to the customers. and then select two different way to connect with customers. First is
select any telecom company and do agreement to advertise for their customer. Secondly they need to find bulk
SMS’s portal services. It may be free or chargeable. Finally in this way they message or communicate their
customer. Customer receives a message or any information which is provided by advertisers or traders. After
reading the advertisement, customer can provide their feedback to the advertisers or traders by using SMS service or
internet. From the following figure it is easily be explainable.

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Communication

Telecom company

Traders Ad agency Prospective customer /consumer

Bulk Sms portal

Feedback
Figure 2: Flow of advertisement
Source : Researchers (Anukrati Sharma and Amit Mathur )
Meaning of M Commerce –
Mobile commerce (M commerce) has been defined as the facilitation of monetary transactions, including the
purchase of product and service, using wireless device, like digital wireless phones or a personal digital assistant
(PDA), to access the internet using a wireless data connections or private network [11]. In simple word mobile
commerce is practice or marketing use by mobile phones and personal device assistant for transaction and
communication between dispatcher and recipient.

M commerce origin –
Mobile commerce services were first delivered in 1997, when the mobile-phone enabled Coca Cola vending
machines were installed in the Helsinki area in Finland, accepted payment through SMS text messages. First mobile
phone banking service was launched in 1997 by Merita Bank of Finland. In 1998, the first sales of digital content as
downloads to mobile phones were made possible when the first commercial downloadable ringtones were launched
in Finland by Radiolinja. In 1999 New commercial Service “Smart Money” Launch in the Philippines. NTT
DoCoMo's i-Mode Internet service in Japan. Mobile-commerce-related services spread rapidly in early 2000. In
appointing Mr Hoffman, ETSI quoted industry analysts as predicting "that m-commerce is poised for such an
exponential growth over the next few years that could reach US$200 billion by 2004" [18].

Products and services available on mobile commerce-

1. Mobile Money Transfer
2. Content purchase and delivery
3. Mobile ATM
4. Mobile Banking
5. In-application mobile phone payments
6. Mobile brokerage
7. Mobile ticketing
8. Mobile vouchers, coupons and loyalty cards
9. Auctions
10. Mobile browsing
11. Mobile purchase
12. Location-based services
13. Information services
14. Mobile marketing and advertising

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By the M commerce, mobile advertising is advertisement sent on mobile phones device. Now advertisers and
manufacturer looking better opportunity and response through mobile marketing campaigns rather than traditional
campaigns. Consumers can receive marketing messages, discount coupons, and other information in less time. And
consumer will able make decision for buy or not, without disrupting their current real world activity.

M-commerce model-

M-Commerce

Convenient Portable

Globalization of Product and service Privacy of the details Utility enhancement Rapid connectivity Handiness

Figure3 : M Commerce model

Source : Researchers (Anukrati Sharma and Amit Mathur )

The model of M-Commerce given by the researchers (Anukrati Sharma and Amit Mathur) divided on two basic
aspects First is Convenient and Second is Portable. Mobile is a device, which is very suitable and easy to carry.
Both aspects have following characteristics.
1. Globalize of product and service- It is a very useful instrument for promote product and service in all
over world on very low cost. In this technological era, more peoples are using mobile phones in all world.
2. Privacy of the details- It is better option to communicate with a particular customer. Any other person
isn’t interact by this. Mobile have many safety features. while other media of advertisement may affect on
all peoples. So M Commerce is also suitable way for personalization.
3. Utility enhancement- It is also a very useful device for traders to connect with customers. For any enquiry
and feedback customer use this facility at any time. It is also a useful way to expand business opportunities.
4. Rapid connectivity- It is very useful instrument for traders and customer for quick connect. Traders not
need to waste much time like other mass media. Traders can connect with customer in very short time
vice-versa.
5. Handiness/ portable- It is also very handy device, which may all time along with us. it can fit in our
pocket and purse. We can easily move it anywhere without any difficulties. Other media source is not very
handiness like - Television, banner.

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M-Commerce Life Cycle

Formation of Message Alert / Information Transformation of Thoughts

Gripping of the Customer Purchase of Product / Service

Figure:4 M-Commerce Life Cycle

Source : Researchers (Anukrati Sharma and Amit Mathur )

Usage of M-commerce

M- Commerce Usage in different industries

Products Services

Cloth Banking

Health product Hotel

Jewelry Tourism

House hold product Travel

Mobile / Tablet Bill payment

Cosmetic / Beauty product Ticketing

Food item Marketing

Fashion accessoriers Entertainment

Electronic gadget News / Information

Gift Location based (Map)

Figure:5 M-Commerce Usage
Source : Researchers (Anukrati Sharma and Amit Mathur )

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Data analysis and interpretation

The research study was conducted in Kota, Rajasthan. A structured questionnaire was filled by 80 Local / small
traders who are situate in different area and selling different products/ services.

Table 3: Gender of Respondents

Response Number of responds Percentage of responds

Male 72 90
Female 8 10
Total 80 100
Source : Field survey

Chart 1: Gender of Respondents

According to the table, composition of respondents on the basis of gender show that male respondents are more
engaged rather than female.

Table 4: Age group of responds

Age group Number of responds Percentage of responds
Up to 25 22 27.50
26-35 32 40
36-50 8 10
Above 50 18 22.50
Total 80 100
Source : Field survey

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Chart 2: Age group of responds

From the table and graph of age group, shows that most of the respondents are 26-35 Yrs. of age mainly involved in
the market. 40% respondents are laid under the age group of 26-35 year.

Table 5: Type of business of responds

Type of business No of Respondents Percentage of respondents
Tour & travelers 12 15
Retailers 30 37.50
Restaurant 12 15
Financial services 10 12.50
Real state 16 20
Total 80 100
Source : Field survey

Chart 3: Type of business of responds

According to above chart, percentage of retailers is more rather than other business holders. Out of total
respondents, 30 respondents (37.50%) are retailers. 20% are engaged in real state. And lowest Percentage people
engaged in Financial services(12.50%).

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Table 6: Promotion tools

Promotion tools No of Respondents Percentage of respondents
News paper 48 60
Radio 8 10
Word of mouth 6 7.50
Direct selling 10 12.50
M-commerce 8 10
Total 80 100
Source : Field survey

Chart 4: Promotion tools

On the basis of above table, it is conclude that most of people favourite promotion tool is news paper(60%).
Followed by direct selling (12.50%), 10% M-commerce and 10 % radio advertising.

Table 7: Reason to adopt mobile advertising

Reason No of Respondents Percentage of respondents
Increase brand awareness 20 25
Faster sell 28 35
Customer relationship 14 17.5
Image building 10 12.5
Increase engagement 8 10
Total 80 100
Source : Field survey

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Chart 5: Reason to adopt mobile advertising

As per the above chart, most respondents are adopting mobile advertising for faster sell(35%). It is shows that main
purpose to adopt mobile advertising is high sell to earn high profit.

Table 8: Type of using mobile inventories in mobile advertising

Response No of Respondents Percentage of respondents
SMS 48 60
MMS 13 16.20
Video advertisement 5 6.25
Mobile apps 10 12.50
Mobile Websites 4 5
Total 80 100
Source : Field survey

Chart 6: Type of using mobile inventories in mobile advertising

In this chart we can easily understand that SMSs(60%) is top most uses by the respondents.

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Table 9: Challenges face to adopt mobile advertising

Challenges No of Respondents Percentage of respondents
Lack of standard format 20 25
lack of expertise 24 30
privacy issue 16 20

lack of relevant data 15 18.75

Limited opportunity 5 6.25

Total 80 100
Source : Field survey

Chart 7: Challenges face to adopt mobile advertising

According to above chart, the main challenge face by respondents is Lack of expertise(30%) in mobile advertising.

Table 10: Satisfaction level of Business towards result of mobile advertising (Source : Field survey)
Type of Business Highly Satisfy Moderately Dissatisfy Highly Total
Satisfy Satisfy Dissatisfy
Tour & Travelers 1 4 6 1 0 12
Retailers 3 4 12 5 6 30
Restaurant 2 5 3 1 1 12
Financial Services 1 2 2 4 1 10
Real State 4 6 4 1 1 16
Total 11 21 27 12 9 80

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Chart 8: Satisfaction level of result of mobile advertising towards business type

As per above chart, Context of tour & travelers operator and retailers, most respondents are moderate satisfy with
the result of mobile advertising. In the context of restaurant and real state business most respondent are satisfy with
mobile advertising result. And in the context of financial services business, respondents are not satisfy with mobile
advertising.

Table 11: Satisfaction level of businesses towards mobile advertising agency

Type of Business Highly Satisfy Satisfy Moderately Dissatisfy Highly Total
Satisfy Dissatisfy
Tour & Travelers 0 2
3 4 3 12
Retailers 1 2
6 15 6 30
Restaurant 0 2
2 5 3 12
Financial Services 1 1
3 3 2 10
Real State 2 2
3 4 5 16
Total 4 9
17 31 19 80
Source : Field survey

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Chart 9: Satisfaction level of businesses towards mobile advertising agency

From above chart, all category of respondents are dissatisfy to finding and operate with mobile advertising agency
except real state business.

Factorization:

Table :12
Factorization

Mean Median

Result of mobile advertising 16 12

Mobile advertising agency 16 17

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Graph : 1

Graph : 2

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SWOT Analysis - Without the help of SWOT Analysis it is not possible to make a effective marketing strategy. To
set up a product or service in the market through the help of mobile advertisement it is first needed to make a
analysis of Strengths, Weaknesses, Opportunities and threats of it.

Strengths Weakness

1. Easy connectivity with consumers 1. Manufacturer or advertisers has to follow code

2. Less expense for promotion of conduct which provide by Telecom
3. Quick response Regulatory Authority of India
4. Advertiser or manufacture can do aware buyer 2. Consumer or Receiver can ignore MSGs and
any time delete them.
3. Customer can activate Do not disturb service
for not interrupted him
4. More consumer are unable to read MSGs
properly.

Opportunity Threats

1. Online purchasing 1. Telecom Regulatory Authority of India makes

2. Mobile money transfer bound or fine for Ad’s MSGs
3. Free apps contents 2. Many operator not allow for customer privacy
4. Consumer get amount on each msg or content 3. Customer make complain for this unnecessary
download service
4. Technology would change this types of
advertisement

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Conclusion-
Advertising by mobile phone is a new concept for Indian market. Advertisers and manufacture can explore their
product by this new kind of promotion. Although it is not utilized as it can, but also many production house use this
facilities. For example Mc donald’s inform their customer what is new scheme today through exist mobile phones
number. We can book movie ticket by mobile apps. Indian railway also connect passenger by mobile phones. Bank
also involve in this facility. If local traders or advertisers use this facility properly, they can get maximum attention
of people for their manufacture items. Mobile phones is a very personal device in today life. Mobile phone also
being important instrument for us, In morning first work of people check his mobile phone and last work of night is
also check of mobile phone, So it is a amazing thing for people. If advertisers or traders are use this facility properly,
we can think how much benefit will they get.

Suggestions-
 There is a need to create awareness about the m-advertising for changing the present status of it.
 M-Advertising tool may be adopted in the Government projects for generating more trust of the public in
general.
 The formal education and training is suggested to develop experts in the field of advertisement designing.
 Not only urban areas the rural areas should also be focused for the promotion of the products.
 The usages of regional language can be done for making it convenient to the local customers.

Acknowledgments-
We are grateful to the Hon’ble Vice Chancellor of University of Kota, Prof. P. K. Dashora for encouraging us to
come up with the quality research. His suggestions and visionary guidance were invaluable for us.
We are thankful to Prof. Rajeev Jain, Dean and Head Department of Commerce and Management of University of
Kota for his constant support.
Our indebted regards to Dr. M.L. Shau Coordinator of School of Heritage, Tourism and Museology who is always
supportive for the research work.

References-
Books and journals
1. Kalstrom, O., Business Solutions for Mobile e-Commerce”, retrieved from the World Wide Wide Web on 5
January 2003, www.ericsson.com/about/publications/review/2000_02/FILES/2000023.pdf.

2. Muller-Versee, F. (2000). Mobile Commerce Report. Durlacher Corporation. Retrieved from the World
Wide Web on 10 December 2002, www.durlacher.com/downloads/mcomreport.pdf.

3. Nysveen, H., Pedersen, P. E., and Thorbjornsen H., “Intentions to Use Mobile Services: Antecedents and
Cross-Service Comparisons,” Journal of the Academy of Marketing Science, Vol. 33, No. 3: 330-346.
2005.

4. Parka Taezoon, Shenoya Rashmi and Salvendya Gavriel, Effective advertising on mobile phones: a
literature review and presentation of results from 53 case studies- Behaviour & Information Technology
Vol. 27, No. 5, September–October 2008, 355–373)
5. Sadeh, N., M-Commerce: Technologies, Services, and Business Models. New York: John Wiley & Sons,
2002
6. Tiwari Rajnish, Buse Stephan and Herstatt Cornelius, from electronic to mobile commerce: technology
convergence enables innovative business services

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Websites and online reports

7. Cleff Evelyne, Mobile Advertising A Comparative Regulatory Overview, July 2005
8. Google.com
9. http://articles.economictimes.indiatimes.com/2013-01-19/news/36432079_1_mobile-ads-mobile-internet-
mobile-phone
10. http://www.msme.gov.in/
11. IAB Platform Status Report: A Mobile Advertising Overview July 2008
12. McGuire Mike, Mobile business markets: what can’t users live without, GARTNER INC. Symposium
ITxpo, 2001
13. Mobile Advertising - 2020 Vision ( Acision BV 2007 – 2009)
14. Mobile Marketing Association, Version 5.0, 2011
15. Srinivas C.V.L., Live mint & The wall street journal, February, 17 2014
16. TRAI (Oct, 2012)
17. UNCTAD, 2004. E-Commerce and Development Report 2004. United Nations Conference on Trade and
Development, New York, NY (a.o.)
18. Wikipedia
19. www.imarcgroup.com

Appendix
Questionnaire

Q.1 Name of the respondent?

___________________________________

Q.2 Gender?
(A) Male
(B) Female

Q.3 Age?
(A) Up to 25 years
(B) 26-35 years
(C) 36-50 years
(D) Above 50 years

Q.3 Business type?

(A) Tour & travelers
(B) Retailers
(C) Restaurant
(D) Finance services
(E) Real state

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Q.4 Which type of promotional tools using in your business ?

(A) News paper
(B) Radio
(C) Word of mouth
(D) Direct selling
(E) M-commerce

Q.5 What reason you want to adopt mobile advertising ?

(A) Increase brand awareness
(B) Faster selling
(C) Customer relationship
(D) Image building
(E) Increase engagement

Q.6 Which type of inventories you are using in mobile advertising in your business ?
(A) SMS
(B) MMS
(C) Video advertisement
(D) Mobile apps
(E) Mobile websites

Q.7 Which kind of challenges you are facing in mobile advertising ?

(A) Lack of standard format
(B) Lack of expertise
(C) Privacy issue
(D) Lack of relevant data
(E) Limited opportunity

Q.8 Do you feel satisfy with result of mobile advertising?

(A) Highly satisfied
(B) Satisfied
(C) Moderate satisfied
(D) Dissatisfied
(E) Highly dissatisfy

Q.9 Do you feel satisfy to mobile advertising agency?

(A) Highly satisfied
(B) Satisfied
(C) Moderate satisfied
(D) Dissatisfied
(E) Highly dissatisfy

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