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Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 1, No.7; February 2012 A STUDY ON EFFECTIVENESS OF CELEBRITY ENDORSED CONFECTIONARY PRODUCTS ON CHILDREN WITH SPECIAL REFERENCE IN COIMBATORE CITY TAMIL NADU INDIA 1 5 2 3 4 A.Pughazhendi, Dr.D. Sudharani Ravindran, N.Balamurugan, M.Sathish M.Kalpana 1 Research Scholar (Full Time) PSG Institute of Management, (PSG College of Technology Coimbatore) India 2 Professor PSG Institute of Management, (PSG College of Technology Coimbatore) India 3 Assistant Professor PSG Institute of Management, (PSG College of Technology Coimbatore) India 4 Assistant Professor PSG Institute of Management, (PSG College of Technology Coimbatore) India 5 Assistant Professor Department of Humanities (PSG College of Technology Coimbatore) India ABSTRACT The study aims to analyze “Effectiveness of celebrity endorsed confectionary products on children with special reference in city of Coimbatore.”The objective of the study is to know the children's awareness of celebrity endorsed confectionary Products & their advertisements. (2) To study the impact of celebrity endorsed confectionary Products on children.(3) To know whether is there any connection between TV watching habit of children and their medium of study or not. The study is based on the primary data collected 300 (150 children and 150 parents) from Coimbatore region with the help of a structured questionnaire. The findings of the study states that confectionary products are concerned children sometimes insist their parents to purchase those products for them. As far as confectionary products are concerned, children are influenced more by television advertisements and celebrity endorsed products than by the other medium of advertising. Key words: Advertisement, Confectionary products, Celebrity endorsed products, 1-INTRODUCTION The Indian advertising industry is talking business today. It has evolved from being a small-scale business to a full-fledged industry. It has emerged as one of the major industries and tertiary sectors and has broadened its horizons be it the creative aspect, the capital employed or the number of personnel involved. Indian advertising industry in very little time has carved a niche for itself and placed itself on the global map. Indian advertising industry with an estimated value of 13, 200-crore has set eyeballs gazing with some astonishing pieces of work that it has given in the recent past. The creative minds that the Indian advertising industry incorporates have come up with some mindboggling concepts and work that can be termed as masterpieces in the field of advertising. Advertising in the country too have taken a leap. They have come a long way from being small and medium sized industries to becoming well known brands in the business. Mudra, Ogilvy and Mather (O&M), Mccann Ericsonn, Rediffussion, Leo Burnett are some of the top agencies of the country. 84 1. While the magnitude of the impact of celebrity endorsement remains under the purview of gray spectacles. Businesses are looking up to advertising as a tool to cash in on lucrative business opportunities. ethnicity. 127 billion by fiscal 2006. media planning. dialects. 2-REVIEW OF LITERATURE Indian market is not by a large space. Growth in business has lead to a consecutive boom in the advertising industry as well. when it was believed that sex sells anything and everything. There were times. (Alsmadi 2006). Surabhi B. their priorities and the correlation score between the parameter and endorsement effectiveness.2% to reach Rs. It is a very successful industry which generates lot of revenue. every medium plays a significant role in the growth of this industry. various avenues are opening up in advertising industry. Very often. branding. many agencies are coming to the scene. creative conceptualization. The list is endless. Then came the era of glamour and celebrities. various advertising styles are used by advertisers to influence consumer brand choice behaviour and among these different available choices one very popular choice is Celebrity Endorsements. With all this there is definitely no looking back for the Indian advertising industry that is all set to win accolades from the world over. you’ll be vastly surprised.Arabian Journal of Business and Management Review (OMAN Chapter) Vol. This is primarily because of the reason that the industry offers a host of functions to its clients that include everything from start to finish that include client servicing. easy to please. the times have changed. 2005). Rapid economic growth of the country on the back of economic liberalization and deregulation. sells the best. If the experts are to be believed then the industry in the coming times will form a major contribution to the GDP. During fiscal 2005. Other aspects such as the economic discrepancy in the country separates it in a way which has resulted in a large number of lower and upper middle class. It ensures tremendous growth and scope for the employees. Now. culture. The paper first examines the various facets of celebrity endorsements and the impact on brand equity. Keeping in mind the current pace at which the Indian advertising industry is moving the industry is expected to witness a major boom in the times ahead. No. To meet all the demands in adverting sector. radio. but if you look at the advertisements on Indian television nowadays. the humor involved. Humor. marketing. one which the advertisers should keep in mind. language. Prasad & Ravi Girdhar (2005) have come up with a model that is a function of several input parameters. television or Internet. and it becomes easier to make an impact on the customer. This demonstrates a vast disparity in the buying power and decision making clout. an easy audience to target for the advertisers. industry experts say. market research. and services. Ads were made for cycles and pens. The one billion people of the country are speckled in terms of beliefs. Today Advertising Industry in India is booming with revenue. The Indian advertising today handles both national and international projects. Be it is print. People remember jokes.2 billion dollars are generated in this industry every year. The Indian consumer no longer falls into an uneducated. Visibility is the mantra of success these days and advertising makes sure that your product. the gross advertising spend in India is estimated at Rs 111 billion. With development in the technology. and is expected to grow at 14. Advertising Industry in India is surging with revenues. service is visible thus saleable. (2005) studied the impact of celebrity endorsements on brands. It is estimated that about 2. India is a hub of creativity and this is evident from the fact that more and more people from Indian advertising industry are being accepted world over and imposing a lot of respect in international advertising community. February 2012 Indian economy is on a boom and the market is on a continuous trail of expansion. The change has been a slow and steady one.7. the research has established reasoning to the impact of celebrity endorsements on brands and reveals that the level and the magnitude of the effect vary with the celebrity and the product category and that most of the endorsements have a favorable impact. norms and values. Neha Taleja. A study conducted by Irene Roozen (2008) analysed two aspects one was to find the implication that the celebrity endorser brings to the product and to the consumer for different product categories and 85 . Indian advertisement has been placing a vital amount of importance on both recall and persuasion as brand differentiating messages. (Dixit. Indian advertising industry is fast catching up with their western counterparts. Today. with a very small class falling under in the middle class. media buying. Film stars and cricketers were roped it to sell soft-drinks to massage oils. A through literature survey has been made in light of which the arguments have been substantiated. The Advertising Industry in India is getting recognized worldwide with its superior quality work and innovation. pre and post campaign analysis. states. With the market gaining grounds Indian advertising has every reason to celebrate. The research findings also laid stress on the fact that the association of the celebrity with any type of controversy or ill. February 2012 the other was the extent to which these effects vary across different product categories. Abdul-Rahman. Health Drinks. No. The research also concluded that from the viewpoint of the celebrity. Kalliny. titled “Impact of Celebrity Endorsement on Buying Behaviour of Customers” the focus was laid on the risks and returns involved in using celebrity endorsements to influence the purchase behaviour of the consumers. likeability. Wafers. The outcome of the research was that. Sauces. 1990. All questionnaires were self-administered by the participants without interference from researchers. In such a scenario both academia and industry look for the issues in selection. This paper has also an attempted to find out the frequency of celebrity use and identify the characteristics of celebrities used and the products their use is associated with. This paper provides a model connecting attitude toward celebrity endorser. like Biscuits. it substantiated the fact that celebrity endorsements do have an impact in the Indian scenario. Morris. In a survey. The study has compared the use of celebrity endorsement in terms of two fundamental cultural dimensions: 1) low versus high context and 2) individualism versus collectivism..behaviour did have a negative impact on the endorsement. Chocolates. use and effectiveness of celebrities as product endorsers.Arabian Journal of Business and Management Review (OMAN Chapter) Vol. gender and celebrity endorsement perceptions. cross country comparison of celebrity advertising. 2000). Lance (2009) the research has investigated into the use of celebrity in TV commercial endorsements. 3-NEED FOR THE STUDY Through this report we want to find out how children are influenced by the celebrity endorsed products especially of confectionary products. Steven Breen (2003) study the process of transference of celebrity images to the products image by examining the usage of celebrity endorsement in the formation of the retail image of a leading European grocery distribution group. The research process goes within the confectionary products. 1989) and a host of other issues such as effect of negative celebrity information. The analysis relates to a field research with consumers and interviews with advertising agency personnel who have identified the criterion for the choice of a celebrity. Beydoun. Research findings suggest that the percentage of celebrity advertisements out of the total number of ads aired is as high as 25-30% in western countries (Agrawaland Kamakura. 86 . The extent to which the market place recognizes and consumers associate themselves with the image of a celebrity endorser is explored. meaning transfer in celebrity endorsements (McCracken. it is not only the financial gains that matters but also the impact that the endorsement might do to their image. The critical analysis of the research convinced that the consumers seek variety of aspects like credibility. On the other hand.1998). attitude toward celebrity endorser has not significant effect on purchase intention. 1979. 1995) and around 60% in India (Patel. attitude toward advertisement is as a mediator between attitude toward celebrity endorser and attitude toward brand. Till and Busler. So the statement of this project would be ‘Effectectivess of celebrity endorsed confectionary products’ on Children with special reference to Coimbatore city. Research in celebrity endorsements in the last thirty years have tried to address various issues in celebrity endorsements such as the effects of credibility of endorser on the consumers (Friedman and Friedman. Angela Byrne. Information was obtained from randomly selected respondents through survey questionnaires. Zahra Shekarchizade. fit between the brand and the celebrity. 1. The research was based on written questionnaires and the study analysed the impact of female international celebrity endorsers in respect of three different product categories namely. etc.Bahram Anjbarian. low involvement and the beauty products and concluded that the celebrities are considered to have the highest expertise for beauty products with much lower scores for candy bars (low involvement) and lap-tops (high involvement). In indirectly approach. Maureen Whitehead. Gentry. Anshu.7. attitude toward advertisement and attitude toward brand that has been examined and validated using respondents. 2009). The findings show that attitude toward celebrity endorser can influence on attitude toward brand directly or indirectly. Saran. and Zahra Momeni this study aims to analyze the celebrity endorser influence on attitude toward advertisements and brands. high involvement. issues in celebrity product ‘match-up’ (Kamins. Noodles. Goldsmith al. Secondary Data is the data that already exists and in ready to use format and gathered by somebody else. books in the specific field of advertising and various different internet sites. To know whether is there any connection between TV watching habit of children and their medium of study or not. Primary Data in the research process would be collected by filling up questionnaires from children and their parents. 87 . The instrument selected for the primary data is structured questionnaire. serials. National Geography channel and so on. there are 80 children who like to watch movies on television which might be because of his/her favorite actor or actress. And the sample unit for this research would be children with age of 8-15 and their parents of a selected area. February 2012 4. government reports or any other historical data. No.Arabian Journal of Business and Management Review (OMAN Chapter) Vol. Sampling technique stratified random sampling and sample size was 300 (150 children and 150 parents). and song based programmes and other programmes like programmes which come on Discovery channel. of respondent 98 32 80 30 40 20 300 Percentage (%) 33 11 27 10 13 6 100 The above table shows that there are more number of children who like to watch cartoons and movies on Television than reality shows. 5-RESEARCH METHODOLOGY Research design selected for this project is Descriptive. ANALYSIS AND DISCUSSION Table: 1 Respondents opinion about whether children watch over their advertisements S. Apart from that.There are mainly two of sampling methods which are being used by the marketers Probability Sampling (Random Sampling) Non – probability sampling. It might even be the different articles in newspaper and on the internet blogs.OBJECTIVES OF THE STUDY    To know the children's awareness of celebrity endorsed confectionary Products & their advertisements. Secondary Data that would be used by researcher in the research process as supportive documents are from the various newspaper articles.7. 1. The target population for this research would be children with age of 8-15 and their parents. and the research will be done at Coimbatore city only. journals. Researcher has collected this data with a specific purpose of studying the problem. To study the impact of celebrity endorsed confectionary Products on children.No 1 2 3 4 5 6 Different Views Cartoons Reality Shows Movies Serials Song based Programme Others Total No. magazines related to specific industry. Primary Data is the one that is being collected by the researcher itself and is being collected for the first time. This data can be in the form of articles in magazines. Probability sampling is a method for drawing a sample from a population such that all possible samples have a known and specified probability of being drawn. In our survey we have found that there are 98 children who like to watch cartoons on television because they are more fascinated towards that. Non probability sampling is a sampling procedure in which the selection of population elements is based in part on the judgment of the researcher or field interviewer. The sampling method for this report would be probability sampling because here each sample has equal chance of being selected and again it would be stratified random sampling. This is because. Wafers.No 1 2 3 4 5 6 Different Views Biscuits Wafers Chocolates Sauces Noodles Health Drinks Total No. In our survey we have found that 79 children who are familiar with the advertisements of Biscuits. This shows that children are influenced more by the advertisements of Biscuits. This shows that purchase decision of children is sometimes influenced after watching advertisements of confectionary products. Sauce and Noodle. In our survey we have found that there are 80 children who have tried to purchase Biscuit.Arabian Journal of Business and Management Review (OMAN Chapter) Vol. children have tried to purchase more Biscuit. of respondent 80 24 77 25 37 57 300 Percentage (%) 27 8 25 8 12 20 100 The above table shows that after watching advertisements of confectionary products. Table 3: Respondents opinion about confectionary products used S. No. Children who not at all 88 . While 44% & 20% parents replied that advertisements affect purchase decision of their children sometimes and rarely respectively. Chocolates and Wafers celebrity is shown wherein advertisements of other confectionary products generally me too model is shown. And there are 37% parents who replied that sometimes their child insists them to purchase any confectionary product after watching its advertisements. 77 children who have tried to purchase Chocolate and 57 children who have tried to purchase Health Drink after watching advertisement of the same. 1.No 1 2 3 4 5 6 Different Views Biscuits Wafers Chocolates Sauces Noodles Health Drinks Total No. and children get easily attracted by that celebrity to purchase those products. February 2012 Table 2: Respondents opinion about confectionary products S. of respondent 79 50 61 25 32 53 300 Percentage (%) 26 17 20 8 11 18 100 The above table shows that children are more familiar with the advertisements of Biscuits. In our survey we have found that there are 27% parents who replied that more often their child insists them to purchase any confectionary product after watching its advertisements. Chocolates and Health Drinks and there are some specific advertisements of Biscuits. In our survey we have found that there are 28% parents who replied that advertisements of confectionary products affect more often purchase decision of their children. Chocolate and Health Drink than Wafer. Chocolates and Health Drinks in which children have mainly targeted. in majority of the advertisements of Biscuits.7. Children who are familiar with advertisements of the Wafers and Chocolates are 50 and 61 respectively. Chocolates and Health Drinks than the advertisements of Sauces and Noodles. 98 16.84 (Fo-Fe)2/Fe 0.75 -7.13 0.64 6.78 1.66 -7.39 -2.72 0.93 -2.7 8.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Fo 12 3 5 12 3 4 0 15 20 3 0 5 22 14 5 6 6 8 Fe 10.87 6.10 1.72 5.2 (Fo-Fe) 1.49 7.25 31.45 5.54 -5. 1.51 ∑ (Fo-Fe)2/Fe =69.52 0.08 3.87 7.93 0.72 5.98 5. This shows that majority of parents are not conscious about effects of advertisements on their children especially in case of confectionary products.45 5.40 1.4 5.07 0. No.Arabian Journal of Business and Management Review (OMAN Chapter) Vol.07 5.33 7.66 7. February 2012 insist their parents to purchase any confectionary product after watching its advertisements are very less.76 0.45 14.45 9.59 6. This shows that how advertisements of confectionary products affect children.11 20.02 2.67 -0.24 7.75 12. In our survey we have found that there are 38% parents who replied that generally they do agree when their child insists them to purchase any confectionary product after watching its advertisements.68 35.33 4.37 1.87 89 .20 21.72 2.08 0.21 0.08 55.06 7.7.36 157.05 12. 6-HYPOTHESIS TEST H1: After watching the advertisements of confectionary products children insist their parents to buy that product is dependent on their age H2: After watching the advertisements of confectionary products children insist their parents to buy that product is not dependent on their age Table: 4 Computation of the chi-square test statistic for confectionary product purchase S.4 -0.91 2.46 8.13 12.67 6.87 -2.8 (Fo-Fe)2 3.61 7.55 -2.75 4.56 63.4 3.95 1.28 0.25 45. There are 26% parents who replied that they mostly agree when their child insists them to purchase any confectionary product after watching its advertisements.5 83.28 5.52 7.59 -6. 87 Tabulated: DF= (r-1) (c-1) = (4-1) (8-1) = (3)*(7) = 21 Significance Level is 5% = 0.7.No 1 2 3 4 5 6 7 8 Fo 1 22 36 7 28 24 11 21 Fe 12.76 -1.1 234.7 28.05 Tabulated = 7.76 1.3 8.24 20.76 20. Tab < Cal So.15 11.76 26.24 25.32 5.84 0.52 0.32 15.35 2.12 8. Ho is rejected.3 3.76 15.32 -5.7 28. Therefore TV watching habit of children is not dependent on their Medium of Study.32 (Fo-Fe)2 138.68 (Fo-Fe) -11.1 234. Ho is rejected. Therefore after watching advertisements of confectionary product children insist their parent to buy that product is not dependent on their age. Calculation of Calculated = ∑ (Fo-Fe) 2/Fe = 44 Tabulated: DF= (r-1) (c-1) = (4-1) (2-1) = (3)*(1) = 3 Significance Level is 5% = 0.8 ∑ (Fo-Fe)2/Fe=44 From the table 7 since.3 138.32 16. Tab < Cal So. since Calculation of Calculated= (Fo-Fe) 2/Fe = 69.3 (Fo-Fe)2/Fe 10.76 -15.815 Here.Arabian Journal of Business and Management Review (OMAN Chapter) Vol. No.67 Here.32 11.92 1.05 Tabulated = 32. February 2012 From the table 5.68 12.3 3. H3: TV watching habit of children is dependent on their medium of study H4: TV watching habit of children is not dependent on their medium of study Table: 5 Computation of the chi-square test statistic for children TV watching habits S. 90 . 1. As far as confectionary products are concerned. Sauces.Arabian Journal of Business and Management Review (OMAN Chapter) Vol.7. Noodles and. Nowadays it seems that children’s impact on family decision in shopping has been steadily increased. Wafers. Children also like to watch movies on television. 91 . After watching advertisements of any confectionary products majority of children have tried to purchase that product. It is the duty of parents to see what their children are watching on television and if they are highly influenced by the advertisements especially of confectionary products then parents should try to explain them what are the pros and cons of that product by using it. When children insist their parents to purchase confectionary product after watching its advertisement. Children can be easily attracted by the celebrity so. There are some children also who like to buy confectionary products just because his/her favorite celebrity is associated with the advertisement of that product.E. Wafers. Wafers and Chocolates more than other confectionary products. the first thing comes in their mind is to purchase the advertised products.g. children are influenced more by television advertisements and celebrity than by the other medium of advertising. as far as confectionary products are concerned celebrity should not directly or indirectly persuade children to buy that product which he/she has shown using that product. Noodles and Health Drinks. Majority of children like to buy confectionary products because it gives free tattoo and other promotional things. Wafers. in that they like to buy more Biscuits. Also they do not care whether these products are healthy for them or not.   9-CONCLUSIONS Today. Chocolates. Among selected confectionary products from Biscuits. No. 1.Chocolate and advertisers must not misuse children’s relative inexperience. it was found as far as confectionary products are concerned children sometimes insist their parents to purchase those products for them. Chocolates. While they are shopping. children like to watch cartoon movies or cartoon serials on television. the advertising has a stronger effect on younger children than the older children. After the research. particularly young children play an important role as consumers. Especially confectionary products (Biscuits. After watching advertisement of confectionary products children sometimes insist their parents to purchase that product for them. Chocolates and Health Drinks more than the Sauces. Chocolates and Health Drinks. As far as celebrity endorsed confectionary products are concerned. After watching advertisement of confectionary products purchase decision of children sometimes gets affected. Noodles and Health Drinks) are concerned they do not care price of which they want to buy. parents generally do agree with them. Majority of children like to watch advertisements of confectionary products on television rather any other media. Those children who have tried to purchase confectionary product after watching its advertisements. advertisements should be seen with their pros and cons. In this situation. children like to have Biscuits.          8-SUGGESTIONS   To some extent children have limited understanding so advertisers should not directly persuade children to buy the product which is shown in the advertisement. Majority of children are familiar with the celebrity endorsed products of Biscuits. February 2012 7-FINDINGS  As far as watching any particular program on television is concerned. Sauces. „Perceived Credibility of Celebrity Endorsers of Over-The-Counter Medicines and Its Influence on Health Care Decisions of Rural Mothers. Montfort. Gary S. “A simple theory of advertising as a good or Bad [8] Capuyan. Celebrities Must Be Relevant to Increase Brand Engagement. Karels. G and Strutton. pp. Amos.209-234 [2] Armstrong. Communication Research. No. 10-REFERENCES [1] Alsmadi. 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