Impact of celebrity endorsement on consumer buying behaviour in the state of Goa

Abstract

Celebrities have been involved in endorsing various activities since the eighteenth century. This article focuses on five aspects: to examine the present status of literature available on the effect of celebrity endorsement on consumer buying behaviour; to identify whether there is any association between the three groups of consumers (supporters/neutral/opposers of celebrity endorsement); applying multi-logit analysis to identify the probability of a consumer in becoming a supporter/neutral/opposer of the celebrity endorsement based on demographic profiles of consumers; to examine the celebrity attributes likely to influence consumer purchase intentions; and, finally, to examine the perception of the Goan consumers about celebrity endorsements. Literature review revealed that no major studies have been carried out on the impact of celebrity endorsement on Goan consumers’ buying behaviour. Hence, a survey using structured questionnaire was administered among 200 consumers during June 2015 to April 2016, with a response rate of 86 per cent (received responses were 171). It was found that a significant association exists between celebrity supporters/neutral/opposers with respect to age, gender, occupation and income level, except in case of education and location. Consumers also find celebrity endorsements more attractive and influential as compared to non-celebrity endorsements. Moreover, the tested attributes show positive relationship with purchase intention, except in case of expertise and trustworthiness of celebrity. In general, it can be concluded that celebrity attributes do impact the purchase intention of consumers.