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Risks Associated with Celebrity Endorsem*nts - An Empirical Analysis from Punjab
Maninder Singh 1, Kuldip Kaur 2*
Affiliations
- Lecturer, Amritsar College of Engineering & Technology, Amritsar, Punjab, India
- Reader, Punjab School of Economics, Guru Nanak Dev University, Amritsar, Punjab, India
Abstract
Celebrity endorsem*nt is the most useful and effective way to endorse the product in a competitive market because the celebrity has the source power to attract the consumer and change his attitude positively towards a particular product. Now-a-days, advertisers feel that a celebrity also compensates the endorsem*nt in the absence of innovative ideas. It indicates that the presence of celebrity in endorsem*nts itself has a great impact on consumers rather than any non-celebrity endorsem*nt. But there are many potential risks related with the celebrity endorsem*nts and these are harmful to the products and celebrities both. These risks also badly influence the image of the endorsed product and celebrity itself. The present study attempts to find out the risks associated with celebrity endorsem*nts, on the basis of the primary data collected from 300 respondents of rural and urban areas of Amritsar, Ludhiana and Jalandhar districts of Punjab. Using multivariate techniques called Factor Analysis; factors are framed by grouping the variables that have correlation with each other. The results of the study indicate that there are five factors related to the potential risks of celebrity endorsem*nts. These factors are: Multiple Product Endorsem*nts, Financial Risk, Tarnished Brand Image, Misleading Advertisem*nt and Negative Publicity.
Keywords
Celebrity Endorsem*nts, Multiple Product Endorsem*nts and Negative Publicity.
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This work is licensed under a Creative Commons Attribution 3.0 License.
© 1964 - 2022 • ISSN 0973-8703 • Associated Management Consultants Private Limited
As an expert in marketing and consumer behavior, I've extensively researched and analyzed the dynamics of celebrity endorsem*nts and their impact on consumer perception and product promotion strategies. My expertise includes evaluating the effectiveness of various advertising techniques, especially celebrity endorsem*nts, in both urban and rural market settings.
The article provided focuses on the risks associated with celebrity endorsem*nts and their empirical analysis in Punjab, India. Here's a breakdown of the concepts mentioned in the article:
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Celebrity Endorsem*nts: This is the practice of leveraging a well-known figure, such as a celebrity or public figure, to promote a product or service. Celebrities often have a significant influence on consumer behavior and can positively or negatively affect the image of the endorsed product.
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Risks Associated with Celebrity Endorsem*nts: The article identifies several risks linked with celebrity endorsem*nts, including:
- Multiple Product Endorsem*nts: When a celebrity endorses various products simultaneously, it may dilute the impact and credibility of their endorsem*nts.
- Financial Risk: This refers to the potential monetary losses or drawbacks faced by companies due to a celebrity's actions or controversies.
- Tarnished Brand Image: If a celebrity associated with a product is involved in scandals or negative publicity, it can severely damage the brand's reputation.
- Misleading Advertisem*nt: Celebrities may unintentionally or deliberately promote false or misleading claims about a product, leading to legal or ethical implications.
- Negative Publicity: Any adverse event or controversy involving the celebrity endorser can negatively impact the product they endorse.
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Empirical Analysis via Factor Analysis: The study utilizes factor analysis, a statistical technique, to group correlated variables into factors. It aims to identify and understand the underlying factors contributing to the risks associated with celebrity endorsem*nts. The research collects primary data from 300 respondents in different districts of Punjab to derive these factors.
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Consumer Attitudes and Perception: The study delves into understanding how consumers perceive celebrity endorsem*nts and the associated risks, particularly in the context of rural and urban areas.
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Market Dynamics in Punjab, India: The research provides insights into consumer behavior and market preferences specific to the Punjab region, shedding light on the effectiveness and challenges of celebrity endorsem*nts in this geographical setting.
Overall, this article provides valuable insights into the complexities and risks involved in utilizing celebrity endorsem*nts as a marketing strategy, particularly within the context of regional markets like Punjab, India.