Research first being adopted by the affluent

Research problem:

Luxury Brands have evolved to represent much more than the traditional markers of quality, trust and reliability to consumers. Brands have become embedded in the consumer psyche and offer consumers the opportunity for self-expression, self-realization and self-identity. Celebrity endorsement is recognized as a potentially potent tool in communications, with celebrities viewed as more powerful than anonymous models and campaigns tending to verbalize the meaning of the celebrity in relation to the brand.A1  The study is undertaken to explore the following objectives,

Ø To study the  Impact of perceived effectiveness of celebrity endorsements on luxury goods

Ø To find out the most prominent factors in celebrity endorsement

Ø To analyze the future of Celebrity endorsements on luxury goods

Ø To develop a model predicting the effectiveness of celebrity endorsements

Ø To study the strategic Brand building process by companies.

Hypothesis Testing

Ø Perceived quality of a brand is related positively to the extent to which celebrity endorsement is used for the luxury brand.


Ø  Brand loyalty is related positively to the extent to which celebrity endorsement is used for the luxury brand.


Ø Relationship between Brand association and endorsers credibility


Ø  The relationship between endorser credibility and

Consumer-based brand equity.




Basic literature review

 ‘Luxury’ brand is open for debate, the natural evolution of luxury, with luxury brands first being adopted by the affluent and wealthy before inevitably being translated and reinterpreted down to mass markets, raises new challenges for marketing strategists. A2 Luxury brands need to stay in front of luxury consumers, through the discovery of new and different ways to give expression to their desires. Today celebrity endorsement becomes the multi-million industries in the world. A3 Marketers endorsed celebrities with their products and brands in the advertisement to increase their sales and change the perception of the viewer’s regarding their brand, which positively impacts on their buying behavior .The US has a popular index, called the Q score, that summarizes various perceptions and feelings that consumers have in the form of likeability measurements. The index could be based on a rating that takes into account agreed parameters/attributes, past-present media coverage/favorability and relevance, ground situation in terms of successful/unsuccessful seasons/tenures, future prospects, etc. The closest thing to this that exists today in more advanced manner is the Davie-Brown Index, developed by Davie- Brown Entertainment and i-think Inc.

This index evaluates the worth of celebrities through a systematic and controlled method that resembles financial brand valuation and forecasting.

The Davie-Brown Index uses eight criteria in its evaluation:

1. Appeal

2. Notice

3. Trend setting

4. Influence

5. Trust

6. Endorsement

7. Aspiration

8. Awareness


A recent study indicates that approximately 30 percent of American commercials use celebrity endorsers (Shimp, 2000). In support of this practice, research indicates that celebrity endorsements can result in more favorable advertisement ratings and product evaluations (Dean and Biswas, 2001) and can have a substantial positive impact on financial returns for the companies that use them (Erdogan, 2001). One possible explanation for the effectiveness of celebrity endorsers is that consumers tend to believe that major stars are motivated by genuine affection for the product rather than by endorsement fees (Atkin and Block, 1983). Freiden (1984) concluded that celebrities are particularly effective endorsers because they are viewed as highly trustworthy, believable, persuasive, and likeable. Although these results unequivocally support the use of celebrity endorsers, other research suggests that celebrity endorsements might vary in effectiveness depending on other factors like the “fit” between the celebrity and the advertised product (Till and Shimp, 1998).

Anticipated methods

This research study focuses on the celebrity endorsement and its impact on the customer’s buying behavior and their perception regarding the luxury product or brand of a company. A quantitative method is used in this research in order to investigate the impact of celebrity endorsement on buying behavior. A4 The data of 600 respondents was collected through questionnaire and results were analyzed with a help of high order statistical tools.

The samples drawn are people who use luxury goods on a purely opportunistic basis from a readily accessible group of the population and are selected by adopting Convenient Sampling or Non- Probability Sampling with a help of a structured questionnaire ,which was  circulated through email to the target personnel ,some interviews were conducted over telephone, even few of them were face-to-face to understand and analyze their perception regarding the credibility of celebrity, its attributes and the impact of celebrity endorsement on their buying behavior.



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