Investigating the Impact of Celebrity Endorsement by Banking Sector on Consumer’s Attitude towards availing their Offered Services
Keywords:
Celebrity Endorsement, Banking Sector, Consumer’s Purchase Intentions, Banking ServicesAbstract
It is a challenging task for service marketer to design an advertisement for promoting the sale of financial services because of their unique features of intangibility, variability, perishability and inseperatibility. Service marketers are adopting Celebrity Endorsement as a marketing strategy in making services less abstract by presenting human models especially high profile celebrities as tangible representation of the advertised services in a highly cluttered and competitive environment. To measure the impact of celebrities on consumers’ purchase intentions, past researches have used different number and types of independent dimensions of source credibility like trustworthiness, attractiveness, expertise, congruence, respect, similarity, race, gender of celebrity endorsements for different product categories. However such analyses have not been done much for Indian Banking service sector. Thus keeping in mind the growing usage of celebrity endorsement in banking sector, this study is focussed on evaluating the impact of celebrities on consumers’ purchase intentions for services offered by banks in Delhi-NCR. A deductive approach has been followed in selecting variables measuring credibility of celebrities. The five dimensions of credibility as proposed by Shimp in his model TEARS (Trustworthiness, Expertise, Physical Attractiveness, Respect and Similarity) have been used as variables. Reliability was tested by Cronbach Alpha to verify the internal consistency of the variables. The survey of 234 respondents using banking services from Delhi-NCR was done by using convenience sampling method with the help of structured questionnaire. The SPSS statistical tests like Correlation, Regression and two tail t-test were used to evaluate the individual impact of all five dimensions of credibility of celebrities on consumers’ purchase intention. It has been found that though 5 dimensions of TEARS models have their influence on consumers’ purchase intention with high correlation coefficient. However consumers are not highly influenced by celebrity endorsement in taking their purchase decisions for banking services. They are more interested in getting more returns and security on their investment. This implied that marketers should limit their expenditure on celebrity endorsement only for creating awareness for banking services and more focus should be diverted towards providing better returns to investors with other value added services.
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