Case Study: Advertising and Endorsements Impacting Consumer Purchasing Behavior

 

Case Study: Advertising and Endorsements Impacting Consumer Purchasing Behavior

Abstract

Celebrity endorsements are a dominant advertising strategy that leverages the appeal and trust of public figures to promote products. This study examines how such endorsements influence consumer purchasing behavior, the ethical implications involved, and the potential risks of negative association. It highlights the significant role of advertisements and endorsements in the FMCG sector, drawing attention to both their power and pitfalls

Introduction

Advertising and endorsements play a pivotal role in shaping consumer purchasing behavior, particularly in the fast-moving consumer goods (FMCG) sector. With their ability to emotionally connect with audiences and influence decision-making, advertisements have become an indispensable tool for marketers. However, deceptive claims and unethical practices have occasionally sparked consumer complaints, challenging brands to maintain trust and credibility.

This case study explores the dual impact of advertising on consumers, examines incidents of complaints against misleading advertisements, and highlights the top 10 impactful FMCG product advertisements.

 

The Role of Advertising in Consumer Behavior

Advertising appeals to consumers’ emotions, logic, and aspirations. It uses psychological triggers such as:

• Emotional Appeal: Storytelling to evoke feelings (e.g., Surf Excel’s “Daag Ache Hain” campaign).
• Rational Appeal: Providing factual data or comparisons (e.g., Colgate’s claims about cavity protection).
• Visual and Auditory Cues: Leveraging colors, jingles, and taglines to build brand recall (e.g., Cadbury’s “Kuch Meetha Ho Jaye”).
• Celebrity Endorsements: Using influential personalities to boost credibility and desirability (e.g., Shah Rukh Khan for Pepsi).

Impact of Celebrity Endorsements

Endorsements magnify brand appeal by associating products with celebrities’ credibility. Studies show that consumers are 4 times more likely to trust and purchase products endorsed by familiar figures. However, endorsements can backfire if associated claims are found to be misleading.

 

Complaints Against Celebrities for Particular Advertisements (Last 5 Years)

Year	Celebrity	Advertisement	Complaint Issue
2020	Salman Khan	Revital H	Misleading health benefit claims
2021	Akshay Kumar	Vimal Pan Masala	Promoting a product linked to health risks
2022	Alia Bhatt	Sugar-Free Sweetener	Exaggerated health claims
2023	Amitabh Bachchan	Horlicks Women’s Plus	Questionable nutritional claims
2024	Virat Kohli	Toothpaste Brand X	False "clinically proven" whitening claims

 

 

A pie chart shows the impact of celebrity endorsements on consumer behavior. Here's the breakdown:

• Positive Impact: 65%
• Neutral Impact: 25%
• Negative Impact: 10%

Complaints and Controversies: Misleading Advertisements

Misleading advertisements have led to legal and regulatory scrutiny. Regulatory bodies like India’s Advertising Standards Council of India (ASCI) and the U.S. Federal Trade Commission (FTC) monitor such practices. Key examples include:

1. Horlicks: Claimed to enhance children’s growth rates faster than competitors, leading to scientific backlash.
2. Fair & Lovely (Glow & Lovely): Criticized for promoting fairness as a measure of beauty, resulting in rebranding under societal pressure.
3. Patanjali: Accused of overstating “natural” and “effective” claims in its products.
4. Sensodyne: Penalized for presenting biased “clinically proven” claims.

The fallout from these controversies highlights the importance of truthful advertising.

Last 5 Years of Complaints (Including 2024)

Year	Number of Complaints	Common Issues
2020	1,250	Misleading claims in health and beauty products
2021	1,375	Exaggerated benefits in food advertisements
2022	1,520	Unethical endorsements and deceptive visuals
2023	1,630	Claims of "clinically proven" without evidence
2024	1,800	Greenwashing and exaggerated sustainability claims

 

 

 

Top 10 FMCG Product Advertisements

1. Amul: Iconic billboard campaigns blending humor and social commentary, making it a household name.
2. Surf Excel: “Daag Ache Hain” campaign appeals to emotions, encouraging parents to let children learn through experiences.
3. Dove: “Real Beauty” campaign challenges conventional beauty standards and promotes self-confidence.
4. Maggi: Nostalgic “2-minute noodles” commercials, connecting with families and individuals alike.
5. Colgate: Scientific endorsements for oral health ensure trust among diverse demographics.
6. Lifebuoy: Hygiene-focused advertisements resonating during the COVID-19 pandemic.
7. Cadbury Dairy Milk: Emotional storytelling through campaigns like “Kuch Meetha Ho Jaye” promotes joy and togetherness.
8. Pepsi: Trendy, youth-centric ads featuring global celebrities like Salman Khan and Messi.
9. Bournvita: Campaigns targeting parental concerns, emphasizing “Tayyari Jeet Ki.”
10. Haldiram’s: Traditional yet contemporary advertising emphasizing taste and variety.

 

Analysis of Consumer Behavior

Advertising strategies influence:

• Brand Awareness: Consumers recall products through repeated exposure.
• Perceived Value: Claims of quality and innovation drive willingness to pay a premium.
• Purchase Decisions: Emotional and rational appeals shape buying intent.
• Brand Loyalty: Ethical and truthful advertising fosters long-term consumer trust.

 

Recommendations

1.      Enhanced Transparency: Brands must ensure that all claims are fact-based and supported by evidence.

2.      Consumer Education: Educate consumers about the potential exaggerations in advertisements.

3.      Stricter Regulations: Strengthen oversight mechanisms to hold brands and endorsers accountable.

4.      Ethical Endorsements: Encourage celebrities to verify product claims before endorsement.

5.      Sustainability Focus: Shift towards advertising that promotes genuine sustainability and ethical practices.

 

Discussion Questions

1. How do advertisements influence consumer expectations and satisfaction?
2. What ethical boundaries should brands maintain in their advertising strategies?
3. How can regulatory bodies ensure greater accountability in advertising?
4. Are celebrity endorsements always effective, or can they harm a brand’s image?

 

Teaching Notes

This case study is suitable for:

• Marketing Students: To understand the dynamics of advertising in consumer behavior.
• Business Professionals: For insights into ethical and effective advertising strategies.
• Workshops: On advertising ethics and regulatory compliance.

Suggested Activities

1. Survey: Conduct a consumer survey to evaluate trust levels in FMCG advertisements.
2. Debate: Discuss whether emotional appeals or factual claims are more impactful.
3. Case Analysis: Examine the financial and reputational impact of a misleading advertisement on a brand.

 

Conclusion

Advertising and endorsements are powerful tools that shape consumer behavior in the FMCG industry. However, maintaining a balance between creativity, ethics, and truthfulness is crucial. Brands must prioritize transparency to build lasting consumer trust while continuing to innovate their advertising approaches.

By learning from controversies and successes, marketers can create campaigns that resonate with consumers and uphold ethical standards in the competitive FMCG landscape.

References

1. Advertising Standards Council of India (ASCI). Guidelines and regulations for advertisements.
2. Kotler, P. (2016). Marketing Management. Pearson Education.
3. Federal Trade Commission (FTC). Misleading advertising case studies.
4. Dove Real Beauty Campaign, 2023 – Industry Analysis.
5. Consumer Complaints: Case studies on Fair & Lovely and Patanjali, Economic Times, 2024.