Power of Celebrity Endorsements in India: Why it Counts

From fairness creams to financial services, celebrities in India routinely lend their star power to brands. Their influence is undeniable millions of fans trust their endorsements, often without question. But should they also share responsibility when the product or endorsement runs into troubled waters? A parliamentary panel thinks so, recommending that celebrities be held accountable for misleading advertisements.

Manish Gangwar, Assistant Professor of Marketing at the Indian School of Business, explains how cultural factors shape consumer trust in celebrity endorsements and why emerging markets should rethink accountability. 

Why is celebrity accountability important? 

Countries like India, China and Korea are characterised by ‘high power distance’, which indicates the degree of inequality of power and wealth in a society. My research shows that power distance influences how consumers perceive celebrity endorsements as credible and trustworthy. As celebrities’ influencing power is high in countries like India, they should be concerned about the products they advertise and take accountability for deficiencies in the quality of products.

Celebrity endorsements appear more popular in emerging markets than in developed ones. Why? 

Consumers idolise celebrities in emerging markets. Consumers tend to identify themselves with celebrities and try to imitate them. The perceived credibility of celebrities is also high in emerging markets.

Is the effectiveness of celebrity endorsements consistent across cultures and regions? Your research mentions the concept of 'power distance'. How does it affect the effectiveness and popularity of celebrity endorsements?

The effectiveness of the celebrity endorsement varies across different cultures and regions. My research shows that power distance is lower in countries like the USA and higher in countries like India and China. People in countries with ‘high power distance’ tend to accept inequality and authority. They listen to and respect authoritative persons like celebrities, attributing credibility to them. Celebrity endorsements are more effective in countries with high power distances than those with ‘low power distance’.