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PARAMHAR BENSON ALI

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The Project File Details

  • Name: THE INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOR: A STUDY OF AUN STUDENTS
  • Type: PDF and MS Word (DOC)
  • Size: [796 KB]
  • Length: [54] Pages

 

ABSTRACT

This study assessed how celebrity endorsements influenced consumers’ behavior and other
factors that predispose people to buy products. To do this, a number of products sold at the AUN
Campus Store and Top 10 Store, all located within Yola Town and which are endorsed
by Nigerian celebrities were selected and students of AUN were surveyed based on the
assumption that they patronize the shops and also have the required exposure to provide smart
answers to the questions posed. The objectives of the research were to find out why
manufacturers engage celebrities to endorse their products, to identify whether endorsements
by celebrities influence consumers to buy products, to determine other factors that
predispose people to patronize products and services, and to show whether AUN students are
satisfied with products endorsed by celebrities. To achieve these objectives, a survey method
was adopted and the multi-stage sampling technique was used in selecting 350 respondents
for the study. Out of the number, a total of 321 respondents completed and returned the
questionnaires to the researcher. Data obtained were collected and analyzed using excel sheet.
The study showed that while majority of respondents expressed satisfaction with the products
endorsed by celebrities, a greater number held that celebrity endorsement does not
influence them to purchase a product. The study also found out that quality and price are some
of the most important factors consumers consider when purchasing products. Instead of spending
millions in celebrity endorsement deals, the researcher among other things, recommended that
manufacturers pay serious attention to improving the quality of their products while also offering
reasonable prices, to attract patronage.

 

TABLE OF CONTENTS

CHAPTER ONE 1
1.1 Background of the Study 5
1.2 Statement of Problem 6
1.3 Objectives 6
1.4 Research Questions 6
1.5 Significance of the Study 7
1.6 Delimitations 7
1.7 Limitations 8
1.8 Definition of Terms 8
CHAPTER TWO 9
2.1 Introduction 9
2.2 Review of Important Concepts 9
2.2a Advertising 10
2.2b Celebrity Endorser/Endorsement 10
2.2c Consumer/Consumer Behavior 10
2.3 Review of Related Studies 11
2.4 Theoretical Framework 12
2.4a Uses and Gratification Theory 12
2.4b Source Credibility Theory 13
2.5 Relevance of the Study 15
2.5a Relevance of Uses and Gratification 15
2.5b Relevance of Source Credibility 16
CHAPTER THREE
3.1 Introduction 17
3.2 Research Design and Instruments 17
3.3 Population of the Study 17
3.4 Sample Size and Procedure 17
3.5 Description of Data gathering Instruments 18
3.6 Method of Data Collection 19
3.7 Validity and Reliability of Research instruments 19
3.8 Method of Analysis 19
CHAPTER FOUR 20
4.1 Introduction 20
4.2 Data Presentation and Analysis 20
4.3a Discussion of Findings 34
vi
4.3b Answers to Research Questions 35
CHAPTER FIVE 39
5.1 Summary 39
5.2 Conclusion 40
5.3 Recommendations 40
References 42
Appendices 44

 

CHAPTER ONE

1.1 Background to the study
Advertising is an essential marketing tool for both new and existing products and
businesses. It is a special form of communication directed at selling or making people aware of
the availability of goods and services. It also helps to build relationships between producers and
the ultimate consumers. The Encyclopedia Britannica defines advertising, “as communication
techniques and practices used to bring products, services, opinions, or causes to public notice for
the purpose of persuading the public to respond in a certain way.” (Search, 2016).
Advertisers worldwide have acknowledged the use of celebrities as a technique for
enhancing trade. Advertising and marketing managers spend large amount of money in order to
make celebrities endorse their products (Sushil & Ashish, 2013).
A lot of people generally tend to look at celebrities as some kind of role models. Many
more put in so much effort, time, energy and resources to look like their favorite celebrity.
Others go as far as dressing like them, mimicking the way they speak, and walk and act. And yet,
others go to the extent of patronizing goods and services endorsed by a celebrity without
considering the fact that they do not need the product at that particular moment (Marshall, 2014).
They are just happy to purchase the product, as far as they can own what their favorite celeb has
endorsed.
The Business Dictionary defines celebrity advertisement “as a form of brand or
advertising campaign that involves a well-known person using their fame to help promote a
product or service,” (“Celebrity Endorsement”, 2016). Advertisers often believe that a product or
service will have more sales once a celebrity is involved.
2
AMERICAN UNIVERSITY OF NIGERIS,YOLA.
Celebrity endorsement is, therefore, an advertising campaign in which a famous person
uses their fame to support a product or service. Manufacturers now, more than ever, use
celebrities to advertise their products by making use of several media channels such as
television, newspapers, magazines and online.
Producers and advertisers try to figure out several ways to reach the consumers by
studying their consumption behavior and producing products to satisfy the identified behavior
and needs. According to Sushil & Ashish, (2013), “Consumer behavior is the study of
individuals, groups or organizations and the processes involved to select, use and dispose of
products, services, experiences, or ideas to satisfy needs and impacts that these processes have
on the consumer and society”. Based on this definition, consumer behavior contains more than
just trying to understand what items a consumer purchases. It tries to understand other factors
capable of influencing the basic decision process of the consumer. There are a number of factors
which affect consumers‟ choice and these include; internal and external factors. Celebrity
endorsement is one of such factors, (Uttera & Asthana, 2015).
Advertising agencies are constantly looking out to find different ways to make their
products and or services sell better than the competition and that is where celebrity endorsement
comes into the picture. Nigeria has quite a number of celebrities, who have endorsed several
products and services. Some of the frequently used celebrities include Tiwatope Savage-Balogun
(Tiwa Savage), Olubankole Wellington (Banky W), Ayodeji Ibrahim Balogun (Wizkid), Funke
Akindele, Ayodeji Richard Makun (A.Y), Kate Henshaw, Ali Nuhu, Genevieve Nnaji, etc. These
celebrities have endorsement deals with several companies and products ranging from
detergents, toothpastes, phones/gadgets, drinks, food, fashion items, stationaries, etc.
3
AMERICAN UNIVERSITY OF NIGERIS,YOLA.
This project studied some of the products endorsed by Nigerian celebrities and sold at the
AUN Campus Store and Top 10 Store located about a kilometer from the university, from where
students buy their essential and non-essential products. The aim of this study was to find out if
consumers (students) buy products because some celebrities endorsed them. It also tried to find
out other reasons people have for buying products. The products selected for this study were;
Samsung brand of phones endorsed by Kate Henshaw (a popular Nigerian actress) and
Olubankole Wellington, popularly known as Banky W. (a popular Nigerian musician), Peak
Milk endorsed by Ayodeji Richard Makun popularly known as A.Y (a famous Nigerian
comedian and an actor), Pepsi soft drink endorsed by Tiwatope Savage-Balogun popularly
known as Tiwa Savage, and Ayodeji Ibrahim Balogun also known as Wizkid (both of them are
popular musicians) and lastly, Omo detergent, endorsed by Funke Akindele, Chioma Chukwuka
and Ali Nuhu (All popular Nigerian actors). The Omo endorsement is quite interesting because it
has been endorsed by three celebrities, who come from the three main ethnic groups in Nigeria.
(Igbo, Hausa, and Yoruba also known as Wazobia).
Omo detergent is a product of the Uniliver Nigeria Plc. The company started as Lever
Brothers (West Africa) Ltd on April 11th, 1923. The founder had interest of trading with Nigeria
and West Africa as far back as the 19th century. The company started off as a soap making
company, but after a long while, they branched out into marketing and production of foods, nonsoapy
detergents and personal care products. “The company changed to Unilever Nigeria Plc in
the year 2001, with Nigerians presently having 49 percent of equity holdings. Unilever‟s
products include; food brands such as Blue Band, Knorr, Lipton, Royco, personal care brands
4
AMERICAN UNIVERSITY OF NIGERIS,YOLA.
like Close up, Life buoy, Lux, Vaseline and home care brands like Omo, Sunlight” (“Unilever:
Corporate Nigeria”, 2011).
Samsung brand of phones are produced by the Samsung Company, a South-Korean
multinational company that was founded in 1938. The firm started off as a trading company, but
presently, it is one of the largest South-Korean companies. Samsung accounted for nearly 15
percent of South-Korea‟s GDP in the year 2012. Their other products include; refrigerators,
laptops, tablets, memory cards, camera, etc. (“Samsung Story| Success Story”, 2016)
Pepsi is a product of the 7Up Bottling Company Plc. The company started its business in
1960, the same year Nigeria got its independence. “It was founded by a Lebanese, Mohammed
El-Khalil, who came to Nigeria in 1926. The company introduced Pepsi in the early 1990s when
Pepsi International took over Seven-Up International. Other products produced by the company
include; 7Up, Mirinda, Teem and Mountain Dew and Aqua Dana Table water” (“Seven-Up
Bottling Company “, 2016).
Peak milk on the other hand is a product of Friesland Campina WAMCO Nigeria Plc.
“Royal Friesland Campina is a multinational dairy company wholly owned by the dairy cooperative
Zuivelcoöperatie Friesland Campina, which has 14,800 member dairy farms in the
Netherlands, Germany and Belgium. It was established in Nigeria in 1988. It mainly distributes
dairy products and offers its products throughout Nigeria” (“Friesland Wamco Nigeria Plc:
Corporate Nigeria”, 2016).
The AUN Campus Store is one of the primary outlets for this research because that is
where majority of the sample (AUN students) shop. The store is located inside the university
premises. Because hundreds of students do their shopping in the store on a daily basis, it
therefore, fits into the research plan.

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