Abstract
The use of celebrities has been
adopted by various organizations in advertising products and services. Celebrity
endorsements are now common place in the advertising world. Celebrity
endorsements influence brand image through a transfer of meaning from the
endorser to the brand.
This research project is thus a search
for the impact of celebrity endorsement on consumer behavior and sales volume
of an organisation.
Chapter one of the study lays an
introduction for subsequent chapters. Following the background of the study,
the problem statement and the objective of the study which provided basis for
the significance of the study and the hypothesis were stated. The limitations
of this study were also highlighted.
In the literature review as contained
in chapter two, works of various authors, international and local journals were
reviewed to elicit views on the impact of celebrity endorsement on consumer
behavior and sales volume of an organisation.
Chapter three, research methodology,
description of population and sampling procedure for data collection were
discussed. Methods of questionnaire design, determination of sampling size and
questionnaire distribution were also highlighted.
Chapter four was based on analysis of
data collected. This chapter was sub-divided into data analysis, hypothesis
testing and summary. Percentage table, figure and narration were carefully
employed for proper understanding and testing of hypothesis.
Finally,
chapter five was divided into summary of findings, recommendation and
conclusion.
TABLE OF
CONTENTS
Title Page - - - - - - - - - i
Approval Page - - - - - - - - ii
Declaration - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgement - - - - - - - v
Abstract - - - - - - - - - vi
Table of Contents - - - - - - - vii
CHAPTER
ONE – INTRODUCTION
1.1 Background of the Study - - - - - 1
1.2 Statement of General Problem - - - - 5
1.3 Objective of the Study - - - - - - 6
1.4 Research Questions - - - - - - 6
1.5 Significance of the Study - - - - - 7
1.6 Scope of the Study - - - - - - 8
1.7 Definition of Terms - - - - - - 8
CHAPTER
TWO – REVIEW OF RELATED LITERATURE
2.1 Introduction - - - - - - - 10
2.2 Theoretical Framework - - - - - 11
2.3 Conceptual Framework
- - - - - - 14
2.4 Buying Behavior - - - - - - 16
2.5 Impact of Endorsement on Buying Behavior - - 16
CHAPTER
THREE – RESEARCH METHODOLOGY
3.1 Introduction - - - - - - - 32
3.2 Research Design - - - - - - 32
3.3 Area of the Study - - - - - - 32
3.4 Population of Study - - - - - - 33
3.5 Sample size and Sampling Techniques - - - 33
3.6 Instrument for Data Collection - - - - 33
3.7 Validity of the Instrument - - - - - 33
3.8 Reliability of the Instrument - - - - 34
3.9 Method of Data Collection - - - - - 34
3.10 Method of Data Analysis - - - - - 34
CHAPTER
FOUR – DATA PRESENTATION AND ANALYSIS
4.1 Introduction - - - - - - - 36
4.2 Data Presentation and Analysis - - - - 36
4.3 Testing Hypothesis - - - - - - 46
CHAPTER
FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary - - - - - - - - 54
5.2 Conclusion - - - - - - - - 57
5.3 Recommendations - - - - - - 58
References
- - - - - - - - 61
Appendix - - - - - - - - 62
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
In
recent years most adverts on television has a celebrity that projects the
products or services by way of using the product and with this, has influence
on the buyers and customers of these products and services and thus the sales
volume of an organization. Basically, a celebrity is described as any famous
and influential person that is admired and much spoken about by most people in
a society. A celebrity endorser is “any individual who enjoys public
recognition and who uses this recognition on behalf of a consumer good by
appearing with it in an advertisement” McCracken (1989). The use of celebrities
has been adopted by various organizations in advertising products and services.
Celebrity endorsements are now common place in the advertising world. Celebrity
endorsements influence brand image through a transfer of meaning from the
endorser to the brand. Communication activities establish a pattern of
connectivity between the image of the celebrity and the image of the brand.
According to Patrick Bishop (2000), a Marketing Expert, “When you get a
celebrity to endorse your company or sign licensing agreement, you benefit from
customer awareness of the property, which could include the perception of the
quality, educational value or a certain image. If a celebrity is endorsing or
the business is selling the product of a well-known person or entity, then
people assume they must be a good company to deal with.” Both entities
represent nodes in a cognitive network,whose connectivity can establish
contingency between the two entities (Till, 1998; Till et al., 2008). Marketers
must understand what happens to the buying decision of the customer when the
cultural meanings of celebrities are disgraceful. This is because the customer
purchasing and using the product endorsed by the celebrity can obtain some of
those meanings and use them in constructing a satisfying self- control. This
research is specifically on celebrity endorsement and the influences it has on
consumer behavior and sales volume of an organization. Customers’ attitudes
regarding brands and products are well enhanced by celebrities, but whether it
generates repeat purchase intention and brand loyalty is not so clear (Byrne
& Whitehead 2003).However, there is no evidence proving that the usage of
celebrity endorsement will achieve increase of sales when compared to a non-use
of celebrity endorsement. In fact, consumers might pay more attention to
celebrities in advertisements than the actual product endorsed, which is not
the marketers intention. As in most pampers advertisements, physically
attractive celebrities are especially recognized. They might exert a magnetic
power to consumers resulting in a behavioural purchase instead of true brand
commitment. But whether or not the purchase behaviour will become repetitive is
less clear (Byrne & Whitehead, 2003).
1.2 Statement
of the problem
The problem of whether or not celebrity endorsement greatly influences consumer behavior and sales volume has been a
cause of worry especially as many organizations use celebrities and still not
do too well in terms of sales.
1.3 Objectives
of the study
The following are the aims and
objectives of embarking on this study
1.
To
examine the impact of celebrity endorsement on consumer behavior.
2.
To
examine the impact of celebrity endorsement on sales volume of an organization
volume of an organization
3.
To
make recommendations on the use of celebrities in the endorsement of products
and services.
1.4 Research
questions
1.
Does
celebrity endorsement influence consumer behavior towards a particular product
or service?
2.
Does
celebrity endorsement influence the sales of a product or service?
3.
Are
there ways the ways celebrity endorsements influence consumer behavior?
1.5 Research hypotheses
Ho:
There is no significant relationship between celebrity endorsement and sales
volume of an organization
Hi:
There is a significant relationship between celebrity endorsement and sales
volume of an organization
Ho:
Celebrity endorsement does not influence consumer behavior
Hi:Celebrity
endorsement does not influence consumer behavior
1.6 Significance of the study
This study would be of immense benefit
to organizations who are in a state of dilemma on whether or not to subscribe
to celebrity endorsement of its product or service.
The study will also be beneficial to
captains of industries, managers and directors of organizations and all
relevant stakeholders who are interested in this research.
1.7 Scope/Limitations of the study
This
study is on the impact of celebrity endorsement on consumer behavior and sales
volume of an organization.
Limitations of study
1.
Financial constraint- Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
and interview).
2.
Time constraint- The researcher will simultaneously
engage in this study with other academic work. This consequently will cut down
on the time devoted for the research work.
1.8 Definition
of terms
Celebrity:A famous person or the state of being
famous
Endorsement:A statement made in an advertisement
usually by a famous or important person saying that they use and like a
particular product.
Consumer:A person who buys goods or uses
services