ABSTRACT
This study focuses on the influence of celebrity endorsement on brand image among GSM users in Umuahia Urban. A strong brand image is an essential business asset in the modern day business environment. This is because a strong brand image provides an effective way to get the brand noticed amidst the rush and clutter in the daily media. The problem that led to this study is the paucity of literature on the effect of celebrity endorsement on brand image among GSM users. The main objective of the study was to examine the influence of celebrity endorsement on brand image among GSM users in Umuahia Urban. In other to achieve the objective of this study, two research hypotheses were formulated and tested using the Spearman’s Rank Order Correlation (rho), relying on the Statistical Package for Social Sciences (SPSS). Data for the study was collected through questionnaire, and data collected from 200 respondents which constituted the sample size. The study found a positive and significant association between celebrity endorsement and all the metrics of brand image considered in the study. Importantly, the study discovered a strong and positive correlation between celebrity endorsement and brand awareness, while the relationship between celebrity attractiveness and brand personality is found to be moderate. The paper therefore concluded that celebrity endorsement is a needful communication strategy for building a strong brand image, and recommends that marketers must be careful enough to ensure a good endorser-brand fit so as to raise the unique selling proposition of the firm to new heights. Limitation/suggestions for further studies were given.
TABLLE
OF CONTENTS
Title i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Table of
contents vi
List of
tables viii
Abstract ix
CHAPTER 1
INTRODUCTION 1
1.1 Background to the Study 1
1.2 Statement
of Research Problem 2
1.3 Objectives
of the Study 3
1.4 Research
Questions 4
1.5 Research
Hypotheses 4
1.6 Significance
of the Study 4
1.7 Scope
of the Study 5
1.8 Definition
of Terms 6
CHAPTER 2
REVIEW OF RELATED
LITERATURE 8
2.1 Celebrity 8
2.1.2 Understanding
the Concept of Celebrity Endorsement 8
2.1.1 Celebrity
and Non-Celebrity Endorsers 11
2.1.2 Two ends
of Celebrity endorsement strategy 13
2.1.3 Celebrity Trustworthiness 14
2.1.4 Celebrity credibility 15
2.1.5 Celebrity Attractiveness 16
2.2 Brand Image 17
2.2.1 Brand Identity 18
2.2.3 Brand Personality 19
2.2.4 Brand Awareness 20
2.2.5 Measurement of behavioral purchase intention 20
2.3
THEORETICAL REVIEW 21
2.3.1 The Source Attractiveness
Theory Propounded by McGuire (1985) 21
2.3.2 The Source Credibility Theory Propounded by Hovland, Janis
& Kelly (1953). 22
2.3.3 Social Learning Theory by Albert
Bandura (1977) 23
2.4
EMPIRICAL REVIEW 25
2.5 SUMMARY OF LITERATURE 27
CHAPTER 3
RESEARCH
METHODOLOGY 29
3.1 Research Design 29
3.2 Area of Study 29
3.3 Population of the Study 30
3.4.1 Sampling Technique 30
3.4.2 Sample Size Determination 30
3.5 Validity of Instrument 30
3.5.1 Reliability of the Instrument 31
3.6 Sources of Data Collection 31
3.6 Method of Data Analysis 31
3.6.1 Regression Model 32
3.6.2 Decision Rule 32
chapter 4
data presentation and DISCUSSION OF findings 33
4.1 Data
Collection and collection 33
RESULTS AND
DISSCUSSIONS 33
4.2 Reliability
Analysis 33
4.3 TEST OF
HYPOTHESES 34
CHAPTER 5
SUMMARY,
CONCLUSION AND RECOMMENDATION 40
5.1 Summary of Findings 40
5.2 Conclusion 41
5.3 Recommendation 42
5.4 Limitation/Suggestions for Further
Studies 43
REFERENCES
QUESTIONNAIRE
LIST TABLES
Table Page
4.1 Responses
on the Influence of celebrity trustworthiness on
brand identity
among GSM users in Umuahia Urban 34
4.2 Responses
on the Influence of celebrity credibility on
brand awareness
among GSM users in Umuahia Urban 35
4.3 Responses
on the Influence of celebrity attractiveness on
brand personality
among GSM users in Umuahia Urban 36
4.4: Analysis
on the Influence of Celebrity Endorsement on
Brand Image among
GSM users in Umuahia Urban 37
4.5 Summary of Result of Test of Hypotheses 38
CHAPTER 1
1.1 INTRODUCTION
In
every given society, there are some people that individual look up to when
making decisions (Nkan and Usoroh, 2012). Usually such people disseminate
opinions and other individuals are pressured into following their trend,
becoming associated with them and using them as a standard for their decisions
which may include purchase of goods. Such people are known as reference groups
leaders and they include entertainment figures, sport heroes, political
leaders, parents, coworkers, teachers and peers (Martin and Bush, 2000; Bristol
and Mangleburg, 2005; Akpan, Nkan and Usoroh, 2012; Akpan and Nkan, 2013).
Marketers
claim that the twofold goal of marketing is to create value for customers and
build strong customer relationships, which in turn the company will benefit
from when capturing value in return (Kotler, Armstrong & Parment, 2011). An
effective approach to building relationships between the company and its
customers is through the usage of celebrity endorsement. It is known that
customers tend to feel stronger about a product or brand when someone they can
relate or look up to is endorsing it (Erdogan, 1999).
The
celebrity endorser is known as any individual who enjoys public recognition and
who uses this recognition on behalf on a consumer good by appearing with it in
an advertisement (McCracken, 1989). According to Sherman (1985) the first known
usage of celebrity endorsement dates back to the late nineteenth century.
However, it gained popularity among companies during the growth of commercial
radio in the 1930s as well as the commercial television in the 1950s
(McDonough, 1995). Ever since the technological progress the usage of this
strategy has constantly increased (Howard, 1979; Motavalli, 1988; Shimp, 1997;
Chung, et al., 2013).
Considering
this increase in the usage of celebrity endorsement the researcher find it
interesting to further investigate the impact this marketing strategy has on
patronage among GSM users in Umuahia urban.
1.2 STATEMENT OF RESEARCH
PROBEM
There
are limited empirical studies on impact of celebrity endorsement on patronage
among GSM users in Umuahia Urban. Even in the developed countries, related
studies are not specific to GSM products but to other products.
Celebrity
endorsement as a marketing strategy and its impact on a firm’s brand image has
been moderately researched during recent decades (Erdogan, 1999). Apart from
the findings mentioned in the background section, research has shown that
celebrity endorsement increase attention and brand recognition. It also helps
underpin global campaigns, simplifies potential image polishing and brand
repositioning, and makes a product or service more believable (Erdogan, 1999;
Spry, Pappu & Bettina, 2011).
However,
most of the comprehensive research conducted is out-dated and Hunter (2010)
states that it is an under-researched phenomenon overall. Hence, the researcher
of this project wants to present how a modern company today might be able to
improve its brand image and patronage by using celebrity endorsement in its
marketing strategy.
1.3
OBJECTIVES OF THE STUDY
The
main objective of the study is to examine the influence of celebrity
endorsement on brand image among GSM users in Umuahia Urban. Specifically, the
study set out to achieve the following sub-objectives which include as follows;
1. To
ascertain the influence of celebrity trustworthiness on brand identity among
GSM users in Umuahia Urban.
2. To
determine the influence of celebrity credibility on brand awareness among GSM
users in Umuahia Urban.
3. To
determine the influence of celebrity attractiveness on brand personality among
GSM users in Umuahia Urban.
1.4
RESEARCH QUESTIONS
The
following research questions were raised to gain an in-depth understanding on
the subject matter and they include as follows;
i.
How does a celebrity
Trustworthiness influence brand identity?
ii.
To what extent does celebrity
credibility influence brand awareness among GSM users in Umuahia Urban?
iii.
What is the relationship
between celebrity attractiveness and brand personality among GSM users in
Umuahia Urban?
1.5
RESEARCH HYPOTHESES
The
following research hypotheses were formulated;
Ho1: there
is no significant relationship between celebrity endorsement and brand image among
GSM users in Umuahia Urban.
Ho2: there
is no significant relationship between celebrity credibility and brand
awareness among GSM users in Umuahia Urban.
1.6
SIGNIFICANCE OF THE STUDY
Academic
scholars, marketing students and researchers would be able to borrow from the
findings of this research to support literacy citation as well as develop
themes for further research. Specifically, the study would make theoretical,
practical and methodological contributions. The findings would contribute to
professional extension of existing knowledge in celebrity endorsement and brand
image.
This
research work will also contribute to the knowledge of marketers and other
business managers as it will assist them on effective planning and
implementation in areas of celebrity endorsement and brand image and also in
making effective management decisions and how to devise strategic moves in
meeting with the stated goals and objectives of the organization and the
environment at large.
GSM
users and dealers will benefit from this work, as it will help them understand
how celebrity endorsement influences brand image and purchase behavior of their
products.
This
research study will be of benefit to the manufacturing industry, industries
management, GSM dealers, Marketers and stakeholders as it will unravel (expose)
the benefits and implications of celebrity endorsement on brand image.
1.7
SCOPE OF THE STUDY
The
scope of this research work is concerned with the impact of celebrity
endorsement on brand image among GSM users in Umuahia urban, Abia State.
1.8
DEFINITION OF TERMS
Celebrity
A celebrity is a person who is publicly
recognised by a large share of a certain group of people, and in the context of
celebrity endorsement it is someone who is publicly known for achievements in
other areas than the product class endorsed. Celebrities are further said to
enjoy a high degree of public awareness and they generally differ from the
social norm in a corresponding social group. Attributes like special skills,
attractiveness and extraordinary lifestyle are examples and specific common
characteristics that are recognised. (Friedman & Friedman, 1979).
Celebrity Endorsement
McCracken’s (1989) definition of a celebrity
endorser is probably the most recognized, he describes the celebrity endorser
as a person that is publicly known and who uses his or her recognition in order
to promote a product or brand in advertisement. According to Martin Roll (2014)
endorsement is a brand communication channel where the celebrity certifies a
brand’s position and claim by extending his or her popularity, personality,
expertise in the field or stature in the society to the brand and overall acts
as a spokesperson for the brand. It is also argued to be effective in a market
with intense competition and a high variety of brands since it can provide
differentiation. Endorsement as a communications tool also provides the
endorser to transfer its already existing credibility to the brand promoted
(Spry, 2011; Ogunsiji, 2012).
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