Abstract
The study examines the application of celebrity endorsement as a promotional strategy in Hospitality operation. The main objective of this work is to determine the influence of celebrity endorsement as a marketing strategy in Hospitality organization in Umuahia, Abia State. A survey method which involved the use of questionnaire to gather relevant data was used. The data was analyzed using simple percentage method. The finding of the study revealed among others as a promotional strategy in Hospitality operation. In view of the findings, recommendations were made.
TABLE
OF CONTENTS
Title page ………………………………………………………………………... i
Declaration ……………………………………………………………………..... ii
Certification ………………………………………………………………….….. iii
Approval page ……………………………………………………………….…... iv
Dedication ……………………………………………………………………….. v
Acknowledgement ………………………………………………………………. vi
Table of Contents ………………………………………………………………… vii
List of Tables ……………………………………………………………………... x
Abstract …………………………………………………………………………… xi
CHAPTER ONE
INTRODUCTION ………………………………………………………………… 1
1.1 Background
of the Study …………………………………………………… 1
1.2 Statement
of Problem ………………………………………………………. 3
1.3 Objective
of the Study ……………………………………………………… 4
1.4 Research
Questions ………………………………………………………… 5
1.5 Significance
of Study ………………………………………………………. 5
1.6 Scope of
Study ……………………………………………………………… 5
CHAPTER TWO
2.0 LITERATURE
REVIEW …………………………………………………… 7
2.1 Conceptual
Framework ……………………………………………………… 7
2.1.1 Celebrity
Trustworthiness …………………………………………………… 9
2.1.2 Celebrity
Endorser …………………………………………………………… 9
2.1.3 Celebrity
Endorsements …………………………………………………….. 11
2.1.4 Elaboration
of Likelihood Model …………………………………………… 15
2.1.5 Familiarity
with the Celebrity ………………………………………………. 17
2.2 Theoretical
Framework
2.2.1 Credibility .................................................................... 21
2.2.2 Attractiveness .............................................................. 23
2.3 Empirical Framework ................................................... 25
CHAPTER
THREE
MATERIAL
AND METHODS ............................................. 32
3.1
The Research Design ....................................................... 32
3.2 Area of the Study ............................................................ 32
3.3 Population for the Study ................................................. 32
3.4 Sample and Sample Techniques ..................................... 33
3.5 Instrument for Data Collection ....................................... 33
3.6 Validation of the Instrument ........................................... 34
3.7 Reliability of the Instrument ........................................... 34
3.8 Data Collection Techniques ............................................ 34
3.9 Method of Data Analysis ................................................ 34
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS ....................... 35
4.1
Data Presentation ............................................................. 35
4.2
Data Analysis ................................................................... 35
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1
Summary of Findings ...................................................... 43
5.2
Conclusion ....................................................................... 44
5.3
Recommendation ............................................................. 44
Appendix
............................................................................... 51
LIST OF TABLES
Table
4.1: Sex Distribution .................................................... 36
Table
4.2: Age Distribution ................................................... 36
Table
4.3: Distribution of Respondents according to Educational Qualification....................................................... 37
Table
4.4: Distribution of Respondents according to Marital Status ..................................................................................... 38
Table 4.5: What is the present level of
awareness of hospitality operation on the application of celebrity endorsement?........................................................ 38
Table 4.6: What are the likely challenges
that influence the use of celebrity endorsement in hospitality operation 39
Table 4.7: What are the likely techniques
in choosing celebrities.............................................................. 40
Table 4.8A: Celebrity endorsement in hospitality
promotion increases total revenue of the hospitality industries .............................................................................. 41
Table 4.8B: People are motivated by
celebrity endorsement in promoting hospitality products............................ 4.2
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
Every day consumers are exposed to thousands of advertisement and
this will hamper companies to create a unique position and receive attention
from consumers. Using celebrities can help companies to create unique ads and
engender a positive effect on the attitude and sales intention towards the
brand (Ranjbarian, Shekarchizade & Momeni, 2010). Celebrity endorsement has
been applied for many years. Already in 1979 one in every six commercials used
a celebrity and in 2001 that percentage grew to 25% (Erdogan et al, 2001). The
usage of celebrity endorsements has increased in the last decades and at the
same time also the corresponding cash flows grew. In the year 1996 US companies
paid more than 1 billion dollar to celebrity endorsers for endorsement deals
and licensing rights (Lane, 1996). The usages of celebrities remain accruing
and also the contracts and payments of the celebrity endorsers with sponsors
keep rising over the years. Endorsement of celebrities is not likely to change
because people and Western culture have been obsessed with celebrities. This emanated from the fact that media overloads
society with news and illustrations about celebrities and gives them an
entertainment function (Choi & Rifon, 2007).
The
strategy of celebrity endorsement has positive effects for both company and
celebrity. Using a celebrity, the consumer receives a positive feeling of
security and association. Since his or her idol is recommending the product;
the assumption is being made that it is a qualitative product. Consumers would
like to identify themselves with the celebrity and they buy the product because
they would like to be as the celebrity. Advertisements with celebrities
therefore create instant brand awareness and the celebrity induces personality
of a brand. Unfortunately there can be some pitfalls. The celebrity’s image can
change or the celebrity could lose the status of a celebrity. Moreover, a
celebrity could be endorsing for multiple brands which would have a negative
effect on their credibility. Furthermore, it might happen that celebrities
receive negative publicity. How do companies deal with that? For example the
issue with O.J. Simpson, where the company tried to avoid possible negative
consequences by breaking all connections with the endorser (Till & Shimp,
1998). Or companies could keep their fingers crossed; hoping that their brand
image will not be negatively influenced by the private actions of the endorser.
For example Michael Jackson received negative media attention in 1984 (alleged
child molestation and intimacy), but remained a celebrity endorser for Pepsi.
Regarding Pepsi; it acquired 8 million sales increase in 1984 due to Michael
Jackson as a celebrity endorser (Gabor et al., 1987).
Every hospitality organization has an image. By making a celebrity spokesman
for the industry, they put a significant part of the industry image in the
hands of a celebrity. When the celebrity subsequently creates a negative image
for him or herself, the image of the industry will be affected. Therefore it is
crucial to select the most suitable celebrity as endorser for a product.
Hospitality industries can outlay a mountainous amount of money on
celebrities for promotional and image campaigns. With the help of celebrities
consumer attitude can be changed, purchase intentions can be enlarged and
profit can be extended. But the right celebrity has to be picked for the right
hospitality industries.
Hospitality
is a place and a feeling where one can build their own self esteem and pride by
providing positive memories and experiences to our quest.
Promoters often use celebrities to get impact,
because they are seen by the public as credible source of information about
product or company. People aspire to the values and lifestyles of celebrities.
Consumers selectively integrate perceived values and behavior of celebrities
they admire, to build and communicate their own identity. Celebrity endorsement
is a relevant strategy for the Hospitality operations in improving the image of the hospitality industry.
1.2 Statement
of Problem
Hospitality
organizations world over directly or indirectly carry out one form of marketing
promotion or the other. This derives from the fact that any business organization that worth its name
must announce to its target market its presence; where it is, what it produces
and the benefits therein in the goods and services it produces .
However,
the way and manner these organizations announce all these differs. Thus, the
many different promotional strategies used by them. The researcher is worried
that why many organizations operating in various sectors of the economy in one
way or the other promote their goods and services using celebrity endorsement,
not much has been heard of organizations in hospitality operation. The
researcher’s worry may not be unconnected to the ignorance and lack of awareness
on the part of some of the operators. Thus, this study therefore aimed at
determining the possible challenges that may influence the application of this
strategy as a promotional strategy in hospitality operation.
1.3 Objective
of the Study
The
main objective of this study is to determine the influence of celebrity
endorsement as a marketing strategy in hospitality operation. The specific
objectives include:-
1.
To determine the present level of awareness
of operators regarding celebrity endorsement,
2.
To determine the likely challenges that
influences the application of this strategy in hospitality operations.
3.
To determine the benefits accruable from
using this strategy vizaviz other marketing strategies.
4.
To determine the best techniques to be used
in choosing possible celebrities for endorsement.
1.4 Research
Questions
The
following research questions were formulated to focus the study
1.
What is the present level of awareness of
operators regarding celebrity endorsement?
2.
What are the likely challenges that
influence the use of celebrity endorsement in hospitality operation?
3.
What are the benefits of celebrity
endorsement in hospitality promotion?
4.
What are the best techniques in choosing
possible celebrities
1.6 Significance of Study
This research work aims to know the effect
of celebrity endorsement in promoting hospitality. This
research is therefore of immense benefit to hospitality
operators, shareholders, management, researchers, analyst, as well as promoters.
The
work will also be for future researchers who may review this work in their
studies will find the findings of this study very useful.
1.7 Scope
of Study
Considering the number of hospitality
industries in Umuahia, the researcher is limited in scope because of
time constraints and inadequate capital. Also the study has to be carried out
alongside with other academic works. The study is limited to some selected hospitality
industries in Umuahia
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