THE INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOR: A STUDY OF AUN STUDENTS

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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       Background of the Study
1.2       Statement of Problem
1.3       Objectives
1.4       Research Questions
1.5       Significance of the Study
1.6       Delimitations
1.7       Limitations
1.8       Definition of Terms

CHAPTER TWO
2.1       Introduction
2.2       Review of Important Concepts
2.2a     Advertising
2.2b     Celebrity Endorser/Endorsement
2.2c     Consumer/Consumer Behavior
2.3       Review of Related Studies
2.4       Theoretical Framework
2.4a     Uses and Gratification Theory
2.4b     Source Credibility Theory
2.5       Relevance of the Study
2.5a     Relevance of Uses and Gratification
2.5b     Relevance of Source Credibility

CHAPTER THREE
3.1       Introduction
3.2       Research Design and Instruments
3.3       Population of the Study
3.4       Sample Size and Procedure
3.5       Description of Data gathering Instruments
3.6       Method of Data Collection
3.7       Validity and Reliability of Research instruments
3.8       Method of Analysis

CHAPTER FOUR
4.1       Introduction
4.2       Data Presentation and Analysis
4.3a     Discussion of Findings
4.3b     Answers to Research Questions

CHAPTER FIVE
5.1       Summary
5.2       Conclusion
5.3       Recommendations
References
Appendices



CHAPTER ONE

INTRODUCTION

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.

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.


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