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The document outlines a study on the impact of celebrity endorsement on consumer patronage of smartphones in Enugu, Nigeria. It includes sections on the background, objectives, research questions, and methodology, emphasizing the significance of understanding how celebrity endorsements affect purchasing decisions in the smartphone market. The study aims to provide insights for marketers and policymakers in the telecommunications industry regarding effective marketing strategies and consumer behavior.

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0% found this document useful (0 votes)
2 views

Project Work

The document outlines a study on the impact of celebrity endorsement on consumer patronage of smartphones in Enugu, Nigeria. It includes sections on the background, objectives, research questions, and methodology, emphasizing the significance of understanding how celebrity endorsements affect purchasing decisions in the smartphone market. The study aims to provide insights for marketers and policymakers in the telecommunications industry regarding effective marketing strategies and consumer behavior.

Uploaded by

amarachimanuwa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 33

Title Page

Certification
Approval page
Dedication
Acknowledgement
Table of Content
List of Tables
Abstract

Chapter One: INTRODUCTION


1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Scope of the study
1.7 Significance of the Study
1.8 Definition of Terms
References

Chapter Two: REVIEW OF LITERATURE


2.0 Introduction
2.1 Concept of Celebrity Endorsement
2.2 Celebrity Endorsement and Consumer Behavior
2.3 Mobile Phone Industry Overview
2.4 Theoretical Framework
2.5 Empirical Review
References

Chapter Three: RESEARCH METHODOLOGY


3.1 Research Design
3.2 Population of the Study
3.3 Sample Size Determination
3.4 Sample Size Selection Technique and Procedure
3.5 Research Instrument and Administration
3.6 Method of Data Collection
3.7 Validity and Reliability of Instruments
3.8 Method of Data Analysis
3.9 Ethical Consideration
References

Chapter Four: DATA PRESENTATION AND ANALYSIS


4.0 Introduction
4.1 Data Presentation
4.2 Answering Research Questions
4.3 Test of Hypotheses
4.4 Discussion of Findings
References
Chapter Five: SUMMARY, CONCLUSION AND
RECOMMENDATION
5.0 Introduction
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendation

BIBLIOGRAPHY
APPENDIX
CHAPTER 1
INTRODUCTION

1.1 Background of the Study


Marketing is a very important weapon to cover the
market and settle into it effectively. Also, advertisement
is the basic element for these marketers to spread
awareness and promote their respective product/brands.
Their ultimate objective is to make the consumers buy
their products/ brands. In this long run they meet
different competitors at the same time and so they need
to uplift themselves to face a tough competition. The
advertisers take this as an opportunity to grab the
attentions of these customers and further work on it to
expand their operations and promote their
product/brand.
Basically, celebrity endorsement is the marketing
strategy whose purpose is to use one or multiple
celebrities to advertise their following brands/services.
Today one of the most
influential technique for advertisement is by endorsing
popular celebrities for different brands. The influence of
the celebrity endorsement is now days more on college
going youths and on working youth.
In this era there is a continuous increase in celebrity
endorsements in various industries especially for the
clothing brands, these marketers are highly influenced
towards it for creating fame, the profits and their
productivity.
The youth market in the world currently is highly
technology savvy. This section of the society has been
actively transforming the application of digital
technology in ways that nobody ever thought of. This
market segment, which is made up of people ranging
between ages 18-40 is keen on using internet, building
websites, playing games and sharing multimedia
messages via social media (Selian, 2014). The appetite of
the young generation for technology is portrayed
through the many ways that Smartphones have become
essential communication tools among the youth in
Nigeria and worldwide. Studies have discovered that
young consumers have a fast adoption curve and that
their desire to stay connected in communication to
friends is great.
The fast growth of the industry is believed to be as a
result of mobile phones becoming a necessity for every
Nigerian. Mobile phones, more so smartphones, have
made work easier in every sector, right from business,
education, and governance among others. According to
Sultan & Rohm (2015), these digital gadgets are currently
used as fashion items and are also used by the young
generation as status symbol to express themselves.
With increased competition, as new players join the
market, mobile phone companies are forced to develop
aggressive marketing strategies that are relevant to the
dynamics of the day. Apart from technological
advancement, social dynamics and external factors like
price, warrant, and experience play part in building
loyalty. The strategies employed focus not only on better
service quality and functionality but also on the
perceived image that ensures consumers stick to their
products or brands, an art that is commonly known as
branding. Branding influences a customer’s product
patronage, especially for the young markets and
therefore companies are determined to build strong
brands (Milford & Nwulu, 2015). Through branding,
organizations are in a position to create value and
meaning for their products as they wish to make
consumers stick and choose their brands anytime. One of
the main ways of branding, especially in the
telecommunication industry, is the use of celebrity
endorsement. Celebrity endorsement also called
celebrity marketing is a new phenomenon in the world of
marketing communication/advertising.
Various companies have validation deals with celebrities
in the hope that by using celebrities they can achieve a
unique and relevant position in the minds of the
consumers. Choice of the celebrity, hence, is of extreme
importance and is usually done based on many different
considerations appeal, looks, popularity or even just a
fictional figure to endorse a brand (Liu, 2010).
Advertisers often select endorsers as a promotional tactic
to communicate the features of their product or brand.
Today, this advertising approach appeared to be on the
rise across all media types.
Celebrity Endorsement makes advertisement more
remarkable and the company in the short – run makes
high brand consciousness among a larger audience as
well as an increase in market share (Milford & Nwulu,
2015). Companies use Celebrity Endorsement for very
good reasons. It is believed that celebrity endorsement
enables instant awareness and immediate action.
Bearing in mind the huge amount of money companies
are ready to pay for celebrity endorsement, it shows that
many companies have had considerable success using
noticeable names and appearances as promoting
strategy (Milford & Nwulu, 2015). According to Friedman
and Friedman (2019), defined that celebrity endorser is
an individual who is known to the public (actor, sports
figure, entertainer, etc.) for his or her accomplishments
in areas other than that of the product class endorsed.
However, the advertisers should note that the use of a
well-known personality, who can create original interest
and attention for an Advertisement, does not essentially
result in attitude changes towards the product. As well,
the study from Till and Shimp (2018), presented an
evidence that positive feelings towards advertising and
products do not certainly translate into genuine behavior
or buying intentions. According to Ifeanyichukwu (2016),
the practice of using Celebrities in Advertisements to
promote products dates back to more than a hundred
years globally but its practice in Nigeria can be traced to
the early 90’s. Shimp (2015) opined that more than 25
percent of the total advertisements aired use celebrities.
This scenario is not different in Nigeria.
Thus, we see famous Nollywood stars, football stars,
basketball stars, athletes etc. signing up with a particular
brand by featuring in their Advertisements on televisions,
Newspapers and Billboards. For instance, Veteran actress
Genevieve Nnaji was a Lux soap ambassador (Lux is a
homecare product by the UNILEVER), Actress Chika Ike is
also an ambassador for energy drink, and Actress Funke
Akindele popularly known as Jenifa is the face of
Jobberman etc. Carbonated drink industries are not left
out as we see beverage companies In Nigeria signing up
celebrities (actors, actresses, athletes, musicians) as their
brand ambassadors.
These ambassadors feature in the firms Advertisements
whether in the print media or electronic media. Pepsi
drink endorsed popular entertainers like Davido, Tiwa
Savage, Wizkid, Burnaboy, Teni entertainer, Seyi shay,
Techno, DJ Cuppy, DJ obi DJ spinall DJ Xclusive, DAVIDO
amongst others and recently various smart phone
companies like Techno and Infinix.
Research statistics in Nigeria have revealed that the use
of celebrity advertisement has doubled in the past ten
years that is statistics related to the consumer goods
industry. The growth in the use of celebrities in brand
message communication among both non-luxury brands
and luxury brands has taken place. Many celebrities see
the multibillion-dollar beverages market as a rewarding
way to increase their already famous brand. Celebrities
that were previously connected with the music industry
or/and film industry are revealing their presence in the
consumer market, particularly the telecommunication
market (Milford & Nwulu, 2015). It is also worthy to note
that a top celebrity (whether an athlete, movie star or
musician) can be signed up to 20 different brands. That is
to say, becoming brand ambassador for different brands
at the same time (Ifeanyichukwu, 2016).
For instance, we see the pop duo Peter and Paul Okoye
popularly known as Psquare as dominant GLO
ambassadors. Peter Okoye is also the face of Olympic
milk at the same time. Veteran Musician Olamide can be
seen to be an ambassador for Etisalat (now 9 mobile),
Vodka, Guinness and Ciroc. Dbanj is an ambassador for
GLO, Apple/Beats by Dre. Young musician Wizkid is an
ambassador for GLO and Pepsi. Singer Iyanya is an MTN
ambassador, Zinox computers ambassador, and Solo
mobile ambassador (a phone manufacturing company).
The Music Lord Don Jazzy is an ambassador for MTN,
Loya milk, and Samsung. Female Singer Omawumi is
endorsed by GLO, konga.com, Mortein and Malta
Guinness. Popular musician Flavour is an ambassador
with Etisalat (now 9 mobile) and Life beer. Davido is an
ambassador for MTN, and Guinness Nigeria.
Firms/Products who do not have brand ambassadors
have in one way or the other featured celebrities in their
television commercials and other communication
materials, for example Diamond bank, Kanekalon Hair
fibre, Vitafoam, Klin etc. (Ifeanyichukwu, 2016).
The usage of Celebrities as means of communication has
been frequently used in Advertising and Branding. This is
done because it is assumed that celebrities have a
powerful effect on the affluence of the brands they
endorse. Advertisers believe that using celebrity
endorser will foster, in the mind of the consumer that
affect positively on the buying decision of consumers.
Marketers use celebrity endorsement in order to help
better storage of information in consumers’ minds which
they can easily remember in purchasing situations (Liu,
2011). Celebrity endorsement is a practice gaining
grounds in modern times. It has become pervasive in the
advertising industry in Nigeria, as it has become a multi-
million venture. Marketers use celebrity endorsement to
influence the purchase decisions and patronage of
consumers, in order to increase sales as well as expand
market shares. Telecommunication companies in Nigeria
have over the years adopted the use of celebrity
endorsement as a marketing communications tool for
decision and engagement of consumers to purchase
product.
1.2 Statement of the Problem
According to various scholars’ findings showed that
endorsement can have a negative effect on product
patronage and purchase decisions of consumer, the
product and even the celebrity through shadow effects
or multiple products endorsement; similarly, the
appearance of a celebrity may not guarantee effective
advertisement, especially if there is no correlation or in-
depth attachment between a celebrity and the endorsed
brand (Lee et al., 2014; Ifeanyichukwu, 2016; Malik &
Muhammad, 2016).
Companies, civil society organizations and government
agencies spend billions of naira annually placing one
form of advertisement or the other in the media. Also,
companies, in their bid to outsmart one another for
consumer’s attention and purchase decision, normally
deploy various advertisement strategies. Some pay huge
amounts of money to celebrities so as to identify
themselves with their products. They do this in the hope
that such an appearance will instantly produce a
significant effect of making the product become popular
and ultimately influence audience decision to purchase
the product/service. The reality however is that several
products in spite of celebrity endorsement and expensive
advert have failed to attract customers’ attention or
patronage towards many products. For example, when a
celebrity is not accepted, his/her unacceptability may
affect the product that he/she identifies with negatively.
Guinness Extra Smooth Beer refused to renew the
endorsement contract it has with 2face Idibia due to the
latter’s sexual escapades for the fear that it may have
negative effect on its brand and ultimately affects its
credibility (Durojaiye, 2019). As a result, most
organizations are faced with the problem of determining
criteria and the best way (s) of using celebrities to
endorse their product in such a manner as to produce
desired results. Similarly, misfit between an endorser and
the product being endorsed in terms of the inability of
consumers to identify endorser’s quality with the
product being advertised is an issue of concern in
celebrity endorsement.
1.3 Objectives of the Study
The main objective of this study is to study the effect of
celebrity endorsement on the patronage of smartphones.
Hence, the following are the specific objectives:
1. Examine the effect of celebrity endorsement on
customer patronage of mobile phones in Enugu
metropolis.
2. What is the relationship between celebrity credibility
and mobile phone brand loyalty in Enugu metropolis.
3. Identify demographic factors (age, gender, income)
moderating the effect of celebrity endorsement on
patronage of mobile phones in Enugu metropolis.
1.4 Research Questions
The following research questions were addressed in this
research study:
1. To what extent does celebrity endorsements affect
patronage of smartphones in Enugu metropolis?
2. Which demographic factors moderate the effect of
celebrity endorsement on patronage of smartphones in
Enugu metropolis?

1.5 Research Hypothesis


Main Hypotheses:
1. H1: Celebrity endorsement does not significantly affect
patronage of smartphones in Enugu metropolis.
2. H2: There is no significant relationship between
celebrity endorsement and mobile phone brand loyalty in
Enugu metropolis.
3. H3: Age, gender and income do not moderate the
effect of celebrity endorsement on customer patronage
of mobile phones in Enugu metropolis.

1.6 Scope of the Study


This study focuses on assessing the effect of celebrity
endorsement on consumer purchasing decisions of
smartphone brands among smartphone users and
potential customers in Enugu metropolis, Enugu State,
Nigeria, from 2022 to 2024, with particular emphasis on
Nigerian celebrities endorsing smartphone brands.This
study will also focus on the major smartphone brands
operating in Nigeria.
The research design will employ a mixed-methods
approach, integrating both quantitative and qualitative
data collection and analysis methods. Data collection will
be achieved through a combination of surveys,
interviews, and secondary data sources.
1.7 Significance of the Study
This study examines the effect of celebrity endorsement
on patronage of smartphones in Enugu metropolis,
aiming to provide valuable insights into the effects of
celebrity marketing on consumer purchasing decisions,
thereby contributing to the development of effective
marketing strategies for smartphone manufacturers
seeking to enhance their market presence in Nigeria.
It examines the impact of celebrity endorsement on
consumer behavior in Nigeria's smartphone market and
contributes to the existing body of knowledge on
celebrity endorsement and consumer purchasing
decisions.
It also offers empirical evidence for policymakers and
stakeholders in Nigeria's telecommunications industry
and enhances understanding of the role of celebrity
marketing in shaping consumer preferences.
This study also aims to provide insights into the
effectiveness of Nigerian celebrities in promoting
smartphone brands, the demographic differences in
responding to celebrity endorsements and the role of
social media in amplifying celebrity endorsement effects.
This study's findings will contribute to the understanding
of celebrity endorsement's impact on consumer behavior
in Nigeria's smartphone market.

1.8 Definition of Terms


Advertising: A group of activities aimed at dissemination
of information many paid on personal formation
concerning an idea, product or service (both new brand
and old products) to compel action in accordance with
the intent of an identified sponsor.
Celebrity: This is an expert in an industry such as
entertainment, sports or politics with great popularity
and respect from the public
Celebrity Endorser: 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”
Brand: An identifiable product, service, person or place
augmented in such a way that the buyer or user
perceives relevant, unique added values, which match
their needs most closely.
Endorsement: The act of publicly saying that you
approve of or support something or someone.

Product: an article or substance that is manufactured or


refined for sale.
Influence: the capacity to have an effect on the
character, development, or behavior of someone or
something, or the effect itself.
Smartphone: A smartphone is a mobile device that
combines cellular and mobile computing functions into
one unit.
Customer Patronage: The repeated purchase or usage of
a product or service by customers, demonstrating their
loyalty and preference for a particular brand.
Brand Loyalty: The degree to which customers
consistently choose a specific brand over competitors,
due to positive experiences, satisfaction, or emotional
attachment.
Age: A demographic characteristic categorizing
individuals into different groups based on their
chronological age, influencing consumer behavior and
preferences.

Gender: A demographic characteristic distinguishing


individuals as male, female, or non-binary, affecting
consumer behavior, preferences, and purchasing
decisions.
Income: The amount of money earned by an individual
or household, influencing their purchasing power,
consumer behavior, and ability to afford specific
products or services.
Celebrity Credibility: The perceived trustworthiness,
expertise, and attractiveness of a celebrity endorser,
influencing consumers' attitudes and purchasing
decisions regarding a brand or product.

REFERENCES:
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endorsements on consumer attitudes and purchase
intentions. Journal of Advertising Research, 44(2), 143-
155.
Spry, A., Pappu, R., & Cornwell, T. B. (2011). Celebrity
endorsement, brand credibility, and brand equity.
European Journal of Marketing, 45(6), 882-909.
Lee, Y. L., & Kim, B. H. (2015). The effects of celebrity
endorsement on consumer behavior: A study of Korean
consumers. Journal of Marketing and Management,
30(1), 1-15.
Kamins, M. A. (1990). An investigation into the "match-
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13.
Erdogan, B. Z. (1999). Celebrity endorsement: A literature
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Amos, C., Holmes, G., & Strutton, D. (2008). Exploring the


relationship between celebrity endorsement, brand
credibility, and brand equity. Journal of Marketing
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