THE INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOUR OF GLO SUBSCRIBERS: A STUDY OF AWO HALL RESIDENTS, UNIVERSITY OF IBADAN PRESENTED BY ADEYEMI EYITAYO LATEEFAT MATRIC NO: 121006 IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR APPLIED SEMINAR (LAC 724) COURSE COORDINATORS DR. B.A. LANINHUN DR. A.A. OJEBODE DR. G.O. SHOKI 0
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THE INFLUENCE OF CELEBRITY ENDORSEMENT ON
CONSUMER BEHAVIOUR OF GLO SUBSCRIBERS: A STUDY
OF AWO HALL RESIDENTS, UNIVERSITY OF IBADAN
PRESENTED BY
ADEYEMI EYITAYO LATEEFAT
MATRIC NO: 121006
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR
APPLIED SEMINAR (LAC 724)
COURSE COORDINATORS
DR. B.A. LANINHUN
DR. A.A. OJEBODE
DR. G.O. SHOKI
SEPTEMBER , 2010
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BACKGROUND TO THE STUDY
Advertising is a form of persuasion that aims to get people to patronize some product,
service or idea. Whether an organization manufactures goods or provides services, it is
imperative that product and service providers reach prospective customers and maintain existing
ones. Advertising aims at ensuring that a product does not fade out of existence. To achieve this,
the use of people who are famous in the society to endorse a product, service or idea has become
one of the various marketing tactics of advertisers.
Celebrity endorsement is expensive. Yet the companies are willing to pay for the
powerful endorsement embedded in the celebrities whose name, face and/or voice recognition
can draw considerable attention of millions of consumers. Agrawal and Kamakura (1995)
estimate that approximately 20% of all advertisements use some form of celebrity endorsement
to inform and persuade. It is believed that when a celebrity endorses a product or service, the
indirect information inferred by the consumer becomes more credible and more relevant.
In the Nigerian telecommunication industry, competition is at its peak as people have
various telecommunication networks to choose from. Thus, each telecommunication service
provider strives to retain existing customers and attract new ones. To achieve this purpose, all the
tools of marketing communication are employed. Public relations, advertising, sales promotion,
event sponsorship and direct marketing have become necessary promotional tools to ensure
survival in the telecommunication industry.
A BRIEF OVERVIEW OF GLOBACOM NIGERIA
Glo mobile or Glo is one of the most subscribed to networks in Nigeria. In its first year of
operation, it had one million subscribers in over 87 towns in Nigeria. Glo has an estimate of over
25 million subscribers (June 2009) and it is a 100 percent Nigerian owned company. It has a
reputation as one of the fastest growing multi-national carrier in the world and the vision for Glo
is to be the biggest and best carrier in Africa.
Glo mobile made its debut in Nigeria on August 29, 2003. Globacom, as Nigeria's Second National Operator (SNO) defied all known and unknown challenges to enter into the cost-expensive, money spinning telecommunications business. Coming two years behind the other two leading GSM services providers- Zain (formerly Econet) and MTN, it couldn’t have been easy to break into the market.
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Today, Glo has risen to become Nigeria's second leading GSM operator with over 20million subscribers covering the widest of communities, towns and States of the country.
www.nigerianmusicmovement.com
Globacom has over 300 roaming partners in 170 countries worldwide and these include all major
commercial hubs such as UK, USA, France, Germany, UAE, Belgium, South Africa, Saudi
Arabia, Brazil, India and China. The telecom company has the reputation of being the pioneer in
prepaid roaming and GPRS roaming services in Nigeria.
STATEMENT OF THE PROBLEM
No doubt, advertising has been one of the most effective means of creating awareness for
the Glo telecommunication company. Music and drama are effective elements employed in the
company’s adverts to attract people to the network. These adverts feature close to 25 celebrities
in the Nigerian entertainment industry.
However, celebrities who appeal to some audience may serve as a turn off to others. Not
all celebrities can endorse a product. The loss of public acceptability of an endorser can ruin the
product or brand endorsed by the celebrity. Thus, the study aims to determine if the acceptance
or non-acceptance of a celebrity will affect the customer’s patronage and opinion about the
organization.
RESEARCH QUESTIONS
1. What is customers’ perception about the use of celebrities in Glo adverts?
2. Does the use of celebrities in Glo adverts prompt people to emulate the behaviour of
these celebrities?
3. How has celebrity endorsement influenced customers’ disposition towards the
organization and the services rendered by it, thereby facilitating increase in patronage?
PURPOSE OF THE STUDY
This study aims to find out subscribers’ perception about the use of celebrities in Glo adverts. To
find out if celebrities featured in adverts affect their patronage. Finally, the study aims to
discover the extent to which people’s preferred celebrity endorsers affect their lifestyle.
wants. Motivation is based on the Abraham Maslow’s hierarchy of needs which maintains that
the lower physiological and safety needs must be satisfied before the higher, socially acquired
needs or wants. These three processes determine how consumers see the world around them, how
they learn information and habits and how they actualize their personal needs and motives.
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The Interpersonal Influence: This affects and sometimes dominates the personal process, it is
made up of three factors, which are; family, society and cultural environment. The family
influence is very strong and it affects consumers’ attitude towards products from an early age.
Societal influence comprises of the consumer’s social class, reference groups and opinion
leaders. Cultural influence refers to a whole set of attitudes, beliefs and ways of doing things that
are transferred from generation to generation within social groups. Subculture can also influence
the decision of the consumer, it is a segment within a culture that shares a set of values, beliefs
and attitudes, which differ from the overall culture.
The Non-personal Influence: This influence is in the form of time, place and environment. The
time of purchase of a product or service could be as a result of the consumer’s need at that time,
or the advertiser through certain benefits that are attached to the product or service could trigger
it. The place where the purchase is made is based on the marketer’s distribution strategy. The
social, political, economic, technical, ecological environments can affect the consumer’s choice.
While these factors are beyond the consumer’s control, they are not necessarily beyond the
advertiser’s.
CELEBRITY ENDORSEMENT
More recently, advertisers have begun attempting to quantify and qualify the use of
celebrities in their marketing campaigns by evaluating their awareness, appeal, and relevance to
a brand's image and the celebrity's influence on consumer buying behavior. The crescendo of
celebrities endorsing brands has been steadily increasing over the past years. Marketers overtly
acknowledge the power of celebrities in influencing consumer-purchasing decisions.
Bergstrom and Skarfstad (2004:1) citing McCracken (1989) define celebrity endorsement
as “any individual who enjoys public recognition and who uses this recognition on behalf of a
consumer good by appearing with it in an advertisement”. He can be an entertainer to the public,
a movie superstar, a television actor or a sportsman owning special entertaining qualities
respectively. “Advertisers hire popular figures and entertainment stars to persuade people to
buy their products. Such advertisements are effective because viewers and readers transfer their
feelings about the star to the product itself” (Winterowd and Murray, 1985:266).
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Celebrity sources may enhance attitude change for a variety of reasons. They may attract more attention to the advertisement than would non-celebrities or in many cases, they may be viewed as more credible than non-celebrities, consumers may desire to emulate the celebrity. Finally, consumers may associate known characteristics of the celebrity with attributes of the product that coincide with their own needs or desire. The effectiveness of using a celebrity to endorse a firm's product can generally be improved by matching the image of the celebrity with the personality of the product.
(Gupta, 2007)
IMPORTANT SOURCE EFFECT VARIABLES
Effect variables that may endear the consumers to the source are;
Table 16 shows that 12(40%) of the respondents are in 300 level and 400 level, 10(33%) are in
100 and 200 level, 700 level students are 5(16.7%) while 500 level students are 3(10%).
CONCLUSION
In the course of this pilot study, it has been reaffirmed that celebrity endorsement makes
the brand memorable to the target audience. It should however be noted that people are diverse
hence, their opinions tend to vary. Celebrity endorsers who appeal to a sect of the audience may
not appeal to another and this explains why certain people feel that adverts featuring professional
models are preferable to celebrity adverts.
Findings also revealed that although respondents perceive the glo adverts to be realistic
and convincing, they are not motivated to emulate certain behaviours of these celebrity
endorsers. The endorsement of celebrities does not guarantee patronage of the organization as
people believe that the celebrities who endorse products and services are not determinants of the
efficiency of the organization. These findings are however subject to change as an extensive
study may either add to or negate some of the findings. It is however recommended that future
research works explore the criteria for selecting celebrity endorsers.
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REFERENCES
Adebamigbe, T.O. (2005) “The Impact of Celebrity Endorsement on product purchase: A Studyof Peak Milk and Lady Care Sanitary Towel” A B.A. Project, Department ofCommunication and Language Arts, University of Ibadan.
Amos,C.; Holmes, G. and Strutton, D. (2008) “Exploring the relationship between celebrityendorser effects and advertising effectiveness: A quantitative synthesis of effect size”International Journal of Advertising Vol. 27, No 2 pp. 209-234.
Arens, W.F.; Weigold, M.I. and Arens, C. (2008) Contemporary Advertising. 11th edition, NewYork: McGraw-Hill.
Arnould, E.; Price, L. and Zinkhan, G. (2002) Consumers. New York: McGraw-Hill.
Assael, H. (1998) Marketing. Fortworth: Harcourt Brace College Publishers.
Bearden, W.O.; Ingram, T.N. and Laforge, R.W. (2007) Marketing Principles and Perspectives.New York: McGraw-Hill.
Folarin, B. (1998) Theories of Mass Communication. Lagos: Stirling Horden.
Kardes, F.R. (1999) Consumer Behavior and Managerial Decision-making. New York:Addison-Wesley.
Larson, C.U. (2004) Persuasion: Reception and Responsibility. 10th edition, Belmont:Wadsworth.
Onyenyili-Onuorah, J. (2005) Advertising and Society. Lagos: Raindrops.
Strong, W.F.; Cook J.A. and Lemore, G. (1996) Persuasion. Iowa: Kendall/Hint.
Winterowd, W.R. and Murray, P.Y. (1985) English Writing and Skills. San Diego: Coronado.
INTERNET SOURCES
Agrawal J., Kamakura W. A. (1995) “The economic worth of celebrity endorsers: an eventstudy analysis” Journal of Marketing Vol. 59, Iss. 3 p56-63.www.rondonsja.com/research/economicworthofcelebrities.pdf
Ang,L.; Dubelaar,C. and Kamakura,W. (2010) “Changing Brand Personality through CelebrityEndorsement” www. conferences.anzmac.org/ANZMAC2007/papers/Ang_1.pdf
Bergstrom,C. and Skarfstad, R. (2004) “Celebrity Endorsement: Case Study of J. Lindeberg” ABachelor Thesis, Department of Business Administration and Social Sciences, LuleaUniversity of Technology www.epubl.luth.se
Gupta, D., (2007) “Impact of Celebrity Endorsement on Consumer Buying Behaviour and BrandBuilding” Available at SSRN: http://ssrn.com/abstract
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Joshi, V. and Ahluwalia, S. (2010) “The Impact of Celebrity Endorsements on Consumer BrandPreferences” www.chillibreeze.com/celebrityendorsement/htm
Katyal,S. (2010) “Impact of Celebrity Endorsement on a Brand”.www.chillibreeze.com/celebrity endorsement/htm .
www.nigeriamusicmovement.com. “Globacom: Five Years of Robust and Innovative Services”An internet source assessed on 20th July, 2010.
This questionnaire is designed to evaluate the impact of celebrity endorsement on globacom subscribers. Celebrity endorsement is the use of a famous person in the society to promote a product, service or charity. For example: Kanu in the Peak milk advert.
This research is for academic purpose only and the confidentiality of all information given is assured.