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EFFECT OF CELEBRITY ENDORSEMENT ON INCREASED SALES VOLUME OF GUINNESS MALT MARKET (DISTRIBUTOR)

EFFECT OF CELEBRITY ENDORSEMENT ON INCREASED SALES VOLUME OF GUINNESS MALT MARKET (DISTRIBUTOR)

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EFFECT OF CELEBRITY ENDORSEMENT ON INCREASED SALES VOLUME OF GUINNESS MALT MARKET (DISTRIBUTOR)

ABSTRACT

This study focuses on the effects of celebrity endorsement on increasing sales volume of Guinness malt in the Enugu malt market (Distributors). The study’s overall population is 200 employees of Guinness Malt in Enugu state.

The researcher employed questionnaires to collect data. The descriptive survey research design was used for this investigation. The survey used 133 respondents, including managers,

production managers, senior personnel, and junior workers. The acquired data were displayed in tables and analysed with simple percentages and frequencies.

Chapter one

INTRODUCTION

Background of the study.

In recent years, most television advertisements feature a celebrity who projects the products or services by using them, which has an impact on the purchasers and clients of these items and services, as well as an organization’s overall sales volume. A celebrity is defined as any well-known and important individual who is often admired and discussed in society.

A celebrity endorser is defined as “any individual who enjoys public recognition and uses this recognition on behalf of a consumer good by appearing with it in an advertisement” by McCracken (1989). Various organisations have used celebrities to advertise their products and services.

Celebrity endorsements are now commonplace in the advertising industry. Celebrity endorsements influence brand image by conveying meaning from the endorser to the brand. Communication efforts create a pattern of linkage between the celebrity’s and the brand’s images.

According to marketing expert Patrick Bishop (2000), “When you get a celebrity to support your brand or sign a licencing deal, you profit from client awareness of the property, which could include perceptions of quality, educational value, or a specific image.

People assume that if a celebrity endorses a firm or sells a well-known person’s or entity’s goods, it must be a good company to do business with.” Both entities are nodes in a cognitive network, and their connectedness can establish contingency (Till, 1998; Till et al., 2008).

Marketers must comprehend what happens to a customer’s purchasing choice when celebrities’ cultural meanings are offensive. This is because the client who buys and uses the celebrity-endorsed goods can get some of those meanings and utilise them to build a fulfilling self-control system. This study focuses on celebrity endorsement and the effects it has on customer behaviour and sales volume of Guinness malt.

Celebrities have a positive impact on customers’ opinions towards brands and products, although it is unclear if this leads to repeat purchase intention and brand loyalty. However, there is no proof that using celebrity endorsements will result in an increase in sales compared to not using celebrity endorsements.

In fact, consumers may pay more attention to celebrities in advertising than the actual product being promoted, which is not the marketers’ aim. As with most pampers advertising, physically appealing celebrities are prominently featured.

They may exert a magnetic pull on consumers, resulting in a behavioural buy rather than actual brand commitment. However, it is unclear whether the purchasing activity will become repetitive (Byrne and Whitehead, 2003).

Statement of the Problem
The issue of whether or not celebrity endorsement considerably influences consumer behaviour and sales volume has been a source of concern, especially since many organisations use celebrities and yet do not perform well in terms of sales.

OBJECTIVE OF THE STUDY
The study’s aims are:

To investigate the influence of celebrity endorsements on customer behaviour.

To investigate the impact of celebrity endorsement on the sales volume of Guinness malt.

To determine the relationship between celebrity endorsement, increasing sales volume, and the popularity of Guinness malt

Research Hypotheses

The following have been proposed for testing.

H0: Celebrity endorsement has no impact on consumer behaviour.

H1: Celebrity endorsements have an impact on consumer behaviour.

H0: There is no association between celebrity endorsement and higher sales volume and the popularity of Guinness malt.

H1: There is a link between celebrity endorsement and higher sales volume and the popularity of Guinness malt.

Significance of the Study

This study would be extremely beneficial to Guinness Malt, which is debating whether or not to invest in celebrity endorsements for its product or service. The study will also benefit industry captains, managers, and directors of organisations, as well as any relevant stakeholders interested in the research.

Scope and Limitations of the Study

The study evaluates the effects of celebrity endorsement on increasing sales volume of Guinness malt in the Enugu malt market (Distributors). The researcher faces various constraints that limit the scope of the investigation;

a) AVAILABILITY OF RESEARCH MATERIAL: The researcher has insufficient research material, which limits the investigation.

b) TIME: The study’s time frame does not allow for broader coverage because the researcher must balance other academic activities and examinations with the study.

b) Financial constraints- Insufficient funds tend to restrict the researcher’s efficiency in sourcing for important materials, literature, or information, as well as data collecting (internet, questionnaire, and interview).

1.7 Definition of Terms

Celebrity is defined as a famous person or the state of being famous.

Endorsement: A remark made in an advertisement, usually by a famous or influential person, stating that they use and like a specific product.

Consumer: A person who purchases goods or services.

Organisation of the Study

This research study is organised into five chapters for simple understanding, as follows:

The first chapter is concerned with the introduction, which includes the (overview of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms, and the study’s historical context.

The second chapter focuses on the theoretical framework that underpins the study, as well as a review of relevant literature. Chapter three discusses the research design and technique used in the study.

Chapter four focuses on data gathering, analysis, and presenting of findings. Chapter 5 provides a summary, conclusion, and suggestions from the study.

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