ROLE OF CELEBRITY ADVERTISING IN CONSUMER BRAND LOYALTY
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ROLE OF CELEBRITY ADVERTISING IN CONSUMER BRAND LOYALTY
ABSTRACT
The goal of this study was to look into the impact of celebrity advertising on consumer brand loyalty. It was relevant because GSM Telecommunications businesses in Nigeria have recently made extensive use of celebrities (movie stars, comedians, musicians, footballers, fashion icons, and so on),
given the large amount of money invested in celebrity endorsement techniques in the telecommunications industry.The study focused on MTN subscribers.
A total of 200 participants, 121 males and 79 females aged 16 and above, were chosen from various sections of the Ikeja Local Government Area in Lagos State, Nigeria.
The participants were chosen using purposive sampling methods. Two hypotheses were proposed, and the data gathered through SPSS was analysed using the Ordinary Least Squares (OLS) method.
The findings of the investigation revealed that the employment of celebrities has a substantial impact on customer perception during advertising.
Thus, the study recommended that companies use celebrities in ads, but not at the expense of the quality of their products and services. Firms should also hire celebrities that embody the essence of their brand.Chapter one
INTRODUCTION
1.1 Background for the study
Celebrities have become more prevalent in commercials in recent years than ever before, particularly in Nigeria and around the world. Marketers believe that using persuasive techniques is a winning formula for improving brand image, increasing sales income, and gaining strong brand loyalty.
Every day, consumers are assaulted with numerous commercials. Celebrity endorsements are extremely popular and frequently used in advertising, ranging from magazines to television commercials, toothpaste to luxury items.
Famous endorsers feature in approximately 25% of all television commercials promoting various products and brands, while celebrities account for nearly 10% of advertisers’ budgets (White, Goddard, & Wilbur, 2009).
This occurrence demonstrates the popularity and importance of the practice of transmitting brand images, in which the goal is to express the message to consumers in an appropriate manner in order to obtain the best potential results.
A celebrity endorser is defined as “any individual who enjoys public recognition and uses that recognition on behalf of a consumer good by appearing with it in an advertisement” (McCracken, 1989, p. 310).
A celebrity is strictly defined as a movie star, television star, singer, athlete, leader, and so on. However, in larger terms, any individual who achieves success in sports, business, art, politics, or the military might be considered a celebrity (McCracken, 1989, p. 310).
Celebrities transfer their own personality and image to the brands and products they represent, resulting in a similar image between themselves and the brand or product. To make the endorsement successful, the celebrity must transmit three different traits to the consumers.
These are credibility, attractiveness, and power, where credibility represents knowledge, skills, and expertise about the product(s), attraction comprises likeability, familiarity, and likeness, and power allows the endorser to influence the consumer (Byrne, Whitehead, & Breen, 2003, p.291).
The most crucial component of celebrity endorsement is selecting the right celebrity, ensuring that the image and personality projected on the company and its existing image are appropriate and enhance it.
The impact and outcome of the endorsement must be thoroughly examined before, during, and after it takes place, with the goal of generating customers and building brand loyalty.
In addition to likeability and recognition, celebrity endorsement can attract new customers who have some connection to the celebrity but have no prior attitude or preference for the company (Byrne et al., 2003).
The utilisation of celebrity endorsements is not a new idea in the advertising industry, which requires significant financial commitments. Marketers anticipate returns on their efforts, not only in terms of increased sales revenue, but also in terms of something more crucial in the long run: brand loyalty.
Till (1998) stated that celebrity endorsement may be extremely beneficial in terms of not only generating strong brand equity, but also boosting a business’s market position, if employed correctly.
This marketing method is a quick and effective way to establish fast brand recognition. It saves advertisers a lot of time when trying to raise customer awareness and draw attention to their business.
Why is brand loyalty so crucial for marketers? A multitude of tools are used to grab customers’ attention, interests, and loyalty. As Trout (2001) observed, “Marketing fights occur in the mind of a consumer or prospect. That’s where you win. “That is where you lose.”
As a result, brand loyalty makes customers firmly dedicated to a certain brand. This is something that marketers are continuously looking for as they execute a variety of marketing efforts.This raises the question of what brand loyalty is and how it is defined. Many academics have proposed that brand loyalty is a deliberate reflection of repeat purchasing behaviour with the same brand.
1.2 Statement of Problem
If there is an intrinsic fit or consistency between a celebrity and a product, the endorsement is perfectly suited to the aim of celebrity endorsement (Till & Busler, 1998). However, there is no evidence to suggest that using celebrity endorsements will result in higher brand loyalty than endorsements from ordinary people.
In fact, consumers may pay more attention to celebrities in advertising than the actual product being promoted, which is not the marketers’ aim. For example, most cosmetics advertising highlight physically appealing celebrities.
They may have a magnetic effect on consumers, leading to behavioural purchases rather than actual brand loyalty. However, it is unclear whether the purchasing behaviour will become repetitive (Byrne, Whitehead, & Breen, 2003).
The excessive use of celebrities in commercials may create a paradox since customers are unable to determine whether they prefer the celebrity in the campaign or the actual product they like. Marketers’ ultimate goal is to get consumers to focus most of their attention on the items.
However, it is unclear whether celebrities can help achieve this goal. “Attractiveness remains important but the attractionof the celebrity is not the best way to build a positive benefit for the brand (Till &Busler, 1998, p.585)” .
Celebrities, as individuals or as characters, have a huge impact on our lives; however, for many regular people, the celebrity’s unreal attractiveness has fewer connections to the situation in reality. Many previous studies have been conducted on celebrity endorsement and brand loyalty independently.
However, there is currently no link between a celebrity endorsement and their efficiency in increasing brand loyalty. We don’t know if the widespread use of celebrities as endorsers, particularly in cosmetics advertising, has any effect on brand loyalty.
Even if it is effective, what kind of loyalty will it generate? As previously noted, brand loyalty should encompass both behavioural and attitudinal loyalty.
As a result, the purpose of this study is to investigate the relationship between celebrity endorsements and their efficiency in creating brand loyalty in Nigerian telecommunications ads.
1.3 The purpose of the study
The primary goal of this study is to investigate the influence of celebrity advertising in customer brand loyalty.Given the large amount spent on celebrity advertising in Nigeria’s GSM telecommunications market, the study investigates the efficiency of celebrity commercials and their impact on consumers’ behavioural and attitudinal commitment.
Although there is no direct way to test the relationship between the effectiveness of advertisements and consumer behaviour, or the effectiveness of advertisements and consumer attitudes, this study focuses on advertisement influence,
behavioural loyalty attributes, and attitudinal loyalty attributes separately. By utilising all previously acquired knowledge, the results will be able to serve the research aim.
1.4 Objectives of the Study
The precise aims of this study are:
1. Investigate the relationship between celebrity endorsement in GSM network service commercials and the development of brand loyalty.
2. To investigate the effect of celebrity endorsement in GSM network service commercials on brand loyalty.
3. To investigate other criteria that consumers consider while purchasing GSM network services than celebrity endorsements.
1.5 Research questions.
1. How does the employment of celebrities in GSM network service ads affect brand loyalty?
2. To what extent do celebrity endorsements in GSM advertising increase brand loyalty?
3. In addition to celebrity endorsement, what additional considerations do consumers consider when purchasing GSM network services?
1.6 Research Hypothesis
H0a: There is no substantial association between using celebrities in GSM network ads and the creation of customer brand loyalty.
H1a: There is a considerable association between using celebrities in GSM network ads and creating customer brand loyalty.
H0b: Celebrity endorsement in advertising has no meaningful effect on brand perception.
H1b: Celebrity endorsement in commercials has a major impact on brand perception.
1.7 Significance of the Study
Despite a large number of previously published research papers dedicated to the fields of celebrity endorsement and brand loyalty, there have been few studies that exclusively focus on detecting or creating a relationship between the two.
Celebrity endorsement is a traditional marketing tool used by businesses to transmit brand images and information to customers. Brand loyalty is the primary consequence marketers expect from consumers as the end result of all marketing campaigns, including TV advertisements, publications, radio, and so on (Emma, 2010).
Given the prevalence of celebrity endorsement techniques in telecommunications industry advertising, this study seeks to investigate the relationship between celebrity endorsement and its effectiveness in retaining consumers’ brand loyalty. As previously said, brand loyalty should consider behaviour as well as attitude.
Many earlier studies have established sound theoretical underpinnings in the disciplines covered by the investigation, all of which are necessary for the conduct of this research study. From the perspective of the researcher, this research study will benefit the field of branding and marketing management.
It will also assist telecommunications businesses in better understanding consumer attitudes towards celebrity sponsorship. Most importantly, this research can help marketers develop a more effective strategy to gain and maintain brand loyalty.
1.8 Scope of the Study
The scope of this study on the impact of celebrity advertising on customer brand loyalty is limited to a survey of MTN GSM network subscribers in Ikeja Local Government Area, Lagos State, Nigeria.
The data for this study was principally sourced and developed via administering a questionnaire to the target audience, and the ordinary least squares statistical approach was utilised to analyse the data.
1.9 Operational Definitions of Terms
Brand: A name, word, sign, symbol, or design, or a combination of them, designed to identify and differentiate goods or services of one seller or a group of sellers.
They differ from their competitors.
Brand Loyalty: A consumer’s commitment to repurchase or otherwise continue using the brand, which can be indicated by repeated purchases of a product or service, or other positive behaviours such as word of mouth advocacy.
A celebrity is defined as somebody who enjoys public recognition and uses that notoriety to promote a consumer commodity by appearing in an advertisement.
Celebrity Endorsement: A marketing communication approach in which a well-known person appears in an advertisement alongside a product to promote it. Celebrities can also be used to boost a brand’s sales and/or recall value.
Advertising is any paid, non-personal presentation of a concept, goods, or services by an identified sponsor.
Consumer: This is the individual or people to whom the advertisements and products/services are addressed.
1.10 Design of the study
The study is organised into five chapters, as follows:
The first chapter discusses the study’s background, problem statement, objective, research questions, purpose, research hypothesis, scope, methodology, and study strategy. The second chapter consists of a literature review and a theoretical framework.
The third chapter discusses research methods and data sources, model specification, hypothesis re-statement, analytical approach, and decision criteria. The fourth part involves data presentation and analysis, while the fifth chapter contains a summary of findings, conclusion, and suggestions.
1.11 Company Profile of MTN Nigeria.
MTN Nigeria Communications Limited, a mobile operator, offers a digital global system of mobile telecommunications services to consumers in Nigeria and West Africa.
Its products and services include a variety of bundles, value-added services, Internet access, international roaming, and mobile devices. The company was created in 2001, and its headquarters are in Lagos, Nigeria. MTN Nigeria Communications Limited is a subsidiary of MTN International (Mauritius) Limited.
MTN Nigeria Communications Limited is Nigeria and West Africa’s largest mobile operator, with over 45 million subscribers and counting.
It is also the largest component of the MTN Group, a worldwide telecommunications company that provides world-class cellular network access and business solutions to over 182 million subscribers throughout 21 African and Middle Eastern nations.MTN’s network covers 88.8% of Nigeria’s land area, and 86.2% of the population has access to its services.
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