ROLE OF CELEBRITY ADVERTISING IN CONSUMER BRAND LOYALTY

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A STUDY OF MTN (GSM) USERS IN IKEJA L.G.A, LAGOS STATE

ABSTRACT

The purpose of this study was to examine the role of Celebrity Advertising in Consumer brand loyalty. It was pertinent due to the prevalent use of celebrities (movie stars, comedians, musicians, footballers, fashion icons,etc) in recent times by GSM Telecommunications companies in Nigeria, considering the massive amount invested in celebrity endorsement practices in the telecommunication industry.The studyfocused on MTN subscribers. A total of 200 participants comprising of 121 male and 79 females between the age ranges of 16 years and above, were drawn from different parts of Ikeja Local Government Area of Lagos State Nigeria. The participants were selected using purposive sampling techniques. Two hypotheses were postulated, while the Ordinary Least Square (OLS) method was used to analyse the data obtained using SPSS.Results of the analysis showed that the use of celebrities has significant influence on consumer’s perception during advertisement. Thus the researcher recommended that that firms use celebrities in advertisements, but they must not do so to the detriment of quality of their products and services. Firms are also recommended to use celebrities that represent the essence of their brand.

TABLE OF CONTENTS

Title Page i

Certification Page ii

Dedication iii

Acknowledgement iv

Abstract Page v

Table of Content vi-viii

Chapter One: Introduction

1.1 Background of the Study 1-3

1.2 Statement of Problem 4-5

1.3 Purpose of the Study 5-6

1.4 Objectives of the Study 6

1.5 Research Questions 6-7

1.6 Research Hypotheses 7

1.7 Significance of the Study 7-8

1.8 Scope of the Study 8-9

1.9 Operational Definition of Terms 9-10

1.10 Structure of the Study 10

1.11 Company Profile of MTN Nigeria 10-11

References 12

Chapter Two: Literature Review

2.1 Literature Review 13

2.2 Concept of Celebrity 13-20

2.3 Celebrity Endorsement 20-25

2.4 Theoretical Constructs of Celebrity Endorsement 25-36

2.5 Empirical Review 36-38

References 39-40

ChapterThree:Methodology

3.1 Research Design 41

3.2 Restatement of Hypothesis 42

3.3 Research Population 42

3.4 Sampling Procedure/ Sample Size 43

3.5 Sources/Method of Data Collection 43

3.6 Validity and Reliability of Instrument 43-44

3.7 Limitations of the Study 44

Chapter Four: Data Presentation and Analysis

4.1 Method of Data Analysis 45

4.2 Presentation of Data 46-53

4.3 Test of Hypothesis 53-54

4.4 Model Estimation 54-55

4.5 Decision Rule 55

Chapter Five: Summary, Conclusion, Recommendation and Suggestion for further Study

5.1 Summary of Findings 56

5.2 Conclusion 56-57

5.3 Recommendation 57-58

5.4 Suggestion for further Study 58

Bibliography 59-62

Appendix 63-67

CHAPTER ONE

INTRODUCTION

1.1 Background to the study

In recent years, the preponderance of celebrities in advertisements has become more prevalentthan ever in Nigeria in particular and the world in general. Marketers have the perception that this technique of persuasion is a winning formulato build up brand image, increase sales revenue and gain strong brand loyalty. Consumers arebombarded by a variety of advertisements every day. Celebrity endorsement is very popular and widely used in advertising from magazines toTV advertisements, from toothpaste to luxury goods, etc. Famous endorsers appear in approximately 25 percentof all kinds of television commercials to promote different products and brands, and roughly tenpercent of advertisers’ budgets are spent on the use of celebrities (White, Goddard, & Wilbur,2009).

This phenomenon displays the popularity and importance of the practice oncommunicating brand images, where the aim is to communicate the message to consumers in asuitable manner in order to achieve best results possible.A celebrity endorser can be described as follows:“Any individual who enjoys public recognition and who uses this recognition on behalf of aconsumer good by appearing with it in an advertisement (McCracken, 1989, p. 310).”Strictly defining a celebrity, it refers to a movie star, TV star, singer, athlete, leader, etc. But in broader meanings,any individual who is successful in the world of sports, business, art, politics, and the militarycan be attributed into the group of celebrities (McCracken, 1989, p. 310). The celebritiesthemselves transfer their own personality and image to the brand and product they arerepresenting, generating a related image between themselves and the brand or product. In orderfor the endorsement to be successful, there are three different attributes the celebrity needs tocommunicate to the consumers. These are; credibility, attractiveness and power, wherecredibility is represented by knowledge, skills and expertise concerning the product(s),attractiveness includes likeability, familiarity and similarity and power enables the endorser toaffect the consumer (Byrne, Whitehead & Breen, 2003 p.291)

The most important aspect when practicing celebrity endorsement is the choice of celebrity, tosee that the image and personality projected on

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