Home Project-material THE INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOR: A STUDY OF AUN STUDENTS

THE INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BEHAVIOR: A STUDY OF AUN STUDENTS

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Abstract

This study assessed how celebrity endorsements influenced consumers’ behavior and other factors that predispose people to buy products. To do this, a number of products sold at the AUN Campus Store and Top 10 Store, all located within Yola Town and which are endorsed by Nigerian celebrities were selected and students of AUN were surveyed based on the assumption that they patronize the shops and also have the required exposure to provide smart answers to the questions posed. The objectives of the research were to find out why manufacturers engage celebrities to endorse their products, to identify whether endorsements by celebrities influence consumers to buy products, to determine other factors that predispose people to patronize products and services, and to show whether AUN students are satisfied with products endorsed by celebrities. To achieve these objectives, a survey method was adopted and the multi-stage sampling technique was used in selecting 350 respondents for th
1.1 Background to the study

Advertising is an essential marketing tool for both new and existing products and

businesses. It is a special form of communication directed at selling or making people aware of

the availability of goods and services. It also helps to build relationships between producers and

the ultimate consumers. The Encyclopedia Britannica defines advertising, “as communication

techniques and practices used to bring products, services, opinions, or causes to public notice for

the purpose of persuading the public to respond in a certain way.” (Search, 2016).

Advertisers worldwide have acknowledged the use of celebrities as a technique for

enhancing trade. Advertising and marketing managers spend large amount of money in order to

make celebrities endorse their products (Sushil & Ashish, 2013).

A lot of people generally tend to look at celebrities as some kind of role models. Many

more put in so much effort, time, energy and resources to look like their favorite celebrity.

Others go as far as dressing like them, mimicking the way they speak, and walk and act. And yet,

others go to the extent of patronizing goods and services endorsed by a celebrity without

considering the fact that they do not need the product at that particular moment (Marshall, 2014).

They are just happy to purchase the product, as far as they can own what their favorite celeb has

endorsed.

The Business Dictionary defines celebrity advertisement “as a form of brand or

advertising campaign that involves a well-known person using their fame to help promote a

product or service,” (“Celebrity Endorsement”, 2016). Advertisers often believe that a product or

service will have more sales once a celebrity is involved.

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AMERICAN UNIVERSITY OF NIGERIS,YOLA.

Celebrity endorsement is, therefore, an advertising campaign in which a famous person

uses their fame to support a product or service. Manufacturers now, more than ever, use

celebrities to advertise their products by making use of several media channels such as

television, newspapers, magazines and online.

Producers and advertisers try to figure out several ways to reach the consumers by

studying their consumption behavior and producing products to satisfy the identified behavior

and needs. According to Sushil & Ashish, (2013), “Consumer behavior is the study of

individuals, groups or organizations and the processes involved to select, use and dispose of

products, services, experiences, or ideas to satisfy needs and impacts that these processes have

on the consumer and society”. Based on this definition, consumer behavior contains more than

just trying to understand what items a consumer purchases. It tries to understand other factors

capable of influencing the basic decision process of the consumer. There are a number of factors

which affect consumers? choice and these include; internal and external factors. Celebrity

endorsement is one of such factors, (Uttera & Asthana, 2015).

Advertising agencies are constantly looking out to find different ways to make their

products and or services sell better than the competition and that is where celebrity endorsement

comes into the picture. Nigeria has quite a number of celebrities, who have endorsed several

products and services. Some of the frequently used celebrities include Tiwatope Savage-Balogun

(Tiwa Savage), Olubankole Wellington (Banky W), Ayodeji Ibrahim Balogun (Wizkid), Funke

Akindele, Ayodeji Richard Makun (A.Y), Kate Henshaw, Ali Nuhu, Genevieve Nnaji, etc. These

celebrities have endorsement deals with several companies and products ranging from

detergents, toothpastes, phones/gadgets, drinks, food, fashion items, stationaries, etc.

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AMERICAN UNIVERSITY OF NIGERIS,YOLA.

This project studied some of the products endorsed by Nigerian celebrities and sold at the

AUN Campus Store and Top 10 Store located about a kilometer from the university, from where

students buy their essential and non-essential products. The aim of this study was to find out if

consumers (students) buy products because some celebrities endorsed them. It also tried to find

out other reasons people have for buying products. The products selected for this study were;

Samsung brand of phones endorsed by Kate Henshaw (a popular Nigerian actress) and

Olubankole Wellington, popularly known as Banky W. (a popular Nigerian musician), Peak

Milk endorsed by Ayodeji Richard Makun popularly known as A.Y (a famous Nigerian

comedian and an actor), Pepsi soft drink endorsed by Tiwatope Savage-Balogun popularly

known as Tiwa Savage, and Ayodeji Ibrahim Balogun also known as Wizkid (both of them are

popular musicians) and lastly, Omo detergent, endorsed by Funke Akindele, Chioma Chukwuka

and Ali Nuhu (All popular Nigerian actors). The Omo endorsement is quite interesting because it

has been endorsed by three celebrities, who come from the three main ethnic groups in Nigeria.

(Igbo, Hausa, and Yoruba also known as Wazobia).

Omo detergent is a product of the Uniliver Nigeria Plc. The company started as Lever

Brothers (West Africa) Ltd on April 11th, 1923. The founder had interest of trading with Nigeria

and West Africa as far back as the 19th century. The company started off as a soap making

company, but after a long while, they branched out into marketing and production of foods, nonsoapy detergents and personal care products. “The company changed to Unilever Nigeria Plc in

the year 2001, with Nigerians presently having 49 percent of equity holdings. Unilever?s

products include; food brands such as Blue Band, Knorr, Lipton, Royco, personal care brands

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AMERICAN UNIVERSITY OF NIGERIS,YOLA.

like Close up, Life buoy, Lux, Vaseline and home care brands like Omo, Sunlight” (“Unilever:

Corporate Nigeria”, 2011).

Samsung brand of phones are produced by the Samsung Company, a South-Korean

multinational company that was founded in 1938. The firm started off as a trading company, but

presently, it is one of the largest South-Korean companies. Samsung accounted for nearly 15

percent of South-Korea?s GDP in the year 2012. Their other products include; refrigerators,

laptops, tablets, memory cards, camera, etc. (“Samsung Story| Success Story”, 2016)

Pepsi is a product of the 7Up Bottling Company Plc. The company started its business in

1960, the same year Nigeria got its independence. “It was founded by a Lebanese, Mohammed

El-Khalil, who came to Nigeria in 1926. The company introduced Pepsi in the early 1990s when

Pepsi International took over Seven-Up International. Other products produced by the company

include; 7Up, Mirinda, Teem and Mountain Dew and Aqua Dana Table water” (“Seven-Up

Bottling Company “, 2016).

Peak milk on the other hand is a product of Friesland Campina WAMCO Nigeria Plc.

“Royal Friesland Campina is a multinational dairy company wholly owned by the dairy cooperative Zuivelcoöperatie Friesland Campina, which has 14,800 member dairy farms in the

Netherlands, Germany and Belgium. It was established in Nigeria in 1988. It mainly distributes

dairy products and offers its products throughout Nigeria” (“Friesland Wamco Nigeria Plc:

Corporate Nigeria”, 2016).

The AUN Campus Store is one of the primary outlets for this research because that is

where majority of the sample (AUN students) shop. The store is located inside the university

premises. Because hundreds of students do their shopping in the store on a daily basis, it

therefore, fits into the research plan.

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AMERICAN UNIVERSITY OF NIGERIS,YOLA.

The AUN Store was established in 2011/2012. The products on sale comprise of general

supplies, such as food stuffs & soft drinks, as well as textbooks, stationary, cosmetics, clothing,

electronics/gadgets etc. The store is under the supervision of Mr. Tunde David Animashuan. He

has managed the store right from its inception. Another reason which makes the Campus Store

spectacular is the fact that it has a convenient payment pattern for everyone in the AUN

community. Both students and staff can equally use their school identity card to purchase

products and the money is removed from their accounts respectively, without having to pay cash

at the time of purchase.

On the other hand, Top 10 Store is the secondary outlet for this research. Besides AUN

Store, it is the closest shopping center to the university and where a good number of university

students buy from. The shop is bigger than the campus store and stocks by far, more products

too. Top 10 is divided into several segments, but the main segment targeted for this research is

the provision store. Top 10 Stores was opened in Yola in 2009. It is a branch of Yakubu Store,

one of the largest supermarkets in both Yola and Jimeta. The store is located at Jimeta which is

quite far from the school, so when its management realized it was getting a lot of customers from

AUN, a branch was opened in Yola to carter for the needs of the university community and other

residents of Yola. The shop sells mainly provisions, but also offers other services.

1.2 Statement of the Problem

Over the years, consumers have been exposed to lots of advertisements, but one of the

major problems is that people have a tendency to forget about eighty percent of those adverts in

just a day. (Kofi, Asimah, & Agbem, 2015). In order to address the concern, marketers and

advertisers began to enlist celebrities to endorse their products in deals running into millions of

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naira. Celebrity endorsements are mainly to help prospective consumers to remember messages

about products and services. (Kofi, Asimah, & Agbem, 2015). Competition among product

manufacturers is also one of the major reasons celebrities are used to help boost sales. The

question this research attempted to answer was: Does celebrity endorsement cause people to

patronize goods and or services? What other factors are responsible for consumers? choices?

1.3 Objectives of the Study

The overall aim of the study was to find out the extent to which celebrity endorsement affects

consumers. The specifics of the study are;

i. To find out why manufacturers engaged celebrities to endorse their products

ii. To identify whether endorsements by celebrities influenced consumers to buy products

iii. To determine other factors that predisposed people to patronize products and services

iv. To show whether AUN students are satisfied with products endorsed by celebrities

1.4 Research Questions

i. Why do manufacturers engage celebrities in endorsement deals?

ii. Do celebrity endorsements influence consumer preference for products?

iii. What other factors predisposes people to patronage products?

v. Are AUN students satisfied with the quality of products endorsed by celebrities?

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AMERICAN UNIVERSITY OF NIGERIS,YOLA.

1.5 Significance of the Study

This research was on how celebrity endorsement influenced consumers? preference for

products and services with particular emphasis to AUN students. Although it did not set out to

criticize the use of celebrities, its utility would be in ascertaining whether such deals which run

into millions of naira are productive. The study may, therefore, be of immense benefit to

manufacturers, advertisers, celebrities, and indeed the consuming publics. Where such multimillion naira deals are found to be counter-productive; manufacturers and advertisers would be

advised to find other means of attracting consumers to their products and services. However, if

consumers have issues with celebrities used, advertisers would be advised to take appropriate

decision to change them. The study may hopefully provide statistically-supported facts on

celebrity endorsement in Nigeria and will permit empirical assessment of the role of celebrity

endorsement in the product marketing mix.

1.6 Delimitation (scope) of the Study

This study did not focus on all celebrities or celebrity endorsements, but rather just a few

of them. The term celebrity here refers mainly to celebrities in Nigeria. The products used for the

research were: Omo detergent endorsement by Funke Akindele, Chioma Chukwuka and Ali

Nuhu, Pepsi endorsement by Tiwa Savage and Wizkid, Peak Milk by A.Y and lastly Samsung S5

phone endorsement by Banky W. and Kate Henshaw. The media through which the select

endorsed products were advertised were television, newspapers and the social media.

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AMERICAN UNIVERSITY OF NIGERIS,YOLA.

1.7 Limitations of the study

Selection of products: Selecting products endorsed by Nigerian celebrities and at the

same time sold at the AUN Campus Store and Top 10 Store was a bit difficult. For the purpose

of the research, the products had to be limited to four (4) which were endorsed by celebrities the

students were familiar with. Therefore, the research focused only on Nigerian celebrities, and

there are quite a number of them. Seven celebrities and four products sold at AUN Campus Store

and Top 10 Store were used in the course of the study.

1.8 Definition of Terms

? Celebrity: A famous person who is recognized in any given society that people tend to

respect and admire.

? Endorsement: A form of advertising that uses famous personalities to support or approve

something.

? Consumer Behavior: A study of how individual customers or groups select, buy, use, and

dispose ideas, goods, and services to satisfy their needs and wants.


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