THE IMPACT OF CELEBRITY ENDORSEMENT ON MADE IN GHANA PRODUCT

Abstract

This study was on the impact of celebrity endorsement on made in Ghana product. Three objectives were raised which included: To explore the effectiveness of the use of celebrity endorsements in advertising made in Ghana product, to ascertain the influence of celebrity on consumers’ purchasing decision and to examine the link between celebrity endorsement and its effectiveness in attaining the brand loyalty of consumers of Ghana made products. The total population for the study is 75 selected staffs Travis Scott & McDonald’s and Amy Schumer & Tampax. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. The data collected were presented in tables and analyzed using simple percentages and frequencies. The study recommended that organizations are encouraged to intensify the use of celebrities to promote their products and organizations should also critically assess the right personality of celebrities for the promotion of their products

Chapter one

Introduction

1.1Background of the study

In recent years most adverts on television has a celebrity that projects the products or services by way of using the product and with this, has influence on the buyers and customers of these products and services. Basically, a celebrity is described as any famous and influential person that is admired and much spoken about by most people in a society. A celebrity endorser is “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” McCracken (2014). The use of celebrities has been adopted by various advertising agencies and is used in the advertisement of products and services. Celebrity endorsements are now common place in the advertising world. Celebrity endorsements influence brand image through a transfer of meaning from the endorser to the brand. Communication activities establish a pattern of connectivity between the image of the celebrity and the image of the brand. According to Patrick Bishop (2018), a Marketing Expert, “When you get a celebrity to endorse your company or sign licensing agreement, you benefit from customer awareness of the property, which could include the perception of the quality, educational value or a certain image. If a celebrity is endorsing or the business is selling the product of a well-known person or entity, then people assume they must be a good company to deal with.” Both entities represent nodes in a cognitive network, whose connectivity can establish contingency between the two entities (Till et al., 2018).

In Ghana today, most industries or companies use celebrities to endorse their businesses. Celebrity endorsement is a form of advertising campaign or marketing strategies which are recently used to develop products, firms or non-profit organization which includes their popularity or publicity for brands and services or even creates awareness on environmental or social issues. Celebrities are used by marketers with the view that, a positive image of the celebrity will also contribute to the brand image of the product or service they associate themselves with. Celebrity endorsement is a way of publicity that portrays a well-known sports or entertainment celebrity to be the face of the company or firm’s brand, with the use of social position to promote a service or product (Udo & Stella, 2015). It’s important to state that, marketers in Ghana recently use celebrity endorsement as a marketing communication strategy to influence consumers to make purchase decisions.

Celebrity endorsement is a strategic tool use to improve marginal value of promotional expenditures and enhance brand value by way of the secondary association of a celebrity with the brand (Agrawal & Kamakura, 2015). In highly competitive business environment, the buyers will evaluate the perceived value of competing brands. The level of preference determines the highest competitive advantage from customer’s perspective. In this case celebrity selection for brands should be critically looked at since any negative perception about the celebrity affects the brand he endorses as well. The effect of celebrity endorsement on advertisement and on the brand is of huge importance. For this reason, businesses usually appoint celebrities from specific source in order to give them a chance to be a part of advertisement campaigns. In other to motivate a consumer to consider a particular brand from a divert series of brands, the marketing attributes and imageries of a brand are computed with the celebrities. Consumer decisions is a very key area to be considered when it comes to consumer buying behavior for an organization to achieve its future goal of making profit as a result of consumer satisfaction when it comes to sales. Endorsement is a form of brand advertisement through which a celebrity acts as the brands spoke person and certifies the brands proof and positioned it by extending personality, popularity, stature in the society or expert in a field to the brand (Choi & Rifon, 2012)

Marketers must understand what happens to the buying decision of the customer when the cultural meanings of celebrities are disgraceful. This is because the customer purchasing and using the product endorsed by the celebrity can obtain some of those meanings and use them in constructing a satisfying self- control. This research is specifically on celebrity endorsement and the influences it has on customers buying decision in attaining consumers’ brand loyalty. Customers’ attitudes regarding brands and products are well enhanced by celebrities, but whether it generates repeat purchase intention and brand loyalty is not so clear (Byrne & Whitehead 2013).However, there is no evidence proving that the usage of celebrity endorsement will achieve stronger brand loyalty in comparison to a non-use of celebrity endorsement. In fact, consumers might pay more attention to celebrities in advertisements than the actual product endorsed, which is not the marketers intention. As in most Fan Milk advertisements, physically attractive celebrities are especially recognized. They might exert a magnetic power to consumers resulting in a behavioural purchase instead of true brand commitment. But whether or not the purchase behaviour will become repetitive is less clear (Byrne & Whitehead, 2013).

Statement of the problem

Consumers are over-exposed to the media nowadays. A person living in an over populated country will be exposed to one thousand advertisements on average per day. But the viewers tend to forget 80% of the information within 24 hours. In order to deal with this, marketers use celebrity endorsement to reinforce their marketing messages considering the massive amount of celebrity endorsement practices in advertising. This study is an effort to explore the effectiveness of the use of celebrity endorsements in advertisements and its influence on consumers’ purchasing decision and also to examine the link between celebrity endorsement and its effectiveness in attaining the brand loyalty of consumers of Ghana made products

Objective of the study

The objectives of the study are;

1. To explore the effectiveness of the use of celebrity endorsements in advertising made in Ghana product?
2. To ascertain the influence of celebrity on consumers’ purchasing decision
3.  To examine the link between celebrity endorsement and its effectiveness in attaining the brand loyalty of consumers of Ghana made products

Research Question

The following research questions were formulated;

1. What is the effectiveness of the use of celebrity endorsements in advertising made in Ghana product?
2. Does celebrity influence consumers’ purchasing decision?
3. What is the link between celebrity endorsement and its effectiveness in attaining the brand loyalty of consumers of Ghana made products?

Research Hypotheses

The following research hypotheses were formulated;

H0: there is no effectiveness of the use of celebrity endorsements in advertising made in Ghana product

H1: there is effectiveness of the use of celebrity endorsements in advertising made in Ghana product

H0: celebrity do not influence consumers’ purchasing decision

H2: celebrity influence consumers’ purchasing decision

H0: there is no link between celebrity endorsement and its effectiveness in attaining the brand loyalty of consumers of Ghana made products

H3: there is link between celebrity endorsement and its effectiveness in attaining the brand loyalty of consumers of Ghana made products

Significance of the study

This study would be of immense benefit to organizations that are in a state of dilemma on whether or not to subscribe to celebrity endorsement of its product or service. The study will give a clear insight on the impact of celebrity endorsement on made in Ghana product. The study will serve as a reference to other researcher that will embark on the related topic

The study will also be beneficial to captains of industries, managers and directors of organizations and all relevant stakeholders who are interested in this research.

Scope of the study

The scope of the study covers the impact of celebrity endorsement on made in Ghana product. The study will be limited to selected manufacturing companies that always use celebrity for their advertisement

Limitation of the study

Limitations/constraints are inevitable in carrying out a research work of this nature. However, in the course of this research, the following constraints were encountered thus:

1. Non-availability of enough resources (finance): A work of this nature is very tasking financially, money had to be spent at various stages of the research such resources which may aid proper carrying out of the study were not adequately available.
2. Time factor: The time used in carrying out the research work is relatively not enough to bring the best information out of it. However, I hope that the little that is contained in this study will go a long way in solving many greater problems.

 Definition of terms

Celebrity: a famous person, especially in entertainment or sport.

Endorsement: the action of endorsing someone or something.

Celebrity endorsement: celebrity endorsement is a form of advertising campaign or marketing strategy which uses a celebrity’s fame or social status to promote a product, brand or service, or to raise awareness about an issue

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