Effect of celebrity endorsement on increased sales volume of guinness malt market (distributor)

Thesis Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p>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 and thus the sales volume of an organization. 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 (1989). The use of celebrities has been adopted by various organizations in advertising 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 (2000), 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, 1998; Till et al., 2008). 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 consumer behavior and sales volume of Guinness malt. 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 &amp; Whitehead 2003). However, there is no evidence proving that the usage of celebrity endorsement will achieve increase of sales when compared 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 pampers 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 &amp; Whitehead, 2003).</p><p>The problem of whether or not celebrity endorsement greatly influences consumer behavior and sales volume has been a cause of worry especially as many organizations use celebrities and still not do too well in terms of sales</p><p>The objectives of the study are;</p><ol><li>To examine the impact of celebrity endorsement on consumer behavior.</li><li>To examine the impact of celebrity endorsement on sales volume of Guinness malt</li><li>To ascertain the relationship between celebrity endorsement on increased sales volume and the popularity of Guinness malt</li></ol><p>The following have been put forward for testing</p><p><strong>H0:</strong>&nbsp;there is no impact of celebrity endorsement on consumer behavior.</p><p><strong>H1</strong>: &nbsp;there is impact of celebrity endorsement on consumer behavior.</p><p><strong>H0:</strong>&nbsp;there is no relationship between celebrity endorsement on increased sales volume and the popularity of Guinness malt</p><p><strong>H1</strong>: there is relationship between celebrity endorsement on increased sales volume and the popularity of Guinness malt</p><ul><li><strong>SIGNIFICANCE OF THE STUDY</strong></li></ul><p>This study would be of immense benefit to Guinness malt who are in a state of dilemma on whether or not to subscribe to celebrity endorsement of its product or service. 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.</p><p><strong>&nbsp;</strong></p><ul><li><strong>SCOPE AND LIMITATION OF THE STUDY</strong></li></ul><p>The scope of the study covers Effects of celebrity endorsement on increased sales volume of Guinness malt, Enugu malt market(Distributors). The researcher encounters some constrain which limited the scope of the study;</p><ol><li><strong>a) AVAILABILITY OF RESEARCH MATERIAL:</strong>&nbsp;The research material available to the researcher is insufficient, thereby limiting the study</li><li><strong>b) TIME:</strong>&nbsp;The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.</li><li>c) Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).</li></ol><p><strong>1.7 DEFINITION OF TERMS </strong></p><p><strong>Celebrity: </strong>A famous person or the state of being famous</p><p><strong>Endorsement:</strong>&nbsp;A statement made in an advertisement usually by a famous or important person saying that they use and like a particular product.</p><p><strong>Consumer:</strong>&nbsp;A person who buys goods or uses services.</p><p>&nbsp;</p><ul><li><strong>ORGANIZATION OF THE STUDY</strong></li></ul><p>This research work is organized in five chapters, for easy understanding, as follows</p><p>Chapter one is concern with the introduction, which consist of 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 historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study</p> <br><p></p>