Impact of celebrity endorsement on the sales volume of company of glo telecommunication

Thesis Overview

<p> </p><p><strong>Introduction</strong></p><p><strong>&nbsp;</strong></p><p>In today’s world, celebrities are being treated as a role model, people are changing their living style related with their favorite celebrity. This thing creates a great impact on the buying behavior of the persons. This attracts the customers and ultimately increases the company productivity. Celebrities are not always creating any kind of effect on persons mind in terms of buying. But mostly it gives a great impact on perception of choosing any product. We are always thinking that if our favorite celebrity is using them. Then we should use that to be like them (Khatri 2016).</p><p>From last 150 years advertising is changing in different phases from the classical to modern. These days, the best strategy used by marketers to influence customers is by showing celebrities with their products. It includes different appeals like, exciting, absurdity, sexual etc. Belch, and Belch, (2012) acknowledged that the main aim of formulating such strategies is to get high brand revelation, longing, concentration and curiosity. To do so, marketers attach famous personalities with their products. McCracken (2014) stated that these famous personalities had great influence on the consumer’s buying behavior that’s why it becomes the most attractive tool of advertising now a day. The major aim to do advertising and adopt this strategy is to influence customers towards the products (Ohanian, 2011).</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. 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. According to Patrick Bishop (2010), 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.”</p><p>This research is specifically on celebrity endorsement and the influences it has on consumer behavior of an organization. Customers’ attitude 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 2013). 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 Globacom 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, 2013).<strong>&nbsp;</strong></p><p>Celebrity endorsement has become multi-million industries in the world today, marketers endorse celebrities with their products and brands in advertisement to increase their sales and change the perception of the viewer’s regarding their brand, which positively impacts on their buying behavior. However, the problem of whether or not celebrity endorsement greatly influences consumers’ buying behavior has been a cause of worry especially as many organizations use celebrities and still not do too well in terms of sales. This study is thus 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 consumers’ subscription to Globacom Nigeria.</p><p><strong>Objective of the study</strong></p><p>The objectives of the study are;</p><ol><li>To determine the effect of celebrity endorsement on consumers’ subscription to Globacom Nigeria.</li><li>To determine the relationship between celebrity endorsement and consumers’ subscription to Globacom Nigeria.</li><li>To ascertain the relationship between celebrity endorsement on increased sales volume and the popularity of Glo telecommunication</li></ol><p><strong>Research hypotheses</strong></p><p>The following have been put forward for testing</p><p><strong>H0:</strong>&nbsp;there is no effect of celebrity endorsement on consumers’ subscription to Globacom Nigeria.</p><p><strong>H1</strong>: &nbsp;there is effect of celebrity endorsement on consumers’ subscription to Globacom Nigeria.</p><p><strong>H0:</strong>&nbsp;there is no relationship between celebrity endorsement on increased sales volume and the popularity of Glo telecommunication</p><p><strong>H1</strong>: there is relationship between celebrity endorsement on increased sales volume and the popularity of Glo telecommunication</p><p><strong>Significance of the study</strong></p><p>This study would be of immense benefit to organizations who are in a state of dilemma on whether or not to subscribe to celebrity endorsement in promoting its product or service. The study will also be beneficial to managers of industries, directors of organizations and all relevant stakeholders who are interested in this research.</p><p><strong>Scope and limitation of the study</strong></p><p>The scope of the study covers impact of celebrity endorsement on the sales volume of company of Glo telecommunication. ). 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> <br><p></p>