The Impact of Celebrity Endorsement On C

THE IMPACT OF CELEBRITY ENDORSEMENT ON
CONSUMER BUYING BEHAVIOUR:

(A CASE STUDY OF SEVEN-UP BOTTLING COMPANY PLC)
BY
KAMAL LAWAN
BBS/14/MBA/00161
THIS PROJECT IS SUBMITTED TO BAYERO BUSINESS

SCHOOL, DEPARTMENT OF BUSINESS
ADMINISTRATION & ENTREPRENEURSHIP, FACULTY
OF SOCIAL & MANAGEMENT SCIENCES, BAYERO
UNIVERSITY, KANO
IN PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OF
MASTERS IN BUSINESS ADMINISTRATION (MBA)
JANUARY, 2016
i
ACKNOWLEDGEMENTS
In the Name of Allah, the Most Merciful, the Most Compassionate all praise be to Allah,
the Lord of the world and prayers and peace be upon Muhammad (SAW), His servant
and messenger.
First and foremost, I must acknowledge my limitless thanks to Allah, the Ever- Thankful,
for His help and blessings over me.
I owe a deep debt of gratitude to my supervisor, Dr. Balarabe A. Jakada, whose
encouragement, guidance and support from the initial to the final level enabled me to
develop an understanding of this research work.
I am heartily thankful to Bayero University, Kano for giving me an opportunity to pursue
Masters in my field of studies. I would like to thank all academics and administration
staffs for their kind cooperation and efforts to assist us in the every helpful way they can.
I would like to take this opportunity to say warm thanks to all my course-mate who have
been so supportive throughout the course of this programme.
I owe profound gratitude to my wife, whose constant encouragement, limitless giving and
great sacrifice, helped me accomplish this programme.
I would like to express my wholehearted thanks to my family for their generous support
they provided me throughout my entire life.
Last but not the least, deepest thanks go to all people who took part in making this
research work real.
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TABLE OF CONTENTS
CONTENTS PAGE
Title Page i
Approval Page ii
Dedication iii
Acknowledgement iv
Table of Contents v
Abstract Vii
CHAPTER ONE : INTRODUCTION 1

1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 3
1.4 Research Questions 3
1.5 Research Hypotheses 4
1.6 Significance of the Study 4
1.7 Scope and Limitations of the Study 5
1.8 Definition of Terms 5
CHAPTER TWO : LITRATURE REVIEW 7

2.1 Introduction 7
2.2 The Concept of Celebrity 7
2.3 Celebrities as a form of Aspirational Reference Group 10
2.4 Celebrity versus Non-Celebrity Endorsements 11
2.5 Celebrity Endorsement as a Marketing Communication tool 12
2.6 Positive aspects of Celebrity Endorsement 14
2.7 Negative aspects of Celebrity Endorsement 16
2.8 Multiple Celebrity Endorsements 18
2.9 Consumer Buying Behaviour 20
2.10 Types of Consumer Buying Behaviour 21
2.11 Celebrity Endorsement Effectiveness 24
2.12 Theoretical Framework 28
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CHAPTER THREE: RESEARCH METHODOLOGY 30
3.1 Introduction 30
3.2 Research Design 30
3.3 Population of the Study 31
3.4 Sampling Techniques and Sample Size 31
3.5 Methods of Data Collection 32
3.6 Methods of Data Analysis and Presentation 32
3.7 Historical Background of Seven-Up Bottling Co. Plc 33
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 32

4.1 Introduction 32
4.2 Data Presentation, Analysis and Interpretation 32
4.3 Hypotheses Testing 33
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 52

5.1 Summary of Findings 52
5.2 Conclusions 53
5.3 Recommendations 55
References 57
Appendices 71
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ABSTRACT
Celebrities are the personalities that are well known in public either because of their
credibility or of their attractiveness or because of both of these. To leverage this,
advertisers use celebrities in their advertisement to increase the effectiveness and
heighten the credibility of commercials. Research has proven that celebrity endorsement
does cast its impact, but other schools of thought attest the contrary. This research work
moves on the positive line and affirms the Impact of Celebrity Endorsement on
Consumer Buying Behaviour with a case study of; Seven- Up Bottling Company Plc.
Celebrity endorsement business has become a multi-million naira industry in Nigeria.
Marketers use celebrity endorsers to influence the purchase decision of consumers in
order to increase their sales and extend their market shares. This research work will
critically analyze how celebrity endorsement in advertisement as a tool affects and
influences people’s opinions in marketing and its effect in the society compared to other
forms of advertising. The methodology of collecting data for this research work will be
through both primary and secondary research which will involve questionnaire and
reviewing relevant literature such as journals, articles, texts, print media, social media
and electronic media in this area of study. The data collected will be qualitative which
will be analyzed and presented in forms of tables. Finally, the results of the study prove
that celebrity endorsements positively impact the purchase intention of the consumers.
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CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The use of advertising went through a major phase of change over many years, from
classical to modern view. In the modern days, marketers are developing strategies using
various appeals including sexual, emotional, humour, etc. (Belch and Belch, 2001). The
motive behind formulating such strategies is to gain high brand exposure, attention,
interest, desire and action (Belch and Belch, 2001). In order to do this, marketers
employ well known and famous personalities in other word celebrities. As McCracken,
(1989) stated that celebrities tend to create greater effect on the consumers buying
behaviour. McCracken, (1989) further states that celebrity endorsement advertising is a
ubiquitous feature of modern marketing.
According to Silvera and Austad, (2004) Celebrities are people who enjoy public
recognition among a large group of people and possess distinctive qualities like
attractiveness and trustworthiness. Many big brands have recognised the importance of
celebrity endorsements as marketing communication tool (Soderlund, 2003). Celebrity
Endorsements is a billion dollar industry in today‘s era. (Kambits et al., 2002).
Marketers spend huge amount of money on celebrity endorsement contracts annually
(Katyal, 2007) it shows that celebrities play an important role in the advertising
industry.
According to Jefkins F. (2000), advertising is a practical affair which differs with

marketing; marketing drives products and services to the customers while advertising
drives customers to the product or services. Patley, (2004) states that advertising is
promotion of goods or services for public and its goal is drawing attention of people and
showing favourable light to them.Considering the prices companies are willing to pay
and the effect it has on consumers buying behaviour, celebrity endorsements appears to
be a very popular advertising tool in the modern day marketing (McCracken 1989;
Belch 2001; Soderlund 2003).
1.2 Statement of the Problem

The exploration of this research topic is motivated by several factors. It seeks to
examine whether celebrity endorsement in advertisements works and how it works. It
1
also aims to identify attributes of celebrity endorsers and attributes of celebrity
endorsement advertisements that are most appealing to target audience. This research
work also seeks to examine audience’s perceptions about how celebrity endorsements in
advertisements work. Every advertisement aims to create awareness and arouse interest
in the minds of customers. Celebrity Endorsement is one of these power tools by which
advertisers try to leverage the image and identification of the celebrity to promote a
brand. This makes the advertisement lively, attractive, interesting, but attention getting
as well because audience takes the celebrity as a role model and in turn these celebrities
impact their lives. Advertisers try to hire such celebrities for endorsement who are not
only attractive but credible as well. The all-embracing purpose of this research work is
to increase additional concerned of changed factors which are particularly associated to
behavior of consumers, brand image, consumer prescription by advertising.
1.3 Objectives of the Study

The Primary objective of this work is to study the impact of celebrity endorsement on
consumer buying behaviour with reference to Seven-Up Bottling Co. Plc., and to
examine awareness, appeal and relevance in setting up of the promotional strategies as
well as to test the celebrity impact on consumers. Based on this primary objective, other
supporting objectives are set as presented below:
 To explore and examine the current state of consumers perception about
celebrity endorsements.
 To examine the impact of celebrity endorsement on buying behaviour.
 To analyze the perception of students and professionals about the celebrity
endorsement.
 To find out the relationship between celebrity endorsement and customer buying
behavior.
 To analyze that which factor of celebrity attracts more to the public.
1.4 Research Questions

The study seeks to address the following questions;
 What is the impact of celebrity endorsements on consumers buying behaviour?
 To what extent is the relationship between celebrity endorsement and buying
behaviour?
 What is the relationship among the celebrity attributes?
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1.5 Research Hypotheses
The following research hypotheses will be tested for the purpose of this research work:
Hypotheses One
H0: There is no impact of celebrity endorsement on buying behaviour.
H1: There is an impact of celebrity endorsement on buying behaviour.
Hypotheses Two
H0: There is no any relationship between celebrity endorsement and buying behaviour.
H1: There is a relationship between celebrity endorsement and buying behaviour.
1.6 Significance of the Study

This research work will help firms understanding the importance of celebrity
endorsement in advertisement. It will also enable them structure their adverts and brands
to make them more appealing in order to influence consumers buying behaviour. The
final aim of every advertising strategy is to instigate the actual behaviour of the targeted
audience, whether purchase intention or actual consumption (Sharma et al. 2008). If an
advertising strategy fails to achieve the same, the million naira spent are not worth it.
Academically, this research work will be helpful in understanding the perception and
attitude of Nigerian consumers towards celebrity endorsements which may reveal some
interesting insights and directions for future research. It is also believes that conducting
this research work will enhance the valuable personal knowledge of the researcher about
the subject and experience for future career applications.
1.7 Scope and Limitations of the Study

The scope of this research work is within the Impact of Celebrity Endorsement on
Consumer Buying Behaviour with a case study of Seven-Up Bottling Company Plc.
The research project has got three limitations. One is given the unavoidable and that is
the limitation of time. The project being a student project needs to be completed within
aspecified period set by the University and therefore one compromises can be made in
this respect. The second limitation is regarding the availability of financial resources as
the researcher being a student, will also be faced by the researcher. Finally, the
difficulty faced by the researcher in collecting various questionnaires from respondents.
Effort will be made to best possible output by staying within the limited resources of
time and finance.
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1.8 Definition of Terms
Advertising“is any paid form of non-personal presentation and promotion of goods,

services, or ideas by an identified sponsor.”
Advertising Media: - Is the channel through which advertising message is delivered to

the target audience: (Example magazine, radio, television), (Stanton, 1981).
Advertising Budget: - “This refer to the total percentage of allocate for advertisement
program in the organization it could be annually, quarterly or monthly base” (Kotler and
Keller 2005).
Consumer: - “A person who use anything made by the producer” (Miller, 1961).
Consumer Buying Behavior: - is the sum total of a consumer’s attitudes, preferences,

intentions, and decisions regarding the consumer's behavior in the marketplace when
purchasing a product or service.
Product: - Anything that can be offered to the market for attention.
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CHAPTER TWO
LITRATURE REVIEW
2.1 Introduction
This chapter aims to comprehensively review the existing research done in the area of
celebrity endorsements in order to get the better understanding of the research subject.
The content of the chapter includes the concepts of celebrity, celebrity endorser,
celebrity endorsements, celebrity versus non-celebrity endorsements, positive and
negative aspects of celebrity endorsements, consumer buying behaviour, models for
celebrity endorsements, celebrity endorsement effectiveness.
2.2 The Concept of Celebrity

Celebrities are people who enjoy public recognition and who often have distinctive
attributes such as attractiveness and trustworthiness. (McCracken 1989; Silvera and
Austad, 2004).
The term “celebrity” refers to an ‘individual who is known to the public, such as actors,
sport figures, entertainers’ and others for their achievements in their respective areas
other than the product endorsed by them (Friedman and Friedman, 1979). Boorstin in
1961, specified the most important quality of being a celebrity i.e. not being forgotten
and known by people for their ‘well-knowness’. According to McCracken (1989), it can
include people from movies, television, sports, politics, business, artists and persons
from the military. Whereas, in this modern age of marketing, Celebrities may also be an
animated character like Fred Flintstone, or an animal (Miciak and Shanklin, 1994).
2.2.1 Celebrity Endorser

McCracken (1989) defined celebrity endorser as “any individual who enjoys public
recognition and who uses this recognition on behalf of a consumer good by appearing
with it in an advertisement”.Kamins (1989), defined celebrity endorser as “an individual
who is known to the public for his or her achievements in areas other than that of the
product endorsed”. While Stafford et al., 2003 gave a clear definition by defining
celebrity endorser as, “a famous person who uses public recognition to recommend or
co-present with a product in an advert”.
Celebrities are often hired by advertisers to lend their personality to a product or brand
(Kaikati, 1987). The use of celebrities has been widely used as it could provoke
attitudinal and emotional reactions (Kanungo and Pang, 1973) than a non-celebrity
5
endorser (Atkin & Block, 1983; Petty and Cacioppo, 1983). Therefore celebrities who
are placed as models and are seen as in support of the product and / or its claim are
known as endorsers (Tellis, 1998). In order to be effective a celebrity endorser should
have the credibility to attract attention Miciak and Shanklin, 1994) increase awareness
of the endorsed product (Wilson, 1997) and influence the purchase decision of the
targeted audience (Ohanian, 1991).
2.2.2 Celebrity Endorsement

Celebrity endorsements is been accepted to be a “ubiquitous feature of modern day
marketing” (McCracken 1989). It has also been seen that one quarter of all
advertisement use/feature a celebrity to endorse a product or brand. This validates the
effectiveness of Celebrity endorsements as a means of persuasive communication. It has
the potential to enhance audience attentiveness, make the advert more memorable,
credible, and desirable and add glamour to the endorsed product (Spiel-man, 1981).
Early Research has found that “celebrities are more effective than other types of
endorsers, such as the professional expert, the company manager, or the typical
consumer” (Friedman and Friedman, 1979). Using celebrity endorsers, companies may
easily crack into consumers symbolic association to an aspirational reference groups, as
celebrity endorsers are perceived as dynamic, attractive and likable (Assael, 1984;
Atkins and Block, 1983; Kamins, 1990). The use of celebrities in advertisements is not a
new phenomenon (Kaikati, 1987). Celebrity endorsement, as a marketing practice, has a
very distinguished history. In the eighteenth century, a famous potter Josiah Wedgwood
pioneered in using celebrities to his advantage. Once when Queen Charlotte began to
use his products, Wedgwood capitalised on his new status by referring himself as the
“Potter to Her Majesty” (Dukcevich, 2004). For instance one of the early examples
involves Queen Victoria associating with Cadbury Cocoa (Sherman, 1985).
McCracken, (1989) further conceptualised Endorsement process in different endorser

roles and endorsement types. Celebrity Endorser can take the role as an expert, as a
spokesperson associated with a product, or as an aspirational figure with no particular
knowledge or relationship with, the product. There can be four types of Endorsement;
Explicit (‘I endorse this product’), Implicit (‘I use this product’), Imperative (‘You
should use this product’), or co-presentational mode (merely appearing with the
product).
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2.3 Celebrities as a Form of Aspirational Reference Group
From a theoretical perspective, Celebrities are classified in the category of heroes as
reference groups and opinion leaders. They are recognised as effective endorsers due to
their symbolic aspirational reference group associations (Assael 1984, Solomon and
Assael, 1987). Celebrities as heroes have the potential to influence the cognitive
processes of consumers (Wilkes and Valencia, 1989). The relationship between values
and heroes can be bidirectional. Celebrities can shape and refine existing cultural
meaning and encourage the reform of cultural values and categories (Biswas et al.,
2009). Therefore by using celebrity endorsers, companies may tap into consumer’s
symbolic association to an aspirational reference groups, as they are perceived as
dynamic, attractive and likable (Assael, 1984; Atkins and Block, 1983; Kamins, 1990).
Celebrities, particularly movie stars, TV personalities, popular entertainers and sports
legends, provide a very common type of reference group appeal (Schiffman and Kanuk,
2004). Consumers tend to form an attachment to any object that strengthens one’s self
identity or desired image, renders feelings of connectedness to a group or a personality
and perhaps the most common example of this form are the celebrities (O‘Mahony and
Meenaghan, 1998). The power of the celebrities lies in their ability to influence the
consumers, even though they are physically and socially far from a common consumer
(Choi &Rifon, 2007).
Based on the meaning transfer model by McCracken’s, (1989) that brands endorsed by
celebrities are a source of symbolic brand meaning. It can be said that consumers
connect the symbolism associated with the celebrity and the brands they endorse,
transferring these meanings from the brand to themselves by actively using those brands
(Escalas andBettman, 2005). Consumers are likely to accept meanings from the brands
endorsed by a celebrity whom they perceive as similar to themselves or whom they
aspire to be like. For instance, a consumer may consider himself to be athletic and
fashionable, like David Beckham, who currently endorses many brands, including
Adidas and Police. Due to his aspiration to look like Beckham he may choose to buy an
Adidas gear and wear Police watches. As a result, he may form a self-brand connection
to these brands endorsed by Beckham (Schiffman and Kanuk, 2004).
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2.4 Celebrity versus Non-Celebrity Endorsements
According to Seno & Lukas, (2007), Celebrities are more effective than other type of
endorsers such as the company manager, typical consumer and the professional expert
etc. Companies possess great control over created spokespersons since they develop
these characters. They can build characters which are consistent with their brands and
target audiences, and ensure that these characters are exclusively endorsing only one
particular product (Tom, et al. 1992). On the contrary, companies hold limited control
over the celebrity endorsers, since they have created their public persona themselves
over the years. Previous research on celebrity endorsement reveals that celebrity
endorsers produced more positive attitudes towards advertising and greater purchase
intentions than a non-celebrity endorser (Atkin and Block 1983; Petty et al. 1983;
Ohanian 1991). On the contrary, Mehta (1994) argued that there were no statistically
significant differences in attitudes towards advertising, brand and purchase intention on
endorsed brand between celebrity and non-celebrity endorsements. However,
differences were found in cognitive responses generated by respondents.
In a research Tom et al.'s (1992) proved that created endorsers are more effective than
celebrity endorsers on the classical conditioning paradigm. According to this paradigm,
consumers learn the association between an unconditional stimulus (celebrity endorser)
and a conditional stimulus (product) through repeated exposure. The association is much
stronger with original material (created spokesperson) than with popular material
because the popular material (celebrity endorser) is not just linked to a promoted
product but with many other things as well. In other words, the bond between the
created celebrity and the product is strong because it is unique and exclusively
endorsing only one product. Whereas, the bond between the celebrity endorser and
product is weak due to its multiple endorsements/associations (Erdogan 1999).
Agrawal and Kamakura (1995) and Mathur, Mathur and Rangan (1997) conducted two
different studies to assess the economic worth of celebrity endorsement contracts on the
expected profitability of a firm. The authors used Event Study Methodology, which is
used to identify the valuation effects of marketing decisions (Mathur, et al. 1997).
Surprisingly, outcomes from both of the studies emphasised on the effectiveness of use
of celebrity endorsers (Erdogan 1999).
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2.5 Celebrity Endorsement as a Marketing Communication Tool
From marketing communication perspective, it has become more important for firms to
design strategies which provide competitive differential advantage to its products and
services. It attempts to create positive effects in the mind of consumers. In order to
achieve this, Celebrity endorsement is a commonly used marketing communication
strategy (Erdogan, 1999). Companies spend large amount of money to endorse their
brands through these celebrities. These celebrity endorsers are perceived and gifted with
dynamic, attractive and likeable qualities (Atkin and Block 1983) and companies try to
align these qualities to their products through marketing communication strategies.
Many researchers believe that an advertisement featuring a celebrity delivers a higher
degree of appeal, attention, recall rate and possibly purchase compared to the ads
without celebrities (Cooper, 1984; Dean and Biswas, 2001) and thereby contributing
substantial positive impact on financial returns for the companies (Farrell et al. 2000;
Endorgan, 2001).
There is much research being done on celebrity endorsers both in the academic literature
(Endorgan, 2001; Atkins and Block, 1983; Friedman et al., 1977) as well as trade
journals (Anonymous, 1989, 1996). Most of the research revealed the efficiency of
celebrity endorsements (Cooper, 1984; Dean and Biswas, 2001, Atkins and Block,
1983; Friedman et al., 1977) but in some cases, celebrity endorsements just don‘t work
everytime (Misra and Beatty, 1990). In fact, many commercials using such celebrity
endorsers do not live up to the advertisers‘expectations (Miciak and Shanklin, 1994).
Initially, implementing this strategy came out to be a no-risk/all-gain or win-win
situation, but like another marketing communication strategy, there are potential hazards
involved too. There are various potential risks also involved while implementing this
strategy which can also lead to severe results. In other words, celebrity endorsement
strategy can be a two-edged sword, whichmay create and destroy a brand. Therefore, we
will explore the positive and negative aspects of celebrity endorsement.
9
Table 2.1: Pros and Cons of Celebrity Endorsement Strategy
Pros and Cons of Celebrity Endorsement Strategy
Potential
Advantage Potential Hazards Preventive Tactics
Increased
Attention Overshadow the brand Pre-testing and careful planning
Buying insurance & putting provision
Image Polishing Public controversy clause in contracts
Explaining what is their role & putting
Brand Image change & clause to restrict endorsements for other
Introduction overexposure brands.
Examining what life-cycle stage the
Brand Image change & loss of celebrity is in & how long this stage is
Repositioning publicrecognition likely to continue.
Underpin Selecting celebrities who are appropriate
Global Expensive
For global target audience, not because they
Campaigns are 'hot' in all market audiences.
Source: Erdogan 1999
2.6 Positive Aspects of Celebrity Endorsement

The increasing competition between firms in order to attract more consumers towards
their products has encouraged marketers to use celebrities to endorse their products.
Moreover, recent technological advances in the media such as DTH, video control
systems, cable and satellite television has increased consumer power over programmed
advertisement and made advertising more challenging (Croft et al. 1999). It is also
perceived that the featuring a renowned celebrity helps in solving the problem of over
communication that is becoming more and more prevalent these days (Kulkarni
&Gaulakar, 2005).
Marketers to ease this threat and attract more consumer attention towards their products
and advertisements use celebrity endorsement strategy. Due to their well-knowingness,
celebrities help advertisements to stand out from the surrounding clutter by appearing in
them, increasing the communicative ability by cutting through excess noise in a
10
communication process (Sherman 1985). Hiring a famous celebrity as their brand
endorser may also help improving the image for a tarnished company. Celebrity
Endorsement may also help in restoring or polishing a company’s image (Erdogan,
1999).
For most of the multi-national companies while expanding to different countries may
face some issues like cultural 'roadblocks' such as time, space, language, relationships,
power, risk masculinity, femininity and many others (Mooij 1994; Hofstede 1984).
Celebrity endorsements can be a powerful device to enter foreign markets. Hiring a
world famous celebrity or a celebrity from the expanding country may help companies
to overcome many such issues. For Instance, Seven-Up Bottling Co. Plc Pepsi,
increased its market share in Nigeria by Endorsing through famous celebrities and
footballers such as 50 Cent, JJ Okocha, KanuNwankwo, Leo Messi,Didier Drogbaetc.
It is been experienced that the products endorsed by celebrities help them to standout
and take more notice while shopping due to their improved level of product recall
(Bowman, 2002). Advertisements featuring a celebrity make a strong impact on the
learning style and memory of a consumer which is an important aspect of marketing
communication success. Celebrities often make the advert more memorable in the mind
of the consumer even if there is no immediate need of the advertised product. Marketers
use this advantage of information storage in the minds of the consumers which can be
readily retrieved at the time of shopping or when the need arises (Schultz & Barnes,
1995).
All these arguments lead to the conclusion that celebrity endorsements likely to have a
positive effect on consumer buying behaviour (Goldsmith, Lafferty and Newell 2000;
MathurMathur&Rangan, 1997).
2.7 Negative Aspects of Celebrity Endorsement

Despite the various benefits of celebrity endorsements, there are still many potential
risks involved in using celebrities to endorse products as a part of a marketing
communication strategy for a company. Negative information and publicity concerning
the celebrity is one of the major risks associated with the celebrity endorsement. There
can be other factors as well which may lead to serious consequences for instance
suddenly changed image, drop in popularity, moral issues, losingcredibility by over
11
endorsing, or overshadow endorsed products or vampire effect (Cooper 1984; Kaikati
1987).
Negative information about a celebrity endorser not only impacts consumers' perception
about the celebrity, but also the endorsed product (Klebba and Unger 1982; Till and
Shimp 1995) and may also ruin the brand reputation (Till 1996). In fact many
companies have paid a very big price over the celebrity’s misdeeds. For instance
PepsiCo suffered with three stained celebrities - Mike Tyson, Madonna, and Michael
Jackson (Katyal 2007). Companies have faced serious embarrassment when their
spokesperson or celebrity endorsers were deeply involved in a controversy (Erdogan
1999).
Sometimes in an advertisement, consumers fail to focus on the product being endorsed

due to the glamour and popularity of the celebrity, hence fails to promote the brand
(Rossiter and Fercy 1987). As Cooper (1984) said “the product not the celebrity must be
the star”. Overshadowing or commonly termed as the ‘vampire effect’ occurs when the
celebrity endorser occurs in the presence of multiple other stimuli which all competes to
form a link with the celebrity endorser. (Till 1996). It leads to lack of clarity for the
consumer. (Evans 1998). The major issue arises out of this problem is that consumers
fail to notice the brand being endorsed because they are more focussed over the
celebrity (Erdogan 1999). Overexposure is a common issue among highly demanded
and well recognized celebrity endorsers because every major company wants to hire
them to endorse their brands which ultimately leads to making the consumer more
confused and unable to recall correctly as to which brand the celebrity stands for. (Tripp
et.al. 1994).
Another important issue concerning the celebrity endorsement is that sometimes most
famous celebrities often indulge in endorsing much different type of products and
services just for the sake of their greed for money. For example, Funke
Akindeleendorses more than 10 different brands from telecom, conglomerate to
automobiles. Solomon et al. (2002) referred this as the ‘hired gun’ problem, where the
spokesperson is perceived as endorsing the product only for the sake of money.
If a celebrity lends his image to various brands by appearing in advertisements it also

has less impact on the consumers mind and the message being delivered since the
12
relationship between the celebrity and the endorsed brand is not distinctive (Mowen and
Brown 1981). This may not also disappoint the celebrity fans (Graham 1989) but also
make the consumers aware of the real fact of endorsements that celebrities are endorsing
the products just for the huge amount of money they get and has nothing to do with the
product attributes or product being endorsed (Cooper 1984; Tripp, et al. 1994). Many
researchers have also proposed that negative information about a celebrity not only
influences consumers' perception for the celebrity, but also the product endorsed by him
(Klebba and Unger 1982; Till and Shimp 1995).
There are some other new limitations being faced these days called Celebrity Trap,
Celebrity Credibility and Celebrity Clutter. Celebrity trap is when it becomes difficult
for marketers to separate the role of the message and the role of the celebrity in selling
the brand and when celebrity becomes an addiction for the marketing team. It becomes
more and more difficult to find the substitute. Celebrity credibility has become
questionable these days. Consumers have now become aware of the fact that celebrities
are endorsing brands just for the sake of money. The credibility which celebrities used
to possess in the past is bound to decrease if a celebrity begins to appear and endorses a
brand in every possible category (Patel 2009). Celebrity Clutter is when each celebrity
endorses multiple products and multi-brands in a category, make the customer more
confused. It make consumer to make comparisons such as whether this celebrity is
bigger or that one to make product choices.
Celebrity endorsers have now become a liability to the brand they endorse (Till and
Shimp, 1998) as there are decreasing returns associated with celebrities (Agrawal and
Kamakura 1995). Some researchers also referred celebrities as a puppet in the hands of
marketers implying that they perceive the celebrities to be fake and lying, while
endorsing certain brands (Temperley&Tangen, 2006).
2.8 Multiple Celebrity Endorsements

Hsu and McDonald, (2002) defined multiple celebrity endorsement as the use of two or
more celebrities in an advertising campaign. According to him, multiple celebrity
endorsement can further be classified under two different parts based on how celebrities
are featured in ads. First scenario is where two or more celebrities appear together in an
advertisement to endorse a product. Secondly, different celebrities appear in a series of
advertisement separately to endorse the same product. Multiple celebrity endorsement is
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not a new phenomenon for marketers in the advertising industry. Some of the big brands
include Nike, Adidas and American Express. The milk mustache campaign is another
major example featuring than 100 celebrities to promote milk consumption since 1995
(Hsu and McDonald 2002). According to Hsu and McDonald, (2002) p.25, "Multiple
celebrity endorsement advertising may help the advertiser to build a sense of consensus,
avoid audience boredom and appeal to multiple audiences".
Erdogan and Baker, (1999) in their research argued that it is useful for the marketers to
use multiple celebrities for endorsing a particular brand because it can reach out and
appeal to its entire target audience. However, the use of multiple celebrities might create
a confusion about the brand’s identity in the consumers mind and therefore it should be
assured that “each and every celebrity possesses compatible meanings that are sought
for brands” (Erdogan and Baker, 1999). For instance L‘Oreal endorses its product line
according to the celebrity attributes and the meanings associated with them (Redenbach,
2005).
The greatest fear for marketers while using multiple celebrities is that today consumers
are more aware, educated and knowledgeable about the use of celebrity endorsements. It
may lead them to think that celebrities are endorsing the brands just for the sake of
money and doesn‘t really care about the product, which might negatively affect the
consumers buying behaviour (Belch and Belch, 2001). In a research by Redenbach,
(2005) argued that endorsing four different brands/products influences the celebrity’s
trustworthiness, expertise and likeability. Because the celebrity instead of focusing on
one brand, endorses multiple brands and which eventually lacks distinctiveness
(Redenbach, 2005). There is also a possibility that using so many different celebrities
might overshadow the brand and lead to ‘Vampire effect’. People might just remember
the celebrities but not the brand/product being endorsed/advertised (Hsu and McDonald,
2002).
2.9 Consumer Buying Behaviour

In today’s dynamic and competitive environment, customers are continuously exposed
to various different brands through different marketing strategies. Consumer behaviour
is an important and complex area for marketers as different people have different needs.
As stated by Lancaster et al., (2005) that satisfaction of consumer needs is the ultimate
goal for a business; thus the marketer’s job is to accurately identify the customer needs
14
and accordingly develop product that satisfies their wants. Therefore, it is very critical
for marketers to have a proper understanding of consumer buying behaviour.
Perner, (2009) defined consumer behaviour as “The study of individuals, groups, or

organizations and the processes they use to select, secure, use, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and society”. According to Perner, (2009) knowledge of consumer
buying behaviour helps marketers in developing their marketing strategies by
understanding the psychology of the consumers as how:
a) They think, feel, differentiate, and select between different brands or products;
b) How the consumer is influenced by his or her environment (e.g., culture, family,
signs, media);
c) The behaviour of consumers while shopping or making purchase decisions;
d) How consumer motivation and decision strategies differ between products that differ
in their level of importance; and
e) How marketers can adapt and improve their marketing campaigns and strategies to
reach the consumer more effectively.
Furthermore, it is not only important to identify and satisfy the customers need, but it is
also critical to know that as to why customer needs that? It gives marketers a better
understanding of consumer behaviour which ultimately helps them in satisfying
customer needs efficiently and increasing customer loyalty towards their products and
services (Zeithami 1985).
2.10 Types of Consumer Buying Behaviour

According to Assael (1981), there are four type of consumer buying behaviours that can
affect the purchase decision making of a consumer based on the level of consumer-
product involvement, interest in a product, situation and difference between the products
available. The four type of models are explained as under:
2.10.1 Complex Buying Behaviour: It usually takes place when the customer is highly
involved in the product purchase decision. The high product involvement occurs when
product to be bought is expensive, infrequently bought, and highly expressive. Since,
15
these types of products are not bought frequently the consumer doesn‘t know much
about the products and observes substantial differences among the brands available for
instance buying a luxury sedan. Consumers make this type of buying decisions very
carefully after collecting a lot of information about the product features, quality and
performance.
According to Assael (1981), Consumers tend to experience cognitive dissonance while

making such complex product decisions due to increased risk perception in this type of
buying behaviour. There are certain risks also involved while making such decisions for
example high may result in monetary loss, highly expressive product nature may lead to
psycho-social loss and lack of product knowledge will result in increased uncertainty.
From a marketing perspective, marketers need to make sure that they use the effective
differentiation strategies to stand out the product from other brands available. And also,
try to educate the customers about the importance, application and features of the
product offered.
2.10.2 Dissonance-Reducing Buying Behaviour: It occurs when the buyer is highly

involved with the product purchase and observes little difference among the options
available. After buying the product, the consumer tends to gather the favourable
information about the purchased product that assures and validates his product purchase
decision. By doing this the customer tries to reduce the dissonance or losses involved in
the purchase. This type of buying behaviour involves establishment of trust, belief and
attitude towards a brand. However the customer may also end up with time loss, or more
likely, psychological loss and social loss. It happens due to the difference between
actual purchase performance and expected purchase performance of the product.
2.10.3 Habitual Buying Behaviour: In occurs when the consumer buy the same
product on regular basis over a period of time. Under habitual buying behaviour
consumer product involvement is low and there is little difference between the brands
available, for instance buying salt, sugar etc. The consumers buy these products out of
their habit or due to their trust or brand loyalty. According to Scott (2007), consumers
don‘t go through the process of belief, attitude and purchase decision nor look for deep
information and compare the available products. Consumer buy the brands they have
used and aware of.
16
However, It is interesting to see marketers constantly trying to move these type of
product especially (FMCG products) from a low involvement to a higher involvement
status by differentiating them on various bases like health, safety etc. . For instance
marketers are involved in developing ‘low calorie sugar’ cholesterol free oil‖ etc., and
selling them at higher prices.
2.10.4 Variety Seeking Behaviour: This type of consumer behaviour originates if the
customer is not happy with its earlier product purchase or out of the boredom. It
specially happens with the consumers who like to shop around and try-out with different
type of products. In this buying behaviour consumer–product involvement is low but the
differences among the brands are significant. These types of consumers change their
brand frequently, not due to dissatisfaction, but out of boredom.
Variety seeking behaviour is identified as a key determinant factor for brand switching
in consumer product category (Scott, 2007). According to Assael, (1981) consumers
having variety seeking consumer behaviour purchase the brands which have higher
degrees of perceived risk associated with them and are generally not perceived as brand
loyal.
2.11 Celebrity Endorsement Effectiveness

Models for explaining celebrity endorsement effectiveness
2.11.1 Source Credibility Model

Source credibility model was first proposed by Hovland and his colleagues. ‘Source
Credibility’ in a broad sense, refers to a communicator’s positive characteristics that
affect the receiver‘s acceptance of a message‖ (Ohanian 1990,) and based on the
research in social psychology (Hovland et al. 1953). The model suggests that the
effectiveness of a message depends on the perceived level of expertise and
trustworthiness of an endorser (Hovland, et al. 1953; Ohanian 1991; Dholakia and
Stemthai 1977). According to Kelman (1961), Exchange of information through a
credible source (eg. celebrity) has the potential to influence beliefs, opinions, attitudes
and/or behaviour through a process called intemalisation. Internalisation occurs when
source influence the receiver and is accepted by in terms of their personal attitude and
value structures (Erdogan, 1999).
Ohanian (1990) defined trustworthiness as “the listener's degree of confidence in, and
level of acceptance of, the speaker and the message”. Trustworthiness of an endorser is
17
perceptual and depends on the target audience. It refers to the honesty, integrity and
believability of an endorser. Marketers take the advantage of these set of values by
employing celebrities those are most regarded as trustworthy, honest believable and
dependable among their fans and people (Shimp,1997). Based on an experiment
conducted by Miller and Baseheart, (1969) it was found out that if the perceived
trustworthiness of the source is high; attitude change is more likely to occur.
Expertise can be defined as the perceived ability of an endorser to make or provide valid
assertions. It includes the knowledge, experience and skills developed by the endorser
while working in the same field. Some authors suggest that it is not important for an
endorser to be an Expert; but it all depends how audience perceive him (Hovland, et al.
1953: Ohanian 1991). Ohanian (1990) argued that the perceived expertise of celebrity
endorsers is more important than their attractiveness and trustworthiness in influencing
purchase intentions. Expert celebrities are found to be more persuasive (Aaker and
Myers 1987) and may influence the consumer buying decision (Ohanian 1991). Speck.
Schumann and Thompson, (1988) found that expert celebrities produce higher rate of
recall of product information than non-expert celebrities (Erdogan 1999).
2.11.2 Source Attractiveness Model

As Patzer, (1985) stated that ‘physical attractiveness is an informational cue involves
effects that are subtle, pervasive, and inescapable’. He advocated the use of attractive
endorsers than average looking endorsers. According to him people try to increase their
attractiveness and react positively to the endorsers who look like them (Erdogan 1999).
Sometimes people tend to think that attractive people are much smarter and hence excel
in other areas as well. This is also called as the ‘halo effect’.
Source Attractiveness Model is considered to be a component of the ‘source valance’
model (McGuire 1985) and based on the research in social psychology (McCracken
1989). The source attractiveness model basically concentrates on four key areas; namely
‘familiarity’ (knowledge of source), ‘likeability’ (affection for source based on his/her
physical appearance or behaviour), ‘similarity’ (resemblance between the source and the
respondent), and ‘attractiveness’ (McCracken, 1989). It suggests that the effectiveness
of a message depends on source’s familiarity, likability, similarity, and attractiveness to
the receiver of the message (Ohanian, 1990).
Marketers choose celebrity endorsers on the basis of their physical attractiveness to
capitalise on their both attributes i.e. celebrity status and physical appeal (Singer, 1983).
18
Print advertisements portray the importance of physical attractiveness. Many researchers
have found that attractive people are more effective that unattractive people at
persuasion, changing beliefs (Baker and Churchill 1977; Chaiken 1979; Debevec and
Keman 1984) and triggering purchase intentions (Friedman et al. 1976; Petty and
Cacioppo, 1980).
2.11.3 Product Match-Up Model

The match-up hypothesis suggests that the effectiveness of an advertisement depends on
the existence of a perceived ‘fit’ between the endorsing celebrity and the brand endorsed
by him (Till and Busler 1998). The Product Match-up model suggests that the
‘Celebrity’ and ‘Product’ features should complement each other for effective
advertising (Kamins, 1990). The match between the product and celebrity depends on
the common attributes between product features and celebrity image (Misra and Beatty
1990). Advertising through a celebrity with relatively high product compatibleness leads
to effective advertising as compared to an advertisement featuring less compatible
celebrity (Kamins and Gupta 1994; Erdogan 1999). If the qualities of a celebrity match
up with the brand endorsed by him, it may also increase the celebrity believability and
attractiveness among the targeted audience (Kamins and Gupta 1994). Ohanian (1991)
supported the argument by stating that it is critical to employ celebrities who directly
resemble to the brand and are experts in their field.
Bertrand (1992), argued that if a company can successfully connect a link between its
product and celebrity image or the field celebrity specialises in, then it can bring fame
and success to both. Previous research on the subject states that customers also expect
the compatibleness between the endorsed product and the celebrity. In other words
Customers make a perceived image about the product by comparing the qualities of the
product and celebrity (Ohanian 1991; Callcoat and Phillips 1996; O'Mahony and
Meenaghan 1997). On the other hand if there is not congruence between the endorsed
product and the celebrity, it might lead people to a conclusion that the celebrity is faking
it since he is nicely paid to endorse the brand (Erdogan 1999). From the above
arguments it can be inferred that congruence between the celebrity and brand is required
for effective advertising.
19
2.11.4 Meaning Transfer Model
According to McCraken (1989), the previous source models discussed above are not
capable of capture the success factors of the endorsement process. DeSarbo and
Harshman, (1985) supported the argument by stating that neither of the source
credibility, attractiveness or match-up hypotheses models provides a base for
appropriate celebrity endorser selection. He stated three problems related to these
models (Erdogan 1999);
a) These models do not provide measures to cope up with multidimensionality of
source effects.
b) These approaches ignore overtone-meaning-interactions between a celebrity and
the endorsed product.
c) There is a lack of quantified empirical basis for purposed dimensions.
Hence, McCracken proposed the meaning transfer model; the main idea of this model is
to prove that celebrities possess unique sets of meanings which might be transferable to
the products endorsed by them.
The meaning transfer model suggests that the effectiveness of a celebrity endorser
depends on his/her quality to bring the meanings to the endorsement process (McCraken
1989). A celebrity possesses a larger number of distinctive meanings. ‘Distinctions of
status, class, gender, and age, as well as personality and lifestyle types, are represented
in the pool of available celebrities, putting an extraordinarily various and subtle pallet of
meanings at the disposal of the marketing system’ (McCraken 1989).
2.12 Theoretical Framework

Celebrities are recognised as effective endorsers due to their symbolic aspirational
reference group associations (Assael 1984; Solomon and Assael, 1987). Marketers very
cleverly use celebrities to endorse products and services through them. As earlier
discussed in the literature review, celebrities possess distinctive attributes such as
attractiveness, trustworthiness etc. (McCracken, 1989). Many researchers have designed
and explained various models regarding celebrity endorsements (see figure). Some
authors suggested that celebrities lend their image or attributes to the products by
appearing together in an advertisement. In this research the author has tried to find out
how the attributes defined in these models influence the consumers purchase decision.
Marketing communication represented in the model act as a mediator to transfer the
celebrity-product message in order to influence consumers purchase decision.
20
Celebrity endorsement is no more a new phenomenon in this world almost every brand
is using celebrities to endorse their products. Today Consumers are well aware of these
marketing techniques used by marketers in order to influence their purchase decision.
Moreover, due to its extremeness and aggressive approach consumers might change
their attitudes and perceptions about celebrity endorsements. Instead of all these
controversies celebrity endorsements is a pervasive part of advertising industry. With
reference to this, in this model the researcher has tried to find out the impact of celebrity
endorsements on consumers buying behaviour.
21
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents the methodology that was used to carry out the study. The chapter
describes the proposed research design, the target population, sampling and sample size,
methods of data collection, methods of data analysis and the historical background of
Seven-Up Bottling Co. Plc.
3.2 Research Design

Research design provides the conceptual framework within which research is
conducted; it constituted the blueprint or roadmap for the collection, measurement and
analysis of data (Kothari, 2007). The research design adopted was cross sectional
descriptive design. According to Cooper and Schindler (2000), a descriptive research
design is concerned with finding out the; who, what, where, when and how much.
Furthermore, a research design is structured, has investigative questions and part of
formal studies. The design was appropriate because the main interest was to explore the
viable relationship and describe how the factors support matters under investigation.
A cross sectional study looks at data collected across a whole population to provide a
snapshot of that population at a single point in time. Descriptive design method
provided quantitative data from cross section of the chosen population. This design
provided further insight into research problem by describing the variables of interest.
3.3 Population of the Study

Population refers to an entire group of individuals, events or objects having common
characteristics that can be observed and measured (Yin, 2003). The population of the
study comprised the staffs of Seven-Up Bottling Co. Plc., and consumers of soft drinks
as both group participated hence the study was a census.
3.4 Sampling Techniques and Sample Size

The sampling technique used for this study is convenience sampling (or haphazard
sampling). “It involves selecting haphazardly those cases that are easiest to obtain for
your sample… the sample selection process is continued until your required sample size
has been reached” (Saunders et al. 2009 pp. 241). Under convenience sampling
respondents are selected on the basis of proximity, ease of access and willingness to
22
participate (Timothy, 2005). It enables the researcher to gather information from the
targeted group of people easy and quickly. The author has selected convenience
sampling for this research mainly on the basis of easy access to target population.
The issue of sample size for all non-probability sampling techniques (except quota
sampling) is ambiguous and, there are no rules (Saunders et al. 2009). “Generalisations
being made to theory rather than about a population” (Saunders et al. 2009 pp. 233).
According to Patton (2002) Sample size depends on the research questions and
objectives of the research and also the analytical skills of the author (cited in Saunders
et al. 2009 pp. 235). Generally researchers don‘t restrict themselves to any specific
sample size. Fortunately, Crimp and Wright (1995) offered some guidance by proposing
that sample size anything larger than 30 and below 500 is appropriate for research
methods. For this research the author aims for a minimum of 50 samples, in accordance
to the time limitation.
3.5 Methods of Data Collection

It is important for a researcher to collect all the necessary information and relevant data
in order to be successful in achieving the desired aims and objectives of the research.
According to Saunders et al., (2009) basically there are two data collection methods i.e.
primary and secondary source of data. According to Collins and Hussey (2003),
“Primary data is known as original data that is collected from the main source”. Sources
to collect primary data include observation, survey, questionnaire and personal
interviews (Hussey and Hussey 1997). On the other hand, Secondary data involves
collecting and analysing data which is already been collected by past researchers for
some other purposes. It can be in the either form, raw data and published summaries
(Saunders et al., 2003).
For this research the author has used structured questionnaire method as a source to
obtain primary data. And for the secondary data the author has gained data from
relevant text books, journals, reports, articles and the internet.
3.6 Methods of Data Analysis and Presentation

In analyzing the primary and secondary data collected, different methods of simple
statistical tools like tabulation, and percentages have been used. Once the data was
collected, the questionnaires were edited for accuracy, consistency and completeness.
However, before final analysis was performed, data was cleaned to eliminate
23
discrepancies and thereafter, classified on the basis of similarity and then tabulated. The
responses were coded into numerical form to facilitate statistical analysis. Results were
presented in tables.
3.7 Historical Background of Seven-Up Bottling Co. Plc

The Seven-Up bottling company Plc is one of the largest independent manufacturer and
distributor of the well-known and widely consumed brands of soft drinks in Nigeria.
Our brands are Pepsi, 7UP, Mirinda, Teem and Mountain Dew, which we produce and
market in all our present 9 manufacturing plants. We also market our products through
our over 200 distribution centres that we also call depots spread over the nooks and
crane of Nigeria. Our workforce is currently in the neighbourhood of 3,500 employees.
A Lebanese Mohammed El-khalil who came to Nigeria for the very first time in 1926
founded the company. Mohammed is the father of the company's current chairman
Faysal El-Khalil. The company metamorphosed from a very successful transport
business [El-Khalil Transport] in a bid to diversify the then largest transport company in
the entire West of Africa. On October 1st 1960, the exact day our great country Nigeria
won her independents, Nigerians also experienced the birth of a soft drink giant as the
first bottle of 7Up rolled out from our factory located in Ijora. Since then, our company
continued to grow in the leap and the bound. In the late 80s, we established two more
plants in Ibadan and Ikeja. In the early 1990s when Pepsi International took over 7Up
international, we again got great opportunities to introduce the Pepsi brand to the
Nigeria people. As at today, the company has its Headquarters in Beirut and operational
base in three African countries; Nigeria, Tanzania and Ghana.
Our Vision
To become the most admired and innovative company in Nigeria.
Our Mission
Inspire and refreshes a youthful lifestyle.
Core Values
 Commitment and ownership – our people will describe the company as “Our
company”, reflecting the entrepreneurial spirit and sense of ownership. “Caring
and rewarding” as the people in the company experience a feeling of
brotherliness and freshness in their relationship with one another to build the
24
organization. In addition, achievement by people are recognized and rewarded
appropriately.
 Teamwork – Each of the employees recognizes the value of the skills, abilities
and cooperation between relevant persons and the units towards delivering
seamless and superior values.
 Integrity – Our people are reputed for unflinching uprightness and high ethical
standards.
 Trust – The management has confidence that employees will act in the best
interest of the company. Employees also believe that management will not harm
them but will do everything possible to protect and further their interests.
25
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
This chapter provides results obtained from the field survey, which have been examined
and evaluated through data analysis techniques. Findings are subjected to hypotheses
testing. This chapter evaluates the relationship between celebrity’s attributes and
consumer’s intention to purchase and later overall impact of celebrity endorsements on
consumer buying behavior.
The researcher is intending to get assessment of the impact of celebrity endorsement on

consumer buying behavior, with a total of 70 questionnaires distributed and 50 of the
questionnaires were received. The responses are as below;
4.2 Data Presentation, Analysis and Interpretation
Table 4.1:
Genders of Respondents.
SEX RESPONDENTS PERCENTAGE %
Male 25 50%
Female 25 50%
Total 50 100%
Source: Field survey, 2016.
The above table represents the sex of respondents. Responses have been collected from
male and female in equal ratio.
Table 4.2:
Age of Respondents.
AGE RESPONDENTS PERCENTAGE %
18-25 13 26%
25-35 12 24%
35-50 18 36%
50 & Above 7 14%
Total 50 100%
26
From the above table, 13 of the respondents representing 26% are between the ages 18-
25 years, 12 of the respondents representing 24% are between the ages of 25-35 years,
18 of the respondents representing 36% are between the ages of 35-50 years while 7 of
the respondents representing 14% are between the ages of 50 and above respectively.
Table 4.3:
Educational Qualifications of Respondents.
QUALIFICATIONS RESPONDENTS PERCENTAGE %
Post Graduate 14 28%
Tertiary 24 48%
Secondary 9 18%
Others (Please Specify) 3 6%
Total 50 100%
From the above table,28% of the respondents are of post graduate degrees, 48% are
graduate, 18% are school certificate holders while 6% of the respondents has other
qualifications which justifies that the respondents are well educated.
Table 4.4:
Occupations of Respondents.
OCCUPATIONS RESPONDENTS PERCENTAGE %
Business Class 14 28%
Service Class 18 36%
Students 13 26%
Others (Please Specify) 5 10%
Total 50 100%
From the above table, 28% of the respondents are of business class, 36% are of Service
class, and 26% are students, while 10%of the respondents belong to other professions.
27
SECTION B
Table 4.5: Which of the following medium do you think is more likely to convey
celebrity endorsed advertisements?
OPTIONS RESPONDENTS PERCENTAGE %
TV Advertisements 11 22%
Magazines 9 18%
Internet 9 18%
Newspaper 8 16%
Bill Board 13 26%
Total 50 100%
From the above table, 22% of the respondents do think that TV advert is more likely to
convey celebrity endorsed adverts, 18% do think that Magazines is more likely to
convey celebrity endorsed adverts, another 18% do think internet is more likely to
convey celebrity endorsed adverts, 16% do think newspapers is more likely to convey
celebrity endorsed adverts and 26% do think bill board is more likely to convey
celebrity endorsed adverts. This indicate that celebrity endorsed adverts can be placed
through different mediums.
TABLE 4.6: Do you think celebrity endorsed advert impact on consumers buying
behaviour?
LIKERT SCALE RESPONDENTS PERCENTAGE %
Strongly agree 18 36%
Agree 19 38%
Neutral 3 6%
Disagree 6 12%
Strongly disagree 4 8%
Total 50 100%
From the above table, 36% of the respondents strongly agree that celebrity endorsed
advert impact on consumers buying behaviour, 38% agree that celebrity endorsed advert
impact on consumers buying behaviour, 6% are neutral and 12% of the respondents
28
disagree while 8% strongly disagree that celebrity endorsed advert impact on consumers
buying behaviour.
TABLE 4.7: As a consumer, do you agree that celebrity endorsement as an

attribute that can influence your purchase decision?
Agree 21 42%
Neutral 6 12%
Disagree 4 8%
Total 50 100%
From the above table, 34% of the respondents strongly agree that celebrity endorsement
as an attribute that can influence their purchase decision, 42% agree to this assertion,
12% are neutral and 8% disagree with this assertion while 4% strongly disagree with it.
TABLE 4.8: What type of celebrities do you think are more influential as
endorsers?
CELEBRITY RESPONDENTS PERCENTAGE %
ENDOSEMENT
Film Stars 21 42%
Sports Personalities 14 28%
Models 11 22%
Politicians 2 4%
Business Persons 2 4%
Total 50 100%
From the above table, 42% of the respondents believed that Film Stars are more
influential as endorsers, 28% believed Sport Personalities are more influential as
endorsers, 22% believed Models are more influential as endorsers, while 4% believed
Politicians are more influential as endorsers, and another 4% believed Business Persons
29
are more influential as endorsers. This indicate that film stars, sport personalities and
models are more influential as endorsers.
TABLE 4.9: Do you consent to the fact that celebrity endorsed advertisements
attracts more than a non-celebrity advertisements?
Agree 18 36%
Neutral 7 14%
Disagree 4 8%
Total 50 100%
From the table above, 28% of the respondents strongly agree that celebrity endorsed
advertisements attracts more than a non-celebrity advertisements, 36% agree to it and
14% are neutral while 4% disagree with this assertion 7% of the respondents strongly
disagree. This shows that celebrity endorsed advert attracts more than a non-celerity
endorsed adverts.
TABLE 4.10: Advertising affect the consumer buying behaviour?

Agree 16 32%
Neutral 4 8%
Disagree 7 14%
Total 50 100%
From the table above, 40% of the respondents strongly agree that advert affect
consumers buying behaviour, 32% also agree to this assertion while 8% are neutral,
14% disagree with that assertion and 6% strongly disagree. This indicate that
advertising really affect consumers buying behaviour.
30
TABLE 4.11: Celebrity endorsed advert as nothing to do with consumer buying
behaviour?
Agree 10 20%
Neutral 1 2%
Disagree 18 36%
Total 50 100%
From the table above, 14% of the respondents strongly agree that celebrity endorsed
advert as nothing to do with consumer buying behaviour, 20% agree to it while 2% are
neutral, 36% disagree with 28% strongly disagree to this assertion. This show that
celebrity endorsed advert as it influence on consumer buying behaviour.
TABLE 4.12: Do you agree advertising changes the preferences of consumers?

Agree 18 32%
Neutral 4 8%
Disagree 7 14%
Total 50 100%
From the above table, 40% of the respondents strongly agree that advertising changes
the preference of consumers, 32% agreed to it while, 8% are neutral, 14% disagreed and
6% strongly disagree to it. This shows that advertising changes the preference of
consumers.
31
TABLE 4.13: There is no relationship between celebrities endorsed advert and
consumer buying behaviour?
Agree 7 14%
Neutral - 0%
Disagree 21 42%
Total 50 100%
From the above table, 12% of the respondents strongly agree that there is no relationship
between celebrities endorsed advert and consumer buying behaviour, 14% agree to it,
while 0% are neutral, 42% disagree with this assertion and 32% strongly disagree with
this assertion. This indicate that there is relationship between celebrities endorsed advert
and consumer buying behaviour.
TABLE 4.14: There is relationship between celebrities endorsed advert and

Agree 23 46%
Neutral 2 4%
Disagree 9 18%
Total 50 100%
From the above table, 24% of the respondents strongly agree that there is relationship
between celebrities endorsed advert and consumer buying behaviour, 46% agree to this
assertion while 4% are neutral, 18% disagree and 8% strongly disagreed. This indicate
that there is relationship between celebrities endorsed advert and consumer buying
behaviour.
32
TABLE 4.15: How impactful do you think is celebrity endorsements?
Very Impactful 9 18%
Impactful 14 28%
Uncertain 5 10%
Somewhat Impactful 12 24%
Not at all Impactful 10 20%
Total 50 100%
From the above table, 18 of the respondents believed celebrity endorsements are very
impactful, 28% believed it is impactful while 10% are uncertain with 24% believed it is
somewhat impactful and 20% believed that it is not at all impactful. This indicate that
celebrity endorsements is impactful.
TABLE 4.16: I’m likely to purchase products or services that have been endorsed
by celebrities?
Agree 21 42%
Neutral 1 2%
Disagree 6 12%
Total 50 100%
From the above table, 36% of the respondents strongly agree that they are likely to
purchased products or services endorsed by celebrity, 42% agree to this assertion, while
2% are neutral, 12 % disagree to this and 8% strongly disagree to this assertion. This
indicate that the majority of the respondents are likely to purchase product or services
endorsed by celerity.
33
TABLE 4.17: I do purchase products and services endorsed by celebrities?
Agree 26 52%
Neutral 0 0%
Disagree 5 10%
Total 50 100%
From the above table, 28% of the respondents strongly agreed that they do purchase
products and services endorsed by celebrities, 52% agreed to this assertion, 10%
disagree and another 10% of the respondents strongly disagree. This indicate that the
majority of the respondents are likely to purchase product or services endorsed by
celerity.
TABLE 4.18: Please rate these factors according to their importance and
effectiveness in order to influence your purchase decision?
Expertise 9 18%
Trustworthiness 11 22%
Similarity 12 24%
Likeability 9 18%
Product-Celebrity Match 9 18%
Total 50 100%
From the above table, 18% of the respondentssee expertise in influencing their purchase
decision, 22% see trustworthiness as factor influencing their purchase decision while
24% see the similarity as influencing factor with 18% the likeability of a celebrity and
another 18% product-celebrity match. This indicate that all the factors influence in one
way or the other.
34
Table 4.19: Effectiveness of celebrities in creating desires?
Agree 19 38%
Neutral 9 18%
Disagree 6 12%
Total 50 100%
From the above table, 24% of the respondents strongly agree with the Effectiveness of
celebrities in creating desires, 38% agree to this while, 18% where neutral, 12%
disagree and 8% strongly disagree with this assertion. This indicate the effectiveness of
celebrities in creating desires.
TABLE 4.20: Opinion on endorsing a brand through celebrities?

OPINION RESPONDENTS PERCENTAGE
Creates impact 26 52%
No impact 12 24%
Can’t say (Not sure) 12 24%
Total 50 100
From the survey it was found that amongst 50 respondents, 52% of respondents would like
to see their brand to be endorsed by a celebrity in advertisements, 24% of respondents
opinion that no impact can be created by the celebrities rest of the 24% respondents are not
sure whether an impact can be made or not. It can be inferred that more than 50% of the
respondents want to select the products endorsed through celebrities.
4.3 Hypothesis Testing

The test of hypothesis is purposely designed to provide a frame work for the
interpretation of research findings in a very meaningful manner. This is aimed at it to
prove whether to agree or disagree, accept or reject the hypothesis formulated.
35
Hypothesis One
H0: There is no impact of celebrity endorsement on buying behaviour.
H1: There is an impact of celebrity endorsement on buying behaviour.
TABLE 4.6 will be used to test this hypothesis
LIKERT SCALE OBSERVED FREQUENCY PERCENTAGE %

Agree 19 38%
Neutral 3 6%
Disagree 6 12%
Total 50 100%
Df = (m – 1) (n – 1) = (5 – 1) (3 – 1) = 8
The study revealed that about 36% of the respondents strongly agree that celebrity
endorsed advert impact on consumers buying behaviour, 38% agree that celebrity
endorsed advert impact on consumers buying behaviour, 6% are neutral and 12% of the
respondents disagree while 8% strongly disagree that celebrity endorsed advert impact
on consumers buying behaviour. The implication here is that since about 74% of the
respondents interviewed are in support of the favourable impact of celebrity
endorsement on consumer buying behaviour.This indicate that advertising really affect
consumers buying behaviour.
The result of ‘SPSS’ using chi-square statistical test at 0.05 level of significance with 6
degrees of freedom is 7.17 while the critical value is 12.6. Therefore, hypothesis H1,
which specified that:There is an impact of celebrity endorsement on buying behaviour is
accepted and H0 which state that: There is no impact of celebrity endorsement on
buying behaviour is rejected.
Hypothesis Two
H0: There is no any relationship between celebrity endorsement and buying behaviour.
H1: There is a relationship between celebrity endorsement and buying behaviour.
36
TABLE 4.13 and 4.14 will be used to test this hypothesis:
TABLE 4.13: There is no relationship between celebrities endorsed advert and
Agree 7 14%
Neutral - 0%
Disagree 21 42%
Total 50 100%
The study revealed that about 12% of the respondents strongly agree that there is no
relationship between celebrities endorsed advert and consumer buying behaviour, 14%
agree to it, while 0% are neutral, 42% disagree with this assertion and 32% strongly
disagree with this assertion. This indicate that there is relationship between celebrities
endorsed advert and consumer buying behaviour. The implication here is that since
about 74% of the respondents interviewed are in support of the fact that there is
relationship between celebrities endorsed advert and consumer buying behaviour?
which specified that: There is relationship between celebrities endorsed advert and
consumer buying behaviour is accepted and H0 which state that: There is no
relationship between celebrities endorsed advert and consumer buying behaviour is
rejected.
TABLE 4.14: There is relationship between celebrities endorsed advert and

Agree 23 46%
Neutral 2 4%
Disagree 9 18%
Total 50 100%
37
The study revealed that about, 24% of the respondents strongly agree that there is
relationship between celebrities endorsed advert and consumer buying behaviour, 46%
agree to this assertion while 4% are neutral, 18% disagree and 8% strongly disagreed.
This indicate that there is relationship between celebrities endorsed advert and consumer
buying behaviour.The implication here is that since about 70% of the respondents
interviewed are in support of the fact that there is relationship between celebrities
endorsed advert and consumer buying behaviour?
which specified that: There is relationship between celebrities endorsed advert and
consumer buying behaviour is accepted and H0 which state that: There is no
relationship between celebrities endorsed advert and consumer buying behaviour is
rejected.
38
CHAPTER FIVE:
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings

Nigeria is a country where people love to live in dreams. They worship celebrities. They
treat them as Icons. Marketers use this very preposition so as to influence their target
customers existing or potential ones. For this they rope in these celebrities and give
them whopping amount of money. They believe that by doing this they can associate
their products with their target customers. This is called celebrity endorsement. The
field of consumer behavior is the study of individuals, groups or organizations and the
processes they use to select, secure, use and dispose of product, services, experiences, or
ideas to satisfy needs and impacts that these processes have on the consumer and
society. And understanding the consumer behavior is the prime and toughest task in
front of every marketer. There are a lot of factors, which influence consumer buyer
behavior. This study aimed at to understand the influence of celebrity endorsement on
consumer buying behaviour. Marketers pay millions of Naira to celebrity endorsee
hoping that the stars will bring their magic to brand they endorse and make them more
appealing and successful. But all celebrity glitter is not gold. The celebrity endorser fits
in between these two interactions, where he tries to bring the image of the product closer
to the expectation of the consumer, by transferring some of the cultural meanings
residing in his image to the product. Now, despite the potential benefits derived from
celebrity endorsements, they increase a marketer’s risk manifolds and should be treated
with full attention and aptitude. What therefore seems relevant by the study is that, yes,
definitely celebrity endorsee influence consumer buying behaviour and brand building
but while using celebrity endorsee, marketer has to take care of all the aspect that
whether they brought personality and image of celebrity matches or not, whether
celebrity endorsee has deep penetration among the masses or not, whether he is
considered as credible source or not etc.
5.2 Conclusions
Celebrity endorsements has changed the way advertising used to be few decades ago. It
is been accepted to be a “ubiquitous feature of modern day marketing” (McCracken,
1989). As a result, a greater understanding of consumer’s reactions towards celebrity
39
endorsements can help the marketers to use it more effectively. This research project
explored the current state of consumer’s perception about celebrity endorsements.
Empirically identified and tested the celebrity attributes specific to influence purchase
intention and finally examined the impact of celebrity endorsements on consumers
buying behaviour. In accordance with the study objectives, the following conclusions
are drawn.
The research project examined and explored the current state of consumer’s perception
about celebrity endorsements. Research outcomes reveal extremely high degree of
familiarity across all age groups. Results reveal that people find celebrity endorsements
more attractive, particularly young people and teenagers. Further, on the basis of
attractiveness people find film stars more influential as endorsers. Results reveal that
using a celebrity in an advertisement increases the recognition and recall rate of the
endorsed product. Overall it is believe that celebrity endorsements are more attractive,
and effective at influencing consumer buying behaviour. Interestingly, people know and
agree that celebrities don‘t really use the products endorsed by them. Even though,
celebrity endorsements have a very positive impact on consumer’s perceptions and
attitudes towards the endorsed product.
Celebrity endorsed advertisements are more attractive than the non-celebrity endorsed
advertisements. Respondents also voted that the best medium for watching the
advertisements is TV and then Internet. It is further concluded that the highest
relationship existed between the perception and the buying behavior. The lowest
relationship is, between celebrity attractiveness and the perception. There is a significant
relationship among all attributes of the celebrity. It is finally concluded that there is a
significant relationship between celebrity endorsement and buying behavior.
Respondents clearly conveyed that they do purchase those products and services, which
are endorsed by the celebrities.
The positive relationship of different celebrity attributes and purchase intention of the
consumers demonstrates the effectiveness of celebrities as successful endorsers.
Although some attributes are very effective at influencing purchase intention of
consumers some are relatively low or moderate. Accordingly the other attributes were
ranked as trustworthiness, likeability, meaning transfer, similarity and product match-
up. This shows that there is a difference between what consumers actually do and think.
40
It is also crucial to keep in mind that selection of a celebrity endorser should not only be
done over the two most important attributes but also consider the remaining as a
priority, since these may strengthen the impact of a celebrity over purchase intention.
Overall it can be said that the different attributes of the celebrities positively affect
consumers buying behaviour.
In overall, all the research objectives have been achieved leading to better understanding
of celebrity endorsements.
5.3 Recommendations
Advertising is crucial for the purposes of marketing and creating awareness of the products
to different target audience. This researcher recommends that in order to have businesses
and organizations thrive well in the market they need to choose the right marketing
channels, media and celebrities to use so as to make the communication effective. The
researcher also recommends that before choosing any celebrity to use, analysis of the target
group they want to communicate to should be done, the product being advertised and the
message being put across so as to make the right choice of a celebrity to match the product:
 Celebrity endorsements will be more effective when used consistently over time
to increase the strength of the link between the celebrity and the endorsed brand.
 Celebrity endorsements will be more effective when the ad execution is simple,
clean and free of irrelevant design elements. Focus on the celebrity and the brand
together.
 Celebrity endorsements will be more effective when using a celebrity who is not
already strongly associated with another product or service.
 Celebrity endorsements will be more effective when using a celebrity with a
high “fit”, “congruence”, or “belongingness” with the endorsed brand. Celebrity
endorsers can be used to effectively reinforce and/or create an image for a
product or service.
 Celebrity endorsements will be more effective for less familiar brands.
 Celebrity endorsers will be more effective for brands for which consumers have
limited knowledge/facts.
 Celebrity endorsers will be more effective when integrated across the elements
of the marketing mix.
 Caution in choice of celebrity endorser is warranted given the potential risk of
tarnishing the brand’s image.
41
42
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marketing Available from: http://www.proquest.umi.com
51
APPENDIX
Bayero Business School,
Bayero University, Kano,
Kano State.
5th January, 2015.
Dear Sir/Madam,
I am pursuing Masters in Business Administration (Regular) with Specialisation in
Marketing from Bayero University, Kano. As a part of my course I need to submit a
research project. My research project is based on “The Impact of Celebrity
Endorsements on Consumer Buying Behaviour: A case study of Seven-up Bottling
Co. Plc.”. The questions asked in the questionnaire are very simple and related to what
we see and observe in common daily life. Please rate the questions according to what
you actually feel about celebrity endorsements in real life.
The whole questionnaire may take around 5 minutes of your precious time. I promise
that your response will remain confidential and you will not be contacted for any
marketing purposes.
Thank you for your participation.
Yours faithfully,
Kamal Lawan.
BBS/14/MBA/00161
52
QUESTIONNAIRE
In this questionnaire there are two sections; A and B.
A) Please tick from following:
1. Gender of Respondents?
Male
Female
2. Age of Respondents
18 to 25 years
25 to 35
50 & Above
3. Educational qualifications of Respondents?

Post graduate level
Tertiary
Secondary
Others
4. What is your profession?

Student
Professional/Business
Unemployed
Others (Please Specify)
B) Please tick your answer from following:
1. Which of the following medium do you think is more likely to convey celebrity
endorsed advertisements?
TV Magazines Internet Radio Newspaper Bill Board
Advertisements
53
2. Do you think celebrity endorsed advert impact on consumers buying behaviour?
Agreement Strongly Agree Uncertain Disagree Strongly
Agree Disagree
3. As a consumer, do you agree that celebrity endorsement as an attribute that can

influence your purchase decision?
Agree Disagree
4. What type of celebrities do you think is more influential as endorsers?

Actor/ Sport Stars Politicians Business Others NONE
Actress Persons
5. Do you consent to the fact that celebrity endorsed advertisements attracts more than a
non-celebrity advertisements?
Agree Disagree
6. Advertising affect the consumer buying behaviour?

Agreement Strongly Agree Uncertain disagree Strongly
agree disagree
7. Celebrity endorsed advert as nothing to do with consumer buying behaviour?

agree disagree
54
8. Do you agree advertising changes the preferences of consumers?
agree disagree
9. There is no relationship between celebrity endorsed advert and consumer buying

behaviour?
agree disagree
10. There is relationship between celebrity endorsed advert and consumer buying
behaviour?
agree disagree
11. I’m likely to purchase products or services that have been endorsed by celebrities?
Agreement Strongly Agree uncertain disagree Strongly
agree disagree
12. I do purchase products and services endorsed by celebrities?

Agreement Strongly Agree uncertain disagree Strongly
agree disagree
13. Please rate these factors according to their importance and effectiveness in order to
influence your purchase decision. (1 being the lowest and 5 being the highest)
Agreement 1 2 3 4 5
Expertise
Trustworthiness
Similarity
55
Likeability
Product-celebrity match
Meaning transfer
14. Effectiveness of celebrities in creating desires?

agree` disagree
15. Opinion on endorsing a brand through celebrities?

Agreement Creates Impact No Impact Can’t say (Not
Sure)
56

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THE IMPACT OF CELEBRITY ENDORSEMENT ON

CONSUMER BUYING BEHAVIOUR:

THIS PROJECT IS SUBMITTED TO BAYERO BUSINESS

IN PARTIAL FULFILMENT OF THE REQUIREMENT

CHAPTER ONE : INTRODUCTION 1

CHAPTER TWO : LITRATURE REVIEW 7

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 32

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 52

According to Jefkins F. (2000), advertising is a practical affair which differs with

1.2 Statement of the Problem

1.3 Objectives of the Study

1.4 Research Questions

1.6 Significance of the Study

1.7 Scope and Limitations of the Study

Advertising“is any paid form of non-personal presentation and promotion of goods,

Advertising Media: - Is the channel through which advertising message is delivered to

Consumer Buying Behavior: - is the sum total of a consumer’s attitudes, preferences,

2.2 The Concept of Celebrity

2.2.1 Celebrity Endorser

2.2.2 Celebrity Endorsement

McCracken, (1989) further conceptualised Endorsement process in different endorser

2.6 Positive Aspects of Celebrity Endorsement

2.7 Negative Aspects of Celebrity Endorsement

Sometimes in an advertisement, consumers fail to focus on the product being endorsed

If a celebrity lends his image to various brands by appearing in advertisements it also

2.8 Multiple Celebrity Endorsements

2.9 Consumer Buying Behaviour

Perner, (2009) defined consumer behaviour as “The study of individuals, groups, or

c) The behaviour of consumers while shopping or making purchase decisions;

2.10 Types of Consumer Buying Behaviour

According to Assael (1981), Consumers tend to experience cognitive dissonance while

2.10.2 Dissonance-Reducing Buying Behaviour: It occurs when the buyer is highly

2.11 Celebrity Endorsement Effectiveness

2.11.1 Source Credibility Model

2.11.2 Source Attractiveness Model

2.11.3 Product Match-Up Model

2.12 Theoretical Framework

3.2 Research Design

3.3 Population of the Study

3.4 Sampling Techniques and Sample Size

3.5 Methods of Data Collection

3.6 Methods of Data Analysis and Presentation

3.7 Historical Background of Seven-Up Bottling Co. Plc

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

The researcher is intending to get assessment of the impact of celebrity endorsement on

4.2 Data Presentation, Analysis and Interpretation

TABLE 4.7: As a consumer, do you agree that celebrity endorsement as an

TABLE 4.10: Advertising affect the consumer buying behaviour?

TABLE 4.12: Do you agree advertising changes the preferences of consumers?

TABLE 4.14: There is relationship between celebrities endorsed advert and

TABLE 4.20: Opinion on endorsing a brand through celebrities?

4.3 Hypothesis Testing

LIKERT SCALE OBSERVED FREQUENCY PERCENTAGE %

TABLE 4.14: There is relationship between celebrities endorsed advert and

5.1 Summary of Findings

3. Educational qualifications of Respondents?

4. What is your profession?

3. As a consumer, do you agree that celebrity endorsement as an attribute that can

4. What type of celebrities do you think is more influential as endorsers?