EFFECT OF CELEBRITY ENDORSEMENT ON INCREASED SALES VOLUME OF GUINNESS MALT MARKET (DISTRIBUTOR)

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ABSTRACT

This study is on Effects of celebrity endorsement on increased sales volume of Guinness malt, Enugu malt market(Distributors). The total population for the study is 200 staff of Guinness malt, Enugu state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up managers, production managers, senior staff and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

 CHAPTER ONE

INTRODUCTION

  • Background of the study

In recent years most adverts on television has a celebrity that projects the products or services by way of using the product and with this, has influence on the buyers and customers of these products and services and thus the sales volume of an organization. Basically, a celebrity is described as any famous and influential person that is admired and much spoken about by most people in a society. A celebrity endorser is “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement” McCracken (1989). The use of celebrities has been adopted by various organizations in advertising products and services. Celebrity endorsements are now common place in the advertising world. Celebrity endorsements influence brand image through a transfer of meaning from the endorser to the brand. Communication activities establish a pattern of connectivity between the image of the celebrity and the image of the brand. According to Patrick Bishop (2000), a Marketing Expert, “When you get a celebrity to endorse your company or sign licensing agreement, you benefit from customer awareness of the property, which could include the perception of the quality, educational value or a certain image. If a celebrity is endorsing or the business is selling the product of a well-known person or entity, then people assume they must be a good company to deal with.” Both entities represent nodes in a cognitive network, whose connectivity can establish contingency between the two entities (Till, 1998; Till et al., 2008). Marketers must understand what happens to the buying decision of the customer when the cultural meanings of celebrities are disgraceful. This is because the customer purchasing and using the product endorsed by the celebrity can obtain some of those meanings and use them in constructing a satisfying self- control. This research is specifically on celebrity endorsement and the influences it has on consumer behavior and sales volume of Guinness malt. Customers’ attitudes regarding brands and products are well enhanced by celebrities, but whether it generates repeat purchase intention and brand loyalty is not so clear (Byrne & Whitehead 2003). However, there is no evidence proving that the usage of celebrity endorsement will achieve increase of sales when compared to a non-use of celebrity endorsement. In fact, consumers might pay more attention to celebrities in advertisements than the actual product endorsed, which is not the marketers intention. As in most pampers advertisements, physically attractive celebrities are especially recognized. They might exert a magnetic power to consumers resulting in a behavioural purchase instead of true brand commitment. But whether or not the purchase behaviour will become repetitive is less clear (Byrne & Whitehead, 2003).

EFFECT OF CELEBRITY ENDORSEMENT ON INCREASED SALES VOLUME OF GUINNESS MALT MARKET (DISTRIBUTOR)