TABLE OF CONTENTS
TITTLE PAGE N0:
CHAPTER ONE 1
1.1 Background of the Study 5
1.2 Statement of Problem 6
1.3 Objectives 6
1.4 Research Questions 6
1.5 Significance of the Study 7
1.6 Delimitations 7
1.7 Limitations 8
1.8 Definition of Terms 8
CHAPTER TWO 9
2.1 Introduction 9
2.2 Review of Important Concepts 9
2.2a Advertising 10
2.2b Celebrity Endorser/Endorsement 10
2.2c Consumer/Consumer Behavior 10
2.3 Review of Related Studies 11
2.4 Theoretical Framework 12
2.4a Uses and Gratification Theory 12
2.4b Source Credibility Theory 13
2.5 Relevance of the Study 15
2.5a Relevance of Uses and Gratification 15
2.5b Relevance of Source Credibility 16
CHAPTER THREE
3.1 Introduction 17
3.2 Research Design and Instruments 17
3.3 Population of the Study 17
3.4 Sample Size and Procedure 17
3.5 Description of Data gathering Instruments 18
3.6 Method of Data Collection 19
3.7 Validity and Reliability of Research instruments 19
3.8 Method of Analysis 19
CHAPTER FOUR 20
4.1 Introduction 20
4.2 Data Presentation and Analysis 20
4.3a Discussion of Findings 34
vi
4.3b Answers to Research Questions 35
CHAPTER FIVE 39
5.1 Summary 39
5.2 Conclusion 40
5.3 Recommendations 40
References 42
Appendices 44
vii
LIST OF TABLES
TITTLE PAGE NO:
Table 1: Demographics 20
Table 2: Location Where Students Usually Shop When They are in
School
22
Table 3: Frequency of Engagement with Celebrity
Advertisements/Endorsement
22
Table 4: Most Important Factor Considered When Purchasing Products 23
Table 5: Frequency of Preferred Medium to Watch Celebrity
Advertisements
24
Table 6: Respondents View on Whether Celebrities Help Them to Recall
Products.
25
Table 7: Respondents Opinion on Whether They usually Buy a Product
Just Because a Celebrity Has Endorsed it
26
Table 8: Respondents Attitude Towards Switching to Another Brand of
Product if Their Favorite Celebrity Endorses It
27
Table 9: Respondents Opinion on Whether They Usually Buy a Product
Based on The Familiarity Of The Celebrity Involved
27
Table 10: Respondents Opinion on Whether They Patronize More of
Celebrity Endorsed Products Compared to Those Without Endorsement
Deal
28
Table 11: Respondents Opinion On Credibility Of The Celebrity as a Pull
in Making A Purchase
28
Table 12: Respondents Attitude on Considering Celebrity Advertised
Product as Excellent Quality
29
Table 13: Respondents Attitude Towards Comparing The Products They
Own and Those Advertised by Celebrities
29
Table 14: Respondents Opinion on Manufactures Engaging Celebrities
With Endorsement Deal in Order to Boost Sales.
30
Table 15: Respondents Opinion That Manufacturers Engage Celebrities
With Endorsement Deal in Order to Build Brand Awareness and
Influence Consumers to Purchase Products
30
Table 16: Respondents Ratings On Banky W And Samsung Phone
Endorsement
31
Table 17: Kate Henshaw and Samsung Phone Endorsement Ratings by
Respondents
32
Table 18: Tiwa Savage Ratings on Pepsi Endorsement Deal 32
Table 19: Wiz Kid’s Pepsi Endorsement Ratings by Respondents 33
Table 20: Ratings On AY’s Peak Milk Endorsement Deal 33
Table: 21 Ratings On Omo Endorsement By Funke, Ali, and Chioma 34
viii
ABSTRACT
This study assessed how celebrity endorsements influenced consumers’ behavior and other
factors that predispose people to buy products. To do this, a number of products sold at the AUN
Campus Store and Top 10 Store, all located within Yola Town and which are endorsed
by Nigerian celebrities were selected and students of AUN were surveyed based on the
assumption that they patronize the shops and also have the required exposure to provide smart
answers to the questions posed. The objectives of the research were to find out why
manufacturers engage celebrities to endorse their products, to identify whether endorsements
by celebrities influence consumers to buy products, to determine other factors that
predispose people to patronize products and services, and to show whether AUN students are
satisfied with products endorsed by celebrities. To achieve these objectives, a survey method
was adopted and the multi-stage sampling technique was used in selecting 350 respondents
for the study. Out of the number, a total of 321 respondents completed and returned the
questionnaires to the researcher. Data obtained were collected and analyzed using excel sheet.
The study showed that while majority of respondents expressed satisfaction with the products
endorsed by celebrities, a greater number held that celebrity endorsement does not
influence them to purchase a product. The study also found out that quality and price are some
of the most important factors consumers consider when purchasing products. Instead of spending
millions in celebrity endorsement deals, the researcher among other things, recommended that
manufacturers pay serious attention to improving the quality of their products while also offering
reasonable prices, to attract patronage.
1
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
Advertising is an essential marketing tool for both new and existing products and
businesses. It is a special form of communication directed at selling or making people aware of
the availability of goods and services. It also helps to build relationships between producers and
the ultimate consumers. The Encyclopedia Britannica defines advertising, “as communication
techniques and practices used to bring products, services, opinions, or causes to public notice for
the purpose of persuading the public to respond in a certain way.” (Search, 2016).
Advertisers worldwide have acknowledged the use of celebrities as a technique for
enhancing trade. Advertising and marketing managers spend large amount of money in order to
make celebrities endorse their products (Sushil & Ashish, 2013).
A lot of people generally tend to look at celebrities as some kind of role models. Many
more put in so much effort, time, energy and resources to look like their favorite celebrity.
Others go as far as dressing like them, mimicking the way they speak, and walk and act. And yet,
others go to the extent of patronizing goods and services endorsed by a celebrity without
considering the fact that they do not need the product at that particular moment (Marshall, 2014).
They are just happy to purchase the product, as far as they can own what their favorite celeb has
endorsed.
The Business Dictionary defines celebrity advertisement “as a form of brand or
advertising campaign that involves a well-known person using their fame to help promote a
product or service,” (“Celebrity Endorsement”, 2016). Advertisers often believe that a product or
service will have more sales once a celebrity is involved.
Celebrity endorsement is, therefore, an advertising campaign in which a famous person
uses their fame to support a product or service. Manufacturers now, more than ever, use
celebrities to advertise their products by making use of several media channels such as
television, newspapers, magazines and online.
Producers and advertisers try to figure out several ways to reach the consumers by
studying their consumption behavior and producing products to satisfy the identified behavior
and needs. According to Sushil & Ashish, (2013), “Consumer behavior is the study of
individuals, groups or organizations and the processes involved to select, use and dispose of
products, services, experiences, or ideas to satisfy needs and impacts that these processes have
on the consumer and society”. Based on this definition, consumer behavior contains more than
just trying to understand what items a consumer purchases. It tries to understand other factors
capable of influencing the basic decision process of the consumer. There are a number of factors
which affect consumers‟ choice and these include; internal and external factors. Celebrity
endorsement is one of such factors, (Uttera & Asthana, 2015).
Advertising agencies are constantly looking out to find different ways to make their
products and or services sell better than the competition and that is where celebrity endorsement
comes into the picture. Nigeria has quite a number of celebrities, who have endorsed several
products and services. Some of the frequently used celebrities include Tiwatope Savage-Balogun
(Tiwa Savage), Olubankole Wellington (Banky W), Ayodeji Ibrahim Balogun (Wizkid), Funke
Akindele, Ayodeji Richard Makun (A.Y), Kate Henshaw, Ali Nuhu, Genevieve Nnaji, etc. These
celebrities have endorsement deals with several companies and products ranging from
detergents, toothpastes, phones/gadgets, drinks, food, fashion items, stationaries, etc.
This project studied some of the products endorsed by Nigerian celebrities and sold at the
AUN Campus Store and Top 10 Store located about a kilometer from the university, from where
students buy their essential and non-essential products. The aim of this study was to find out if
consumers (students) buy products because some celebrities endorsed them. It also tried to find
out other reasons people have for buying products. The products selected for this study were;
Samsung brand of phones endorsed by Kate Henshaw (a popular Nigerian actress) and
Olubankole Wellington, popularly known as Banky W. (a popular Nigerian musician), Peak
Milk endorsed by Ayodeji Richard Makun popularly known as A.Y (a famous Nigerian
comedian and an actor), Pepsi soft drink endorsed by Tiwatope Savage-Balogun popularly
known as Tiwa Savage, and Ayodeji Ibrahim Balogun also known as Wizkid (both of them are
popular musicians) and lastly, Omo detergent, endorsed by Funke Akindele, Chioma Chukwuka
and Ali Nuhu (All popular Nigerian actors). The Omo endorsement is quite interesting because it
has been endorsed by three celebrities, who come from the three main ethnic groups in Nigeria.
(Igbo, Hausa, and Yoruba also known as Wazobia).
Omo detergent is a product of the Uniliver Nigeria Plc. The company started as Lever
Brothers (West Africa) Ltd on April 11th, 1923. The founder had interest of trading with Nigeria
and West Africa as far back as the 19th century. The company started off as a soap making
company, but after a long while, they branched out into marketing and production of foods, nonsoapy
detergents and personal care products. “The company changed to Unilever Nigeria Plc in
the year 2001, with Nigerians presently having 49 percent of equity holdings. Unilever‟s
products include; food brands such as Blue Band, Knorr, Lipton, Royco, personal care brands
like Close up, Life buoy, Lux, Vaseline and home care brands like Omo, Sunlight” (“Unilever:
Corporate Nigeria”, 2011).
Samsung brand of phones are produced by the Samsung Company, a South-Korean
multinational company that was founded in 1938. The firm started off as a trading company, but
presently, it is one of the largest South-Korean companies. Samsung accounted for nearly 15
percent of South-Korea‟s GDP in the year 2012. Their other products include; refrigerators,
laptops, tablets, memory cards, camera, etc. (“Samsung Story| Success Story”, 2016)
Pepsi is a product of the 7Up Bottling Company Plc. The company started its business in
1960, the same year Nigeria got its independence. “It was founded by a Lebanese, Mohammed
El-Khalil, who came to Nigeria in 1926. The company introduced Pepsi in the early 1990s when
Pepsi International took over Seven-Up International. Other products produced by the company
include; 7Up, Mirinda, Teem and Mountain Dew and Aqua Dana Table water” (“Seven-Up
Bottling Company “, 2016).
Peak milk on the other hand is a product of Friesland Campina WAMCO Nigeria Plc.
“Royal Friesland Campina is a multinational dairy company wholly owned by the dairy cooperative
Zuivelcoöperatie Friesland Campina, which has 14,800 member dairy farms in the
Netherlands, Germany and Belgium. It was established in Nigeria in 1988. It mainly distributes
dairy products and offers its products throughout Nigeria” (“Friesland Wamco Nigeria Plc:
Corporate Nigeria”, 2016).
The AUN Campus Store is one of the primary outlets for this research because that is
where majority of the sample (AUN students) shop. The store is located inside the university
premises. Because hundreds of students do their shopping in the store on a daily basis, it
therefore, fits into the research plan.
The AUN Store was established in 2011/2012. The products on sale comprise of general
supplies, such as food stuffs & soft drinks, as well as textbooks, stationary, cosmetics, clothing,
electronics/gadgets etc. The store is under the supervision of Mr. Tunde David Animashuan. He
has managed the store right from its inception. Another reason which makes the Campus Store
spectacular is the fact that it has a convenient payment pattern for everyone in the AUN
community. Both students and staff can equally use their school identity card to purchase
products and the money is removed from their accounts respectively, without having to pay cash
at the time of purchase.
On the other hand, Top 10 Store is the secondary outlet for this research. Besides AUN
Store, it is the closest shopping center to the university and where a good number of university
students buy from. The shop is bigger than the campus store and stocks by far, more products
too. Top 10 is divided into several segments, but the main segment targeted for this research is
the provision store. Top 10 Stores was opened in Yola in 2009. It is a branch of Yakubu Store,
one of the largest supermarkets in both Yola and Jimeta. The store is located at Jimeta which is
quite far from the school, so when its management realized it was getting a lot of customers from
AUN, a branch was opened in Yola to carter for the needs of the university community and other
residents of Yola. The shop sells mainly provisions, but also offers other services.
1.2 Statement of the Problem
Over the years, consumers have been exposed to lots of advertisements, but one of the
major problems is that people have a tendency to forget about eighty percent of those adverts in
just a day. (Kofi, Asimah, & Agbem, 2015). In order to address the concern, marketers and
advertisers began to enlist celebrities to endorse their products in deals running into millions of
naira. Celebrity endorsements are mainly to help prospective consumers to remember messages
about products and services. (Kofi, Asimah, & Agbem, 2015). Competition among product
manufacturers is also one of the major reasons celebrities are used to help boost sales. The
question this research attempted to answer was: Does celebrity endorsement cause people to
patronize goods and or services? What other factors are responsible for consumers‟ choices?
1.3 Objectives of the Study
The overall aim of the study was to find out the extent to which celebrity endorsement affects
consumers. The specifics of the study are;
i. To find out why manufacturers engaged celebrities to endorse their products
ii. To identify whether endorsements by celebrities influenced consumers to buy products
iii. To determine other factors that predisposed people to patronize products and services
iv. To show whether AUN students are satisfied with products endorsed by celebrities
1.4 Research Questions
i. Why do manufacturers engage celebrities in endorsement deals?
ii. Do celebrity endorsements influence consumer preference for products?
iii. What other factors predisposes people to patronage products?
v. Are AUN students satisfied with the quality of products endorsed by celebrities?
1.5 Significance of the Study
This research was on how celebrity endorsement influenced consumers‟ preference for
products and services with particular emphasis to AUN students. Although it did not set out to
criticize the use of celebrities, its utility would be in ascertaining whether such deals which run
into millions of naira are productive. The study may, therefore, be of immense benefit to
manufacturers, advertisers, celebrities, and indeed the consuming publics. Where such multimillion
naira deals are found to be counter-productive; manufacturers and advertisers would be
advised to find other means of attracting consumers to their products and services. However, if
consumers have issues with celebrities used, advertisers would be advised to take appropriate
decision to change them. The study may hopefully provide statistically-supported facts on
celebrity endorsement in Nigeria and will permit empirical assessment of the role of celebrity
endorsement in the product marketing mix.
1.6 Delimitation (scope) of the Study
This study did not focus on all celebrities or celebrity endorsements, but rather just a few
of them. The term celebrity here refers mainly to celebrities in Nigeria. The products used for the
research were: Omo detergent endorsement by Funke Akindele, Chioma Chukwuka and Ali
Nuhu, Pepsi endorsement by Tiwa Savage and Wizkid, Peak Milk by A.Y and lastly Samsung S5
phone endorsement by Banky W. and Kate Henshaw. The media through which the select
endorsed products were advertised were television, newspapers and the social media.
1.7 Limitations of the study
Selection of products: Selecting products endorsed by Nigerian celebrities and at the
same time sold at the AUN Campus Store and Top 10 Store was a bit difficult. For the purpose
of the research, the products had to be limited to four (4) which were endorsed by celebrities the
students were familiar with. Therefore, the research focused only on Nigerian celebrities, and
there are quite a number of them. Seven celebrities and four products sold at AUN Campus Store
and Top 10 Store were used in the course of the study.
1.8 Definition of Terms
Celebrity: A famous person who is recognized in any given society that people tend to
respect and admire.
Endorsement: A form of advertising that uses famous personalities to support or approve
something.
Consumer Behavior: A study of how individual customers or groups select, buy, use, and
dispose ideas, goods, and services to satisfy their needs and wants.
9
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