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Impact Of Celebrity Endorsement On The Sales Volume Of Company Of Glo Telecommunication

Abstract

This study was on Impact of celebrity endorsement on the sales volume of  company of glo telecommunication. The tota
population for the study is 200 staff of Glo telecommunication, 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 respond
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 today’s world, celebrities are being treated as a role model, people are changing their living style related with their fav
celebrity. This thing creates a great impact on the buying behavior of the persons. This attracts the customers and ultima
increases the company productivity. Celebrities are not always creating any kind of effect on persons mind in terms of b
But mostly it gives a great impact on perception of choosing any product. We are always thinking that if our favorite cele
using them. Then we should use that to be like them (Khatri 2016).

From last 150 years advertising is changing in different phases from the classical to modern. These days, the best strateg
by marketers to influence customers is by showing celebrities with their products. It includes different appeals like, excit
absurdity, sexual etc. Belch, and Belch, (2012) acknowledged that the main aim of formulating such strategies is to get h
brand revelation, longing, concentration and curiosity. To do so, marketers attach famous personalities with their produ
McCracken (2014) stated that these famous personalities had great influence on the consumer’s buying behavior that’s w
becomes the most attractive tool of advertising now a day. The major aim to do advertising and adopt this strategy is to
influence customers towards the products (Ohanian, 2011).

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In recent years most adverts on television has a celebrity that projects the products or services by way of using the prod
with this, has influence on the buyers and customers of these products and services and thus the sales volume of an
organization. Celebrity endorsements are now common place in the advertising world. Celebrity endorsements influenc
image through a transfer of meaning from the endorser to the brand. According to Patrick Bishop (2010), a Marketing Ex
“when you get a celebrity to endorse your company or sign licensing agreement, you benefit from customer awareness o
property, which could include the perception of the quality, educational value or a certain image. If a celebrity is endorsi
business is selling the product of a well-known person or entity, then people assume they must be a good company to d
with.”

This research is specifically on celebrity endorsement and the influences it has on consumer behavior of an organization
Customers’ attitude regarding brands and products are well enhanced by celebrities, but whether it generates repeat pu
intention and brand loyalty is not so clear (Byrne & Whitehead 2013). However, there is no evidence proving that the usa
celebrity endorsement will achieve increase of sales when compared to a non-use of celebrity endorsement. In fact, con
might pay more attention to celebrities in advertisements than the actual product endorsed, which is not the marketers
intention. As in most Globacom advertisements, physically attractive celebrities are especially recognized. They might ex
magnetic power to consumers resulting in a behavioural purchase instead of true brand commitment. But whether or n
purchase behaviour will become repetitive is less clear (Byrne & Whitehead, 2013).

Statement of the Problem

Celebrity endorsement has become multi-million industries in the world today, marketers endorse celebrities with their
and brands in advertisement to increase their sales and change the perception of the viewer’s regarding their brand, wh
positively impacts on their buying behavior. However, the problem of whether or not celebrity endorsement greatly
influences consumers’ buying behavior has been a cause of worry especially as many organizations use celebrities and s
do too well in terms of sales. This study is thus an effort to explore the effectiveness of the use of celebrity endorsement
advertisements and its influence on consumers’ purchasing decision and also to examine the link between celebrity
endorsement and consumers’ subscription to Globacom Nigeria.

Objective of the study

The objectives of the study are;

1. To determine the effect of celebrity endorsement on consumers’ subscription to Globacom Nigeria.

2. To determine the relationship between celebrity endorsement and consumers’ subscription to Globacom Nigeria.
3. To ascertain the relationship between celebrity endorsement on increased sales volume and the popularity of Glo
telecommunication

Research hypotheses

The following have been put forward for testing

H0: there is no effect of celebrity endorsement on consumers’ subscription to Globacom Nigeria.

H1:  there is effect of celebrity endorsement on consumers’ subscription to Globacom Nigeria.

H0: there is no relationship between celebrity endorsement on increased sales volume and the popularity of Glo
telecommunication

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H1: there is relationship between celebrity endorsement on increased sales volume and the popularity of Glo
telecommunication

Significance of the study

This study would be of immense benefit to organizations who are in a state of dilemma on whether or not to subscribe t
celebrity endorsement in promoting its product or service. The study will also be beneficial to managers of industries, di
of organizations and all relevant stakeholders who are interested in this research.

Scope and limitation of the study

The scope of the study covers impact of celebrity endorsement on the sales volume of  company of Glo telecommunicat
The researcher encounters some constrain which limited the scope of the study;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby
the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine o
academic activities and examinations with the study.
3. c) Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant
materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.7 DEFINITION OF TERMS 

Celebrity: A famous person or the state of being famous

Endorsement: A statement made in an advertisement usually by a famous or important person saying that they use an
particular product.

Consumer: A person who buys goods or uses services.

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