Full Project – THE INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING BEHAVIOR IN THE GHANAIAN FASHION INDUSTRY

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THE INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING BEHAVIOR IN THE GHANAIAN FASHION INDUSTRY

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

Celebrity endorsement is defined as “a conventional marketing instrument used by marketers to communicate brand images and information to consumers” (Martey, 2014). It makes use of celebrity endorsers. A celebrity endorser, according to McCracken (1989), is “any individual who enjoys public perception and uses this perception on behalf of a consumer good by appearing with it in an advertisement.” A celebrity endorser, on the other hand, is someone who is well-known in the public because of his accomplishments, such as sportsmen, actors, musicians, lawyers, and so on (Kamins et al; 1989, cited in Erdogan, 1999). In the United States, for example, luxury fashion brands use celebrities like Madonna, Audrey Hepburn, and Humphrey Bogart to build their brand images (Dzisah & Ocloo 2013). Celebrities are also used to promote various products in Africa. For example, different celebrities are used in the Ghanaian fashion industry, particularly in cosmetic companies. Jackie Appiah, a Ghanaian actress who promotes Omolewa Cosmetics Company’s products, is one example (Osuji, 2017). Rita Dominic, Omotola Jalade, Juliet Ibrahim, and Yvonne Nelson are some of the other movie actresses who have endorsed products for cosmetic companies. Other companies in the Ghanaian fashion industry that use celebrity endorsements include M & K Designs Limited, which uses Niki Samonas, a Ghanaian actress and model, to promote its clothes (Myjoyonline, 2016).

The examples above show how celebrity endorsements can be used as a marketing strategy for a variety of businesses and products. The purpose of using celebrities in marketing is to try to catch people’s attention. Customers are becoming smarter, harder to please, more price-conscious, more demanding, and less forgiving, and companies are finding it difficult to gain their attention because they are being approached by many more competitors with equal or better offers (Amos, Holmes, & Strutton, 2008). As a result, marketers attempt to create or capture value for clients by utilizing celebrity endorsers to market their products or services. Celebrity endorsement is one of the competitors used by advertisers to differentiate their products and gain a competitive advantage. Companies employ endorsers because they believe the endorsers have both attractive and likeable qualities that can be transferred to products through marketing activities (Erdogan, 1999).

The concept of celebrity endorsement is not new. It has been used to promote products since the late 1800s (Kozak, 2009). One such example is Queen Victoria’s association with Cadbury’s cocoa (Song et al, 2008). The advertisement depicted Queen Victoria and her daughter Beatrice enjoying a cup of Cadbury’s cocoa while riding the train (Erdogan, 2010). However, when compared to the late nineteenth century, the use of celebrity endorsements has recently increased. This is due to an increase in the number of film and television roles, which has resulted in the disappearance of perceived shame in the commercial exploitation of endorsers. This provides advertisers with more options in the celebrity selection process (Erdogan, 2010).

Furthermore, in recent times, there has been a highly competitive environment, and as a result, many marketers prefer to use celebrity endorsements as a strategy to attract people’s attention and differentiate their products (Kumar, 2010). Advertisers spend a lot of money on celebrity endorsements in the hopes that celebrities will help them establish a distinct identity in the minds of their customers. In the United States, for example, approximately 25% of television advertisements feature one or more celebrities, and celebrity endorsements account for 10% of advertising dollars spent (Erdogan, Baker & Tagg, 2001). Marketers believe that celebrity endorsements will draw attention to their brand and positively shape brand perceptions. As a result, celebrity endorsements are regarded as an effective promotional method for marketing products or services. It has an impact on advertising effectiveness, brand recall and recognition, purchase intentions, and, most notably, purchase behavior (Smith, Meurs, & Neijens, 2006).

Despite all of the advantages of using celebrity endorsements, some companies today do not see why they should; they believe it is an expensive form of advertising whose benefits cannot be guaranteed with high certainty (Martey, 2014). Furthermore, those companies believe it is associated with some type of investment risk. For some companies, celebrity endorsement is a myth and a theory with no practical application. As a result, they are unable to benefit from it (Martey, 2014). Furthermore, despite the enormous sums of money spent by advertisers in the industry on brand endorsers, there is little evidence to justify the true impact on consumer purchasing decisions; it is difficult to separate the influence on consumer choice from brand endorsement (Martey, 2014). As a result, it is critical to determine how celebrity endorsement influences consumer purchasing behavior and whether it has an effect on customers’ purchasing decisions. This is the goal of this project: to determine whether celebrity endorsements influence people’s behavior and whether companies should use them to promote their products.

This research will look into how celebrity endorsements affect consumer purchasing behavior in the Ghanaian fashion industry. Furthermore, the project intends to make recommendations to Ghanaian fashion companies on how to effectively use celebrity endorsements.

1.2 STATEMENT OF PROBLEM

Businesses today confront tremendous competition and, as a result, are attempting to employ various techniques in order to attract customers. Celebrity endorsement is one of the techniques employed. Businesses employ this method in the intention of establishing a distinct identity in the minds of their customers. Furthermore, they feel that celebrity endorsements will provide them a competitive advantage over their competitors (Kumar, 2010). However, some companies may not perceive the value in a celebrity endorsement campaign. Furthermore, they believe it is associated with some investment risks (Martey, 2014). As a result, it is critical to understand how celebrity endorsements function and whether they genuinely influence people’s purchasing decisions.

1.3 Objectives Of The Study

The basic intent for carrying out this study is to assess if celebrity endorsement influences consumer buying behavior in the Ghanaian fashion industry. Specifically the study aims at;

1) Investigating the impact of celebrity endorsements on consumer purchasing behavior.

2) Assessing the impact of celebrity appeal on consumer purchasing behavior.

3) Investigating the impact of celebrity credibility on consumer purchasing behavior. 1.4 Research Hypotheses

A hypothesis refers to an experimental statement, tentative in nature, showing the relationship between two or more variables. It is open to test and can be accepted or rejected depending on whether it agrees or disagrees with the statistical test.

The two hypotheses that were tested in this study are the null and alternative hypotheses.

The null hypothesis reflects that there will be no observed effect in our experiment. In a mathematical formulation of the null hypothesis, there will typically be an equal sign. This hypothesis is denoted by H0. The null hypothesis is what we attempt to find evidence against in our hypothesis test.

The alternative or experimental hypothesis reflects that there will be an observed effect on our experiment. In a mathematical formulation of the alternative hypothesis, there will typically be an inequality, or not equal to the symbol. This hypothesis is denoted by either Ha or by H1. The alternative hypothesis is what we are attempting to demonstrate in an indirect way through the use of our hypothesis test. If the null hypothesis is rejected, then we accept the alternative hypothesis. If the null hypothesis is not rejected, then we do not accept the alternative hypothesis.

The study will test the validity of the following null hypothesis:

H01: Celebrity endorsement has no influence on consumer purchasing behavior.

H02: Celebrity attractiveness has no effect on consumer purchasing behavior.

H03: Celebrity credibility has no effect on consumer product choice.

1.5 SIGNIFICANCE OF THE STUDY

Some companies may be perplexed as to why they should use celebrity endorsements to promote their products and services. As a result, this study will aid in determining whether celebrity endorsements influence consumer purchasing behaviors in the Ghanaian fashion industry. Furthermore, as some people may decide to own a fashion company in the future, they will want to know if the use of celebrities is necessary, a s a result, this research will contribute to a better understanding of how celebrity endorsements work and how they influence consumer purchasing behavior in the Ghanaian fashion industry.  It will also help give recommendations to Ghanaian fashion companies about how they can effectively use celebrity endorsements to promote their products and services. Lastly, the study will serve as a source of information for students and researchers who may want to conduct research on a related topic.

1.6   The Scope Of The Study

The study examines the influence of celebrity endorsements on consumer buying behavior in the Ghanaian fashion industry. The study therefore only covers the examination of the effect of celebrity endorsements on consumer buying behavior, the evaluation of the effect of celebrity attractiveness on consumer buying behavior, and the examination of the effect of celebrity credibility on consumer buying behavior. Hence, the study is limited to Duaba Serw, Atto Tetteh, Denkyi, Kamdora, and Virgil Abloh Ghana.

1.7 Limitation Of The Study

The main limitations of this research, among others, include time constraints, as the writer only had a limited amount of time to complete it. Financial constraints and language barriers, in particular, were significant limiting factors in this research.

1.8 Definition Of Terms

Celebrity: This is a condition of fame and broad public recognition of an individual or group, or occasionally a character or animal, as a result of the attention given to them by the mass media.

Endorsement: Endorsements are a form of advertising that uses famous personalities or celebrities who command a high degree of recognition, trust, respect, or awareness amongst people. Such people advertise a product by lending their names or images to promote a product or service.

Consumer buying behavior: Consumer buying behavior refers to the actions taken (both online and offline) by consumers before buying a product or service. This process may include consulting search engines, engaging with social media posts, or a variety of other actions.

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Full Project – THE INFLUENCE OF CELEBRITY ENDORSEMENT ON CONSUMER BUYING BEHAVIOR IN THE GHANAIAN FASHION INDUSTRY