The Effect of Celebrity Endorsement on Consumers’ Attitude and Purchase Intention: The Case of Ethiopian Banking Industry
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Date
2015-06
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Addis Ababa University
Abstract
Companies use celebrities in advertisements with the aim of getting consumers' attention
from the bulk of advertisements aired through mass media. Celebrity endorsement has
become a worldwide phenomenon and most companies in Ethiopia are going for
celebrity endorsements and as a result the numbers of celebrity endorsed
advertisements have increased. Commercial banks are among such companies that use
celebrity endorsement for their marketing activities. This study attempts to examine the
effect of celebrity endorsements in banking industry on consumers’ attitude and their
purchase intention. The study makes use of the Ohanian source credibility model and
Product match up hypothesis to formulate the conceptual framework. The study is
mainly an explanatory research and it depends on quantitative data collected through
survey using self-administered questionnaire. The survey was conducted on 318
respondents drawn from bank consumers through non-probabilistic convenience
sampling. Descriptive statistical analysis was used to summarize respondents’ attitude
on celebrity endorsed advertisements and other related variables. Factor analysis was
used to extract components from the variable so as to make the data ready for the next
analysis i.e. multiple regression analysis, which aimed to examine the effect of celebrity
endorsement. The result of the survey reveals that consumers have positive attitude
towards the celebrity endorsed advertisements of banking services. And celebrity
endorsement measured through the attributes of physical attractiveness, expertise,
trustworthiness, and product/celebrity match have positive effect on the consumers’
attitude towards the endorsed brands and on their intention to use the services of the
banks. The results suggest that marketers in the industry should consider the use of
celebrities in their promotional endeavors so as to grab consumers’ attention for their
advertisements but in selecting celebrities they should look for those celebrities who
have the right combination of all the attributes
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Keywords
Celebrity endorsement, Product Match-up Hypothesis, Source Credibility Model