The Effect of Celebrity Endorsement on Customers’ Usage behaviour: The Case of Ethiopian Banking Industry

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Addis Ababa University


This study was intended to examine the effect of celebrity endorsements in banking industry on customers’ usage behaviour. The study used of the Ohanian source credibility model and Product match up hypothesis to formulate the conceptual framework. The study was an explanatory research and it depends on quantitative data collected through survey using self-administered questionnaire. The survey was conducted on 340 respondents drawn from bank customers 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 revealed that customers have positive response towards celebrity endorsement measured through the attributes of expertise, trustworthiness, and product/celebrity match have positive effect on the customers to use the services of the banks. On the other hand, perceived physical attractiveness has negative impact on customers’ usage behaviour. On the other hand, the correlation analysis result showed that celebrities congruence fit had strong correlation with customers’ usage behaviour. Physical attractiveness and customers’ usage behaviour has negative and low correlation between the variables. The results suggested that marketers in the industry should consider the use of celebrities in their promotional endeavors so as to grab customers’ attention for their advertisements but in selecting celebrities they should look for those celebrities who have the right combination of all the attributes. Hence, marketers should also focus on the core massage in their advertisement campaign



Celebrity endorsement, Product Match-up Hypothesis, Source Credibility Model