The Impact of Celebrity Endorsement in Creating Awareness and Motivating Consumers Towards Buying Bank Service; In the Case of Ethiopian Banking Industry
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Date
2017-06-28
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Addis Ababa University
Abstract
In marketing, different tools are used to promote the product and make the consumer aware of it. Among all these tools, celebrity endorsement is one of the most emerging, successful and effective tool.Celebrity endorsement is an advertising strategy whereby companies use people of public recognition as spokespersons for their products. Today, the attitude, taste, preferences and buying pattern of consumers are changing rapidly and consumers are becoming more literate and aware of the products that they use to fulfill their needs and wants. Celebrity endorsement is a very successful and commonly practiced strategy for major firms to create and improve company’s brand image Attractiveness, expertise, trustworthiness, and familiarity can contribute to celebrity endorsement and also use to measure celebrity endorsement. The main focus of this research paper is to examine the impacts of celebrity endorsement on customer’s awareness and motivation towards the bank service. This study was limited on Ethiopian banks that implement celebrity endorsement as their marketing strategies these are: Awash international bank, Abyssinia bank, Bunna international bank, Commercial bank of Ethiopia, Oromia international bank, and Zemen bank were the focus area of the study.The researcher used explanatory research method in order to explain the impact of celebrity endorsement in creating awareness and motivating consumers towards buying their services. The target populations for the study were customers of the Ethiopian banking industry in Addis Ababa and have endorsed celebrities as a promotional strategy. Sample size was calculated as 400 is the appropriate sample size. The procedure of sampling for selecting sample respondents was multiple stage sampling. Data were collected from customers through a structured questionnaire prepared in both Amharic and English languages. Responses from the customers of the selected banks were filled in to computer and analyzed using SPSS software. The study utilized both descriptive statistical analysis and multiple regression analysis. The finding of the study shows that there is a direct and positive relationship between celebrity endorsement and customer motivation. The coefficients of the regression equation show that the independent variables (credibility and familiarity) have positive relationship with the dependent variable (Customer Awareness). While the independent variables (attractiveness and expertise) have negative relationship with dependent variable (customer awareness). On the other hand the coefficient of the regression equation shows that all the independent variables positive relationship with dependent variable (customer motivation).
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Keywords
Celebrity Endorsement, Attractiveness, credibility