G/Medhin, Mulugeta (PhD)Kefyalew, Haymanote2019-11-062023-11-042019-11-062023-11-042019-06http://etd.aau.edu.et/handle/123456789/19943Today marketers choose to utilize celebrities as endorsers in their marketing campaigns to survive and moreover to reach at excellence in consumer buying decision. Celebrity endorsement is an advertising strategy whereby companies use people of public recognition as spokespersons for their products. This study was undertaken to investigate the effect of celebrity endorsement in TV ads on consumer buying decision: The case of Heineken Ethiopia. It followed a deductive form of research approach and the research design was explanatory and it depends on quantitative data. Questionnaires were used to collect primary data by using a self-administered data collection system from 384 respondents (consumers of Heineken beer in Addis Ababa), out of which 353 valid questionnaires were collected and analyzed. These respondents were selected by using a non probability convenience sampling technique, which is Judgment Sampling method. The data were analyzed using descriptive statistics and inferential statistics, correlation and multiple regressions. The finding revealed that there are positive and significant relationships between celebrity attributes, similarity, likability, celebrity/product matchup and consumer buying decision of Heineken beer shown in TV Ads. Whereas, celebrity’s trustworthiness, expertise and familiarity has positive but insignificant relationships with consumer’s buying decision. Consumers of low involvement products focused on the peripheral cues of the celebrities of the ads. And the minimized effect of pre-established thoughts or feelings about unfamiliar celebrities and also consumer who were in the “unfamiliarity with the celebrity” condition spent more time examining the ad, had significantly more favorable attitudes toward the ad and brand, and had more buying decision. The correlation analysis result showed that there were 66.6 % weak and 33.3 % moderate correlation between the independent and dependent variable. And also the regression analysis of Unstandardized Coefficients of the B value showed there was small change on the dependent variable due to the change in each independent variable. So the result of the study suggests that celebrity endorsement in TV ads could not be recommendable for low risk associated consuming products like beer.en-USCelebrity endorsementTrustworthinessExpertiseThesis