Abstract
This study examined celebrity endorsement organizational performance in techno mobile Ltd. A quantitative approach was employed to collect data from a sample of respondents, assessing their perceptions and opinions regarding celebrity endorsements and their influence on key marketing metrics. The findings revealed valuable insights into the effectiveness of celebrity endorsements in the mobile technology industry and offered practical recommendations for marketers and managers. The study’s results indicated that celebrity endorsements had a significant positive impact on Techno Mobile LTD’s sales performance. A majority of respondents agreed that celebrity endorsements enhanced the brand’s reputation and credibility, improved brand image, positively influenced brand perception, and made the brand more appealing to consumers. Additionally, celebrity endorsements were found to have played a crucial role in fostering customer loyalty. However, the study also highlighted variations in consumer perceptions and opinions regarding celebrity endorsements. A notable proportion of respondents expressed uncertainty or held differing views, suggesting that the effectiveness of celebrity endorsements might have varied among individuals due to factors such as personal preferences, exposure to endorsements, and interpretation of brand messaging. Based on the findings, the study provided five practical recommendations for Techno Mobile LTD and other companies in the industry. These recommendations included diversifying celebrity endorsements, aligning endorsements with the target market, leveraging social media platforms, monitoring and evaluating campaigns, and establishing long-term partnerships. The study contributed to the existing knowledge by providing empirical evidence on the impact of celebrity endorsements in the mobile technology industry. It offered insights into consumer perceptions and opinions, identified areas for further research, and enhanced our understanding of the effects of celebrity endorsement on sales performance, brand image, and customer loyalty.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The use of celebrity endorsement has become a widespread marketing strategy for companies worldwide. It entails the use of celebrities to promote products and services to attract customers and improve brand image. In recent years, celebrity endorsement has gained significant importance as a tool for companies to gain a competitive edge in the market. This is because celebrities have a considerable impact on consumer behaviour and can help companies achieve their marketing objectives (Kumar & Raju, 2020).
One of the primary reasons why companies use celebrity endorsement is because it can help to increase brand recognition and awareness. Celebrities are well-known public figures who have a wide fan base and followership. By associating a brand with a celebrity, companies can leverage the celebrity’s popularity to enhance the visibility of their brand. Consumers are more likely to pay attention to a product or service that is endorsed by a celebrity that they admire and respect (Liu & Lee, 2022).
Furthermore, celebrity endorsement can help to establish trust and credibility for a brand. Celebrities who endorse a brand are perceived as having a personal connection with the product or service. This personal connection can create a sense of trust and credibility among consumers, who may feel more inclined to purchase a product that is associated with a celebrity they admire and respect (Kwon & Armstrong, 2022).
Moreover, celebrity endorsement can also be used to target specific market segments. By selecting a celebrity that is popular among a particular demographic, companies can effectively target that group of consumers. This can be particularly useful for companies that are looking to expand their customer base or enter new markets.
One company that has effectively utilized celebrity endorsement is Techno Mobil LTD. Techno Mobil LTD is a global technology company that produces mobile phones, tablets, and other technological devices. The company has used celebrities to promote its products in various markets across the world. For instance, in 2020, Techno Mobil LTD signed a deal with the Manchester City football club, which saw the club’s players promote Techno Mobil LTD’s products (Manchester City, 2020). This partnership was aimed at enhancing Techno Mobil LTD’s brand image and increasing sales.
The use of celebrity endorsement has been found to have a positive impact on sales performance. This is because celebrities have a strong influence on consumer behaviour and can persuade consumers to purchase products (Choi & Rifon, 2022). In a study conducted by Khan and Hussain (2020), it was found that the use of celebrity endorsement had a significant impact on sales performance in the fashion industry.
Similarly, in the case of Techno Mobil LTD, celebrity endorsement has been found to have a positive impact on sales performance. For instance, in 2021, Techno Mobil LTD signed a deal with Wizkid, a popular Nigerian musician, to promote its products. Following this partnership, Techno Mobil LTD’s sales increased significantly in Nigeria (Tolu, 2021). This suggests that celebrity endorsement can be an effective strategy for companies to increase sales performance.
Celebrity endorsement has also been found to have a positive impact on brand image. This is because celebrities have a strong influence on consumer perceptions and can enhance the image of a brand (Saravanakumar & SuganthaLakshmi, 2022). In a study conducted by Kim and Ko (2020), it was found that celebrity endorsement had a significant impact on brand image in the automobile industry.
Similarly, in the case of Techno Mobil LTD, celebrity endorsement has been found to have a positive impact on brand image. For instance, in 2022, Techno Mobil LTD signed a deal with Cristiano Ronaldo, a popular footballer, to promote its products. This partnership was aimed at enhancing Techno Mobil LTD’s brand image and increasing its market share (Techno Mobil LTD, 2022). The partnership with Ronaldo was seen as a major boost to Techno Mobil LTD’s brand image, as Ronaldo is widely recognized as one of the most popular footballers in the world.
Celebrity endorsement is a marketing strategy that can lead to increased customer loyalty for a brand. According to Nikhashemi et al. (2021), celebrities can establish an emotional connection between consumers and a brand, which can lead to increased loyalty. The impact of celebrity endorsement on customer loyalty has been observed in various industries, including the cosmetics industry.
In a study conducted by Lee and Kim (2020), it was found that celebrity endorsement had a significant impact on customer loyalty in the cosmetics industry. The study revealed that customers who were exposed to celebrity endorsement were more likely to develop a sense of loyalty towards the brand. This was attributed to the emotional connection that was established between the customer and the brand through celebrity endorsement.
Celebrity endorsement can be an effective tool for companies to create a bond with their customers and enhance customer loyalty. The use of celebrities who are well-known and respected in the industry can help to establish trust and credibility for the brand. Consumers are more likely to trust a brand that is associated with a celebrity that they admire and respect (Kwon & Armstrong, 2022).
Moreover, celebrity endorsement can also help to create a sense of exclusivity for the brand, which can lead to increased customer loyalty. Customers may feel that by using a brand that is endorsed by a celebrity, they are part of a select group of consumers who are in the know. This can create a sense of loyalty among customers who feel that they are part of a special group that is privy to exclusive products and services (Shen & Chen, 2021).
1.2 Statement of Problem
Although celebrity endorsement has been widely used by companies, the impact of this strategy on organizational performance is still a matter of debate. Some studies have found that celebrity endorsement has a positive impact on sales and brand image, while others have found no significant impact. Therefore, it is important to investigate the impact of celebrity endorsement on the organizational performance of Techno Mobil LTD.
1.3 Objectives of the Study
The objectives of this study are:
- To investigate the impact of celebrity endorsement on sales performance in Techno Mobil LTD.
- To assess the impact of celebrity endorsement on brand image in Techno Mobile LTD.
- To examine the impact of celebrity endorsement on customer loyalty in Techno Mobile LTD.
1.4 Research Questions
The research questions are:
- What is the impact of celebrity endorsement on sales performance in Techno Mobile LTD?
- How does celebrity endorsement affect brand image in Techno Mobile LTD?
- What is the impact of celebrity endorsement on customer loyalty in Techno Mobile LTD?
1.5 Significance of the Study
This study is significant because it will provide insight into the impact of celebrity endorsement on the organizational performance of Techno Mobile LTD. The findings of this study will help managers of Techno Mobile LTD to make informed decisions about the use of celebrity endorsement as a marketing strategy. Additionally, this study will contribute to the existing literature on celebrity endorsement and organizational performance.
1.6 Scope and Limitations of the Study
The study focused on the impact of celebrity endorsement on the organizational performance of Techno Mobil LTD. It was limited to data from Techno Mobil LTD and was not generalizable to other companies or industries. Additionally, the study was limited by the availability of data and the sample size.
Due to time constraints, the study faced challenges in gathering data from all available sources. This limited the scope of the study and prevented the results from being applied to other contexts. Moreover, the unavailability of recent relevant materials posed a challenge in this study.
During the study, it was also found that the unwillingness of research participants to cooperate affected the quality of the data gathered. This, in turn, had an impact on the validity of the study findings.
Overall, despite the constraints faced during the study, it was able to provide insights into the impact of celebrity endorsement on the organizational performance of Techno Mobil LTD. The study findings highlighted the importance of celebrity endorsement in enhancing brand image, recognition, and emotional connections with customers. However, caution should be taken when generalizing these findings to other companies or industries.
1.7 Operational Definition of Terms
Celebrity endorsement – the use of a celebrity to promote a product or service.
Organizational performance – the ability of an organization to achieve its goals and objectives. Sales performance – the ability of a company to generate revenue through sales.
Brand image – the perception of a brand in the minds of consumers. Customer loyalty – the degree to which customers are committed to a brand or company.
1.8 Organization of the Study
This study is organized into five chapters. Chapter one provides an introduction to the study, including the background of the study, statement of the problem, objectives of the study, research questions, significance of the study, scope and limitations of the study, and operational definition of terms. Chapter two reviews the relevant literature on celebrity endorsement and organizational performance. Chapter three describes the research methodology, including the research design, sample selection, data collection, and data analysis. Chapter four comprises data presentation, analysis and discussion of findings. Chapter five provides a summary of the study, including the conclusions and recommendations for future research.
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