The Influence of Celebrity Endorsement on Customer Loyalty: A Case of Econet Wireless Company
Abstract
This research investigates the influence of celebrity endorsement on customer loyalty, using the case of Econet Company. Most literature sources are available on developed countries, with a few on developing countries. A pragmatic philosophical approach involving the use of the exploratory, descriptive and explanatory research design was adopted to fully understand the research questions. Quantitative results were complemented by qualitative data obtained from interviews. In conducting the survey, a sample of 130 respondents was selected using the Krejice and Morgan (1970) sample estimation tables. The targeted respondents included the Econet Company customers. A Likert scale structured questionnaire was used to collect data. Spearman coefficient and multiple regression analysis were used to analyse data with the aid of the Social Package for Social Sciences (SPSS). The Cronbach Alpha test was performed, and all the values were greater than 0.7, which was therefore accepted (Nunnally and Bernstein, 1994). It was revealed that independent variables (celebrity reliability, celebrity expertise) and the mediating variables (customer satisfaction and customer trustworthiness) have a positive influence on customer loyalty according to the Spearman Correlation test, which yielded a minimum correlation coefficient of 0.58 and a maximum of 0.78 leading to the rejection of the proposed null hypothesis. The study recommended that Econet Company select celebrity endorsers based on the celebrity’s reliability, attractiveness, and expertise, as this contributes significantly to customer satisfaction and trustworthiness, which will result in customer loyalty. Furthermore, Econet Company must perform a well-thought screening and choose wisely the celebrity endorsers who align correctly with the image and values of the company’s brands or products. It must also avoid using celebrities with any kind of negative publicity. The study contributed not only to the literature on celebrity endorsements but also to filling the gap in the literature, providing immense usage for these techniques. Finally, the conclusion suggests that further research be carried out on a larger sample size and done on another
Downloads
References
Agrawal, M. (2005). Commitment and customer loyalty in business-to-business context. European Journal of Business and Management, 5(19), ISSN 2222-1905.
Al-Msallam, S. (2015). Theory of Credit Card Networks: Vol. 2. Federal Reserve Bank of Chicago, Issue - 2, June - 2003.
Aziz, N. N. A. (2013). The impact of telecommunication expenditure on economic growth in Nigeria. Journal of Economics and Sustainable Development, 4(13), ISSN 2222-2855.
Banasiewicz, M. (2005). Retailer premium own-brands: creating customer loyalty through own brand products advantage. International Journal of Retail & Distribution Management, 37(11), 975-992.
Baniya, R. K. (2017). Strategic Marketing Management. Harvard Press.
Batra, R., et al. (1996). Celebrity endorsers and adolescents: a study of gender influences. Vikalpa Notes, 26(4), 59-66, October-December.
Belch, G. E., & Belch, M. A. (2001). Essentials of Marketing. Press Printers, Chicago.
Boston Miles N., & Snow M. (2010). Strategic Management. Harvard Press, Harvard.
Bradley, N. (1996). Relationship marketing and customer loyalty. Marketing Intelligence & Planning, 25(1), 98-106, 0263-4503. DOI: 10.1108/02634500710722425. Emerald Group Publishing Limited.
Chaiken, S. (1979). The power of celebrity endorsements today. London School of Marketing. Retrieved from: [20/06/2017].
Choi, J. (2007). The value of different customer satisfaction and loyalty metrics in predicting customer retention, recommendation, and share-of-wallet. Managing Service Quality, 17(4), 361-384. Emerald Group Publishing Limited. ISSN 0960-4529.
Cohen, J. B. (1988). How effective are loyalty reward programs in driving share of wallet? Journal of Service Research, 9(4), May, 327-334. DOI: 10.1177/1094670506295853. Sage Publications.
Creswell, J. W. (2001). Research, Planning and evaluating qualitative research. River UpperSaddle, NJ: Murril.
Cronbach, L. J. (1951). Impact of celebrity endorsement on consumer buying behaviour. Journal of Marketing and Consumer Research, 16. ISSN 2422-8451.
Dash, S., & Sabat, A. (2012). Principles of Marketing (2nd Edition). Prentice Hall, London.
Dewar, S. (2022). Reviving brand loyalty: a reconceptualization within the framework of consumer-brand relationships. International Journal of Research in Marketing, 14, 451-472. Elsevier Science.
Dix (2010). A tri-dimensional approach for auditing brand loyalty. Journal of Brand Management, 17(4), 243-253.
Erdogan (2011). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing, 39(7/8), 910-925.
Evans (1988). Service equity, satisfaction, and loyalty: From transaction specific to cumulative evaluations. Journal of Service Research, 5(3), 184-195.
Fitch (2004). Customer loyalty: toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99-113.
Fowles (2006). Celebrity endorsement as one of nowadays major ways to influence consumer buying behaviour. European Scientific Journal, April. ISSN: 1857 – 7881 (print).
Freddy (2016). Customer loyalty and effect of switching costs as a moderating variable: a case in Turkish mobile phone market. Marketing Intelligence & Planning, 23(1), 89-103.
Griggs (2020). Internet banking: A Hong Kong perspective. Journal of Global Information Management, 12(3), July-September, 21-43.
Gupta (2009). Business Management. Houghton Mifflin, Boston.
Gwagwa (2018). E-commerce and economic development in Libya. Doctoral Thesis, Cardiff, U.K.
Holland (2003). Influence of celebrity endorsement of advertisement on students' purchase intention. Mass Communication and Journalism, 3(3), 1-7.
Hovland (1989). Celebrity endorsers and adolescents: a study of gender influences. Vikalpa Notes, 26(4), 59-66, October-December.
Hovland and Weiss (1951). Relationship marketing and customer loyalty. Marketing Intelligence & Planning, 25(1), 98-106. ISSN 0263- 4503. DOI: 10.1108/02634500710722425. Emerald Group Publishing Limited.
Kahle (1985). Service equity, satisfaction, and loyalty: From transaction specific to cumulative evaluations. Journal of Service Research, 5(3), 184-195. DOI: 10.1177/10946705.
Kamins (2004). How e-CRM can enhance customer loyalty. Marketing Intelligence and Planning, 21(4), 239-248. ISSN 0263-4503. DOI: 10.1108/02634500310480121.
Katyal (2007). Qualitative Market Research. Thousand Oaks, Sage Publications.
Keller (2008). Consumer perception of interface quality, security, and loyalty in electronic commerce. Information & Management, 46, 411-417. ISSN: 0378-7206.
Kelman (1961). The impact of celebrity endorsement on consumer buying behaviour. Journal of Marketing and Consumer Research, 26, 112-127. ISSN: 2422-8451.
Khan (2018). Impact of celebrity endorsements on consumer brand loyalty: does it really matter? International Journal of Scientific and Research Publications, 5(12), 220-225. ISSN 2250-3153.
Kotler (2012). Implication of customer loyalty program membership and customer experiences for customer retention and value. Journal of the Academy of Marketing Science, 28(1), 95-108.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607-610.
Levy (1959). Fame versus no name: gauging the impact of celebrities and non-celebrities endorsement on purchase. African Journal of Business Management, 9(4), 127-133. ISSN 1993-8233.
Liebman (2018). Strategic Marketing in South Africa; Journal for Foundation Management, 8(1), 24.
Louis (2010). Celebrity endorsement as one of nowadays major ways to influence consumer buying behaviour. European Scientific Journal, April. ISSN: 1857 – 7881.
Martin (2006). Service equity, satisfaction, and loyalty: From transaction specific to cumulative evaluations. Journal of Service Research, 5(3), 184-195. DOI:10.1177/1094670502238914. Reprinted with permission. All rights reserved © Sage. Retrieved [20/06/2017].
Mathur (1997). The effects of celebrity endorsement in advertisements. International Journal of Academic Research in Economics and Management Sciences, 3(5), 178-188.
McCracken, G. (1989). Who is the celebrity endorser? Cultural foundations of the endorsement process. Journal of Consumer Research, 16(3), 310-321.
McDonough, L. (2006). Factors determining the effectiveness of celebrity endorsed advertisements: The case of Nigerian Telecommunication industry. American Journal of Business and Management, 2(3), 233-238. DOI: [DOI]
McGuire, W. J. (1977). Marketing communication in online social programs: Ohanian model of credibility. Retrieved from [URL]
Meriden, L. (2018). An Applied Approach Updated Second European Edition. Oxford Printers, Oxford.
Misra, S., & Beatty, S. E. (1990). The impact of celebrity endorsement on consumer buying behaviour. Journal of Marketing and Consumer Research, 26, 112-127. ISSN: 2422-8451.
Mohammad, B. (2015). Brand trust in the context of consumer loyalty. European Journal of Marketing, 35(11/12), 1238-1258.
Newman, J. (2016). Applied Statistics. Book Printers, Boston.
Newsom, D. (2000). The value of different customer satisfaction and loyalty metrics in predicting customer retention, recommendation, and share-of-wallet. Managing Service Quality, 17(4), 361-384. ISSN: 0960-4529.
Nicolau, J. L., & Santa-Maria, M. J. (2013). The moderating effect of brand image on public relations. Marketing Intelligence and Planning, 26(1), 26-42. DOI: 10.1108/02634500810847138. Emerald Group Publishing Ltd.
Nunnally, J. C., & Bernstein, I. H. (1994). Exploring loyal qualities: Assessing survey-based loyalty measures. Journal of Services Marketing, 19(7), 92-500. Emerald Group Publishing Limited. ISSN: 0887-6045. DOI: 10.1108/08876040510625990.
Petty, R. E., & Cacioppo, J. T. (1980). Relationship quality as a predictor of B2B customer loyalty. School of Marketing, University of Technology, Sydney.
Pomerantz, M. (2013). Research Methods. Longman Press, Toronto.
Rehman, S., & Shabbir, M. S. (2010). Business Management. Prentice Hall, New York.
Ribbink, D., Reil, A. C. R., Liljander, V., & Streukens, S. (2004). Comfort your online customer: Quality. Journal of Marketing and Consumer Research, 25(1), 98-106.
Rodriguez, M. (2010). The mediating effect of organizational reputation on customer loyalty and service recommendation in the banking industry. Management Decision, 45(9), 1426-1560.
Sherman, E. (2004). Celebrity endorsement and customer loyalty in the telecommunications industry in Port Harcourt. International Journal of Managerial Studies and Research (IJMSR).
Shimp, T. A. (2000). Business Management. Mufflin Printers.
Simpson, J. (2015). Business Studies. Wiley Sons, London.
Singer, M. (1983). Relationship quality as a predictor of B2B customer loyalty. School of Marketing, University of Technology, Sydney.
Solomon, M. (2009). The effect of perceived service quality dimensions on customer satisfaction, trust, and loyalty in e-commerce settings: A cross-cultural analysis. Asia Pacific Journal of Marketing and Logistics, 22(3), 351-371.
Strake, M. (2019). Market Research: Journal in Applied Management, 17(3), 203-302.
Temperley, J. (2006). How e-CRM can enhance customer loyalty. Marketing Intelligence and Planning, 21(4), 239-248. ISSN: 0263-4503. DOI: 10.1108/02634500310480121.
Till, B. D. (2008). Technology, service quality, and customer loyalty in hotels: Australian managerial perspectives. Managing Service Quality, 13(5), 423-432. MCB UP Limited. ISSN: 0960-4529. DOI: 10.1108/09604520310495886.
Tirtiroglu, D., & Elbeck, M. (2008). E-commerce and economic development in Libya. Doctoral Thesis, Cardiff, U.K.
Ullman, R. (2018). The moderating effect of brand image on public relations. Marketing Intelligence and Planning, 26(1), 26-42. Emerald Group Publishing Ltd.
Utami, D. (2015). The relationship between celebrity endorsement and brand image in the fast-food industry in Port Harcourt, Nigeria. European Journal of Business and Management, 7(27). ISSN 2222-3333.
Copyright (c) 2024 Joseph Kusvabadika, Caleb Magoba, Esther Mutombo, Eliah Zvimba, Gift Manhimanzi
This work is licensed under a Creative Commons Attribution 4.0 International License.
