School of Commerce

College of Business and Economics

Department of Marketing Management

THE INFLUENCE OF CELEBRITY ENDORSEMENT

BRAND ADVERTISING ON CONSUMER BUYING
BEHAVIOR:

The Case of Commercial Bank of Ethiopia

BY: Aynalem Dagne

Advisor: Tewodros Mesfin (Ph.D)

JUNE, 2019

Addis Ababa, Ethiopia

 Addis Ababa University College of Business

And Economics School of Commerce

Department of Marketing Management

The Influence of Celebrity Endorsement Brand

Advertising on Consumer Buying Behavior:

The case of Commercial Bank of Ethiopia

A research thesis submitted to the School of Commerce Graduate Studies of Addis Ababa
University in partial fulfillment of the requirements for the degree of Masters of Arts in
Marketing Management

BY: Aynalem Dagne

Advisor: Tewodros Mesfin (Ph.D)

JUNE, 2019

Addis Ababa, Ethiopia

 Addis Ababa University College of Business and
Economics School of Commerce Marketing Management
Program Unit

THE INFLUENCE OF CELEBRITY

ENDORSEMENT BRAND ADVERTISING ON
CONSUMER BUYING BEHAVIOR: THE CASE OF
COMMERCIAL BANK OF ETHIOPIA

BY:
Aynalem Dagne

Approved by

Examiners:

Advisor Signature Date

Internal Examiner Signature Date

External Examiner Signature Date

 ACKNOWLEDGEMENT

Great honor and grace for God. He is always on my side to strengthen me.

I would like to show my gratitude to Dr. Tewodros Mesfin on Addis Ababa University College
of Commerce for giving me a good guideline for assignment throughout numerous
consultation.

I must express my very profound gratitude to my spouse for providing me with unfailing
support and continuous encouragement throughout my years of study and through the process
of researching and writing this thesis .The accomplishment would not have been possible
without him.

Finally, I would also like to extend my gratitude to all those who have directly and indirectly
guided me in writing this assignment.

Thank you.
 Table of Contents
Acronyms ............................................................................................................................................... i

Abstract ................................................................................................................................................. ii

CHAPTER ONE ................................................................................................................................... 1

1. INTRODUCTION ............................................................................................................................ 1

1.1 BACKGROUND OF THE STUDY ........................................................................................... 1

1.2 STATEMENT OF THE PROBLEM .......................................................................................... 3

1.3 RESEARCH QUESTIONS ......................................................................................................... 5

1.3.1 Specific Research Questions ................................................................................................ 5

1.4 RESEARCH OBJECTIVE .......................................................................................................... 5

1.4.1 General Objective of the Research ....................................................................................... 5

1.4.2 Specific Objective of the Research ....................................................................................... 5

1.5 SIGNIFICANCE OF THE STUDY ............................................................................................ 5

1.6 SCOPE OF THE STUDY ........................................................................................................... 6

1.7 LIMITATION OF THE STUDY ................................................................................................ 6

1.8 DEFINITION OF TERMS .......................................................................................................... 6

1.9 Organization of the Paper ............................................................................................................ 7

CHAPTER TWO .................................................................................................................................. 8

1. Review of related Literature ........................................................................................................... 8

1.1 Theoretical Literature Review ........................................................................................................ 8

1.1.1 Definition of celebrity endorsement ......................................................................................... 8

1.1.2 Purchase Intention or Buying Behavior ................................................................................. 11

1.1.3 Celebrity Endorsement Communication Theories ................................................................. 11

1.1.3.1 The Communication Process ........................................................................................... 12

1.1.3.2 The Meaning Transfer Model .......................................................................................... 14

 1.1.3.3 Celebrity Endorsement Situation/Product Theories ........................................................ 15

1.1.3.4 Celebrity Endorsement Selection Theories ..................................................................... 16

2.2 Empirical Review ......................................................................................................................... 21

2.3 Conceptual Framework ................................................................................................................. 23

CHAPTER THREE ............................................................................................................................ 24

Research Methodology ....................................................................................................................... 24

3.1 Introduction ............................................................................................................................... 24

3.2Description of the study area ...................................................................................................... 24

3.3 Research Approach ................................................................................................................... 25

3.4 Research Design ........................................................................................................................ 26

3.5 Data Sources and Types ............................................................................................................ 26

3.6 Population and sample size ....................................................................................................... 27

3.7 Data collection procedure.......................................................................................................... 28

3.8 Data Analysis ............................................................................................................................ 28

3.9 Reliability and Validity of the Instrument ................................................................................ 29

3.10 Ethical Consideration .............................................................................................................. 30

CHAPTER FOUR............................................................................................................................... 31

Data Analysis ...................................................................................................................................... 31

4.1. Introduction .............................................................................................................................. 31

4.2 Survey Response Rate ............................................................................................................... 31

4.3 Demographic profile of Respondents ........................................................................................ 31

4.4 Overview of Respondents’ perception toward different variables. ........................................... 33

4.4.1 Consumers perception on consumer’s buying behavior ..................................................... 33

4.4.2 Consumer’s perception on celebrity’s expertise ................................................................. 34

4.4.3. Consumer’s perception on celebrity’s Trustworthy .......................................................... 35

 4.4.4 Consumer’s perception on celebrity’s Physical Attractiveness .......................................... 35

4.4.5 Comparison of consumer’s perception on attributes of buying behavior ........................... 36

4.5 Correlation analysis ................................................................................................................... 37

4.6 Assumption Testing in Multiple Regressions ........................................................................... 37

4.7 Multiple Regression Analysis ................................................................................................... 40

CHAPTER FIVE ................................................................................................................................ 43

Summary, Conclusions and Recommendation ................................................................................... 43

5.1 Introduction ............................................................................................................................... 43

5.2 Summary of the study findings ................................................................................................. 43

5.3 Conclusion................................................................................................................................. 44

5.4 Recommendation ....................................................................................................................... 45

5.5 Future area of investigation ....................................................................................................... 46

References ........................................................................................................................................... 47

APPENDIX ......................................................................................................................................... 53
List of Figure
Figure 1: Conceptual Frame work the study……………………………….. 23

Figure 2: Q-Q plot of usage behavior………………………………………...38

List of Tables Page
Table 3.1 Reliability Test …………………………………………………….30

Table 4.1: General Demographic Information………………………….….. 32

Table 4.2: Perception on consumers Buying Behavior……………….….…..33

Table 4.3: Perception on Expertise…………………………………………....34

Table 4.4: Perception on Trustworthy………………………………………...35

Table 4.5: perception on Physical Attractiveness……………………………. 36

Table 4.6: Comparison of Attributes…………………………………………..36

Table 4.7 Correlation between Variables……………………………………...37

Table 4.8 Co linearity Statistics………………………………………………...39

Table 4.9 Model Summery………………………………………………………40

Table 4.10 Annova Test……………………………………………………….....41

Table 4.11 Coefficient…………………………………………………………….41

Acronyms
CBE - Commercial Bank of Ethiopia

TV – Television

AD – Advertising

SPSS - Statistical Package for the Social Sciences

ELM - Elaboration Likelihood Model

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Abstract
Celebrity endorsement is among the important communications medium that has powerful
effect on consumers’ behavior. The objectives of this study were to analyze the effect of
celebrity endorsement on consumers’ buying behavior in the case of CBE. The sample
populations of the study were selected branches from the four districts in Addis Ababa.
Quantitative research approach and non-probability convenience sampling had been adopted
in selecting a sample size of 400. Data were collected using structured questionnaire and
analyzed using SPSS 20 and descriptive and inferential research design was used. The results
of the study revealed that celebrity endorsement tools have a relationship with consumer
buying behavior of CBE customers. Therefore, It is essential for CBE to pay more attention in
increasing their celebrity endorsement activities practice specifically should pay more attention
to the activities and means of trustworthiness, since the study results showed a weakness in
this activities, in influencing the consumers purchasing decision toward these CBE products.
Finally the researcher is recommended to CBE is that the strategic impact of celebrity
endorsement is best observed when they are designed or built in strategic plan of promotional
activities, coordinated with other promotional tools and integrated with the business strategy.

Key Words: - Celebrity Endorsement, Trustworthiness, Expertise, Physical attractiveness

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 CHAPTER ONE

1. INTRODUCTION
This chapter consists of background of the study, statement of the problem, research questions,
research hypotheses, objective of the study, significance of the study, delimitation of the study,
and organization of the paper are explained here under

1.1 BACKGROUND OF THE STUDY

Marketing is life blood of business (Ghouri et al. 2011). According to Anjum et al. (2012),
marketing needs to concentrate on many different aspects to maintain sustainability. Celebrity
endorsement has emerged as a powerful tool for the marketers in recent times. Since the presence
of celebrities makes the advertising campaigns attractive therefore it is believed that spending huge
amounts of money for the employment of celebrities is significant (Kamins et al. 1989). The
purpose of celebrity endorsement can be brand recall, brand loyalty and long term association with
the brand. According to (Belch & Belch, 2003) celebrity’s effectiveness as an endorser depends
on the culturally acquired meanings he or she brings to the endorsement process. Each celebrity
contains many meanings, including status, class, gender, and age as well as personality and
lifestyle. Utilizing a popular personality as an endorser to promote the product/service or brand
and its products, has been an area of focus for advertising and marketing agencies. To efficiently
using the celebrity for this purpose, it is very crucial that the celebrity must be critically selected
because both the positive and negative image and perception of the celebrity can influence the
representation of the brand in public. Integration between profile of the celebrity and the
trustworthiness of celebrity to the target market and target audience is highly significant as well.

Consumers need to be aware of goods and services and in order to address the features of the goods
and services companies need advertisement. According to (Hassan & Jamil, 2014) Advertisement
is “the art of persuasion’’ that is mainly concerned to create awareness about what is being offered
with ultimate objective to persuade towards buying.

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According to Oxford dictionary, celebrity means “A famous person”. A person who is outshined
in his/her area of expertise. It could be in the domain of sports, cinema, theatre, social life, politics
or science, anything but with some unique outcome (Giridhar, 2012). People who are celebrated
by an enormous cluster of people are known as celebrities. Some illustrations of the characteristics
include attractiveness, astonishing way of life or exceptional expertise. These celebrities usually
vary from average community and relish high amount of recognition by the vast majority of
people.(Friedman and Friedman, 1979) describe the word celebrity states a person familiar by the
people (actor, sports figure, entertainer, etc.) due to their accomplishments in the fields besides the
product they have endorsed.
Consumer behavior is defined as the behavior that consumers display in searching for, purchasing,
using, evaluating, and disposing of products and services that they expect will satisfy their needs.
(Schiffman and Kanuk).(Solomon, Michael R.)Similarly define consumer behavior as the study of
the process involved when individuals or groups select, purchase, use, or dispose of products,
services, ideas, or experience to satisfy needs and desires.
Major objective of each commercial is to create attentiveness and stimulate interest in consumer’s
mind. Today almost every company from different industries uses advertisement as their basic tool
to encourage their goods and services, because it’s the best way to convey information to the huge
public in an effective and efficient manner. According to the consumer’s purchase intention, the
advertising plays a crucial role so it becomes vital for the companies to use all the tracts and tools
to peruse customers towards their offering by using different type of advertising campaigns
(Ohanian1991).
With regards to advertising its products and services, the tool that Commercial Bank of Ethiopia
has long been using is its periodic publication compiled by its editorial board members called
‘MudayeNeway’. In addition to its message from the president of the bank, commentaries from
renowned experts in the sector and key financial indicators, the bank uses this platform to advertise
and promote its newest products and services.

Another promotion and advertising tool that CBE uses is through various incentive schemes by
giving away attractive presents to its customers who use some if its selected services such as
regular and continuous savings.
When it comes to considering celebrities to endorse its services, the researcher analyzed several
brochures and flyers that were launched recently and noticed that the bank used either regular

2
individuals or employees of the bank itself to promote its newest services instead of celebrities.
After reviewing different flyers, the researcher believes it’s fair to conclude that CBE’s celebrity
endorsement strategy of its services has been minimal.
Since recently, Commercial bank of Ethiopia (CBE) has shifted its advertising strategy by having
famous celebrities endorse and promote its services with the aim that it will familiarize its
customers with the newly introduced services the bank has to offer (combanketh.et).

A good example can be the series of TV ads by the renowned artist Alemayehu Tadesse to
advertise the various solutions and services that the bank has at its disposal such as mobile banking,
Internet banking, POS services, Mortgage loan and many more.

The central goal of advertising is the persuasion of customers. In any advertisement firms must
attract their customers to purchase their product. They must ensure the conveyed message should
be convincing to users. When it comes to celebrity endorsement, (Khatri, 2006) stated that the
effectiveness of a message depends on the perceived expertise and trustworthiness of an endorser.
It is to this end that this study aims to examine the influence of celebrity endorsement brand
advertising on consumer buying behavior the case of commercial bank of Ethiopia.

1.2 STATEMENT OF THE PROBLEM

In today’s world, celebrities are being treated as role models. People are changing their living style
related with their favorite celebrity. This creates a great impact on the buying behavior of
consumers. This may attract the customers and ultimately affect the company productivity.
Celebrities may not always create some sort of effect on people’s minds in terms of buying
behavior. But mostly it gives a great impact on perception of choosing or considering a particular
product or service. We are always thinking that if our favorite celebrity is using them, then we
should use that to be like them (Khatri 2006). Celebrity endorsement was not a new phenomenon
and has been followed by marketers since many years back.
There are advertising businesses that specialize in assessing the stock value of the celebrities and
assisting brands couple their products with the suitable celebrity (Esangedo, 2011). While
developing of promotional program, it’s compulsory the plan adopted should have significant
concentration on unique and different message regarding the product in order to persuade the
positive attitude and improved buying behavior towards a brand (Lafferty & Goldsmith,
2004).Usually big budget is allocated for advertisements. An advertisement can succeed only if
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the advertisement gets the attention and communication well. Advertisers are accountable for the
money they spend on this promotion and they expect customers’ attraction to the promotion they
release through the media (Ohanian, 1990). According to (Ohanian, 1990) Construction and
Validation of a Scale to Measure Celebrity Endorsers Perceived Expertise, Trustworthiness, and
Attractiveness is important.
In the case of Ethiopian banking industry there are two studies conducted in 2017 by Ruta
Mekonnen on the impact of celebrity endorsement in creating awareness and motivating
consumers toward buying bank service in the case of Ethiopian banking sector. The finding of the
study shows attributes of attractiveness, expertise, credibility and familiarity have positive
influence on the attitude of consumers toward the endorsed brand and their purchase intention.
Other Edom Birhanu on the effect of celebrity endorsement on consumer’s usage behavior in the
case of Ethiopian banking industry. The result shows celebrities perceived expertise; product
/celebrity match and trustworthiness directly influence customer’s usage behavior in the banking
sector. Customers have positive rating for perceived expertise and trustworthiness of the celebrity
in the banks advertisement. The other objective of the study physical attractiveness has negative
rating for physical attractiveness in the bank advertisement. The implication is that marketers in
the industry should consider the use of celebrities in their promotional endeavors.

The Ethiopian banking industry is composed of 18 banks (2 government owned and 16 private
owned) and can be considered to be at its early stage of development where all the private banks
are established following the 1991 economic reform. These banks spent large amount of money
yearly on advertisement and related promotional activities. In order to stand out of the advertising
clutter and gain consumers‟ attention, some of the banks are using well-known endorsers in their
advertisements. Commercial Bank of Ethiopia is currently using Artist Alemayehu Tadesse to
endorse its products and services. The bank spent large amount of money for its advertising but to
guide and monitor the influence of celebrity endorsement brand advertising, studies related with
celebrity endorsement brand advertising in commercial bank of Ethiopia is not in place. This is the
major reason why the researcher became motivated to choose this topic area and try to investigate
the relationship between variables and suggest variable solutions. The study only focuses on the
customers who are registered on the banks database.

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1.3 RESEARCH QUESTIONS
The purpose of this study is to get a better understanding of how celebrity endorsements of brand
advertising affect consumers’ buying behavior. The purpose of this study has lead into the
following general research question:
 What is the influence of celebrity endorsement brand advertising on customers buying
behavior the case of commercial bank of Ethiopia?

1.3.1 Specific Research Questions

1. What is the impact of perceived expertise of the celebrity on consumers buying behavior?
2. How trustworthiness of the celebrity affect the consumers buying behavior?
3. To what extent attractiveness of the celebrity affect the consumers buying behavior?

1.4 RESEARCH OBJECTIVE

1.4.1 General Objective of the Research

 The main objective of the study is to examine the influence of celebrity endorsement
brand advertising on consumers buying behavior the case of commercial bank of
Ethiopian.

1.4.2 Specific Objective of the Research

1. To examine the impact of perceived expertise of the celebrity on the consumers buying
behavior in the case of commercial bank of Ethiopia.
2. To examine how trustworthiness of the celebrity affect consumers buying behavior in the case
of commercial bank of Ethiopia.
3. To examine the extent of attractiveness of the celebrity affect consumers buying behavior in
the case of commercial bank of Ethiopia.

1.5 SIGNIFICANCE OF THE STUDY

In the first place limited research has been conducted in the field of celebrity endorsement in
Ethiopia, and no study has focused exclusively on promotion within the banking industry in
the country. Therefore, the study was providing knowledge on the importance of celebrity

5
 endorsement on consumer behavior. And findings from this study would assist academicians
in broadening of the prospectus with respect to this study hence providing a deeper
understanding of the celebrity endorsement that affects the consumer buying behavior. The
other significance of the study were enables the CBE to understand the relation between
celebrity endorsement tools and consumer buying behavior and helps them to know the most
important celebrity endorsement tools used to consumer buying decision. Thus, the study
would provide recommendations to the management of the CBE regarding the improved
application of sales promotion.

1.6 SCOPE OF THE STUDY

Marketing tools are product development and promotional strategies and actions that the
company uses to develop and promote its products or services
(yourdictionary.com).Commercial bank of Ethiopia also uses different types of marketing tools
but the scope of the study was limited to only on celebrity endorsement brand advertising to
explain the influence on consumer buying behavior the case of commercial bank of Ethiopia.
From different celebrity endorsement attributes the study used Ohanian, 1990.Such attributes
are perceived expertise, trustworthiness and attractiveness.

1.7 LIMITATION OF THE STUDY

The study is conducted only in selected Addis Ababa branches of CBE which may be a
limitation in using the findings of the research to generalize and extend its applicability to other
branches in both the city and nationwide. In addition, only a specific attribute of the bank
promotional tools service is used to measure consumer behavior. It does not take into account
other services provided by the bank nor does it take into consideration other internal and
external factors such as sales promotion, interest rates, efficiency of the banking service, price
structure etc.

1.8 DEFINITION OF TERMS

Celebrity Endorsement -Khatri (2006) studied that the celebrity endorsement is the Promotion
strategy to attract the customers By analyzing the current market, now it’s become the need of the
marketers to use the different famous personalities to relate with their brands to create unique
identity of the brand and to do famous his company’s brand or product.

6
Buying Behavior -Buying behavior is a process by which a people search for the product/services
they need or want, make decision to buy the required and most suitable one from different
alternatives, use and the dispose it. (Laroche Zhou, 1996).
Source of Credibility - Credibility is the extent to which the recipient sees the source as having
relevant knowledge, skill, or experience and trusts the source to give unbiased, objective
information. (Hovland and Weiss, 1951)
Source of attractiveness - Source attractiveness leads to persuasion through a process of
identification, whereby the receiver is motivated to seek some type of relationship with the source
and thus adopts similar beliefs, attitudes, preferences, or behavior. This encompasses similarity,
familiarity, and likeability (Kelman, 1961).

1.9 Organization of the Paper

The study consists of five chapters. The first chapter discusses the background, statement of the
problem, research questions, and research objectives, significance of the study, scope of the study,
limitation of the study and definition of terms. Chapter Two was discuss review of related
literatures that contain theoretical review, empirical review and the conceptual framework for this
study. Chapter Three was discuss in detail about the research methodology used in the study.
Chapter Four data Presentation, analysis, and interpretation of the data collected was discussed
and finally in Chapter five Summary, conclusion and recommendations of the study was presented.

7
 CHAPTER TWO

1. Review of related Literature

Marketing tends to adopt new and different modes of promoting their product, and marketers are
in search of different and unique means to attain the whole new level of active and persuasive
advertisements and promotion. Celebrity endorsement is one of these means to persuade the
consumer. Today the marketers recognize it properly that celebrities play a significant role in
order to make the Ads more compelling and convincing (CHOI and Rifon, 2007).

This chapter presents the review of existing literatures in the area of celebrity endorsements for
better understanding of the subject matter. Which incorporates the theoretical review, empirical
review and finally, the chapter will end with a conceptual framework.

1.1 Theoretical Literature Review

1.1.1 Definition of celebrity endorsement

According to Schlecht (2003) term ‘celebrity’ can be defined as, “Celebrities are people who enjoy
public recognition by a large share of certain group of people”. Danieal.J.Boortish defines:
“A sign of a celebrity is that his name is often worth more than his services”.
McCracken (1989) defined celebrity endorser as: “Any individual who enjoys public recognition
and who uses this recognition on behalf of a consumer good by appearing with it in an
advertisement”. While Stafford et al, (2003) gives a definition of endorsers as, “A famous person
who uses public recognition to recommend or co-present with a product in an ad”.
According to (Khatri, 2006) categorize celebrities in four major forms of celebrity endorsement.
Companies could adjust their advertisement campaign, in order to get the attention of their
customers.
Testimonial: If the celebrity has personally used a product or service and is in a position to attest
its quality, then he or she may give a testimonial citing its benefits.

8
Endorsement: celebrities often lend their names to ads for product or services for which they may
or may not be the experts.
Actor: A Celebrity may be asked to present a product or service as a part of character enactment
rather than personal testimonial or endorsement.
Spokesperson: A celebrity who represents a brand or company over an extended period of time
often in print and TV ads as well as in personal appearances is usually called a company’s
spokesperson.
Concept of celebrity

According to Gupta (2009) Celebrity was a person whose name could grab public attention, arouse
public interest and generate profit from the public. Celebrities are well-known individuals
(television stars, movie actors and actresses, famous athletes, pop stars, entertainers, etc.) who owe
their fame to their achievements.
Celebrity Endorser

McCracken (1989, p.310) defined celebrity endorser as “any individual who enjoys public
recognition and who uses this recognition on behalf of a consumer good by appearing with it in an
advertisement”. While Stafford et al., (2003) gave a clear definition by defining celebrity endorser
as, a famous person who uses public recognition to recommend or co-present with a product in an
advertisement.
Celebrity Advertisement

Major intend of each commercial is to create attentiveness and stimulate interest in consumer’s
mind. Today almost every company from different industries uses advertisement as their basic tool
to encourage their goods and services, because it’s the best way to convey information to the huge
public in an effective and efficient manner (Ohanian, 1991). Consumers’ in the modern age are
reading and seeing many advertisements. Which they do not remember it, companies as result
endorse celebrities to promote products. Consumers are getting smarter that companies need to
address right advertisement for the users. According to (Parmar& Patel, 2014) the modern day
consumer is getting resistant to the exaggerated claims made in a majority of advertisements;
advertisers are focused on celebrities and their popularity for advertising their products.

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CELEBRITY VS NON-CELEBRITY ENDORSEMENT

It’s not just a chance that celebrity endorsement is the widespread application in advertising suite.
Research shows that celebrity endorsers proved to be more efficient in affect than other type of
endorsers like company employee, usual customer and the professional adept (Seno and Lukas,
2007). In order to ensure that the celebrities that are being used are exclusively endorsing a specific
product, have more supervisory command over them. Companies can construct and enhance
appeals that are compatible with their brand ethics and target customers. Contrary to this, celebrity
endorsers have developed an identity & personality of their own with the passage of time and
company lost regulatory power over them (Tom et al, 1992).
Earlier studies on celebrity endorsement disclose that as compared to a non-celebrity endorser,
celebrity endorsers has generated more affirmative behaviors in the direction of marketing and
increased buying target (Atkin and Block 1983; Ohanian, 1991).
SINGLE VS MULTIPLE PRODUCT ENDORSEMENT

We can categorized celebrity endorsement on the basis of number of products endorsed (single vs
multiple products) and the number of celebrities (single vs multiple celebrities). If a celebrity
endorsed only one product or brand then it is called single product endorsement. Subsequently,
it’s an exceptional case if celebrity endorsed a single product or brand usually celebrities prefer to
endorse more than one product or brand (Nam-Hyun Um, 2008).
SINGLE VS MULTIPLE CELEBRITY ENDORSEMENTS

Hsu and McDonald (2002) defined multiple celebrity endorsement as;

“The use of two or more celebrities in an advertising campaign”
He categorized multiple celerity endorsement, on the basis of how celebrities are presented in an
advertisement, into two portions. In the first setup, for endorsement of a product two or more
celebrities featured in an Ad. While in second scenario, the endorsement of the same product done
by featuring different celebrities in a series of the Ad. In the industry of Marketing and
advertisement, endorsing multiple celebrities is not a new sensation for advertisers.
According to Hsu & McDonald (2002) p.25,
“Multiple celebrity endorsement advertising may help the advertiser to build a sense of consensus,
avoid audience boredom and appeal to multiple audiences”

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People with this perception explains that multiple celebrity Ads shows that there is agreement
regarding product or service’s quality, hence “increasing the level of celebrity and persuasion”
(Ergin and Akbay, 7). Erdogan and Baker (1999) claimed in their study that in order to endorse a
particular brand, using multiple celebrities is most effective technique for the advertisers. Because
by doing this they can influence and attract the whole target market. Although, featuring multiple
celebrities in an Ad can also cause misperception regarding brand’s uniqueness in customer’s
perception and hence it should be guaranteed that:
“Each and every celebrity possesses compatible meanings that are sought for brands” (Erdogan
and Baker, 1999 p.13)

1.1.2 Purchase Intention or Buying Behavior

Tendency to buy a particular brand or product is known as purchasing intentions (Belch et al,
2004). Purchase intentions shows the probability that the person would purchase a product (Phelps
and Hoy, 1996). Spears and Singh (2004) states that it’s the sensible idea of doing struggle to buy
a brand in future. It was an element of customer cognitive behavior on how customer planned to
purchase a particular product, brand or service (Kwek,2010).
Perner (2009) defined consumer behavior as:
The study of individuals, groups or organizations and the processes they use to select, secure, use
and dispose of products, services, experiences or ideas to satisfy needs and the impacts that these
processes have on the consumer and society”. Consumer’s concern and anticipation in purchasing
a product were the factors that can be used in the measurement of purchase intention. Like,
customer’s interest, attending, information and evaluation were the most concerned variables that
decide the purchase intention (Laroche Zhou, 1996).

1.1.3 Celebrity Endorsement Communication Theories

In most advertisement using celebrity has advantage for the firms. By using such known
individuals, it is easy to catch customers mind. It does not mean that these celebrities have positive
perception on consumers towards the endorsed brands. Marketers should select celebrities
carefully in order to have positive image of the products they offer.
Theories have been applied to explain why celebrity endorsements might be effective in
advertising.

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1.1.3.1 The Communication Process
According to Belch and Belch (2001) a basic model of the various elements of the communication
process has evolved over the years. Two elements represent the major participants in the
communication process, the sender and the receiver. Another two are the major communication
tools, message and channel. Four others are the major communication functions and processes:
encoding, decoding, response, and feedback. The last element, noise, refers to any extraneous
factors in the system that can interfere with the process and work against effective communication.

Source Encoding

The sender, or source, of a communication is the person or organization that has information to
share with another person or group of people. The source may be an individual, say a salesperson
or hired spokesperson, such as a celebrity, who appears in a company’s advertisements or a non-
personal entity, such as the corporation or organization itself (Belch and Belch 2001).
Message

The encoding process leads to development of a message that contains the information or meaning
the source hopes to convey. The message may be verbal, nonverbal, or symbolic. Messages must
be put into a transmittable form that is appropriate for the channel of communication being used.
In advertising, this may range from simply writing some words or copy that will be read as a radio
message to producing an expensive television commercial.
Channel

The channel is the method by which the communication travels from the source or sender to the
receiver. Belch and Belch (2001) talk about two types of communication channels, personal and
non-personal channels. Personal channels of communication are face-to-face communication with
target individuals or groups, such as salespeople delivering their sales message to a potential
customer or social channels, such as friends, neighbors, co-workers, or family members. Personal
channels often represent word-of-mouth communication, which is a powerful source of
information for customers. Non personal channels of communication are those that carry a
message without face-to-face contact between sender and receiver. Non personal channels are
generally referred to as mass media or mass communications, since the message is sent to many

12
individuals at one time. Two major types of non-personal channels of communication exist, print
and broadcast. Print media include newspapers, magazines, direct mail, and billboards. Broadcast
media include radio and television.
Receiver / Decoding

The receiver is the person with whom the sender shares thoughts or information. Generally,
receivers are the consumers in the target market or audience who read, hear, and/or see the
marketer’s message and decode it. Decoding is the process of transforming the sender’s message
back into thought. This process is heavily influenced by the receiver’s field of experience, which
refers to the experiences, perceptions, attitudes, and values he or she brings to the communication
situation. Effective communication is more likely when there is some common ground between
the two parties. The more knowledge the sender has about the receivers, the better the sender can
understand their needs, empathize with them, and communicate effectively (Belch and Belch
2001).
Noise

Errors or problems that occur in the encoding of the message, distortion in a radio or television
signal, or distractions at the point of reception are examples of noise. Noise can be explained as
extraneous factors that can distort or interfere with its reception throughout the communication
process. Noise may also occur because the fields of experience of the sender and receiver do not
overlap. Lack of common ground may result in improper encoding of the message, so the more
common ground there is between the sender and the receiver; the less likely it is that noisewill
occur.
Feedback / Response

The receiver’s set of reactions after seeing, hearing, or reading the message is known as response.
Receivers’ responses can range from not observable actions such as storing information in memory
to immediate action such as dialing a toll free number to order a product advertised on television.
The part of the receiver’s response that is communicated back to the sender is called feedback
(Belch and Belch 2001).

13
1.1.3.2 The Meaning Transfer Model
McCracken (1989) proposes the meaning transfer model as a rich and comprehensive description
of the endorsement process. The central premise of the meaning transfer model is that a celebrity
encodes a unique set of meanings that can, if the celebrity is well used, be transferred to the
endorsed product. The model is divided into three stages: culture, endorsement and consumption.
Stage 1: Culture
According to McCracken (1989) celebrities are different from the anonymous models (or
anonymous actors) that are normally used to bring meanings to the advertisement. Celebrities
deliver meanings of extra subtlety, depth, and power. It is clear enough that advertisements can
undertake meaning transfer without the aid of celebrities.
Stage 2: Endorsement
McCracken (1989) suggests that the choice of particular celebrities is based on the meanings they
Optimize and on a sophisticated marketing plan. In the best of all possible worlds, the
marketing/advertising firm first would determine the symbolic properties sought for the product
(having determined which symbolic properties are in fact sought by the consumer). It would then
consult a roster of celebrities and the meanings they make available and, taking into account budget
and availability constraints, and then choose the celebrity who best represents the appropriate
symbolic properties.
Stage 3: Consumption
Consumers are constantly searching the object world for goods with useful meanings. They use
them to furnish certain aspects of the self and the world. The object world gives them access to
workable ideas of gender, class, age, personality, and lifestyle, in addition to cultural principles of
great number and variety. The material world of consumer goods offers a vast inventory of possible
selves and thinkable worlds. Consumers are constantly rummaging here.
According to McCracken (1989) the final stage of the transfer process is complicated and
sometimes difficult. It is not enough for the consumer merely to own an object to take possession
of its meanings, or to incorporate these meanings into the self. The meanings of the object do not
merely lift off the object and enter into the consumer's concept of self and world. There is, in other
words, neither automatic transfer of meaning nor any automatic transformation of the self. The
consumer must claim the meanings and then work with them.

14
1.1.3.3 Celebrity Endorsement Situation/Product Theories
In this section theories that deal with when a celebrity should be used as an endorser are reviewed.
Differences in the ways consumer’s process and respond to persuasive messages are addressed in
the Elaboration Likelihood Model (ELM) of persuasion. The ELM was devised by Petty and
Jacopo (1983) and has since then been the base for many studies (Mackenzie and Belch, (1986);
Heath, McCarthy and Mothers Baugh, (1994)13; Stephenson, et.al, (2001)). It was developed to
explain the process by which persuasive communications, such as advertising lead to persuasion
by influencing attitudes. According to this model, the attitude formation or change process depends
on the amount and nature of elaboration, or processing, of relevant information that occurs in
response to a persuasive message. High elaboration means that the receiver engages in careful
consideration, thinking, and evaluation of the information or arguments contained in the message.
Low elaboration occurs when the receiver does not engage in active information processing or
thinking but rather makes inferences about the position being advocated in the message on the
basis of simple positive or negative cues (Pettyand Cacioppo, 1983). The ELM shows that
elaboration likelihood is a function of two elements, motivation and ability to process the message.
Motivation to process the message depends on such factors as involvement, personal relevance,
and individual’s needs and arousal levels. Ability depends on the individual’s knowledge,
intellectual
Capacity and opportunity to process the message. According to the ELM, there are two basic routes
to persuasion or attitude change. The routes are central routes to persuasion and peripheral routes
to persuasion.
Central route to persuasion

Under the central route to persuasion, the receiver is viewed as very active, involved participants
in the communication process whose ability and motivation to attend, comprehend, and evaluate
messages are high. When central processing of an advertising message occurs, the consumer pays
close attention to message content and looks deeply into the message arguments. A high level of
cognitive response activity or processing occurs and the advertisement’s ability to persuade the
receiver depends primarily on the receiver’s evaluation of quality of the arguments presented.

15
Peripheral route to persuasion

Under the peripheral route to persuasion, the receiver is viewed as lacking the motivation or ability
to process information and is not likely to engage in detailed cognitive processing. Rather than
evaluating the information presented in the message, the receiver relies on peripheral cues that
may be incidental to the main arguments. The receiver’s reaction to the message depends on how
he or she evaluates these peripheral cues. The consumer may use several types of peripheral cues
or cognitive shortcuts rather than carefully evaluating the message arguments presented in an
advertisement.

1.1.3.4 Celebrity Endorsement Selection Theories

In this section theories that deal with how companies select a celebrity as endorser are reviewed.
Source Credibility

Source credibility is defined as;

“Communicator’s positive characteristics that subsequently influence the receiver’s evaluation of
the message” (Hovland and Weiss, 1951, Ohanion, 1991).
According to Ohanion (1990):
Source credibility was the degree to which the receiver would believe the source has certain degree
of relevant knowledge or expertise and they choose to believe the information offered by the
source”. In an advertisement source credibility simply reflects the endorser’s credibility (Aronson,
Turner and Carlsmith,1963). Credibility is taken as a significant element that can impact
customer’s buying behavior and their approach towards advertising (Lutz, Mackenzie and Belch,
1983).Endorser’s credibility is the most commonly used technique in marketing to influence
customer buying behavior (Lafferty & Goldsmith, 1999).In 1990 Ohanian proposed a model, and
according to him there are various elements that impacts the source credibility of an endorser
(Ahmad, Iqbal & Farooq, 2014). The source credibility model suggests the effectiveness of the
subject matter depends on the expertise and trustworthiness of the celebrity seemed by the
customer (Ohanian, 1991). The source credibility model explains that success of the message
depends on the level of expertise and trustworthiness that customers observed in a celebrity
(Sternthal, Dholakia et al, 1978).

16
Expertise

Expertise can be defined as;

“The extent to which the endorser is perceived to be knowledgeable, skillful and experienced”.
And it usually proves to be true (Hovland& Weiss, 1951). Expert endorser gives the benefits like
increasing brand remembrance and good impact on consumer’s buying behavior (Erdogen, 1999).
According to Ohanian (1991) the expertise observed in a celebrity is more convincing than
attractiveness & trustworthiness in order to enhance purchase intentions. Expert celebrity
endorsers usually proved to be more convincing (Aaker and Myers, 1987) and can easily persuade
the customer buying intention (Ohanian, 1991).
Trustworthiness

Trustworthiness can be defined as;

“The extent to which the endorser is perceived to be believable, honest and dependable”.
If these characteristics are readily available in an endorser, there is greater chance to be hired by
the marketers (Shimp, 2007). In the ratings of credibility, trustworthiness is most worthy in the
eyes of customer because it’s the non-physical trait that operates due to trust (Moynihan, 2004).
The significant elements of the trustworthiness are reliability, dependable, honesty, sincere &
trustworthy. In the desire of following the trend by the celebrity endorsers, most of the adolescents
are proved to be more dependable than their old generation (Pandey, 2011). A celebrity who
possess all the main factors of credibility source could significantly enhance the buying behavior
of customer (Liu et al, 2007).
Source Attractiveness

The source-attractiveness model has its origins in the social psychological research and is a
component of the "source valence" model of McGuire (McGuire 1985) according to (Ohanian,
1990). In this model The attractiveness model contends that the effectiveness of a message depends
on source's "familiarity,"" likability,"" similarity, and "attractiveness" to the respondent.
Similarity: - is a supposed resemblance between the source and the receiver of the message, while
Familiarity: - refers to knowledge of the source through exposure.
Likability: - is affection for the source as a result of physical appearance, behavior, or other
personal traits (Belch & Belch, 2003).

17
According to Belch and Belch (2001) marketers recognize that receivers of persuasive
communication, such as advertising, are more likely to attend and identify with people they find
likable, familiar or similar to themselves.
Source Power

The third and final source attribute is power. According to Kelman (1961) a source has power
when he or she can actually administer rewards and punishments to the receiver. As a result of this
power, a source may be able to induce another person to respond to the request or position the
source is advocating. In this case, influence occurs through a process known as compliance, which
means that the receiver accepts the persuasive influence of the source and takes his or her
positionin hopes of obtaining a favorable reaction or avoid punishment. The receiver may show
agreement with the source’s position in public, at the same time as he or she does not have an
internal or private commitment to this position.
According to Belch and Belch (2001) source power is very difficult to apply in a non-personal
influence situation such as advertising. An endorser in an advertisement generally cannot apply
any sanctions to the receiver or determine whether compliance actually occurs. An indirect way of
using power is by using an individual with an authoritative personality as endorser.
Celebrity endorsement as a strategy

Signing up famous celebrities to endorse a product has several advantages; marketers believe
that the highest reward they gain by endorsing celebrity is building up credibility, establishing
the level of trust, drawing attention and most importantly positively impacting consumers buying
behavior.

Celebrity endorsement is a success factor because when a normal person selling a product tells
you to try that product as it has helped them, there is a possible chance that consumers may or
may not believe them but when the same is said by a celebrity that the product has helped them,
then the consumers tend to listen to the celebrity and believe it and it does impact on consumers
buying behavior favorably.

Celebrity endorsement and the effects it has on consumers

A best and effective endorsement is done when a balance is maintained between the product and
the celebrity. When marketers assign a product or brand a celebrity, they are actually giving their

18
brand a face. Therefore choosing a celebrity is a very crucial decision and several parameters
should be considered like looks, appeal and popularity.

A general belief that prevails among advertisers is that brand message which is delivered by a
celebrity brings them better results because such recognized personality generates greater appeals
then those endorsed by non-celebrities. This quick reach of message to the audience and creating
an impact far too quickly is very essential. Celebrity endorsement does not guarantee any success
nor any impact on consumers buying behavior unless this strategy is well integrated with the
target market characteristics and other marketing mix elements like product design, packing,
pricing and branding itself.
Celebrity endorsement has continuously increased because it is considered essential for brand
communication as it is a key to marketing success. The primary factor that celebrity endorsement
creates a positive impact on consumers buying behavior is actually the public recognition of that
celebrity as an admirable and desired cultural force.

The reason that celebrity endorsement is increasing used especially to appeal women in cosmetics
and ladies apparel is because of the nature of such products and also in such fields, celebrity
endorsement brings about a positive advertisement result, increase in the rating of the products
and also increase in the purchasing of those products.

There are many theories done in this aspect, which are:

Kokil Theory

According to Kokil, celebrity is that person who has excelled in his field of action and thus enjoys
fame on being recognized far and wide. Marketers believe that celebrity endorsement generates
several advantages which include building credibility, fostering trust and drawing attention of
the consumers which will result into sales for that brand. Celebrity endorsement is that successful
strategy that helps to raise the sales and capture market share, this technique provide a product
with a glamorous touch and sparkle the expectation that a popular look will give that product an
added appeal and a recognition.

Through endorsing a celebrity, marketers actually excites their consumers by showing them a
very admirable and famous face and succeeded in creating a demand because through this tactic,

19
marketers are also increasing the recall value of their brand which positively creates an impact
in the consumers buying behavior.

Kaikai (1987), states that the use of celebrities in advertisements results in;

• Facilitating brand identification

• Impressing or altering negative attitude towards the brand
• Repositioning an existing brand
• Positioning a new brand or product
• Positively impacting consumers buying decisions

Celebrity endorsers can translate into very effective brand messengers but they are also associated
with the risk which is:

• Celebrities charged as guilty because of the happenings of some negative events can have
harmful effects on that product and overall brand.

Kamile Theory

Kamile mentions that customers normally comprise a very encouraging approach towards those
who are attractive. McGuire (2000) state that usefulness of any kind of communication depends
on:
• Similarity
• Familiarity
• Likeability
Researchers have proved that physical attractiveness can very easily change beliefs of the people
(Chaiken 1979). Similarity is the name of semblance involving the receiver of message and
source of the message.

Attractiveness of the source that is celebrity leads consumers to persuasion and the consumer
gets motivated and is willing to bind themselves into a relationship with the celebrity by adopting
the same beliefs, attitude and behavior as is done by the celerity (source) and if the source
changes its position or attitude, the consumers following the celebrity may also follow their lead.

20
2.2 Empirical Review
Different researchers are examined the relationship between celebrity endorsers and brands to
explain how celebrities affect the customers buying behavior. Although, there are few empirical
estimates of the effect of celebrity endorsement on consumers buying behavior; it is clear that
celebrities have the ability to influence the behavior of their fans in other arenas.
According to (Martin Johansson and ÖmerBozan, 2017) conducted research on how does celebrity
endorsement affect consumers' perception on brand image and purchase intention. The study
shown that having a celebrity that is seen as trustworthy and expert in his field do have a positive
impact on the attitude to the celebrity, thus, a positive impact on brand attitude. Even though the
celebrity is not seen as an expert in the endorsed product, they still have a positive impact as long
as they are experts in their own field. Expertise and trustworthiness in the celebrity endorser gives
the brand a sense of believability and credibility. Having a successful celebrity endorser gives the
brand an image of being of high quality. Furthermore, the attractiveness of the celebrity endorser
brings even more reliability to the brand. The research also showed that the attractiveness attribute
is more than just physical attractiveness; it also includes athletic performances, success and way
of living.
According to (Humaira Mansoor Malik and Muhammad Mehtab Qureshi 2016) they conduct a
researh on Impact of Celebrity Endorsement on Consumer Buying Behavior It was found that some
aspects of celebrity endorsement like gender, attractiveness, credibility, endorser type & multiple
celerity endorsement proved to be effective with respect to buying intentions while multiple
product endorsement has negative relationship with consumer buying behavior. In the end the
study aims to prove that the overall impact of celebrity endorsement on consumer’s buying
intentions is positive.
According to (Israel Kofi Nyarko, Vincent Asimah, EdinamAgbemava, and Ernest Kafui Tsetse,
2015) they conduct a research on The Influence of Celebrity Endorsement on the Buying Behavior
of the Ghanaian Youth: A Study of FAN Milk Ghana Ads. Findings from the survey indicates that
approximately forty-six percent of the sampled population bought Fan Milk products because of a
celebrity whereas thirty-nine percent (approximately) indicated that they bought Fan Milk products
whether endorsed or not by a celebrity. Fifteen percent hinted that they sometimes bought due to

21
celebrity endorsement and other times not. These responses confirm the perception that product
endorsement by celebrities is an effective promotional tool in modern marketing practice.
In Ethiopian context (Bahiru, 2015) has conducted research on the Effect of Celebrity
Endorsement on Consumers’ Attitude and Purchase Intention: The Case of Ethiopian Banking
Industry. The result shows that consumers have positive attitude towards the celebrity endorsed
bank advertisements. In addition, celebrity endorsements (measured by the attributes of
attractiveness, expertise, trustworthiness, and product/celebrity match) have positive influence on
the attitude consumers have towards the endorsed brand and their purchase intention. Although all
the attributes have positive influence on the consumers’ attitude and purchase intention,
product/celebrity match and expertise have the highest influence on consumers’ attitude towards
the brands while physical attractiveness and trustworthiness have the highest influence on purchase
intention.
According to (Edom Birhanu, 2017) Conducted research on the effect of celebrity Endorsement
on customers’ usage behavior: The case of Ethiopian Banking Industry. The result shows
celebrities perceived expertise; product /celebrity match and trustworthiness directly influence
customer’s usage behavior in the banking sector. Customers have positive rating for perceived
expertise and trustworthiness of the celebrity in the banks advertisement. The other objective of
the study physical attractiveness has negative rating for physical attractiveness in the bank
advertisement. The last finding of the research is there is no significant difference between the
public and private bank advertisement which is endorsed by celebrities.

22
2.3 Conceptual Framework
The key purpose of this research is to find out the influence of celebrity endorsement brand
advertising on consumer buying behavior. A conceptual framework is adopted, which is presented
in below. It is designed in order to clearly understand the relationship between independent
variables as related to dependent variable of the study. On the left hand side, there are present all
the independent variables which are Expertise, Trustworthiness and Attractiveness. While on the
right hand side the only single dependent variable ‘Consumer Buying Behavior’ is present.

SOURCE OF CELEBRITY ENDORSEMENT

EXPERTISE

T TRUSTWORTHINESS BUYING BEHAVIOR

ATTRACTIVENESS

Source: adopted and modified Sultan & Mannan, 2015

Figure 1: Conceptual Framework of the Study

23
 CHAPTER THREE

Research Methodology

3.1 Introduction
This chapter was discussing the research methodology used for conducting this research.
Description of the study area, research approach, research design, population and sample, data
sources and types, data collection procedures, ethical consideration and finally methods for data
analysis to the study will be explained.

3.2Description of the study area

Commercial Bank of Ethiopia was legally established as a share company in 1963 to take over
the commercial bank activities of the State Bank of Ethiopia, which was founded in 1942 with
twin objective of performing the duties of both commercial bank and central banking
(www.deepethiopian.com, 2014). During the 1974 revolution Commercial Bank of Ethiopia got
its strength by merging with the owned Addis Ababa Bank. Since then, it has been playing a
significant role in the development endeavors of the country.

The bank has been playing a pivotal role in advancing economic development of the country for
70 years now. This role can be maintained only when it is able to keep-up its good image by
providing service that are most demanded by customers in the way they like it. To attain this, it
has to continue improving the way it does business i.e. the way it provides service to its customers
and the image it creates in the eyes of stakeholders have to go on improving. This is possible only
when the bank is proactive and is able to perfect its strategies when surrounding dynamics change.

The commercial bank of Ethiopia still dominates the market in terms of asset, deposit, capital, and
customer base and branch network. Despite the growing competition from private banks, CBE
become powerful in all rounded banking business especially on deposit mobilization strategy. This
makes it one of the most reliable and strong commercial banks in country and the region. Yet the
bank is coming short in appealing to its customers despite scoring so much good qualities.

24
Its strong capital base , for the last seven decades of rich experience in the market and wide branch
network throughout the country have enabled the bank to accommodate the large demand for its
service and increase its overall revenue on sustainable basis. The bank with its employee and
management has aspiration to promote sound liquidity management framework which enables the
bank bring itself to standard of modern international business practice and be competent enough
in the national and international market.
Today, more than ever before, CBE aggressively expanded its presence in all directions of the
country. Despite the flourishing of private commercial banks in the country, CBE has remained
potent and is in the lead in terms of assets, deposits, capital, and customer base.
The Commercial Bank of Ethiopia, which is striving to become a world class bank, is rendering
state of art and reliable service to its millions of customers both at home and abroad. The business
strategy of the bank focus on the interest of the public it serves. As of June 30th 2018 its deposit
stood at birr 451.80 billon; while total asset of the bank reached birr 565.50 billon and (CBE,
annual report 2018 ).The bank also has more 1,280 branches across the country and more than
34,879 employees whom as its key asset.
Accordingly, Commercial Bank of Ethiopia envisions ‘becoming world class commercial bank by
the year 2025. In its strategic document too, it is clearly stated that the bank values both its
customers and employees as not only important but also essential actors in all its endeavours of
fulfilling public expectations.
Commercial Bank of Ethiopia is a leading bank in Ethiopian Banking Industry across numerous
variables such as annual profit, number of branches, and number of employees and customers.
Additionally, the bank uses various advertising techniques to promote its products and services.
One of its main advertising tools is celebrity endorsement. That is why the study area mainly
revolves around representative customers of CBE and their buying behavior in reaction to
celebrities endorsing CBE’s services.

3.3 Research Approach

For the collection of data quantitative approach was used. A quantitative approach is a means for
testing objective theories by examining the relationship among variables. These variables, in turn,
can be measured, typically on instruments, so that numbered data can be analyzed using statistical
procedures (Creswell, 2008).

25
Quantitative approach was followed because it allows the study to examine the influence of
celebrity endorsement brand advertising on consumers buying behavior the case of commercial
bank of Ethiopia and also the study aims at collecting and converting data into numerical form.
Like qualitative researchers, those who engage in this form of inquiry have assumptions about
testing theories deductively, building in protections against bias, controlling for alternative
explanations, and being able to generalize and replicate the findings.

3.4 Research Design

A research design is the arrangement of conditions for collection and analysis of data in manner
that aims to combine relevance to the research purpose with economy in procedure (Creswell,
2009).

As this study aims to examine the effect of celebrity endorsement on consumer buying behavior
of banks from the viewpoints of banking clients, thus it targets to measure relationships between
variables, a combination of descriptive and explanatory type of research were used. Descriptive
type of research were used because it involves investigation which provides detailed picture of the
situation and detail description of the findings displayed in tables and charts as well as to develop
inferences on the relationship between celebrity endorsement and consumer buying behavior.
Explanatory type of research was also applied since it enriches and supports the previous theories
through comparing the findings with research questions.

3.5 Data Sources and Types

In order to facilitate the research, the researcher was used both primary and secondary source of
data.

Primary Source of Data

Primary data are those which are collected afresh and for the first time and thus happen to be
original in character. From primary data collection techniques, a survey method of data collection
is appropriate for celebrity endorsement and customers buying behavior and it was employed for
this research.

26
Secondary Source of Data

Secondary data are those which have already been collected by someone else and which have
already been passed through the statistical process. The research was used secondary sources of
data from different research articles, books and other publications to develop conceptual frame
work and review literatures in the area of the influence of celebrity endorsement brand advertising
on consumers buying behavior.

3.6 Population and sample size

Population

The main objective of the study is to examine the influence of celebrity endorsements brand
advertising on customer buying behavior the case commercial bank of Ethiopia, so the target
population of the study is customers of commercial bank of Ethiopia in Addis Ababa selected
branches. The target population of the study can be considered as finite population. Because the
banks customers are registered on the banks data base.

Sample Size

The target populations of the bank are considered as finite because all customers are registered on
the banks data base but taking all population for the research is impossible. Due to this the
researcher was take a sample from the population. As result, the following sampling formula for
finite population was used to come up with the sample size. In commercial bank the total target
population is 18,000,000 loan and deposit customers as of June, 2018. Sample size was calculated
in the following formula and had come to be 400 respondents.

Sample size is determined by using the following statistical formula developed by Yemane Taro,
1967 as cited by Glenn D. Israel, 2009:

= 18,000,000
1+18,000,000*(0.05)2

n
= 399.99

27
 Where n= Sample Size
N= population
e = Sampling error/ level of precision e= 5%

The procedure of sampling for selecting sample respondents is selecting respondents from branch
of Commercial Bank of Ethiopia according to convenient sampling Technique.

3.7 Data collection procedure

Closed/ structured questions method of data collection is quite popular, particularly in case of big
enquiries (Kothari, 2004). In this research survey, a closed ended questionnaire was developed for
self-completion by respondents.

The questionnaire in this research consists of general and specific questions. The general questions
are concerning to gather general information about the respondents‟ gender, age, and education.
The specific questions construct measures are based on extensive review of the literature on
celebrity endorsement and consumer buying behavior. The respondents were asked to rate their
level of perception of the four variables on five point Likert scale.

3.8 Data Analysis

When the data collection is done, the analyzing of data was begin with the Statistical Package for
the Social Sciences (SPSS). The regression analysis was used to measure and predict the
relationship between the independent variables and the dependent variable. The independent
variable “celebrity endorsement” was measured by its attributes; Expertise, trustworthiness and
attractiveness. Descriptive analysis such as frequencies, percentages, means and standard
deviations used to summarize and present the data. In addition to this, Pearson correlation
coefficient were used to show the interdependence between the independent and dependent
variables. Pearson Correlation Coefficient is a widely used statistical method for obtaining an
index of the relationships between two variables when the relationships between the variables is
linear and when the two variables correlation are continuous. To ascertain whether a statistically
significant relationship exists between dependent variable and independent variables, the Pearson's
Correlation Coefficient was used.

28
3.9 Reliability and Validity of the Instrument
Instrument Validity

Validity defined as the extent to which data collection method accurately measure what they were
intended to measure (Saunders et. al., 2009).Validity is concerned with whether the findings are
really about what they appear to be about.

A number of different steps were taken to ensure the validity of the study. First data were collected
from reliable sources, from respondents who are more experience in using banking; survey
question were made based on literature review and frame of reference to ensure the validity of the
result.

In regard to the celebrity endorsement and consumer buying behavior, a question adopted from
previous researches is used for this study and related literature. Proper detection by an advisor
were also take to ensure validity of the instruments. Besides, the opinion of bank experts and
academicians in the field will be taken to ensure the validity of the instrument. The questionnaire
was finally revised based on the field feedback collected from experts in the field.

Instrument Reliability

The reliability of instruments measures the consistency of instruments. Creswell (2009) considers
the reliability of the instruments as the degree of consistency that the instruments or procedure
demonstrates. The reliability of a standardized test is usually expressed as a correlation coefficient,
which measures the strength of association between variables. Such coefficients vary between -
1.00 and +1.00 with the former showing that there is a perfect negative reliability and the latter
shows that there is perfect positive reliability.

In this study each statement rated on a 5 point likert response scale which includes strongly
disagree, disagree, neutrals, agree and strongly agree. Based on this an internal consistency
reliability test will be conducted with a sample of 30 customers and the Cronbach's alpha
coefficient for the instrument was calculated. Sekaran (2000) points out that the closer the

29
coefficient is to 1.00, the greater the reliability of the instrument. It is generally accepted that a 0.7
or higher value of the Cronbach's alpha coefficient represents high reliability.

Table 3.1 Reliability Test

Cronbach's N of
Measurement Scale Alpha Items
Expertise .893 5
Trustworthiness .917 5
Attractiveness .890 5

Source: Survey Data (2019)

3.10 Ethical Consideration

The general rules and regulation of research ethics was followed by the researcher .In such a way
that respondents were requested to provide information on voluntary basis, and the information
received from the respondents was kept confidentially. The researcher should have honesty in all
communication process by collecting, analyzing and reporting the data accurately.

30
 CHAPTER FOUR

Data Analysis

4.1. Introduction
In this chapter the results of the study are presented and discussed with reference to the aim of the
study which was determine the influence of celebrity endorsement brand advertising on consumer
buying behavior the case commercial bank of Ethiopia. General information of the respondents
are presented and the research questions are answered by presenting the analysis of dependent
and independent variables correlation and regression .The data collected through survey are
analyzed using statistical tool of SPSS Version 20.

4.2 Survey Response Rate

To facilitate the study 400 questioners was distributed to customers in different branch. From 400
questioners 378 were returned back but only 369 valid questioners were received, the other or 9
were invalid questioners. The valid 369 were accepted back by response rate of 94.5% and out of
400 questioners distributed 92.50% valid questioner returned.

4.3 Demographic profile of Respondents

Out of the total 369 respondents, 159 of them fall in the age category of 18-30 comprising 43.1%,
secondly in the age category of 31-40 with 107 respondents (29%). Respondents with the age
group of 41-50 with 63 respondents (17.10%)and those 51 and above with 40 respondents
(10.8%).On the other hand, looking at the distribution of the respondents in terms of gender, male
respondents 196 (53.1%) and female respondents 173 (46.9%). However, it can be said that both
male and female respondents are fairly included in the study. On the other hand, looking of
respondents education level 194 (52.6%) were first degree holders, secondly 97 (26.3%)
respondents were second degree and above and lastly 78 (21.1%) respondents were diploma and
below .With respect to customers of the bank in a years70 (19%) were less than 5 years , 126
(33.3%) were 5-10 years ,76(20.6) respondents were 10-15 years , 59 (16.0%) of respondents were
15-20 and finally 41 ( 11.1%) were more than 20 years customer. The last demographic point is
occupation, With respect to occupation, majority of the respondents are employees’ organizations
covering 278(75.3%) followed by business owner 43 (11.7%). 18(4.9%) of the respondents were

31
students remaining were on other category which constitute of 30(8.1%). The higher number of
the employees in the survey clearly reflect the nature of banks’ customers in a sense that it is these
customer groups who frequently visit bank branches for salary and deposit purposes.

Table 4. 1 General Demographic Information

Cumulative
Frequency Percent Percent
18-30 159 43.1 43.1
31-40 107 29.0 72.1
41-50 63 17.1 89.2
AGE
51 AND ABOVE 40 10.8 100.0

Total 369 100.0

MALE 196 53.1 53.1
GENDER FEMALE 173 46.9 100.0
Total 369 100.0
DEPLOMA AND 78 21.1 21.1
BELOW

FIRST DEGREE 194 52.6 73.7

EDUCATION SECOND DEGREE 97 26.3 100.0

AND ABOVE

Total 369 100.0

STUDENT 18 4.9 4.9
BUSINESS 43 11.7 16.5
OWNER
OCCUPATION EMPLOYEE 278 75.3 91.9

OTHER 30 8.1 100.0

Total 369 100.0
>5 YEARS 70 19.0 19.0
5-10 123 33.3 52.3
10-15 76 20.6 72.9
HOW LONG
15-20 59 16.0 88.9
< 20 YEARS 41 11.1 100.0

Total 369 100.0

Source: survey Data (2019)

32
4.4 Overview of Respondents’ perception toward different variables.
In this section we will discuss the respondent’s perception about the dependent and independent
variables.

4.4.1 Consumers perception on consumer’s buying behavior

This section of the questionnaire tested the attitude and views about buying behavior of CBE
customers. A series of six statements were presented to respondents and respondents were asked
to rate their level of agreement with each statement. Table 4.3 indicates the mean and standard
deviation for each item.

According to the data illustrated below, respondents agree that they use the service of the bank
because they are well aware of the service endorsed by the celebrity with mean score of 3.52.
Respondents also agree that they use the service of the bank because of the
expertise of the celebrity mean score of 3.34. Respondents agree that they use the service of the
bank because of the trustworthiness of the celebrity with mean score of 3.37 However, respondents
have neutral attitude towards use of service of the bank because of the
Physical Attractiveness of the celebrity with mean score of 3.04. Respondents, on the other hand
have agreeing attitude towards finding the advertisement by the celebrity to be
personally relevant for them with mean score of 3.64. Similarly respondents have agreeing attitude
towards that they will use the service of the bank endorsed by the celebrity with mean score of
3.82. The overall mean for the perception of consumer behavior is 3.45, indicating that the majority
of respondents are towards agreeing level agreement with the statements specified in the study.

Table 4.2 perceptions on consumer’s buying behavior

Descriptive Statistics
Std.
Consumer Buying Behavior Mean Deviation
I use the service of the bank because I am well aware of the
3.52 1.063
service endorsed by the celebrity.
I use the service of the bank because of the
3.34 1.100
expertise of the celebrity.
I use the service of the bank because of the
3.37 1.105
trustworthiness of the celebrity
I use the service of the bank because of the
3.04 1.224
Physical Attractiveness of the celebrity

33
 I found the advertisement by the celebrity to be
3.64 1.052
personally relevant for me
I will use the service of the bank endorsed by the celebrity 3.82 1.038
over all perception for Consumer's Buying Behavior 3.45 1.1
Source: survey Data (2019)

4.4.2 Consumer’s perception on celebrity’s expertise

This section of the questionnaire tested the attitude and views of CBE customers about celebrity
expertise. A series of five statements were presented to respondents and respondents were asked
to rate their level of agreement with each statement. Table 4.4 indicates the mean and standard
deviation for each item.

According to the data illustrated below, respondents choose that celebrity endorsed by CBE is
expert with mean score of 3.76. Respondents also choose that celebrity endorsed by CBE is
experienced mean score of 3.96. Respondents choose that celebrity endorsed by CBE is
knowledgeable with mean score of 3.37. Respondents choose that celebrity endorsed by CBE is
qualified with mean score of 3.87. Similarly respondents choose that celebrity endorsed by CBE
is skilled with mean score of 3.96. The overall mean for the perception of celebrity’s expertise is
3.88, indicating that the majority of respondents believe in the expertise of the celebrity.

Table 4.3 perception on Expertise

Descriptive Statistics
Std.
Mean
EXPERTISE Deviation
Not an expert/ Expert 3.76 1.076
Inexperienced/ Experienced 3.96 .952
Unknowledgeable/ Knowledgeable 3.88 1.093
Unqualified/ Qualified 3.87 1.115
Unskilled / Skilled 3.96 1.069
over all perception for celebrity expertise 3.88 1.06
Source: survey Data (2019)

34
4.4.3. Consumer’s perception on celebrity’s Trustworthy
This section of the questionnaire tested the attitude and views of CBE customers about celebrity
trustworthiness. A series of five statements were presented to respondents and respondents were
asked to rate their choice with each statement. Table 4.5 indicates the mean and standard deviation
for each item.

According to the data illustrated below, respondents choose that celebrity endorsed by CBE is
dependable with mean score of 3.79. Respondents also choose that celebrity endorsed by CBE is
honest mean score of 3.96. Respondents choose that celebrity endorsed by CBE is reliable with
mean score of 3.94. Respondents choose that celebrity endorsed by CBE is sincere with mean
score of 3.07. Similarly respondents choose that celebrity endorsed by CBE is trustworthy with
mean score of 3.10. The overall mean for the perception of celebrity’s trustworthiness is 3.97,
indicating that the majority of respondents believe in the expertise of the celebrity.

Table 4.4 perception on Trustworthy

Descriptive Statistics

Trustworthy Mean Std. Deviation

Undependable/ Dependable 3.79 1.036
Dishonest / Honest 3.96 1.055
Unreliable / Reliable 3.94 1.034
Insincere / Sincere 4.07 .991
Untrustworthy / Trustworthy 4.10 1.052
over all perception for Celebrity 3.97 1.033
Trustworthy
Source: survey Data (2019)

4.4.4 Consumer’s perception on celebrity’s Physical Attractiveness

This section of the questionnaire tested the attitude and views of CBE customers about celebrity’s
physical attractiveness. A series of five statements were presented to respondents and respondents
were asked to rate their choice with each statement. Table 4.6 indicates the mean and standard
deviation for each item.

According to the data illustrated below, respondents choose that celebrity endorsed by CBE is
attractive with mean score of 3.88. Respondents also choose that celebrity endorsed by CBE is

35
classy mean score of 3.89. Respondents choose that celebrity endorsed by CBE is beautiful with
mean score of 3.84. Respondents choose that celebrity endorsed by CBE is elegant with mean
score of 3.91. Similarly respondents choose that celebrity endorsed by CBE is sexy with mean
score of 3.73. The overall mean for the perception of celebrity’s physical attractiveness is 3.85,
indicating that the majority of respondents believe in the expertise of the celebrity.

4.5 perception on Physical Attractiveness

Descriptive Statistics
Std.
Physical Attractiveness Mean Deviation
Unattractive/ Attractive 3.88 1.043
Not classy/ Classy 3.89 1.017
Ugly / Beautiful 3.84 1.089
Plain / Elegant 3.91 1.000
Not sexy / Sexy 3.73 1.075
over all perception for Celebrity Physical Attractiveness 3.85 1.04

Source: survey Data (2019)

4.4.5 Comparison of consumer’s perception on attributes of buying behavior

Table 4.6 Comparison of Attributes

Attributes of buying behavior Mean Std. Deviation Rank

Trustworthy 3.97 1.033
1
Expertise 3.88 1.060
2
Physical Attractive 3.85 1.040
3
Source: survey Data (2019)

According to computation from survey data the above table show the overall mean for the buying
behavior attributes. .From the finding of the mean score value celebrity Trustworthiness
represented the highest overall mean score value (3.97) meaning CBE customers have a greater
believe on the celebrities trustworthy rather than the other attributes. Expertise of celebrity is
followed by the mean score value of (3.88) and finally Physical Attractiveness of the celebrity is
in third rank by the mean score value of (3.85).

36
4.5 Correlation analysis
In this study Person’s correlation was used to determine the significant relationship between
independent variables (Expertise, Trustworthy and Physical Attractiveness) and dependent
variable (Buying behavior). The next table present the result of correlation between variables and
there any strength relationship between those variables .This relationship strength ranging from
week to moderate to high.

Table 4.7 Correlation between Variables

Usage Behavior
Expertise Pearson Correlation .492**
Sig. (2-tailed) .000
N = 369
Trustworthiness Pearson Correlation .462**
Sig. (2-tailed) .000
N = 369
Attractiveness Pearson Correlation .501**
Sig. (2-tailed) .000
N = 369
As indicated in the above table between expertise and buying behavior (r=0.492) this result shows
there is a medium/ moderate correlation between the variables this may implies when the bank
chooses more expertise celebrity the consumer buying behavior also moderately increases.

The relationship between trustworthy and consumer buying behavior (r=0.462) this result also
shows there is a medium /moderate correlation between the variables from this result it can be said
when the bank increases trustworthiness of the celebrity the consumer buying behavior also
moderately increases.

The relationship between physical attractiveness and consumer behavior (r=0.501) this result
shows there is strong correlation between the variables from this it can be increase in celebrity
physical attractiveness the consumers buying behavior also increase.

4.6 Assumption Testing in Multiple Regressions

Multiple regression is statistical technique it used when we want to predict the value of variable
based on the value of two or more variables. Then, the following assumptions should be done.
(Pallant, 2005). This study has conducted the assumption tests such as sample size, linear
relationship, multi-co linearity and auto correlation.

37
 i. Sample size :- According to Tabachnick and Fidell(2001) give a formula for calculating
sample size requirements,
N > 50+8M
Where, M = No. of Independent variable
In this study there are three independent variables and result become 74 but in studies there
were 369. Therefore the study satisfied sample size assumption.
ii. Linear relationship: - Buying Behavior is assumed to be linearly related with celebrity
endorsement attributes. The relationship between the two variables should be linear. This
means that the scatter plot of score should be a straight line not curve (pallant, 2005). The
scatter plot of this study shows there is almost linear relationship between variables. As
presented below plots do not show non- linearity .Therefore, the assumption of linearity is
satisfied.

38
 Figure 2 Q-Q plot of usage behavior

iii. No or little multi-co linearity: - This assumption used to describe correlation among
independent variables. If there is high correlation between two or more independent
(predictor) variables may cause problems when trying to draw inferences about the
Relative contribution of each predictor variable to the success of the model (pallant, 2005).In this
study Multi-co linearity was tested using Variance inflation factor (VIF) value and tolerance value .If
VIF value < 10 is acceptable and tolerance is close to 1 there is no multi-co linearity between
independent variables. Therefore, the assumption of multi co linearity is satisfied.

Table 4.8 Co linearity Statistics

Coefficientsa

Model Co linearity Statistics

Tolerance VIF

TRUSTWORTHNESS .414 2.416

1 ATTRACTIVNESS .545 1.835

EXPERTISE .450 2.224

a. Dependent Variable: USAGEBEHAVIOR

Source: survey Data (2019)

iv. No auto correlation

Regression analysis was conducted to examine the influence of the independent variables
(expertise, trustworthiness and physical attractiveness) on the dependent variable "consumers
buying behavior”. This assumption is tested for each regression procedure with Durbin-Watson
test, which test for correlation between variable residuals. The test statistic can vary between 0 and
4 with a value of 2 meaning that the residuals are uncorrelated (Field, 2009). The value greater
than 2 indicates a negative correlation between adjacent residuals, whereas a value below 2
indicates a positive correlation. If Durbin Watson statistic is approximately 2 and an acceptable
range is 1.50- 2.50 (Muludam, 2015). In this study the Durbin Watson value was 1.749 which is
within the acceptable range, therefore it can be confirmed that the assumption of independent error
has almost certainly been met.

39
4.7 Multiple Regression Analysis
In this section multiple regressions was used to examine impact of celebrity endorsement on
consumer buying behavior.

Table 4.9 Model Summery

Model Summaryb

Adjusted R Std. Error of the Durbin-

Model R R Square Square Estimate Watson
1 .558a .312 .306 .73999 1.749
a. Predictors: (Constant), ATTRACTIVNESS, EXPERTISE, TRUSTWORTHNESS
b. Dependent Variable: USAGEBEHAVIOR
Source: survey Data (2019)

Overall, the model summary table above reveals that all independent variables
accounted for 31.2% of the contribution to consumer buying behavior (R2 = 0.312).
Thus, 31.2% of the variation in consumer buying behavior can be explained by the three
celebrity endorsement attributes and other factors may limit contribution of celebrity
endorsement to the consumer buying behavior which accounts for about 68.8%, as
shown in the table.

For the purpose of determining the extent to which the independent variable such as
Expertise, Trustworthy and Attractiveness were examined on dependent variable
(Buying Behavior) using multiple regression. Regression analysis was employed after
the study met the regression assumptions. The significance level of 0.05 with 95 %
confidence interval was used. The F-test is used to find out the overall probability of the
relationship between the dependent variable and all the independent variables occurring
by chance (Saunders, et al., 2009). The Analysis of Variance (ANOVA) indicates that
the F value of 55.140 with significance level of 0.000 and since the observed significant
is less than 0.05.

40
 Table 4.10 Anova Test
ANOVAa
Sum of Mean
Model Squares Df Square F Sig.
1 Regression 90.581 3 30.194 55.140 .000b

Residual 199.868 365 .548

Total 290.449 368

a. Dependent Variable: USAGEBEHAVIOR
b. Predictors: (Constant), ATTRACTIVNESS, EXPERTISE, TRUSTWORTHNESS

Source: survey Data (2019)

As indicated below coefficients of the regression equation, which shows that all the independent
variables (Expertise, Trustworthy and Attractiveness) have positive relationship with the
dependent variable (Consumers Buying Behavior).

Table 4.11 Coefficient

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Std.
Model B Error Beta t Sig.
1 (Constant)
.971 .198 4.901 .000
EXPERTISE
.248 .065 .248 3.835 .000
TRUSTWORTHNESS
.097 .067 .098 1.450 .148

ATTRACTIVNESS
.294 .060 .288 4.900 .000

a. Dependent Variable: USAGEBEHAVIOR

Source: survey Data (2019)

The predicted equation for customers’ usage behavior is given as;

BB= 0.971 + 0.248E + 0.098T + 0.288A

Where,

41
BB= Buying Behavior

E= Expertise

T=Trustworthy

A= Attractiveness

From the above regression equation, it can be inferred that, as the expertise of the celebrity
increases by one unit, consumer buying behavior will increase by 0.248 units. From the result it
can be said that there is a positive relationship between expertise & consumer buying behavior.

As Trustworthiness is increase by one unit would result in an increase in consumer’s buying

behavior by 0.098 unit of value. From the result it can be said that there is a positive relationship
between trustworthiness & consumers buying behavior.

As Attractiveness is increase by one unit would result in an increase in consumer’s buying behavior
by 0.288 unit of value. From the result it can be said that there is a positive relationship between
trustworthiness & consumers buying behavior.

42
 CHAPTER FIVE

Summary, Conclusions and Recommendation

5.1 Introduction
In previous chapter the analysis of the study was discussed. The focus of this chapter is to
present summaries of the finding, conclusion and recommendation.

5.2 Summary of the study findings

The objective of this research is to examine the influence of celebrity endorsement brand
advertising on consumer buying behavior the case of commercial bank of Ethiopia. To examine
the influence the researcher uses various attributes of celebrity endorsement like Expertise of
celebrity, Trustworthy of celebrity and physical attractiveness of the celebrity. The result of
the study provides information about which attribute of celebrity has a great impact on
consumer buying behavior.

With respect to the objectives of the study ,the result of the study investigate the level of
consumer perception on the attributes of celebrity endorsement on their buying behavior
.Respondents shows their attitudes toward celebrity endorsement and buying behavior with the
following result of descriptive statistics.

 The overall mean value of expertise of the celebrity 3.88 which indicates that the
consumers of the bank have a positive level of agreement on celebrity expertise.
 The overall mean value of trustworthy of the celebrity 3.97which indicates that the
consumers of the bank are agree on the level of agreement on celebrity trustworthy.
 The overall mean value of physical attractiveness of the celebrity 3.85 which indicates
that the consumers of the bank have a positive level of agreement on celebrity physical
attractiveness.
The General objective of the study was to examine the influence of celebrity endorsement
brand advertising on customers buying behavior. To test this relationship Person Correlation
test was conducted and the result shows the three attributes of celebrity endorsement have a
positive effect on consumers buying behavior. As the Anova test the result shows no significant

43
variation between dependent and independent variables. From this can be conclude there is
significant relationship between attributes of celebrity endorsement and buying behavior.

5.3 Conclusion
Nowadays advertising plays a vital role in marketing .Marketers uses different advertising tools
to promote their product and service. From the various tools celebrity endorsement is the one
selected by the celebrities. Recently in Ethiopia marketers are trying to advertise product and
services by celebrities. This is to capture the attention of the customers for the brands they
advertise by celebrities creating personality in product promotion marketing.

Among the different models of celebrity endorsement, this study makes use of the Ohanian’s
source credibility model to formulate the conceptual framework. The survey was conducted
on commercial bank customers found in Addis Ababa selected braches which are convenient
for the researcher and descriptive analysis was used to summarize respondents’ feeling on
celebrity endorsement. On Correlation and multiple regression analysis were also used
examine the effect of celebrity endorsement on consumer buying behavior. The result of on
celebrity endorsement, as measured by the three celebrities attributes Expertise,
trustworthiness and physical attractiveness.

As such the results of the study prove that attributes of celebrity endorsement has positive
relationship with consumers buying behavior. Celebrity endorsement create interest in
consumers and consumers are make purchase decision .In this regard it can be conclude that
each attributes of celebrity endorsement influence the consumer buying behavior.

 Consumers have positive rating for all attributes of celebrities. They have also positive
attitude towards the endorsed bank brands and have shown their intention to use the
services of commercial bank of Ethiopia.
 The attributes of expertise, trustworthiness, Physical attractiveness have positive effect on
consumers buying behavior to use the services of the bank. Among all the attributes,
Trustworthy of the celebrity has the highest influence on consumers buying behavior.
While expertise and Physical attractiveness are followed respectively.

44
 5.4 Recommendation
The finding of this study clearly show that consumer have a positive attitude toward the
celebrity who promote the bank service. In addition attributes of celebrity endorsement
(Expertise, Trustworthy and physical attractiveness) have a positive influence on buying
behavior of endorsed bank. The implication is that marketers in the bank should consider the
celebrities in their promotional endeavors to get more attentions of the consumers. In the bank
some product are promoted by the non-celebrities so if marketers replace them by celebrities
they may get more attention of the consumer.

Based on the research objective the researcher can recommended the following points. The
first objective of the study was to examine the influence of expertise on buying behavior and
the study result shows expertise has a positive impact. So marketers in the bank may give a
great attention to the expertise when they select the celebrities to promote their product and
services. The second objective of the study was to examine how trustworthiness affect the
buying behavior and the result shows there is positive relationship with buying behavior.
Therefore giving great attention for trustworthiness when selecting the celebrity may have a
positive outcome on consumers buying behavior. The third objective of the study was to what
extent physical attractiveness influence buying behavior. The study result shows it has a
positive relationship with buying behavior. So marketers may highly consider both attributes
of the celebrity when they select the celebrities.

However, the value of the attributes are vary so marketers should be taken while selecting the
celebrities to promote the product and service .because they may not miss the influence of
consumers attitude toward the bank and service. Therefore marketers should look for the right
combination of all attributes in celebrity they select.

45
 5.5 Future area of investigation
This research investigates just one type of advertising. However, due to the high number of
promotional mix (e.g., personal selling, promotion, direct marketing and public relation), it is
possible that these results may not generalize to other promotion mix. Given the promising
results that were obtained, coupled with the inherent limitations to the study just discussed
above, there are many potential avenues of further research that can be explored. Among these
future researches should apply the study’s model on a larger population of other private banks
and comparison of the results and future research is needed to identify how different
promotional mix work. Also it needs to extend this work to study the effect of celebrity
endorsement type on consumer buying behavior in long term.

46
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Website and Other

Commercial Bank OF Ethiopia: www.combanketh.et

Marketing tools dictionary: www.yourdictionary.com

www.deepethiopian.com. (2014).http://www.deepethiopian.com/2012/04/ethiopian-commercial-
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52
APPENDIX
ADDIS ABABA UNIVERSITY COLLEGE OF BUSINESS AND

ECONOMICS SCHOOL OF COMMERCE MARKETING DEPARTMENT

CELEBRITY ENDORSMENT BRAND ADVERTISING SURVEY

Dear Sir/Madam

My name is Aynalem Dagne and I am M.A. student at Addis Ababa University, School of
Commerce. This is a research study concerned with the opinion on “Influence of Celebrity
endorsement brand advertising on consumer buying behavior: The case of commercial bank of
Ethiopian”. You will be asked to read the questionnaire and then give your views. Your honest
and kind answer is very decisive for the findings of this research study: Therefore, I request you
to answer honestly and kindly. The purpose of this study is for the fulfillment of Master’s Degree
in Marketing Management. The confidentiality of your response is respected by the researcher.
Thank you in advance.
Note:
- No need of writing your name

- Write a mark on the space provided for choosing

-When you give your opinion, please consider the service advertising of commercial bank of
Ethiopia by the renowned Ethiopian artist and celebrity Alemayehu Tadesse.
PART ONE
General information
1. Age 18-30 31 ‐40 41 -50 51&above

2. Gender Male Female

3. Education Level Diploma and below 1st Degree

2nd Degree & above

4. Occupation Student Business Owner

Employee other

5. How long have you been a customer of the bank?

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 Less than 5 year 5-10 10-15 15-20 Greater than 20
6. Familiarity with the service of commercial bank of Ethiopia
Strongly disagree Disagree Neutral Agree strongly agree

7. Awareness of the celebrity that is promoting the bank

Strongly disagree Disagree Neutral Agree strongly agree

8. In what way you have known the celebrity that is promoting the banks service?
1. He /She is actress in a drama/film that I fond of
2. He/She is a famous person in the TV show activity
3. He/She is a famous in a political scenario of the country.
4. He/She is Famous in any scenario that fits the customer’s preference in any case
9. Personally influenced by the celebrity who is promoting the service that the bank is giving
Strongly disagree Disagree Neutral Agree strongly agree

10. Change in level of awareness after any promotional activity by the celebrity

Strongly disagree Disagree Neutral Agree strongly agree

11. Familiarity of the celebrity in influencing your choice of bank service

Strongly disagree Disagree Neutral Agree strongly agree

PART TWO
Determinant of celebrity endorsement
Part two is related to the aim of the research which have scales are two opposite ends from 1-5, it
represents as follows
Worst 1 2 3 4 5 Best
very Unlikely Neutral Likely very likely
unlikel
y

Please circle the one that best reflect your choice towards source of celebrity endorsement.
12.How do you express theCelebrity’s Expertise?
12.1 Not an Expert 1 2 3 4 5 Expert
12.2 Inexperienced 1 2 3 4 5 Experienced
12.3 Unknowledgeable 1 2 3 4 5 Knowledgeable
12.4 Unqualified 1 2 3 4 5 Qualified

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12.5 Unskilled 1 2 3 4 5 Skilled

13. How Trustworthy do you think is the Celebrity?

13.1 Undependable 1 2 3 4 5 Dependable
13.2 Dishonest 1 2 3 4 5 Honest
13.3 Unreliable 1 2 3 4 5 Reliable
13.4 Insincere 1 2 3 4 5 Sincere
13.5 Untrustworthy 1 2 3 4 5 Trustworthy
14. How do you evaluate the Celebrity’s physical Attractiveness?
14.1 Unattractive 1 2 3 4 5 Attractive
14.2 Not Classy 1 2 3 4 5 Classy
14.3 Ugly 1 2 3 4 5 Beautiful
14.4 Plain 1 2 3 4 5 Elegant
14.5 Not Sexy 1 2 3 4 5 Sexy

PART THREE
Consumer’s Buying Behavior. Please circle the number that best reflects your best choice.

Strongly
disagree Disagree Neutral Agree Strongly
agree
I use the service of the bank because I 1 2 3 4 5
am well aware of the service endorsed
by the celebrity.
I use the service of the bank because of 1 2 3 4 5
the expertise of the celebrity.
I use the service of the bank because of 1 2 3 4 5
the trustworthiness of the celebrity.
I use the service of the bank because of 1 2 3 4 5
the Physical Attractiveness of the
celebrity.
I found the advertisement by the 1 2 3 4 5
celebrity to be personally relevant for
me
I will use the service of the bank 1 2 3 4 5
endorsed by the celebrity

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