Project – The Influence of Celebrity Endorsement and Advertisment on Consumers’ Purchase Decisions: A Case Study of Selected Social Media Users in Lagos State.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The contemporary business environment is characterised by intense competition, rapidly changing consumer preferences, technological development and increasing access to information. These developments have made it increasingly difficult for organisations to attract and retain consumers through product quality and price alone. Consequently, firms employ various marketing communication strategies to create awareness, establish favourable brand associations, differentiate their products from competitors and influence consumers’ purchase decisions. Among these strategies, advertising and celebrity endorsement have become particularly important, especially with the rapid expansion of social-media platforms.

Advertising is one of the oldest and most widely used instruments of marketing communication. It provides organisations with an opportunity to communicate information about their products and services to existing and potential customers. Kotler and Keller (2016) describe advertising as a paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Advertising can inform consumers about product features, prices, availability and benefits, while also attempting to influence their attitudes and purchasing behaviour.

The development of digital technologies has significantly transformed the advertising environment. Traditionally, organisations depended heavily on television, radio, newspapers, magazines, billboards and other conventional media. The growth of the internet and social-media platforms, however, has created additional channels through which organisations can communicate directly with consumers. Kaplan and Haenlein (2010) describe social media as internet-based applications that facilitate the creation and exchange of user-generated content. Platforms such as Instagram, Facebook, YouTube, TikTok and X have consequently become important environments for brand communication and advertising.

Social-media advertising differs from traditional advertising in several important respects. It is interactive, easily shareable, highly visual and capable of generating immediate feedback from consumers. A consumer can encounter an advertisement, comment on it, share it with friends, visit the advertiser’s page and potentially complete a purchase within the same digital environment. Thus, social media has reduced some of the distance between advertisers and consumers.

The importance of social media to marketing has also increased because consumers increasingly use digital platforms when searching for information about products and brands. Consumers can compare products, read reviews, watch demonstrations and observe the experiences of other users before making purchase decisions. Social media has therefore become part of the broader consumer decision-making process.

According to Kotler and Keller (2016), consumer behaviour involves the processes through which individuals select, purchase, use and dispose of products, services, ideas or experiences to satisfy their needs and desires. Consumer purchase decisions are influenced by numerous factors, including product characteristics, price, perceived quality, brand image, personal preferences, social influences and marketing communication.

Within this environment, celebrity endorsement has emerged as an important promotional strategy. Celebrity endorsement involves the use of a well-known personality to promote or recommend a product, service or brand. Celebrities may include musicians, actors, athletes, media personalities, entrepreneurs and other individuals who have acquired substantial public recognition.

The popularity of celebrity endorsement is based partly on the assumption that consumers may transfer favourable perceptions of the celebrity to the endorsed brand. McCracken (1989), through the meaning transfer model, argues that celebrities possess cultural meanings which can be transferred to products and brands through the endorsement process. The celebrity’s personality, lifestyle, social status, attractiveness and achievements can therefore become associated with the endorsed product.

Celebrity endorsement can also attract attention to an advertisement. In a highly competitive advertising environment, consumers are exposed to numerous promotional messages. The presence of a familiar celebrity may help an advertisement stand out and become more memorable.

However, the effectiveness of celebrity endorsement depends on how consumers perceive the celebrity. Ohanian (1990) identified expertise, trustworthiness and attractiveness as important dimensions of perceived celebrity credibility. Expertise refers to the perceived knowledge or competence of the endorser; trustworthiness relates to perceived honesty and dependability; and attractiveness refers not only to physical attractiveness but also to the general appeal of the endorser. Ohanian’s study developed a widely used scale for measuring these dimensions of celebrity credibility.

Celebrity endorsement therefore does not automatically guarantee favourable consumer responses. A celebrity may be popular but not necessarily credible in relation to the product being advertised. Similarly, a celebrity may be attractive but perceived as untrustworthy. Consequently, marketers must consider the characteristics of the celebrity and the compatibility between the celebrity and the brand.

This issue is particularly relevant in Nigeria, where the use of celebrities as brand ambassadors has become widespread. Nigerian musicians, actors, footballers, comedians, television personalities and social-media personalities are frequently associated with products in industries such as telecommunications, banking, beverages, fashion, cosmetics and consumer goods.

Empirical research has provided evidence that celebrity characteristics can influence Nigerian consumers. Onu, Nwaulune, Adegbola and Nnorom (2019) examined the effect of celebrity physical attractiveness and trustworthiness on consumer purchase intentions among Nigerian consumers. Their study recognised that marketers use celebrities to create product awareness and enhance advertising credibility, while also identifying consumer concerns about whether celebrities genuinely believe in the products they endorse.

Similarly, Ifeanyichukwu (2016) investigated the effect of celebrity endorsement on consumer purchase decisions in Nigeria. The study used 200 young adults and employed regression analysis to examine the relationship between celebrity endorsement and consumer purchase decisions. The research reflects the growing importance of celebrity endorsement as a marketing strategy within the Nigerian consumer market.

More recent Nigerian research has also examined the importance of celebrity expertise and congruence. Onu et al. (2023) investigated celebrity expertise and celebrity-brand congruence in relation to consumer purchase intentions in the Nigerian telecommunications industry. The study demonstrates the continuing scholarly interest in understanding why particular celebrity endorsements may be more persuasive than others.

A study by Odionye, Yareh, Ibekwe and Salami (2021) specifically examined celebrity endorsement and consumers’ buying decisions in relation to Globacom Telecommunications Nigeria Limited. The study considered consumers’ perceptions of celebrity endorsement, its influence on consumer buying behaviour, its relationship with subscriber acquisition and whether celebrity endorsement was perceived as reflecting product quality.

These studies demonstrate that celebrity endorsement is an important issue in Nigerian marketing. Nevertheless, the effectiveness of endorsement can vary according to the type of product, characteristics of the celebrity, consumer characteristics, advertising medium and prevailing social environment.

One of the important concepts associated with celebrity endorsement is celebrity credibility. Consumers are more likely to respond favourably to an endorsement when they perceive the celebrity as honest, knowledgeable and believable. When a celebrity endorses numerous unrelated brands, however, consumers may question the authenticity of the recommendations.

Another important factor is celebrity-product congruence. The perceived fit between the celebrity and the product may determine the effectiveness of the endorsement. For instance, a professional athlete promoting sportswear may be considered more credible than a celebrity with no obvious connection to sports. A good fit can make the endorsement appear natural and believable, whereas a poor fit may reduce its persuasive effect.

Celebrity attractiveness can also influence consumers. Attractive or charismatic celebrities may command attention and generate favourable feelings toward an advertisement. However, attractiveness alone may not be sufficient to influence purchase behaviour if the consumer lacks confidence in the celebrity or the advertised product.

The issue of trustworthiness has become increasingly important in social-media marketing. Consumers are aware that celebrities and influencers are often financially compensated for promotional activities. Consequently, some consumers may question whether an endorsement represents the celebrity’s genuine opinion or simply a commercial relationship.

Social media has further complicated this issue because the distinction between ordinary personal content and advertising can sometimes be unclear. A celebrity may present a product within an Instagram photograph, TikTok video, YouTube programme or other personal-looking content. Such content may appear more authentic than conventional advertising, even though it is commercially motivated.

Advertising effectiveness is therefore influenced by more than mere exposure. Consumers must notice the message, understand it, consider it credible and perceive the product as relevant to their needs before the advertising message can potentially influence purchase behaviour.

Research on social-media advertising supports the importance of advertising characteristics. Oliha and Obaika (2024) examined factors influencing social-media advertising and consumers’ buying intentions and considered informativeness, entertainment, irritability and credibility as important characteristics of social-media advertising. Their study used structural equation modelling and data from 364 participants, demonstrating the importance of understanding how consumers perceive advertising messages in digital environments.

Similarly, Efendioglu and Durmaz (2022) examined perceptions of social-media advertisements among Instagram users and found that perceptions of such advertisements could influence advertising value, brand awareness and brand associations. Their research demonstrates that consumers’ interpretation of social-media advertising is important in determining its marketing value.

The effectiveness of advertising is also related to its ability to create brand awareness. Consumers are unlikely to purchase a product if they are unaware of its existence. Advertising can introduce consumers to new brands, remind existing customers about familiar products and reinforce brand associations.

Beyond awareness, advertising can influence brand attitude. Repeated exposure to attractive, informative or emotionally appealing advertisements may contribute to favourable perceptions of a brand. Celebrity endorsement can strengthen this effect when the consumer already has positive feelings toward the celebrity.

The relationship between advertising and purchase decisions can therefore be understood as a process. Advertising may first create awareness, then generate interest, influence attitudes and eventually contribute to purchase intention and purchase behaviour.

It is important, however, to distinguish purchase intention from actual purchase decision. Purchase intention represents a consumer’s willingness or likelihood to buy a product, while purchase decision refers to the consumer’s eventual choice. A consumer may intend to purchase a product but fail to do so because of price, product availability, changes in preference or financial limitations.

The social-media environment provides marketers with additional opportunities to influence consumers at different stages of this process. Consumers can discover products through advertisements, research them through links provided in advertisements, read comments from other consumers and proceed to online stores.

The interactive nature of social media also facilitates electronic word-of-mouth communication. Consumers can share their experiences with brands and products with their online networks. Positive comments can reinforce an advertising message, while negative reviews can weaken consumer confidence.

Consequently, social-media advertising can be viewed as both a marketing communication tool and a social communication process. Consumers do not simply receive advertising messages; they interpret, discuss, share and sometimes challenge them.

The situation is particularly important in Lagos State. Lagos is Nigeria’s major commercial and economic centre and contains a large concentration of businesses, consumers, advertising agencies, entertainment organisations and digital-content creators. The state’s highly competitive commercial environment makes it a significant location for examining contemporary advertising and consumer behaviour.

Social-media users in Lagos are exposed to promotional messages from local and international brands on a regular basis. They may encounter advertisements while watching videos, scrolling through Instagram or Facebook, using TikTok, viewing YouTube content or interacting with other users.

The high visibility of Nigerian celebrities in popular culture also makes celebrity endorsement particularly relevant to Lagos consumers. Celebrities can build large followings and develop strong relationships with audiences, which marketers may attempt to convert into favourable attitudes toward endorsed brands.

However, the increasing use of celebrity endorsement raises questions about advertising effectiveness and return on investment. Celebrity endorsements can be expensive, and organisations assume significant financial and reputational risks when associating their brands with public figures.

One such risk is negative celebrity publicity. If an endorser becomes involved in a scandal or controversial behaviour, consumers may transfer the negative association to the endorsed brand. Therefore, while celebrity endorsement can create positive associations, it can also create risks for organisations.

Another risk is celebrity overexposure. When a celebrity endorses numerous products, consumers may become less responsive to individual advertisements. Overexposure can also make endorsements appear commercially motivated rather than authentic.

There is also the problem of celebrity-brand mismatch. If consumers cannot identify a meaningful connection between the celebrity and the advertised product, the endorsement may fail to generate credibility or persuasive value.

These concerns demonstrate why the study of celebrity endorsement should not be reduced to whether a celebrity is famous. The quality of the relationship between the celebrity, advertisement, brand and consumer must be considered.

The Source Credibility Theory provides a useful theoretical explanation of this relationship. Hovland, Janis and Kelley (1953) argued that the credibility of a communication source is an important determinant of persuasive effectiveness. Ohanian (1990) subsequently operationalised celebrity credibility through expertise, trustworthiness and attractiveness.

The Meaning Transfer Model proposed by McCracken (1989) provides another important explanation. It suggests that celebrities possess symbolic meanings which can move from the celebrity to the product and eventually to the consumer. Consumers may therefore be attracted to brands not only because of their functional benefits but also because of the symbolic meanings associated with celebrities.

These theories demonstrate that celebrity endorsement may influence consumers through both cognitive and symbolic processes.

The contemporary Nigerian market therefore presents an important research setting for examining the relationship between celebrity endorsement, advertising and purchase decisions. Although previous studies have provided evidence of relationships between celebrity endorsement and consumer behaviour, there remains a need for studies that consider celebrity endorsement together with social-media advertising among consumers in Lagos State.

This need is particularly important because the social-media environment is continuously evolving. Consumer behaviour that was shaped primarily by television and radio advertising in previous decades is now increasingly influenced by digital platforms and social-media personalities.

The present study therefore examines the influence of celebrity endorsement and advertising on consumers’ purchase decisions, with selected social-media users in Lagos State serving as the focus of the study.

1.2 Statement of the Problem

The contemporary marketing environment has become increasingly competitive, forcing organisations to search for effective methods of attracting consumers and influencing their purchasing decisions. Celebrity endorsement and advertising are among the strategies commonly adopted by firms to achieve these objectives. However, the increasing financial investment in these strategies raises concerns about whether they actually influence consumers’ decisions to purchase advertised products.

The first major problem is that consumer exposure to advertising does not necessarily result in purchasing behaviour. Social-media users encounter numerous advertisements every day. They may watch advertisements, like them, comment on them or share them without purchasing the products being promoted. Consequently, it remains necessary to establish whether advertising exposure actually translates into consumer purchase decisions.

The second problem concerns the credibility of celebrity endorsers. Although celebrities can attract attention to advertisements, consumers may question whether celebrities genuinely believe in the products they endorse. Onu et al. (2019) identified trustworthiness as an important issue in the Nigerian context and noted concerns that celebrities may be perceived as promoting products because they are paid rather than because they genuinely believe in the brands.

The third problem relates to celebrity-product congruence. A celebrity may be highly popular but may not necessarily be suitable for every product. If consumers perceive little relationship between the celebrity and the product, the endorsement may lose credibility. Nigerian research has specifically examined celebrity expertise and congruence because these characteristics can influence purchase intentions. (Onu et al., 2023).

The fourth problem is advertising clutter. Social-media users are exposed to a large volume of sponsored posts, promotional videos and commercial messages. This makes it increasingly difficult for individual advertisements to capture attention. Marketers therefore use celebrities as a means of differentiating their messages, but it remains uncertain whether celebrity involvement provides sufficient additional influence to justify the associated cost.

The fifth problem concerns consumer scepticism toward paid endorsements. Social-media users are increasingly aware that celebrities receive financial benefits from brand endorsements. This awareness may cause consumers to question the sincerity of celebrity recommendations.

The sixth problem is the distinction between celebrity popularity and celebrity credibility. A celebrity may have millions of followers but may not necessarily possess the expertise or trustworthiness required to influence consumers positively. Consequently, the number of followers alone may not be an adequate measure of endorsement effectiveness.

The seventh problem is the possibility of negative celebrity influence. Celebrities are public figures whose actions and personal lives are widely scrutinised. Controversial behaviour can damage a celebrity’s reputation and potentially create negative associations for brands that have established endorsement relationships with them.

The eighth problem concerns social-media advertising characteristics. Advertising messages differ in their informativeness, entertainment value, credibility and relevance. Oliha and Obaika (2024) demonstrate that these factors are important in understanding consumer responses to social-media advertising. Therefore, simply placing an advertisement on social media does not guarantee effectiveness.

The ninth problem is the gap between advertising engagement and purchase behaviour. A high number of likes, comments or shares may create the impression that an advertisement is successful. However, engagement metrics do not necessarily demonstrate that consumers actually purchased the advertised product.

The tenth problem concerns the limited contextual evidence on selected social-media users in Lagos State. Existing Nigerian studies have established that celebrity endorsement can influence consumers. Ifeanyichukwu (2016), for example, investigated Nigerian consumers and found celebrity endorsement sufficiently important to warrant empirical examination of its relationship with purchase decisions. However, changes in social-media use and advertising practices make continued investigation necessary.

Similarly, Odionye et al. (2021) examined celebrity endorsement and consumer buying decisions using Globacom as a case study. Their study focused on perceptions of celebrity endorsement and its relationship with consumer buying behaviour. The present study extends this line of inquiry by examining selected social-media users in Lagos State and considering both celebrity endorsement and advertising.

Another important problem is that consumers’ purchase decisions are affected by several competing factors. Price, product quality, brand reputation, income, convenience, availability and personal preferences may influence purchasing behaviour independently of advertising and celebrity endorsement. Therefore, the actual contribution of celebrity endorsement and advertising to purchase decisions requires empirical investigation rather than assumption.

The central problem is therefore that organisations continue to invest heavily in celebrity endorsement and social-media advertising, yet there is insufficient context-specific evidence regarding the extent to which these strategies influence the purchase decisions of social-media users in Lagos State.

The study consequently seeks to determine whether celebrity endorsement and advertising significantly influence consumers’ purchase decisions and to identify the specific characteristics of celebrity endorsement and advertising that are most relevant to consumers in Lagos State.

1.3 Objectives of the Study

1.3.1 General Objective

The general objective of this study is to examine the influence of celebrity endorsement and advertising on consumers’ purchase decisions among selected social-media users in Lagos State.

1.3.2 Specific Objectives

The study seeks to:

1. examine the influence of celebrity attractiveness on consumers’ purchase decisions;
2. determine the influence of celebrity trustworthiness on consumers’ purchase decisions;
3. examine the influence of celebrity expertise on consumers’ purchase decisions;
4. determine the influence of celebrity-product congruence on consumers’ purchase decisions;

1.4 Research Questions

The following research questions will guide the study:

1. To what extent does celebrity attractiveness influence consumers’ purchase decisions?
2. To what extent does celebrity trustworthiness influence consumers’ purchase decisions?
3. How does celebrity expertise influence consumers’ purchase decisions?
4. How does celebrity-product congruence influence consumers’ purchase decisions?

1.5 Research Hypothesis

The following null hypothesis will be tested at the 0.05 level of significance:

H₀: Celebrity endorsement and advertising have no significant influence on consumers’ purchase decisions among selected social-media users in Lagos State.

1.6 Significance of the Study

Consumers

The study will help consumers understand the persuasive techniques used in celebrity endorsement and social-media advertising. Such knowledge may encourage consumers to evaluate advertising claims more critically before making purchase decisions.

Marketers and Brand Managers

The study will provide marketers with evidence concerning the extent to which celebrity endorsement and advertising influence consumers. The findings may assist firms in selecting suitable celebrities and developing more effective advertising campaigns.

Advertising Agencies

Advertising agencies may use the findings to understand the characteristics of celebrity endorsers and advertising messages that are most likely to appeal to consumers in Lagos State.

Celebrities and Social-Media Influencers

The study may encourage celebrities and influencers to recognise the importance of credibility, trustworthiness, expertise and appropriate brand alignment when entering endorsement relationships.

Business Organisations

The findings may assist organisations in evaluating the effectiveness of their investments in celebrity endorsement and social-media advertising.

Consumer-Protection Agencies

The study may provide useful information for organisations concerned with advertising standards and consumer protection, particularly regarding transparency in sponsored social-media content.

Researchers and Students

The study will contribute to existing academic literature on celebrity endorsement, advertising and consumer behaviour in Nigeria. It may also provide a basis for further research into digital marketing and consumer decision-making.

1.7 Scope of the Study

The study focuses on the influence of celebrity endorsement and advertising on consumers’ purchase decisions among selected social-media users in Lagos State.

The study’s independent variables are celebrity endorsement and advertising.

Celebrity endorsement will be examined using the following dimensions:

• celebrity attractiveness;
• celebrity trustworthiness;
• celebrity expertise;
• celebrity popularity; and
• celebrity-product congruence.

Advertising will be examined through:

• advertising exposure;
• informativeness;
• entertainment;
• credibility;
• relevance; and
• persuasive appeal.

The dependent variable is consumer purchase decision, measured through indicators such as:

• purchase intention;
• product preference;
• brand choice;
• willingness to try advertised products; and
• reported purchase behaviour.

The geographical scope of the study is Lagos State, Nigeria, while the population of interest consists of selected social-media users who are exposed to advertising and celebrity-endorsed promotional content.

The study does not attempt to examine every factor that can influence consumer behaviour. Factors such as income, product quality, price, distribution, family influence and personal preferences are recognised but are outside the principal focus of the study.

1.8 Operational Definition of Terms

Advertising: A paid form of communication by an identified sponsor designed to inform, persuade or remind consumers about a product, service, idea or brand.

Celebrity: A publicly recognised individual whose popularity or achievements have generated substantial public attention.

Celebrity Endorsement: The use of a recognised personality to promote or recommend a product, service or brand.

Celebrity Attractiveness: The degree to which consumers perceive a celebrity as physically appealing, likeable and socially attractive.

Celebrity Expertise: The degree to which consumers perceive a celebrity as knowledgeable, competent or experienced in relation to an endorsed product.

Celebrity Trustworthiness: The extent to which consumers regard a celebrity as honest, sincere, dependable and believable.

Celebrity-Product Congruence: The perceived degree of compatibility between a celebrity’s characteristics and the product or brand being endorsed.

Consumer: An individual who purchases or uses goods and services to satisfy personal needs or wants.

Consumer Behaviour: The process through which individuals search for, evaluate, select, purchase, use and dispose of products and services.

Consumer Purchase Decision: The decision made by a consumer concerning whether, what, when and from whom to purchase a product or service.

Purchase Intention: A consumer’s expressed likelihood or willingness to purchase a particular product or brand.

Social Media: Internet-based platforms that allow users to create, share and interact with content and with other users.

Social-Media Advertising: Promotional messages delivered to consumers through social-media platforms such as Instagram, Facebook, TikTok, YouTube and X.

Social-Media User: An individual who actively uses one or more social-media platforms.

Brand Awareness: The extent to which consumers can recognise or recall a particular brand.

Advertising Credibility: The degree to which consumers perceive an advertising message as believable, reliable and truthful.

Influence: The extent to which celebrity endorsement and advertising affect or contribute to consumers’ perceptions, intentions and purchase decisions.

1.9 Organisation of the Study

The study is organised into five chapters.

Chapter One presents the introduction, background of the study, statement of the problem, objectives of the study, research questions, research hypothesis, significance of the study, scope of the study, operational definition of terms and organisation of the study.

Chapter Two will review relevant literature on celebrity endorsement, advertising, social-media advertising and consumer purchase decisions. It will include the conceptual review, theoretical framework and empirical review.

Chapter Three will present the research methodology, including research design, population, sample size, sampling technique, research instrument, validity, reliability, methods of data collection and methods of data analysis.

Chapter Four will present and analyse the data collected from respondents. It will include respondents’ demographic characteristics, presentation and analysis of data, analysis of research questions and testing of the hypothesis.

Chapter Five will present the summary of findings, conclusion and recommendations. It will also discuss contributions to knowledge and suggestions for further research.

Project – The Influence of Celebrity Endorsement and Advertisment on Consumers’ Purchase Decisions: A Case Study of Selected Social Media Users in Lagos State.