BUSINESS MANAGEMENT METHODOLOGY AND FINDINGS AND DISCUSSION

3.0 METHODOLOGY

3.1 Overview

This section consists of the research design, sampling technique and sample size, targeted population, procedures, and tools for collecting data and techniques for analyzing the data. It also describes the use of secondary and primary data to answer the two most important questions of the research

3.2. Research Design

Saunders et al. (2011) defined research design as a systematic outline of procedures adopted when carrying out a study. This study employed both descriptive and explanatory approaches design to address the two questions on whether the size of an organization determines the type of celebrity endorser. The designs will also solve the question of whether the effectiveness of the traditional celebrity endorsements has declined due to the presence of other types of celebrity. Nimako and Azumah (2009) defined descriptive research as one that entails formalizing a study with clear structures to present or describe facts regarding a phenomenon in reality or perceived.

Therefore, descriptive is applicable in the current study because it shows right customers’ events, situations or profiles through brands related to ads depicting celebrities. Also, the study examines the connection between different variables (Khatri, 2006). Therefore, a deductive approach was appropriate to inquiry issues on celebrity endorsement about the effectiveness and the size of the organization. The research is quantitative since it uses statistical data from the field to draw conclusions.

3.3. Sampling and Sample Size

Sampling is obtaining information from a part of the entire population (Burns and Bush 2006:332). It helps in lowers the cost and time similar to a census study. Therefore, the choice of the sampling method depends on the financial resources, time available, nature of investigated problem and research objectives (McDaniel and Gates 2008:334). The population targeted by this study is organizations of all sizes that use celebrity endorsement to market their products. The study used 30 representatives of several companies that sell different products to collect data that was used to answer the research questions. The respondents were supposed to have worked in the organization for at least one year. A quota sampling was employed to pick the sample, which allows the use of few characteristic of the population from which the respondents are selected. Questionnaires were sent to the managers of these organizations through the email address.

3.4 Data Source

The sources of data for the research are both from secondary and primary sources. Data from the primary source is the original information gathered by a researcher to address the research questions of his or her study. Secondary data is information already collected by other investigators for their studies but can be applied to other related works. For the current study, primary data was gathered through structured questionnaires with closed-ended questions. According to McDaniel and Gates (2008: 286), each type of survey depends on a questionnaire, which is the common procedure used in all methods of data collection. A data collection tool contains various questions for respondents intended to collect information need to achieve the project’s objectives.

The reason for using questionnaires for this study is because it standardizes the sequencing and wording of questions; thus, creates uniformity during the process of collecting data. Each participant sees similar words; therefore, all the queries will be understood almost the same way. Unlike questionnaires, interviewers can phrase questions in different ways, which can lead to answers influenced by the interpretation of the interrogator. Therefore, using a closed-ended questionnaire eliminates the essence of comparing participant’s responses and provides manageable data that would be easy to use during tabulation. Secondary data was gathered from books, archives, and journals to provide information that can help fill loopholes left by primary data.

3.5 Methods and Instruments of Data Collection

The main method of collecting data for the investigation was obtained using structured questionnaires with closed-ended questions. Although this type of questions reduces the level of researcher involvement by not allowing him or her to inquire more, it increases the participation of the respondents because they are presented with direct queries. The design of the questions also assisted in focusing and achieving the objectives of the study. The questions also helped in obtaining information that was not in the books and journals.

Before administering the final version of the questionnaire, a draft copy was presented to an expert to correct any ambiguity or inadequacy. The questions were intended to ask the opinions of managers of different companies about the type of celebrity endorsement they use and whether the traditional celebrity endorsement is more effective as compared to social media celebrity endorsement. The rate of response was increased by making respondents comfortable when responding to the questions. They were given one week to complete the queries and were not supposed to provide their identity.

The structure of the questionnaire provides the visual impact that can influence the extent at which the participant cooperates and data quality (Parasuraman et al. 2004:333). The questionnaire of this dissertation began with a cover letter that summarized the researcher’s information and studies purpose. It also communicated the instructions and assured participant of confidentiality and anonymity of their information. Based on the two research questions, the first section covered the demographic details such as gender and age. The second part questions, which used the 5-point Likert scale that ranged from (1), representing strongly disagrees to (5) representing the choice for strongly agrees, aimed at understanding the perception of the organization regarding celebrity endorsement and the types they use. This section also investigated the effectiveness of traditional celebrity endorsements and if the social media stars are replacing them.

3.6 Data Analysis

Since the study used quantitative research, statistical data was required. The research data was presented in tables and graphs after using Microsoft Excel and SPPS. Also, that collected data was analyzed by adopting descriptive statistics through mean. Through the graphs presented, the researcher made correlation and relationships between two or more samples.

3.7 Ethical Considerations

Considering ethical issues is vital to any research as it helps in ensuring the use of the appropriate method of collecting information from the participants is adhered to and followed. Therefore, the research sought an informed consent of the respondent, which was attached as an introduction on the questionnaire, but also explained the study purpose. Also, the ideas include in the study but were extracted from researchers of secondary data were appropriately cited and acknowledge to avoid plagiarism (Choi, 2002). Additionally, confidentiality and privacy of respondent’s information were the other ethical aspect mentioned. The confidentiality of all data from the participants was only used for academic purpose. Also, respondents participated in the study voluntarily and were allowed to opt out if they so wished.

3.8 Research Limitations

Inadequate time was the first limitation of the study. A period of one month was not enough to conduct research that could involve more participants. Therefore, few people were selected to reduce the time for data collection to have enough time to analyze the obtained data. Also, the study chose thirty respondents because of time and money to represent the other organizations using celebrity endorsement as a marketing tool. This sample may not adequately account for the rest of the population; thus the findings may affect the conclusion.

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER FOUR

4.0 DATA ANALYSIS AND DISCUSSION OF RESULTS

4.1 Overview

This section presents and analyses the collected data related to the effectiveness of the traditional celebrity endorsement and social media celebrity endorsement and influence of the type of celebrity endorsement on the size of an organization. Using Microsoft Excel, the analysis of the results was represented in graphs and tables. Thirty questionnaires were administered to the participant, but 28 were retrieved after one week. Two copies were rejected because they were not entirely filled, and translated to 93.3% response rate. Therefore, the study used the valid responses for the analysis.

4.2 Analysis of Background Information of Respondents

This part covers the analysis of the background details of the study participants. It discussed the gender, age, positions at the organization and the number of years worked at the company. The findings are shown below, and this analysis helps the investigator to compute the percentage of the respondents and how their contribution to the research made valid results and conclusion.

4.2.1 Gender and Age of Participants

The figure one shows that most of the subjects were males and constituted 64% while female were 36%. The results indicate a slight male dominance in the leadership of most companies. Although most celebrity endorsers are women, they are usually employed by men. About the age of participants, selected organizations were dominated by leaders aged between 31 and 40 years old. The rest who were between 22 and 30 years accounted for 10% of the total sample zero respondents were below the age of 21 while those between the age of 41 and 50 constituted of 15% (Figure 2). Therefore, the youth, who are more familiar with current technology, dominated the field of leadership.

Figure 1: Gender of Participants

 

Figure 2: Age of Participants

4.2.2 The Position of the Respondent and Number of Years worked in the Organization

Most of the respondents were managers 64% of their organizations and were followed by the head of departments who accounted for 30%. About 4% were just employees in the company who were sent to represent the unavailable leader. Only 2% were CEO of the organizations that accepted to participate in the study. Regarding the number of years they have worked in their respective companies, most worked between 3 and five years (70%) and 20% worked for one to two years while the rest had worked with the organization for over a five-year period.

The high percentage of workers who have worked for at least five years shows that the respondents were people completely familiar with their operations and purpose of their companies. It also shows that they were the best people who could represent their organization and provide quality information regarding their use of celebrity endorsement as a marketing tool. Additionally, the figures show that the organization has high employee retention rate, which may be attributed to the quality and effective motivational package for workers.

Figure 3: Different Positions of Respondents at their Organization

 

Figure 4: The Number of Years Respondents have worked in the Organization

4.2.3 The Size of the Organization

When asked the size of the company they worked, most (60%) responded that they in the medium sized organization. About 30% worked in small-sized companies, and the rest (10%) were large-sized organizations. Therefore, most companies involve in the study had a moderate number of employees, which put more efforts to increase their sales by using the best marketing strategies. Such companies can be a source of comprehensive information regarding brand positioning. Additionally, the inclusion of all there three types of organization sizes helped the study have diverse opinions as well as understand they type of celebrity endorser selected by different sizes of organization.

 

Figure 5: The different sizes of the Organizations

4.2.4 Type and Usage of Celebrity Endorsement to Market Products

The study results show that all the organizations used celebrity endorsements to market their products. It implies they used a famous icon who either worn or advertised their products. This information implies that organizations believed that a popular figure influenced the motivation of the customer towards purchasing a product. When respondents were asked the type of celebrity endorsement the organization used to popularize their products, most (52%) indicated that they used social media celebrity endorsers. The rest reported the traditional celebrity endorsers. Those that used social media celebrity endorsers mostly said they were less expensive compared to the traditional celebrity endorsements.

Some also added that such celebrities could reach out to many potential customers because of their followers and subscribers. On the other hand, respondents that used traditional celebrity endorsements gave reasons that were recommended by other organizations and that they reached out to many customers. A few respondents (4) said that their type was driven by the availability of the endorsers and that it was effective in increasing the company’s sales. The figures indicate that most organizations use celebrities to market their products because they are known and admired by many people and seeing them purchasing the product make them think it is credible. When asked about the effectiveness of the type of endorsement, all the respondents confirmed that the kind of celebrity endorsement used by the company was active in influencing the brand positioning.

Figure 6: The type of celebrity endorsers used by the organizations

Figure 7: Reasons for the type of Endorsement Used by the company

4.2.5 Do you believe that credible celebrity endorsers influence brand position?

Twenty-five respondents strongly agreed that celebrity endorsement influenced brand position. This result implied that organizations’ use of celebrity to endorse their products was giving good impacts and enabling the company to achieve the goals. About three gave a neutral response, meaning they thought celebrity endorsement was average about enhancing the company’s performance. It also means that celebrity endorsement also brought some setbacks to the company and affected its sales. However, the overall results indicate that this tool of marketing enhances the company’s performance and ensuring it has a good image to the customers.

4.2.6 Do you agree that the effectiveness of the traditional celebrity is declining due to the presence of social media celebrity endorsers?

Nineteen company representatives that participated in the study agreed that the effectiveness of traditional celebrity is declining since social media is taking the most control. However, seven respondents disagreed, and three were neutral (Fig 8). The results show that social media celebrity endorsement is gaining more popularity among organization using this marketing tool to promote their products. Social media has become platforms have emerged as a virtual society where people interact and communicate products in the market.

Notably, there are social media celebrities with many followers, subscribers, and views in their videos, who can easily persuade those big following to purchase particular products. Organizations have utilized this advantage, many YouTube beauties and bloggers become celebrity endorsers through their videos (Rao and Prasad 2012). The other reason is that social media celebrities are less expensive than traditional ones, yet they attract effective due to their large followings on the social media platforms.

4.2.7 Do you agree that social media Celebrity endorsers are now used more in marketing company products?

Six respondents strongly agreed while ten agreed that social media celebrities are becoming a better marketing tool. However, ten disagreed, and two were neutral regarding the issue of social media celebrities. Most respondents that gave an affirmative answer were from the small and medium companies (Figure 8). These findings indicate that companies that with average financial resources benefit from social media because it is effective in attracting the attention of the young generation that spends most of their time in the social media platforms. Consistent with a study by Jain, large scale companies with adequate financial resources afford to pay the traditional celebrity endorsers and believe they are effective (Jain 2011). The overall findings in this question, however, shows that social media celebrities have today become an important marketing tool for many companies that want to attract young potential customers.

Figure 8: Traditional celebrity endorsements versus social media celebrities

4.3 Descriptive Statistics

4.3.1 The link between the effectiveness of the celebrity and brand position

Table 1: Summary of the regression model

Model R R Square Adjusted square Std. Error of Estimate
1 .925a .836 .828 .10187
  1. Predictors: (Constants) celebrity effectiveness

The table directly above offers R2 value (the coefficient of predictive power or determination). From the table, the value of R2 is 0.836, which shows a good link between celebrity effectiveness and the positioning of a brand. This value shows the strong determination extent because when the value of R2 is between 0.7 and 0.9, it implies a good correlation. The value of R2 indicates the way brand positioning; a dependent variable is related to celebrity effectiveness, an independent variable. From this table, the percentage is 82.6%, which indicates is a strong correlation. Therefore, the positioning of a brand by the consumers does not happen by accidental, but instead, it relies on the effectiveness of the superstar endorsers.

Table 2: Regression of ANOVA

Model Sum of Square DF Mean Square F Sig
1 Regression Residual Total 5.397

1.08

6.415

16

98

113

.370

.020

35.364 .000a

 

The table above represents the regression using ANOVA, which shows the way independent variable considerable predict the results of the other dependent variable and in this case, brand positioning. The value of Sig. on the regression row shows 0.00, a value that is below the p-value of 0.05. These results indicate that the application of the model was considerably useful to predict the results of the dependent variable, brand positioning. From the regression model table above, it is evident that the variable of celebrity effectiveness has a positive linear correlation with the positioning of a brand. This finding is apparent due to the positive values of the coefficients.

 

 

 

4.3.2 The correlation analysis on the relationship between brand positioning and celebrity credibility

Table 3: Measured Variables

  N Minimum Maximum Mean Std. deviation Alpha
Credibility 28 1.00 ` 2.67 1.7663 .36200 .662

 

The assessment of the link between brand positioning and celebrity credibility describe the direction and the strength of the linear connection between the two variables. Using the sample size; n=28 and in view of the direction of this connection between the mentioned variables, one can conclude that exits an affirmative link between credibility of a celebrity and the productivity of a brand by customers. The relationship was strong by 0.662. Therefore, the credibility of a celebrity explains the estimate of 62.2% of the positioning of a brand.

Additionally, when considering the relationship direction between celebrity popularity and the positioning of a brand by customers, it is clear that the relationship is positive and strong. Also, there was a strong relationship between the credibility and effectiveness of the celebrity and positioning of the brand by the clients (Baah et al. 2013). Some of the effects associated with a competitive product are the growth of profits and production, high revenue, and an increase in sales.

4.4 Summary of the Findings

From the study findings, it is evident that over 60% of the participants agreed that celebrity endorsement is an effective marketing tool that increases company’s sales. This increase resulted from increase in number of customers attracted by these celebrities who have large followings on the social media platforms. It was clear that most organizations where the respondents preferred social media celebrities to endorse their products because they are cheaper and effective in informing the young generation about the existing and new products in the market.

Also, the regression model in the table two above showed that celebrity effectiveness has a robust and progressive linear connection with positioning of the product by the consumers. This view implies that the status in form of employment and influence on people plays a great part in making the celebrity effective. The positive coefficient values of R2 clearly indicated the significant, strong and affirmative correlation of the two variables. Therefore, the study findings show that endorsement of the celebrity on the product is determined considerably by the experience of the popular icon, which in turn makes customers prefer that brand.

Additionally, the study analysis indicates that there exists a strong connection between product positioning and celebrity credibility. The connection was robust; therefore, celebrity behavior explains the brand positioning of 62.2%. Moreover, when direction is considered, the link between the variable, brand positioning and celebrity credibility is strong. In general, the analysis, indicated the image of the celebrity, dictated by his or her credibility and effectiveness increases product competitiveness. In turn, the product increases sales, productivity, and revenue to the company.

Celebrities have created an easy way for companies to launch new products at a cheaper price, especially those operating through social media platforms. Notably, the future has even better and greater results because of the dependability of the mass to the social media as well as the increasing number of stars with loyal fans. However, the credibility and effectiveness of the celebrity also plays a crucial part in increasing the sales of a brand. Therefore, the choice of the celebrity who will endorse the product determines the sales of the company. If the celebrity has admirable values and experiences, the company is likely to benefit through increased sales, high revenues, productivity growth and net profit. For that reason the effectiveness and credibility of the celebrity has strong and positive effects on product competitiveness as well as the positioning of the brand by customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference List

Baah EH, Dawson-Amoah E., & Mensah P 2013, Glo Ghana’s celebrity endorsements and student purchase (doctoral dissertation).

Burns, AC & Bush, RF 2006, Marketing research. 5th ed. Upper Saddle River: Pearson Education.

Choi, SM 2002, Attributional approach to understanding celebrity/product congruence effects: Role of perceived expertise. Unpublished Doctoral dissertation, Michigan State University, Lansing.

Jain V 2011, Celebrity endorsement and its impact on sales: A research analysis carried out in India. Global Journal of Management and Business Research, 11(9), 67-84.

Khatri, P 2009, Celebrity endorsement: A strategic promotion perspective. Indian Media Studies Journal, 1(1), 25-37.

McDaniel, C & Gates R 2008, Marketing research essentials. Hoboken: John Wiley and Sons.

Nimako, SG, Azumah, FK, Donkor, F & Veronica, AB 2010, Overall customer satisfaction in Ghana‟s mobile telecommunication networks: Implications for management and policy. ATDF Journal, 6(3/4).

Parasurman A, Grewal, D & Krishnan, R 2004, Marketing research. Boston: Houghton Mifflin.

Rao, VN & Prasad, AVV 2012, Celebrity endorsement of cosmetics: An empirical study on consumer perception in Andhra Pradesh. JIMS8M: The Journal of Indian Management and Strategy, 17(2), 51-59.

Saunders MN, Saunders M, Lewis P & Thornhill A 2011, Research methods for business students. Mumbai: Pearson Education India.

 

 

 

 

 

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