| Abstract: |
This study examined the influence of celebrity endorsements on
customer acquisition at Wema Bank, Benin City. In all, there were four
specific objectives of this study; to explore the level at which Wema
Bank utilizes celebrity endorsements in their marketing process, to
examine the customers' perceptions regarding celebrity endorsement,
to explore the effect of celebrity endorsements on customers' decision
to patronize Wema Bank, and to identify challenges associated with
celebrity endorsements. The theory of source credibility formed the
basis of this study. Survey research design was adopted in conducting
this study. The study targeted the general adult population in Oredo and
Egor local government areas of Edo State, estimated to be about
1,053,300. Based on the Krejcie and Morgan table, 384 respondents
were used. Multi-stage sampling technique was employed, and data
collection was done using a structured questionnaire. The collected
data were analyzed using descriptive statistics. It was observed that
Wema Bank uses the method of celebrity endorsements quite
extensively in their marketing process. This is seen from the number of
respondents who acknowledged their exposure to celebrity endorsed
advertisement. Furthermore, this study found out that customers of
Wema Bank have a positive perception about celebrity endorsements,
as such advertisements are perceived to be more attractive and credible.
This study also found out that celebrity endorsements have
considerable effect on customers' decisions to use Wema Bank. For
instance, customers open account, subscribe to their banking services,
and recommend the bank due to celebrities endorsements. On the other
hand, the study found several challenges with celebrity endorsement,
such as high cost of endorsements, risks of scandals with endorser, over
exposure of endorser, and selection of credible endorsers. In
conclusion, the study noted that celebrity endorsement is an effective
method of marketing communication with substantial positive effects
on customer acquisition, and recommends that the company should
continue to adopt the method of celebrity endorsements, select credible
endorser, diversify their marketing communication, and manage risks
associated with celebrity endorsement.
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