The Effect Of Celebrity Endorsement On Consumers Attitude And Purchase Intention The Case Of Ethiopian Banking Industry

Companies use celebrities in advertisements with the aim of getting consumers' attentionrnfrom the bulk of advertisements aired through mass media. Celebrity endorsement hasrnbecome a worldwide phenomenon and most companies in Ethiopia are going forrncelebrity endorsements and as a result the numbers of celebrity endorsedrnadvertisements have increased. Commercial banks are among such companies that userncelebrity endorsement for their marketing activities. This study attempts to examine therneffect of celebrity endorsements in banking industry on consumers’ attitude and theirrnpurchase intention. The study makes use of the Ohanian source credibility model andrnProduct match up hypothesis to formulate the conceptual framework. The study isrnmainly an explanatory research and it depends on quantitative data collected throughrnsurvey using self-administered questionnaire. The survey was conducted on 318rnrespondents drawn from bank consumers through non-probabilistic conveniencernsampling. Descriptive statistical analysis was used to summarize respondents’ attitudernon celebrity endorsed advertisements and other related variables. Factor analysis wasrnused to extract components from the variable so as to make the data ready for the nextrnanalysis i.e. multiple regression analysis, which aimed to examine the effect of celebrityrnendorsement. The result of the survey reveals that consumers have positive attituderntowards the celebrity endorsed advertisements of banking services. And celebrityrnendorsement measured through the attributes of physical attractiveness, expertise,rntrustworthiness, and product/celebrity match have positive effect on the consumers’rnattitude towards the endorsed brands and on their intention to use the services of thernbanks. The results suggest that marketers in the industry should consider the use ofrncelebrities in their promotional endeavors so as to grab consumers’ attention for theirrnadvertisements but in selecting celebrities they should look for those celebrities whornhave the right combination of all the attributes

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