IMPACT OF PRODUCT ENDORESEMENT STRATEGIES ON BRAND

LOYALTY. CASE STUDY OF FAN MILK GHANALIMITED

By

KESSIE FREDERICK NYANING (BSc. MARKETING)

© 2015 Department of Corporate Strategy and Marketing

A thesis submitted to the Department of Corporate Strategy and Marketing

Kwame Nkrumah University of Science and Technology School of Business

in partial fulfilment of the requirements

for the degree of

MASTER OF BUSINESS ADMINISTRATION

(STRATEGY MANAGEMENT AND CONSULTING -OPTION)

School of Business, KNUST

College of Humanities and Social sciences

July, 2015
 DECLARATION

„I hereby declare that this submission is my own work towards the Master of Business

Administration (Strategic Management and Consulting) Degree and that, to the best of

my knowledge, it contains no material previously published by another person nor

material which has been accepted for the award of any other degree of the University,

except where due acknowledgement has been made in the text‟.

Kessie Frederick Nyaning ................................. ..................................

(PG9544713)
Signature Date
(Student‟s Name & ID)

Certified by:
Mrs. Mariama Zakaria ................................. ..................................
(Supervisor)
Signature Date

Certified by:
Dr. Ahmed Agypong ................................. ..................................
(Head of Department) Signature Date

ii
 ABSTRACT

Product endorsement Strategies have been established as strategies use for advertising in
recent time. It has become a trend and perceived as a winning formula for product marketing
and brand loyalty most especially with celebrities. Debatably by many scholars on the use of
product endorsement strategies to be a score to brand loyalty. Some are of the view that the
use of advertising feature such as celebrity as an endorser of a brand is not worth it because
of the riskiness. Others too see it as of great importance most especially celebrity
endorsement which have a positive influence on the credibility, message recall, memory and
finally on the purchase intentions of the customer. In view of this, it is therefore very
imperative to carry out a research in this area in order to establish the impact of product
endorsement strategies on brand loyalty within Fan milk Ghana Limited. The Objective of
the study premised on this assertion sough to examine the product endorsement strategies
adopted by Fan milk Ghana Limited to examine customers perception about the effectiveness
of product endorsement strategies adopted by Fan milk Ghana Limited and to analyze the
impact of product endorsement on brand loyalty within Fan milk Ghana Limited. The study
employed the mixed research design, taking into consideration both quantitative and
qualitative approaches to achieving the objectives of the research. Data was gathered from
management and non management (Staff) and consumers of Fan Milk Limited. A sample size
of one hundred and fifty five (155) respondents was chosen for the investigation; comprising
administration (5) and non-administration (50) and customers (100). Findings from the study
revealed majority of the respondent did indicate that celebrity endorsement was one of the
endorsement strategy adopted by the company. Also, few indicated that sponsorship was
again an endorsement strategy adopted by the company; where it was revealed that the
sponsorship strategy had the potential of increasing brand loyalty. Similarly, some also
indicated that, donor as an endorsement strategy was patronized by the company with very
few as low 8% agreeing on breaking news. On the perception of consumers‟ perception about
the effectiveness of the product endorsement strategies by the company, respondents strongly
agreed that celebrity endorsement strategy was effective in achieving an increased brand
loyalty of product. According to the regression model, product endorsement strategies have
an impact on brand loyalty. The product endorsement strategies were statistically significant
at p-value of 0.05. Also the product endorsement strategies had a predictive power (R2) of
0.666 approximately 67 percent chance of predicting brand loyalty which was moderate.
Lastly, majority of respondents have had 6-10 years of relationship with Fan Milk Ghana
whiles those between 1 to 5 years is about 32 % with few having 11years and above
existence. Some of the challenges revealed by the study were Lack of Credibility (Brand
Measurement Survey on Celebrities), Corporate Social Responsibility issues, among others.
The study thus recommends that companies as well as celebrities should embark on corporate
social responsibility to also increase the ambiences it has in the economy. Furthermore,
advertising agencies need to be circumspect in choosing a celebrity to endorse a product.
Also, companies and advertising agencies should make it a priority as part of their core
values to embark on total quality management and standardisation in the production and
delivery goods and services to achieve good word of mouth. These in addition to the other
recommendations if effectively implemented are expected to address the challenges and
achieve the objectives set by the study.

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 DEDICATION

This work is dedicated to My Wife, Mrs. Ewurabena Kessie whose encouragement

has brought me this far. I also wish to dedicate it to my friends and my wonderful

siblings. For their love and support during the pursuance of my academic work.

Special dedications to GOD ALMIGHTY for the Wisdom, Strength and Grace

bestowed to me throughout these challenging periods.

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 ACKNOWLEDGEMENT

I am grateful to God Almighty for his mercies and support through the writing of this

research report. I am also grateful to the management, staff and clients of Fan Milk

Ghana Limited for their unconditional support in completing this work.

I would also like to extend my profound gratitude to my supervisor Mrs. Mariama

Zakaria whose support, interest, encouragement and stimulating suggestions helped

me during the research and writing process of this thesis.

Also, my most profound gratitude goes to my family and friends for their

unconditional love and steadfast support always.

To all my Lecturers, I say a big thank you for your motivating effort in transferring

knowledge.

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 TABLE OF CONTENTS

CONTENT PAGE

DECLARATION..........................................................................................................ii
DEDICATION............................................................................................................. iv
ACKNOWLEDGEMENT ........................................................................................... v
TABLE OF CONTENTS ........................................................................................... vi
LIST OF TABLES ...................................................................................................... ix
LIST OF FIGURES ..................................................................................................... x

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

INTRODUCTION........................................................................................................ 1
1.1 Background of the study .......................................................................................... 1
1.2 Statement of the Problem ......................................................................................... 3
1.3 Research Objectives ................................................................................................. 4
1.4 Research Questions .................................................................................................. 5
1.5 Scope of Study ......................................................................................................... 5
1.6 Importance of Study................................................................................................. 5
1.7 Organization of the Study ........................................................................................ 6
1.8 Limitation of the Study ............................................................................................ 6

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

LITERATURE REVIEW ........................................................................................... 8
2.1 Introduction .............................................................................................................. 8
2.2 Endorsement ............................................................................................................ 8
2.2.1 Endorsement Strategy ........................................................................................... 9
2.2.2 Product Endorsement ............................................................................................ 9
2.3 The Concept of Branding ....................................................................................... 10
2.3.1 The Significant Roles of Brand........................................................................... 12
2.3.2 The Characteristics of Successful Brands ........................................................... 13
2.3.3 Brand Equity ....................................................................................................... 13
2.3.4 Brand awareness ................................................................................................. 15
2.3.5 Brand Effect and Brand Trust ............................................................................. 16
2.4 Loyalty ................................................................................................................... 18

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2.4.1 Customer Loyalty In-Terms Of Branding........................................................... 19
2.4.2 Loyalty As Primarily An Attitude That Sometimes Leads To A Relationship
With The Brand (Model 1) ................................................................................. 20
2.4.3 Loyalty Mainly Expressed In Terms Of Revealed Behaviour (Model 2) ........... 22
2.4.4 Buying Moderated by The Individual‟s Characteristics, Circumstances, and/or
the Purchase Situation (Model 3) ........................................................................ 23
2.5 The Effect of Endorsement on Brand Loyalty ....................................................... 24
2.5.1 Revenue Generation/ Sales: ................................................................................ 25
2.5.2 Awareness Creation: ........................................................................................... 25
2.6 Celebrity and Product Match-Up ........................................................................... 25
2.7 The Ghanaian Viewpoint of Superstar Endorsers .................................................. 27

CHAPTER THREE ................................................................................................... 30

RESEARCH METHODOLOGY AND CORPORATE PROFILE ...................... 30
3.1 Introduction ............................................................................................................ 30
3.2 Research Approach ................................................................................................ 30
3.3 Research Design..................................................................................................... 31
3.4 Population .............................................................................................................. 32
3.5 Sample Size and Sample Technique ...................................................................... 33
3.6 Data Collection ...................................................................................................... 34
3.7 Design of the Questionnaires ................................................................................. 34
3.8 Data Analysis Procedure ........................................................................................ 35
3.9 Corporate Profile .................................................................................................... 35

CHAPTER FOUR ...................................................................................................... 39

DATA ANALYSIS AND FINDINGS ....................................................................... 39
4.0 Introduction ............................................................................................................ 39
4.1 Background and Age Information on Respondents ............................................... 39
4.2 Gender of Respondents .......................................................................................... 40
4.3 Number of Years of Respondents Relationship With Fan Milk Ghana ................ 41
4.4 Educational Background of Respondent ................................................................ 41
4.5 Product Endorsement Strategies Adopted by Fan Milk Ghana. ............................ 42
4.6 Perception About The Effectiveness Of The Product Endorsement Strategies. .... 44
4.7 Impact of Product Endorsement Strategies On Brand Loyalty. ............................. 45

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CHAPTER FIVE ....................................................................................................... 53
SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSIONS 53
5.0 Introduction ............................................................................................................ 53
5.1 Summary of Findings ............................................................................................. 53
5.1.1 Product Endorsement Strategies Adopted by Fan Milk Ghana. ......................... 53
5.1.2 Consumers Perception about The Effectiveness of the Product Endorsement
Strategies Adopted By Fan Milk Ghana. ............................................................ 54
5.1.3 Impact of Product Endorsement Strategies on Brand Loyalty............................ 54
5.1.4 Brand Loyalty Rate of Fan Milk Ghana ............................................................. 54
5.2 Conclusion ............................................................................................................. 55
5.3 Recommendations .................................................................................................. 55
5.4 Areas of Further Research ..................................................................................... 57

REFERENCES ........................................................................................................... 58

APPENDIX I ............................................................................................................ 63
QUESTIONNAIRE FOR MANAGEMENT ........................................................... 63

APPENDIX II ............................................................................................................ 66
QUESTIONNAIRE FOR STAFF ............................................................................ 66

APPENDIX III ........................................................................................................... 68

QUESTIONNAIRE FOR CUSTOMERS ................................................................ 68

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 LIST OF TABLES

TABLE PAGE

Table 3.1: Population ................................................................................................... 32

Table 3.2: Sample Size ................................................................................................ 32

Table 4.1. Respondent Perception About The Effectiveness Of Product Endorsement

Strategies Of Fan Milk Ghana. .................................................................. 44

Table 4.2: Model Summary Management Perspective ................................................ 45

Table 4.3 ANOVA of Regression ................................................................................ 46

Table 4.4 Coefficientsa ................................................................................................. 47

Table 4.5: Model Summary Staff Perspective ............................................................. 48

Table 4.6 ANOVA of regression ................................................................................. 48

Table 4.7 Coefficienta .................................................................................................. 50

Table 4.8: Model Summary Customers Perspective .................................................... 50

Table 4.9 ANOVA of regression ................................................................................. 51

Table 4.10 Coefficientsa ............................................................................................... 51

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 LIST OF FIGURES

FIGURE PAGE

Figure 4:1 Age of Respondents.................................................................................... 40

Figure 4.2 Gender of Respondents............................................................................... 40

Figure 4.3 Number of Years Of Respondents‟ Relationship With Fan Milk Ghana ... 41

Figure 4.4 Educational Background of Respondent .................................................... 42

Figure 4.5: Product Endorsement Strategies Adopted by Fan Milk Ghana Limited. .. 43

x
 CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Ghana is a nation where individuals love to live in dreams. The citizens love big

names which may be football stars, for example, Asamoah Gyan, Andre Dede Ayew,

Michael Essien and film stars like Kwadwo Nkansah (Lil Wayne) or Agya Koo.

Ghanaians regard them as hearts-top picks. Advertisers use these relational names in

order to impact their objective clients that may be existing or potential ones. For this

they rope in these famous people and give them walloping measure of cash. They

trust that by doing this they can relate their items with their objective clients. This is

called celebrity endorsement strategy (Rawtani, 2010).

Ordinary purchasers are presented to a great many voices and pictures in magazines,

daily papers, and on bulletins, sites, radio and TV. Each brand endeavors to take no

less than a small amount of a man's opportunity to illuminate him or her of the

astounding and distinctive characteristics of the current item. The test of the advertiser

is to discover a snare that will hold the subject's consideration. In serving to

accomplish this, the utilization of big name endorsers is a broadly utilized promoting

method (Rawtani, 2010).

In this cutting edge age, individuals have a tendency to disregard all plugs and notices

while flipping through the magazines and daily papers or review TV. Be that as it

may, and still, after all that, the style of a superstar from time to time goes unnoticed.

Most superstars render help in commercials and its effect on the overall brand is of

much of importance. Organizations sometimes go for some of these famous people to

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showcase its grand program just to leverage on and increase recognition towards its

products. The product packaging may have pictures or features like signatures to

show their full approval on these products, which has a tendency to persuade a

customer to change his decision from different kind of brands.

Sometimes people may see it as a simple thing, but then the planning of such

advertisement and constant success in reaching the objective do call for a deep

understanding of the product, brand aim, the selected famous person, how we have

associate the famous or superstar with the brand and the strategic plans of determine

the efficiency and effectiveness.. A lot of businesses invest heavily just to associate

themselves with the brand that has famous endorsers. Most of these endorsers may be

seen as self motivated with both such endorsers are seen as dynamic with both

appealing and likeable features where organizations intend these traits are carried to

products via numerous means.

Besides, the notoriety of VIPs don't just make and keep up consideration additionally

to accomplish high review rates for basic messages in today's exceedingly jumbled

situations. Additionally every item has a picture. The purchaser tries to expend a

brand which has the most extreme fit with his/her own identity/picture. The superstar

endorser fits in the middle of these two collaborations, where he tries to bring the

picture of the item closer to the desire of the shopper, by exchanging a percentage of

the social implications dwelling in his picture to the item. Indian promoting began

with the vendors who used to get out their products right from the days when urban

communities and markets first started. With this advanced a method that attempted to

profit by the enthusiastic connection of the admirers or the devotees of the famous

people; as big name support.

2
Brand is the most significant resource of any firm. The brisk message-reach and effect

are very key in today's exceedingly focused environment. Caution needs to be taken

when an organization would want to embark on famous endorsement in order to make

sure of the services its rendering it clients. Moreover as famous person pass through a

normal advertisement to people‟s favorites, a great transmission has taking place

which can help increase the awareness. Famous people have additionally been sought

after rising so as to have succeeded in being compelling over the disorder & getting

the consideration and center of the purchaser. They likewise succeed in making a goal

in the psyches of the customer to gain what their most loved superstar underwrites.

1.2 Statement of the Problem

In view of Prasad (2012) study, product endorsement strategies including celebrity

endorsement can have a positive influence on the credibility, message recall, memory

and congeniality of the advertisements and finally on the purchase intentions of a

target consumer. Academicians‟ also argue that the use of advertising feature such as

celebrity as an endorser of a brand is not worth it. It is perceived that the use of a

celebrity in endorsing a brand is a risky venture, because some celebrities are not

socially responsible and this does not give an attractive picture for the celebrity

endorsing the brand (Johnson et al., 2012). An epitome of this statement is Michael

Phelps controversy which erupted almost immediately after his ascent to fame. Phelps

was photographed at a college party using a device associated with inhaling marijuana

smoke. The photo was later distributed to the press and appeared throughout the world

media. Phelps was not charged with a crime, but he issued a heartfelt apology and

took responsibility for his mistake.

3
Furthermore on the Ghanaian front, Johnson et al., 2012 indicated that, Shaka Zulu‟s

contract with Tigo was terminated after he was caught on an armed robbery spree.

Some advertisers therefore avoided the use of celebrity endorsers to be on the safer

side. Although some advertisers avoid the use of celebrity endorsers to be on the safer

side, some advertisers maintain the use of celebrities to endorse consumer packaged

goods. So then the statement problem is on the use of product endorsement strategies

to be a score to brand loyalty where there diverse opinion comes in. Some are of the

view that the use of advertising feature such as celebrity as an endorser of a brand is

not worth it because of the riskiness. Others too see it as of great importance most

especially celebrity endorsement which have a positive influence on the credibility,

message recall, memory and finally on the purchase intentions of the customer. It was

against this background that the researcher decided to examine whether celebrities

have a persuasive advantage over the purchased decision of customers. In view the

above problem, there is the need to carry a research on the various product

endorsement strategies and their implications on brand loyalty within the Ghanaian

context.

1.3 Research Objectives

The general objective of this research is to examine the impact of product

endorsement strategies on brand loyalty within Fan milk Ghana Limited. Specifically

the study intends to achieve the following objectives:

1. To examine the product endorsement strategies adopted by Fan milk Ghana

Limited.

2. To examine customers perception about the effectiveness of product

endorsement approaches been used by Fan milk company

4
 3. To examine the effect of product endorsement on brand loyalty within Fan

milk company.

1.4 Research Questions

While studying the impact of product endorsement strategies on brand loyalty within

Fan milk Ghana Limited, the following questions shall be addressed:

1. What are the product endorsement strategies adopted by Fan milk Ghana

Limited?

2. How effective is the of product endorsement strategies adopted by Fan milk

Ghana Limited?

3. To what extent do the product endorsement strategies impact on brand loyalty

within Fan milk Ghana Limited?

1.5 Scope of Study

The study encompasses product endorsement strategies and its impact on brand

loyalty. The research was conducted on Fan milk company within the kumasi in the

ashanti region. The targeted people included the management (Chief executive

Officer with 5 branch managers), non management (Staff) and customers of the

institution. The organisation was chosen because it has increase clientele.

1.6 Importance of Study

The survey was for assessing the effect of item underwriting methods on brand

unwaveringness inside of Fan milk Ghana Limited. The study looked to convey to

fore, the part item support methodologies, for example, big name play in the buy of

Fast Moving Consumer Goods (FMCG's). This study will illuminate advertisers about

how to depict publicizing components to impact shopper choices as far as brand-

5
review and brand-acknowledgment in acquiring quick moving customer merchandise.

The study will likewise serve as a manual for expertise shoppers focus merchandise

on TV promotions that element VIP endorsers. It will likewise look at the impact that

VIP as endorsers have on the customer and whether they are sure or negative.

1.7 Organization of the Study

This study is has been categorized in five sections. Sections one comprises of the

basis of the point, thus the foundation of the lessons, difficult explanation, examine

objectives and inquiry, centrality of the lessons, extent of the lessons and constraint of

the learning.

Section two displays the letters survey of long-ago readings led in the region of item

support techniques and brand dedication. The procedure of the study is showcased in

the third part. The fourth part shows the exploration discoveries and examinations of

information. After all, section five shows a rundown of examination discoveries,

closing stages, proposals and suggestions for opportunities .

1.8 Limitation of the Study

This study recognizes various confinements and the first concerns the scope of the

study. Despite different organizations inside of the Kumasi Metropolis, this study just

kept to Fan Milk Ghana constrained in Kumasi. Hence, the outcomes acquired from

the present study are particular to the zone where the information was gathered and

can't essentially be summed up to different foundations.

Secondly, since the data collected used purposive and convenient sampling, it was

quite impossible to reflect the analysis on the whole staff. However, this is not to say

that the data collected pertaining to these specific firm operations are inaccurate, but

6
merely to pinpoint the problems that the potentially interested research workers

should consider.

7
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This stage here provides impact of product endorsement strategies on brand loyalty.

The chapter highlights on concepts such as product endorsement, celebrity

endorsement, advertising features and its implication on brand loyalty.

2.2 Endorsement

Endorsement method has been formally utilized by organizations as a part of the

nineteenth century and created as a method for advancement because of radio and

Television ads making, then developed quickly in the 70's when big name endorsers

showed up in 15% of all publicizing. The offer of appearances expanded in the

coming years: 20% in the 80's, 25% in the 90's, setting VIP underwriting as the most

imperative and generally utilized showcasing procedure (Ang & Dubelaar, 2006).

Superstar endorser is a man who publicizes an item, a man who is known for his/her

accomplishments in territories which are not the same as the promoted item class

(Friedman & Friedman, 1979). Supports can have famous people giving master

suppositions, being a representative for an item or connected with a brand

(McCracken, Lukas & Seno, 2005). There are more sorts of supports: express

(individual underwrites the item), verifiable (individual uses the item), basic

(individual prompts the item), or co presentational (just showing up with the item).

Dissimilar to mysterious endorsers, big names enhance the picture exchange

procedure, supporting brand correspondence and accomplished a larger amount of

consideration and review (Song, Chaipoopiratana & Combs, 2011). Examination has

demonstrated that the utilization of famous people in publicizing, contrasted and

8
unknown models, can have a constructive impact on the believability, inclination for

promoting and, eventually, the buy goal (Farhat & Khan, 2011).

2.2.1 Endorsement Strategy

As indicated by Okonkwo (2007) study, there are various courses in which big names

can bolster a brand this incorporates printing flier in publications, TV plugs,

photographs of famous person paid to utilize certain brand items (to show that the

item and the brand are a piece of their regular life), famous people photographs with

extraordinary items that they wear (when they truly value the item and utilization it

day by day), brand name notice in music, welcoming VIPs to be co-inventors in item

outline, Naming the items after the name of big names (Jackie handbag from Gucci,

Kellybags for Hermes). Also, Chiosa (2012) contended that, few big names had

marked contracts for extravagance brands picture including Angelina Jolie (St John),

Scarlett Johansson (Louis Vuitton), Lindsay Lohan (Miu), Madonna (Versace in

1995) and Charlize Theron (Dior). This demonstrates how huge item support is to

organizations.

2.2.2 Product Endorsement

As indicated by Prasad (2012) study is a word of mouth from someone or customers

indicating their likeness of a product. Product endorsement in various forms, some

could be on where a product is been associated with a name of a public figure or

recognition or the assumption that individuals are likely to purchase items other

individuals they know, have as of now purchased and loved, in order to utilized

supports and word of mouth to advance their items. Therefore makes it so hard for

people to understand the role some of these superstars play. Who really they are and

of what influence are they to products. But then the whole idea is to understand that

9
most superstar do enjoy public recognition. Also have the requisite skills in

performing their own activities, very influential in the society. In so doing, most

organisations outside Ghana and even in Ghana do associate themselves with these

superstars because of how famous and influential they are to the society. An example

could be attributed in Britain where most organisations have associated themselves

with the ruler in selling most of their products. (Prasad, 2012). Previously

organisation did not know the importance of product endorsement but now it‟s

commonly used by most companies because of competition. Superstars have some

unique features or characters which makes organisation go in for. They do attract

customers a lot, ascertain credibility and are symbols to create a lot of awareness.

Moreover, Prasad contended that, an item embraced does not so much imply that an

item is good. This show just implies that the organization has a lot of understanding

on how to perform its advertising associations with a unique name to represent it.

Some endorsers create evidence, where an individual explains how beneficial a

product has done in his life. This affects the others and also edges them to also have a

feel of it. To say some of these affect the organisation positively. In some

organisations where products have to do with saving of life, like drug manufacturers,

they use these testimonies to promote their product so others can see the advantages in

using it. Also the usage of photographs is commonly use by organisation on their

products to make a union among the endorser and the product.

2.3 The Concept of Branding

Branding more or less for centuries has been a mean to differentiate goods of one

producer from that of another. Brand studies have always remained a key attention of

marketers because of its importance and direct relationship with consumers. Several

studies illustrate that, marketers use brands as the primary point of differentiation to

10
get that competitive advantage on other competitors playing an imperative role in the

success of the company. Brand holds a very significant place in the life of a

consumer. Consumers choose brands and trust them to avoid uncertainty and quality

related issues (Bennett, 1995). A name, term, sign, symbol or design, or a

combination of these, that is intended to identify the goods and services of one

business or group of business and to differentiate them from those of competitors

(Bennett, 1995).

The definition of branding by Bennett (1995) is one of the most numerous

descriptions of the word brand. Essentially; brand is a way of differentiating a

company‟s good, or services, from those of its competitors Kotler (2009). A

significant factor of company‟s strategy to increase their market share and then profit

is to strengthen their brand image thereby creating the proper product identity and

customer loyalty. DePelsmacker (2001) defines investment in brand awareness and

brand image as powerful instrument of marketing strategy, as they are important

vehicles on the road to long term profitability. Brand serves as a pivotal role for

distinguishing goods and services from those of the competitors. Aaker (1991) and

Murphy (1998).the emergence of brand equity underlies the importance of brand in

marketing tactics and hence provides useful insights for managers and further

research, Keller (2003).

In addition, branding is a sign of quality distinction and can be used to secure

competitive advantage, increased financial returns and high customer loyalty. For the

consumer, the brand functions as a means of identification that reduces search costs,

search effort, and perceived risk, thereby facilitating a shortcut in purchase decision

making, and represents a guarantee of quality and reliability. Forming a self-brand

connection is a psychological manifestation of such equity at the consumer level.

11
When consumers appropriate or distance themselves from brand associations based on

celebrity endorsement, they do so in a manner that is consistent with self-related

needs, such as self-enhancement (Escalas & Bettman 2003).

Consumers may construct their self-identity and present themselves to others through

their brand choices based on the congruency between brand-user associations and

self-image associations (Escalas & Bettman 2005). Brands can as such become

symbols whose meaning is used to create and define a consumer‟s self-concept.

Though brand by itself will never walk, talk and get photographed, but by tying it

with a celebrity, the name of a product or a company, can take on instant glitz,

glamour, charm, sex-appeal and aspiration.

2.3.1 The Significant Roles of Brand

Brand is a name in every customer mind Mooij (1998) and it is characterize by a

noticeable name or symbol which can differentiate the goods and services from the

rivals Aaker (1991) and Keller(1998).in addition to a specific brand name, a brand is

composed of products, packaging, promotion, advertising as well as its overall

presentation, Murphy (1998). From the consumer‟s perspective, brand is a guarantor

of reliability and quality in consumer products. Roman et al (2005) added to this,

consumers would like to buy and use brand-name products with a view to highlight

their personality in different situational contexts, Aaker (1999) and Fennis and Pruyn

(2006).

Currently, consumers have a wide range of choice to choose from when they enter a

shopping mall. It is found that consumers‟ emotions are one of the major determinants

which affects their buying behavior (Berry, 2000).According to a research conducted

by Freerdie Media LLC (1998) on shopping habits, nearly one-fourth of the

12
respondents are impulse buy products they have not budgeted for. When deciding

which products to purchase, consumers would have their preference, which are

developed in accordance with their perceptions towards the brand. Successful

branding could make consumers aware of the presence of the brand and hence could

increase the chance of buying the company‟s product and services (Doyle 1999).

2.3.2 The Characteristics of Successful Brands

A brand can be an everlasting and lucrative asset as long as it is maintained in a good

manner that can continue satisfying consumers‟ needs (Batchelor, 1998). Although

successful brands can be totally different in nature, they share something in common,

for instances well-priced products and consistent quality, (Murphy, 1998). As

mentioned by Levitt (1983), there are four elements for building a successful brand,

namely tangible product, basic brand, augmented brand and potential brand. Tangible

product refers to the commodity which meets the basic needs of the customers. Basic

brand, on the other hand, considers the packaging of the tangible product so as to

attract the attention from the potential customers. The brand can be further augmented

with the provision of credibility, effective afters ales services and the like. Finally and

most importantly, a potential brand is established through engendering customer

preference and loyalty. By doing so, the image of the brand could be well instilled in

the customers‟ mind.

2.3.3 Brand Equity

In view of Aaker (1991) study, the term brand equity refers to a set of assets and

liabilities associated with a brand, including its name and symbol, which could

impose beneficial or detrimental effects on the values arising from the products or

services. Added to this, Keller (1998) points out that brand equity signifies the unique

13
marketing effects imposed on the brand. Concerning the positive side of brand equity,

it happens when consumers are willing to pay more for the same level of quality just

because of the attractiveness of the name attached to the product Bello and Holbrook

(1995). However, brand equity could be ruined if it is not properly managed. For

instance, poor product quality and customer services could adversely affect the brand

image, giving rise to a reduction in sales volume. One of the quintessential examples

regarding brand as a kind of equity is the imposition of laws to protect intellectual

property, Murphy (1998).

In countries with well-established legal system, the values of brands have been

recognized to both the consumers and producers. In order to combat piracy, many

countries have set up laws to protect trademarks, patents, designs as well as copyright.

In addition, brand is also a tradable product with measurable financial value, (Murphy

1998). It is not uncommon to find some familiar brands listed on the stock markets in

which they could be bought or sold. Brands like HSBC, Marks and Spencer,

Vodafone, Sainsbury and Tesco are all listed on the FTSE 100 index (London Stock

Exchange, 2007). It is found that the volatility of stock market could affect

consumers‟ purchasing mood, not to mention the growth or declines of retail sales

Blackwell (2002). This is supported by the fact that brand equity depends on the

number of people with regular purchase (Aaker, 1996). The above examples highlight

the values of brand equity for both consumers and the firm. For the consumers, brand

equity could provide them with information about the brand which influences their

confidence during the purchasing process. There is a high propensity for consumers

with good perceptions to buy from the same shop again than those with poor

perceptions. Past purchasing experiences and familiarity with the brand could be

attributable to the perceptions generated from the consumers (Aaker,1991). As for the

14
firm, brand equity could also be a source for the firm to generate cash flow. For

instance, the merger between adidas and Reebok in 2005 not only increased their

market share so as to compete with Nike in the US sports apparel market, but also

attracted more people to invest in the bigger company with high potential (Business

Week, 2005). Besides, brand equity could also allow higher margins through premium

pricing and reduced reliance upon promotional activities (Aaker, 1991). Owning to

the positive image, consumers no longer focus on the short-term promotion but the

brand on the whole. Brand equity is a broad concept which can be further subdivided

into four main areas, namely brand loyalty, name awareness, perceived quality and

brand associations, Aaker, (1991) and Keller (1998). These four main areas are to be

discussed in the coming sections.

2.3.4 Brand awareness

Aaker (1991) again argued that, brand awareness is one of major determinants of

brand equity. It refers to the ability of a potential consumer to recall and recognize the

brand, linking the brand with its corresponding product class,. The level of brand

awareness lies in a continuum, with brand recognition being the lowest level and the

first named brand with unaided recall being the highest level. It is important for the

potential consumers to be aware of a product so that it can become one of the

purchasing choices. This is due to the fact that the product needs to enter the

awareness set before it comes to the consideration set and an increase in brand

awareness is conducive to a higher chance of entering the later set (Nedungadi, 1990).

In this way, brands with higher level of awareness would be more likely to be

purchased. This could probably explain why consumers tend to buy a recognizable

brand rather than an unfamiliar one, (Hoyer, 1990). Several factors can alter the level

15
of brand awareness. In case of China, its geographical location and politics could

affect the consumer brand awareness level seriously. According to research conducted

by Delong et al. (2004), owing to geographical differences, Chinese consumers cannot

distinguish US product brand names from the European ones.

As mentioned by Keller (1998), brand awareness can be enhanced through repeat

exposure to the brand. In order to achieve brand awareness, two tasks are to be

accomplished, namely increasing brand name identity and associating it with the

product class. Advertising and celebrity endorsement could be some useful tools for

raising brand awareness. It is found that advertisement attitude is attributable to the

influence on brand attitudes, affecting consumer‟s intention to purchase, (Tsai et al.

2007). In recent decades, there is an increasing number of advertising campaigns

around the world. Consumers are hence well equipped with comparative elements to

judge which product or service to purchase (Alvarez & Casielles 2005).

Moreover, celebrity endorsement can give rise to source credibility and source

attractiveness. For source credibility, as pointed out by McGuire (1978), celebrities

can disseminate messages to particular consumers and hence increase the brand

awareness. As for source attractiveness, successful endorsement can associate the

culture of the celebrity world with the endorsed product, McCracken (1989). This

association can raise the public awareness towards the brand.

2.3.5 Brand Effect and Brand Trust

Chaudhuri and Holbrook (2001) clarify brand influence and brand trust with the

accompanying definitions and depictions: Brand influence: a brand's capability to

evoke a positive passionate reaction in the normal buyer as a consequence of its

utilization. (Chaudhuri & Holbrook, 2001) It comprises of distinctive elements

16
influencing clients prompting a factorable disposition towards the brand, where brand

picture and affability are a percentage of the critical components. Brand influence is

created through a nature that is hasty and momentary. A positive (or negative)

influence can occur in a moment. Brand believe: "the readiness of the normal

purchaser to depend on the capacity of the brand to perform its expressed capacity".

(Chaudhuri & Holbrook, 2001) Trust is developed of three key establishments,

dependability, wellbeing and genuineness, and is of real significance for both the

organization and its clients. It furnishes the clients with a feeling of certainty through

diminishing vulnerabilities in nature they are available in, which thus creates more

esteem to the brand too. The way of brand trust is produced in a way more thoroughly

considered and considered before setting up the certain level of trust in correlation to

brand influence advancement. Brand steadfast clients have a tendency to be all the

more ready to pay a higher cost for the item, originating from the view of the brand

giving extra esteem that no contending brands can give. For the brand itself, the most

huge advantage is the expanded piece of the overall industry, since clients repeating

buy conduct produces more esteem to the organization. Various full of feeling

components are available when portraying brand dedication; where one recommends

that clients are ceaselessly utilizing the brand. Consequently, the use of the brand is

affable and clients may identify with its picture (Chaudhuri & Holbrook, 2001).

A blend between the two ideas of brand influence and brand trust makes up the

premise for and have an impact on attitudinal and behavioral brand dedication. The

considered brand gives the client a picture they can or need to identify with,

notwithstanding trust in regards to the picture the brand pass on to people in general.

Chaudhuri and Holbrook (2001) contend for various advantages got through brand

influence and set up brand dependability; brought down advertising expenses, an

17
expanded number of new clients, good verbal and diminished ability to attempt

contenders offerings. As the ideas of brand influence and brand trust contends, a

positive enthusiastic reaction towards a brand and the trust of a brand performing its

capacity will create a mentality that is reliant on what the brand transmits. At the point

when shoppers believe a brand and put stock in the message, a long haul sort of

reliability can be the conceivable result, though brand influence may be of a fleeting

nature. In this manner, an in number state of mind and steadfastness are liable to be

the consequence of brand trust, and certain conduct may be the aftereffect of brand

influence. Here it can be seen that diverse elements are perhaps affecting the two sorts

of dependability considered.

Since the two distinct sorts of brand faithfulness can be accomplished through and are

influenced by different diverse methodologies, it is fitting to underline a relationship

between them. This choice was made because of the likelihood of reliability creation,

either through a fundamental partition or through a mix between them.

2.4 Loyalty

Dedication is a profoundly held responsibility to re-purchase or re-disparage a

favoured item or administration reliably later on, along these lines bringing about

tedious same brand or same brand-set acquiring regardless of situational impacts and

promoting endeavours having the capacity to bring about exchanging conduct (Oliver,

1999). Jacoby et.al(1973), characterize brand steadfastness as the one-sided ( non-

arbitrary) performance reply ( buy) communicated after some time by some choice

making unit as for one or more option brands out of an arrangement of such brands ,

and is a component of mental (choice making, evaluative) process. These definitions

unmistakably are skewed to the thought that reliability is coordinated towards

18
customer items and administrations. These in the promoting domain enter in the

business as brands-this being any word, device(sound, shape, or shading) or a mix of

these used to recognize a merchant's merchandise or administrations( Kerin, 2011) In

the connection of this study devotion is thought to be bi-dimensional as in dedication

may be coordinated towards an item and additionally towards the big names.

As indicated by Harlonen-Knight(2010) famous people are brands in their own rights

and their support of items adds up to a collusion of brands These consolidate to

convey out brand dependability which as per Jacoby et.al(1978) is the attributes of

those purchasers who have an in number responsibility to a brand , in light of the fact

that they see that brand as being agreeable than the option and this assessment is

fortified through rehashed utilization. Refinement, in any case, should be made

between genuine brand dependability and "spurious" rehash buy in which case the

recent may come about because of convincing components as accommodation, brief

impact by second or outsiders, accessibility, latency and other outer powers.

2.4.1 Customer Loyalty In-Terms Of Branding

At an exceptionally broad level, unwaveringness is something that purchasers may

display to brands, administrations, stores, item classifications (e.g., cigarettes), and

exercises (e.g., swimming). Here we utilize the term client dedication instead of brand

unwaveringness; this is to underline that steadfastness is a component of individuals,

as opposed to something intrinsic in brands. Shockingly there is no generally

concurred definition (Oliver 1999). Rather, there are three mainstream

conceptualizations: unwaveringness as principally a state of mind that occasionally

prompts an association with the brand (Model 1); dedication predominantly

communicated as far as uncovered conduct (i.e., the example of past buys) (Model 2);

19
and purchasing directed by the singular's attributes, circumstances, and/or the buy

circumstance (Model 3)

2.4.2 Loyalty As Primarily An Attitude That Sometimes Leads To A

Relationship With The Brand (Model 1)

Numerous analysts and advisors contend that there must be solid 'attitudinal duty' to a

brand for genuine reliability to exist (Jacoby and Chustnut 1978). This is seen as

taking the type of a reliably positive arrangement of expressed convictions towards

the brand obtained. These dispositions may be measured by asking the amount of

individuals say they like the brand, feel focused on it, will prescribe it to others, and

have positive convictions and emotions about it with respect to contending brands

(Dick & Basu, 1994). The quality of these states of mind is the key indicator of a

brand's buy and rehash support. This is the thing that Oliver (1997) has personality a

primary concern when he characterizes client reliability as: A profoundly held

responsibility to re-purchase or re-belittle a favored item/benefit reliably later on, in

this manner creating redundant same-brand or same brand-set obtaining in spite of

situational impacts and showcasing endeavors having the capacity to bring about

exchanging conduct.

In the fields of promoting and brand value inquire about this model gets much

calculated backing ( Keller 1998). The methodology additionally engages numerous

experts in promoting and brand administration in light of the fact that it is

compassionate with the quest for techniques to upgrade the quality of shoppers'

dispositions towards a brand. In addition, there is some confirmation to propose it is a

gainful methodology. Ahluwalia et al. (1999) have demonstrated that attitudinally-

faithful clients are a great deal less powerless to negative data about the brand than

20
non-steadfast clients. Likewise, where devotion to a brand is expanded, the income

stream from faithful clients turns out to be more unsurprising and can get to be

significant after some time – as investigations of cases, for example, Federal Express,

Pizza Hut establishments, and Cadillac dealerships have indicated (Gremler & Brown

1999).

An expansion of the 'dispositions characterize devotion' point of view is to

recommend that shoppers structure associations with some of their brands. A decent

case of this point of view is given by Fournier (1998), who sees reliability as a

submitted and influence loaded organization in the middle of customers and brands. It

is an organization that will be significantly more grounded when bolstered by

different individuals from a family unit or purchasing gathering, and where utilization

is connected with group participation or character. Samples in backing of this

contention incorporate Skoal smokeless tobacco among some North American

cowpokes, reliability to specific European soccer groups (Arnould, Price & Zinkhan

2002), the Beanie Babies rage (Morris & Martin 2000), Jeep brandfests

(McAlexander, Schouten & Koenig 2002), and the exemplary instance of Harley-

Davidson bikers (Schouten & McAlexander 1995).

Notwithstanding the mental and sociological lavishness of the 'states of mind drive

conduct' and "relationship" ways to deal with comprehension client dedication, these

conceptualizations of unwaveringness are not without their faultfinders (Dowling

2002). They are thought to be less relevant for comprehension the purchasing of

generally safe, much of the time obtained brands, or when motivation purchasing or

assortment looking for is attempted, than for imperative or hazardous choices

(Dabholkar, 1999). Additionally, as Oliver (1999) has noted, there is minimal

deliberate exact exploration to validate or invalidate this point of view of client

21
devotion. The cases above are segregated cases, regularly refered to as illustrative of

the income impacts that may be accomplished, as opposed to the benefit affects that

have been accomplished.

2.4.3 Loyalty Mainly Expressed In Terms Of Revealed Behaviour (Model 2)

Incomprehensibly, Model 2 is seemingly the most disputable yet the best bolstered by

information. The discussion happens on the grounds that dependability in this model

is characterized for the most part with reference to the example of past buys with just

auxiliary respect to fundamental purchaser inspirations or duty to the brand

(Ehrenberg, 1988). Analysts have accumulated great measures of information about

these buy designs over numerous years – crosswise over many item classes and for

some differing nations (Uncles et al. 1994). They have found that couple of customers

are "monogamous" (100% steadfast) or "wanton" (no steadfastness to any brand).

Maybe, a great many people are "polygamous" (i.e., faithful to an arrangement of

brands in an item class). From this viewpoint, steadfastness is characterized as "a

progressing affinity to purchase the brand, generally as one of a few" (Ehrenberg &

Scriven, 1999).

These analysts have a tendency to receive a business sector center instead of an

individual center (key execution measures are brand offers, infiltration, normal buy

frequencies, rehash purchasing – for a characterized period). Stochastic demonstrating

strategies portray the watched examples of client purchasing. Given these portrayals,

dependability is surmised to work in the accompanying way. Through

experimentation, a brand that gives a tasteful ordeal is picked. Dependability to the

brand (measured by rehash buy) is the consequence of rehashed fulfillment that thus

prompts feeble duty. The shopper purchases the same brand once more, not on

22
account of any emphatically held earlier disposition or profoundly held responsibility,

but since it is not justified regardless of the time and inconvenience to hunt down an

option. On the off chance that the standard brand is out of stock or inaccessible for

reasons unknown, then another practically comparative (or substitutable) brand (from

the portfolio) will be buy ( Barnard & Scriven 1997). Close by small motivation to

use much exertion assessing the options after all prone tasteful. Then again, more than

rehashed buys a feeble responsibility to the (restricted) number of trade name

purchased in an item classification .

Every one of these studies is grounded in significant measures of statistical surveying

information and investigation. Be that as it may, regardless of the heaviness of exact

proof, contention continues. The individuals that promise to the 'states of mind drive

conduct' and " connection move towards explicitly preclude uncovered conduct as a

prevailing measure of faithfulness. That, they contend, might only reflect chance.

Indeed, even consolidated measures of uncovered conduct and fulfillment may not

test profoundly sufficient for us to make certain there is genuine steadfastness

(Arnould, Price & Zinkhan 2002).

2.4.4 Buying Moderated by The Individual’s Characteristics, Circumstances,

and/or the Purchase Situation (Model 3)

Advocates of Form 3, the possibility methodology, contend that the top belief of

faithfulness is to allow the connection in the middle of disposition and conduct to b

directed by possibility variables, for example, the singular's present circumstances,

their attributes, and/or the buy circumstance confronted. That is, an in number

mentality toward a brand may give just a frail forecast of regardless of whether the

brand will be purchased on the following buy event on the grounds that any amount of

23
changeable may co-figure out which brand(s) are considered to be alluring (Fazio &

Zanna 1981).

Singular circumstances incorporate spending plan impacts thus, the craved brand is

excessively extravagant), weight (e.g., the need to purchase brand in the class at the

following accessible open door). Singular attributes are reflected in the craving for

assortment, propensity, the need to accommodate, the resistance for danger, and so

forth. Buy circumstance impacts incorporate item accessibility, advancements/

bargains, the specific utilization event (e.g., blessing, individual utilization, and

family utilize), and so forth. A three-variable model develops, in view of predecessors

(counting powerless former demeanors and qualities of the customer), possibility

components (counting kind of utilization event and the buy circumstance), and

outcomes (up-dated states of mind, aims and the genuine buy conduct).

Case in point, in Oliver's (1997, 1999) definition referred to prior, properties of the

individual and the buy circumstance are conceptualized as "annoyance" variables that

restrain the common development of client unwaveringness, while in the possibility

display these variables are seen as playing an essential and unpreventable part in

clarifying the watched examples of procurement conduct. This is significantly clearer

where states of mind are pitifully held. Here it is rehashed fulfilment and frail

responsibility that together with other applicable possibility variables co-focus future

brand.

2.5 The Effect of Endorsement on Brand Loyalty

Endorsement by Rawtani 2010 explained endorsement as a testimonial, a written or

spoken statement endorsing, promoting or advertising a product. This can have a

significant impact on the brand loyalty from positive direction of a superstar who is

24
recognize in the society. For example Yazz washing soap uses Asamoah Gyan who is

noted to be a superstar or celebrity in the society. With this the it can have an impact

on the following:

2.5.1 Revenue Generation/ Sales:

Endorsement most especially celebrity can affect sales positively or negatively.

Consumers are likely to purchase the product if they feel that the celebrity is likable,

sincere and appropriate for the item. However, the reverse is also true. Sales could

diminish if the celebrity does not appeal to the target market, is not credible or gains

negative publicity. In some cases, consumers are indifferent and there is no noticeable

change in sales.

2.5.2 Awareness Creation:

Advertising that features a celebrity creates attention and generates awareness of the

product. Your company can gain new customers from the celebrity's fan base. For

instance, a well-loved local guitarist could draw attention to your musical instruments

shop. Fans who have faith in the personality are most likely to purchase your products

or, at least, have a greater intention to buy. The advertising also gains the attention of

consumers with a casual interest in the celebrity

2.6 Celebrity and Product Match-Up

In 1980 and 1990 both Forkan and Kamins individually performed a few

examinations so as to test out the Product Match-up Hypothesis. Which expressed that

messages depicted by a big name picture and the item's message ought to go as one

for the underwriting to work. The match between the big name and brand picture

indicated by Misra in 1990 is needy upon the level of expected "fit" between these

25
two variables. Publicizing an item through a practical big name figure with a high

item fit makes a larger amount of authenticity (Kamins & Gupta, 1994; Kotler, 1997).

Kahle and Homer (1985) underlined the way that physical fascination of the VIP has

an extraordinary impact on the shoppers' demeanor towards buy choice and brand or

promotion review. Till and Busler (1998) gave yet another case where the superstar

and the item were an immaculate fit, Cindy Crawford in the Revlon promotion. Their

methodology was to demonstrate that instead of physical engaging quality, item

ability is a more critical component that influences shopper purchase in. Refering to

the illustration of Zinidine Zidane (a resigned footballer player) supporting football

items, Shimps (2003) recommended that endorsers are best when there is an in

number and positive relationship between the endorser and the intended interest

group.

For this situation Zidane's fans were affected to buy the items he embraced since it is

firmly identified with his ability of the games of soccer. Superstar supports can be an

intense gadget to enter remote markets. Contracting a world renowned big name or a

VIP from the extending nation may help organizations to overcome numerous such

issues. For Instance, Pepsi Co International expanded its piece of the overall industry

in both Asia and Africa amid 2002 Korea-Japan World Cup by utilizing celebrated

football big names, for example, Thiery Henry, Ronaldo, Roberto Carlos and others

for their worldwide TV promotion.

On the Ghanaian front, Glo portable information transfers system utilized nearby

famous people, for example, Nadia Buari, Jackie Appiah, Van Vicker, Reggie

Rockstone and Gyedu Blay Ambolley, and so forth to make mindfulness for Glo

when they entered the Ghanaian market. It is been encountered that, the items

26
embraced by VIPs help the items champion, and take more notice while shopping

because of their enhanced level of item review (Bowman, 2002). Notices including a

VIP have an in number effect on the learning style and memory of a purchaser which

is a critical part of showcasing correspondence achievement.

Big names regularly make the notice more paramount in the psyche of the shopper

regardless of the possibility that there is no prompt need of the promoted item.

Advertisers utilize this point of preference of data stockpiling in the brains of the

customers which can be promptly recovered at the season of shopping or when the

need emerges (Schultz & Barnes, 1995). Every one of these contentions lead to the

conclusion that superstar supports prone to have a constructive outcome on shopper

purchasing conduct (Goldsmith, Lafferty & Newell 2000)

2.7 The Ghanaian Viewpoint of Superstar Endorsers

A study done by Asiamah and Ampadu (2011) showed that, superstar underwriting of

brands and its impact on customers in the Accra city", in his exploration asked 200

respondents whether they know who a VIP is .Out of the 200 respondents asked

98.5% said they know who a big name is ,just 1.5% said they didn't know who a big

name is. The respondents were additionally asked whether they concurred or differ

that there is an increment in superstar underwriting in Ghana, 87% firmly consented

to the announcement, while just 13% unequivocally couldn't help contradicting the

announcement. Besides, respondents were again asked whether they were at that point

utilizing a brand which is supported by a big name, more or less 98.5% of the 200

respondents said YES though just 1.5% of the respondents said NO to the inquiry.

Respondents were additionally asked whether shoppers in Ghana use famous people

to assess themselves, 42% said they utilize big names to assess themselves and 58%

27
of the respondents said they don't utilize big names to assess themselves.

Additionally, respondents were asked whether big names have the ability to impact

shoppers in Ghana, a large portion of the respondents said YES and the other half said

NO.

The respondents asked whether VIPs help shoppers review embraced brands

effectively, out of the 200 respondents 89.5% said famous people utilized for specific

brands have supported in the memory of those brands. On the other hand, 10.5% said

those famous people have not helped at all in the memory of those brands.

Respondents were asked whether purchasers purchase an item on the grounds that a

big name has supported it. 36% of the respondents said they buy a brand due to the

nature of the brand, 30% said they buy a brand as a result of relatively lower costs,

22.5% said they buy the brand in light of the fact that it was the most recent brand,

and 11.5% said they buy on the grounds that it was underwrite purchase a VIP.

Be that as it may, lion's share of the respondents said commonality with the big name

could impact buyers to buy a specific brand. The essential rule that big name

underwriting works off of is general society acknowledgment of the VIP endorser as

an honourable or alluring social power. It is not phenomenal to view ads from the

previous 10 years and see mainstream neighbourhood symbols like Jocelyn Dumas

supporting a specific rice brand like Royal Feast Perfume rice or Michael Essen

underwriting Fan Yogurt as the most obvious brand for anybody that has even the

scarcest jumping at the chance to the frozen yogurt. These big names among

numerous others are utilized to advance items, administrations, and thoughts

(Kambitsis et al., 2002). A purpose behind the increment in the use of VIP embracing

on different levels of broad communications is only because of the way that this

28
methodology results in more positive ad and item appraisals (Dean and Biswas,

2001).

29
 CHAPTER THREE

RESEARCH METHODOLOGY AND CORPORATE PROFILE

3.1 Introduction

This part exhibits the strides that were utilized as a part of leading the exploration.

The part talks about the exploration approach and configuration, the objective

populace, test size and test choice strategy and information examination methodology.

3.2 Research Approach

As indicated by (Denzin & Lincoln, 1994), four potential exploration methodologies

have been considered for examination venture. This incorporates Logical

hypothetical, quantitative or test, subjective or observational and participatory activity

research approaches. Sensible hypothetical exploration methodology is implied

formal reasoning of coherent results from an arrangement of beginning suppositions

(maxims). On the off chance that the aphorisms are genuine and the guidelines are

sensibly stable, the outcomes are valid also. A quantitative or exploratory way to deal

with examination is inside of the traditional experimental worldview of regular,

"hard" sciences like material science and utilization numerical methodology in it

investigation. Subjective or observational studies allude to conventions that construct

their exploration in light of subjective information (instead of quantitative research)

and don't effectively and intentionally control the marvel under scrutiny. Participatory

activity examination alludes to an arrangement of ways to deal with exploration on

social frameworks in which the scientist effectively take part in the process under

scrutiny (the on-screen characters of the social framework being mulled over can be

considered as co-analysts).

30
Utilizing subjective and quantitative methodologies, the study recognizes the item

support procedures embraced by Fan milk Ghana Limited, the viability of the item

underwriting techniques received by Fan milk Ghana Limited, client's discernment

about the item support systems received by Fan milk Ghana Limited and in

conclusion, break down the effect of item support on brand reliability inside of Fan

milk Ghana Limited.

3.3 Research Design

As indicated by Malhotra (2007) an examination outline is a structure for leading

business research. Studies for the most part fall into the accompanying three

classifications: Descriptive, Explanatory (causal), and Exploratory. The basic role of

exploratory examination is to reveal insight into the way of a circumstance and

recognize any particular destinations or information should be tended to through extra

research. Exploratory examination is most helpful when a leader wishes to better

comprehend a circumstance and/or distinguish choice options (Saunders, Lewis, &

Thornhill, 2000).

Investigation is especially valuable when analysts do not have an unmistakable

thought of the issues they will meet amid the study. The target of an enlightening

study is to portray market qualities or capacities (Malhotra, 2007). Graphic

examination could be in direct association with exploratory exploration, since

scientists may have began off by needing to pick up understanding to an issue, and in

the wake of having expressed it their examination gets to be clear. Informative studies

set up causal relationship between variables. In these studies the accentuation is on

concentrating on a circumstance or an issue keeping in mind the end goal to clarify

the connections between variables (Saunders, Lewis, & Thornhill, 2000). On account

31
of this study brand steadfastness by clients relies on upon the item support technique

utilized by Fan Milk Ghana Limited. This study along these lines consolidates both

unmistakable and logical outlines. Unmistakable information are generally gathered

through surveys, meetings or perceptions. Expressive overview helps in depicting,

watching and recording parts of a circumstance as it is actually. Data accumulated

from engaging configuration would is utilized as a part of diagnosing a circumstance.

3.4 Population

The report submit comprise of management and non management (Staff) and

consumers of Fan Milk company. The population of management and non

management was estimated at 16,262.

Table 3.1: Population

Class of respondents Population

Management CEO 1

GM 4

Non-management Staff 500

Customers Consumers 15757

Table 3.2: Sample Size

Category of respondents Population

Management CEO 1

GM 4

Non-management Staff 50

Customers Consumers 100

Total sample 155

32
3.5 Sample Size and Sample Technique

Slovin‟s technique of estimating a suitable sample size from a particular population

using a given confidence and implied margins of error was used. For the stated

population of 16,262, a derived sample size of 155. This allowed for 95% confidence

and an error margin of 8% with data from all cases of the sample.

Slovin‟s (1973) sampling technique was used.

The formula is given as; n = N/ [1+N (e)2] (where n = sample size; N = sample

frame; and e = margin of error. From the above population of sixteen thousand two

hundred and sixty two (16,262), a margin of error of 8% as suggested by Slovin was

applied. The computations that led to the estimate are below:

n= N = 16,262 = 16,262 = 154.53

[1 + N (e)2] 1+ 16,262(0.08)2 105.23

n= approximately 155

The sample size used for the study was 155.

A specimen size of one hundred and fifty five (155) respondents was chosen for the

investigation. The tested size contained administration (5) and non-administration

(50) and customers (100). This is exhibited in the table 2 above. An example is a

segment of the populace chose for examination. For the reasons of this study,

accommodation and purposive likelihood inspecting method was primarily utilized.

Comfort likelihood inspecting strategy was utilized for the clients taking a gander at

the number and the gatherings to which we discover them. We had some from the

formal and casual. The objective was principally on two gatherings, consequently the

formal and the casual gatherings. Formal gatherings were those buyers who were

proficient in the zone of study whiles casual gatherings were those customers who

were uneducated in the range of study. While purposive non likelihood testing system

33
was utilized for administration and non administration and even with that a segment

was chosen essentially for the region of study. This strategy was utilized as a part of

request to diminish pursuit expense furthermore to guarantee that specimen

incorporates respondents who are learned or are specialists in the exploration zone.

The analyst embraced this method for Formal and casual gathering of shoppers and

clients in light of the fact that it was the most ideal approach to evoke the perspectives

of persons who have particular skill in the subject range furthermore to give proof to

the legitimacy of the report.

3.6 Data Collection

Data collection sources for the study comprised both primary and secondary sources.

Primary data for the study was collected through questionnaires whiles secondary data

was collected from the various Company‟s archives, books, and documentations on

management (Chief executive Officer and 5 general managers) non management

(Staff) and customers (retailers).

3.7 Design of the Questionnaires

The questionnaire was designed in order to enable the researcher accomplish the

research objectives. The information that was needed but could not be obtained from

secondary source was translated into a set of questions. In order to improve the

response rate and ensure that respondents feel very comfortable when answering the

questions, the questionnaire was given to respondents for week and did not require

respondents to reveal their identity. A draft questionnaire was presented to the thesis

supervisor so that any shortcoming or weakness in the questionnaire was corrected

before the final version administered. It was designed to solicit the expert opinions of

34
management non-management and customers who are primarily involved in matters

of product endorsement strategy and brand loyalty.

3.8 Data Analysis Procedure

Information was scrutinized with SPSS 16.0 version and Microsoft Office Excel 2007

to obtain Descriptive statistics, regression concepts and graphs to legitimize the

reactions of management, non-management and customers. Furthermore, inside of the

clear insights, the higher the estimation of the mean, the higher the conflict with the

announcement: This as follows: One = strongly agree, Two = Agree, Three =

Neutral, Four = Disagree, Five = strongly disagree. In breaking down the effect of

product endorsement on brand dependability inside of Fan milk Ghana, the

accompanying investigation was utilized in creating and clarifying the relapse

comparison got from the coefficient table. Coding: product endorsement strategy 1 =

Yes 2 = No Brand loyalty 1=Very high 2=High 3 = No impact 4= No

impact at all.

3.9 Corporate Profile

Fan Milk Ghana Limited

The Company was joined in 1960 as Ghana Milk Company by a gathering of

Scandinavian speculators essentially to deliver milk to compliment the protein

prerequisites of the Ghanaian. The principle result of the Company at joining was

purified milk. In 1962 the Company experienced two noteworthy changes. Firstly its

name was changed to Fan Milk Limited, and furthermore the item portfolio was

broadened with the change of name to incorporate dessert, yogurt and ice lollies.

35
Fan Milk Limited turned into the first Foreign Company to wind up Public Limited

Liability in 1967 and again among the first Companies to be recorded on the Ghana

Stock Exchange in 1990. Our organization had more than 3,250 shareholders as

toward the end of the year 2003, and the number is as yet developing. We as of now

give direct occupation to more than 350 people and backhanded work to another

8,000 or more individuals. Our Corporate head office is at No. 1 Dadeban Road,

North Industrial Area in Accra, however we have made an across the country vicinity

through complex system of deliberately found dissemination outlets to make our

items open to all Ghanaians.

The Company is all that much alive to its social obligations, which incorporate its

commitments to natural issues. Social obligations incorporate the procurement of

budgetary, material and item backing to different organizations and to different causes

and projects at the national, territorial and group levels. Our customary recipients

include:

- The National Cardio-thoracic Center

- Ministry of Agriculture (the National Farmers Day Program)

- Ghana National Scholarship Beneficiaries Association (Plastic Waste

Collection and Tree Planting).

- Remar Rehabilitation Center (Christian NGO included in the recovery of

medication addicts).

- State Protocol Department (Refreshment for members of Independence Day

festivities)

- Ghana Red Cross Society

36
Product

Here at Fan Milk Limited, there is an in number main impetus to fulfill the desires of

our Ghanaian market by creating sustenances that are high in quality, as well as sound

and heavenly as well! Our items have a place with two classes; milk-based, and

organic product based. Our milk-based items comprise of our extensive variety of

desserts and yoghurts, while Tampico, the unrivaled cool and invigorating citrus

natural product beverage, and our frosted lollies make up the organic product based

items.

Vision

Fan Milk is to be the main dairy organization in West Africa

Mission

Fan Milk will create business development and profits to the benefit of all

stakeholders by producing high quality Fan Milk branded products that are offered to

the population at large.

Dream

That 50years from now Fan Milk Limited will at present be in presence, however

much bigger, more strong and as usual, an exceedingly dependable accomplice for our

partners in all regards.

That today's item portfolio and offerings will be more extensive to meet the patterns

and new request examples of our customers.

That a noteworthy piece of our crude materials needed as information for generation

are sourced generally and will thusly make more job for suppliers.

37
That the Company will become past its present casings with all the more handling

plants to provide food for an expanded scope of items.

That the Company with our expansion aspirations will turn into the main nourishment

producer in West Africa – maybe with a more fitting name, for occurrence 'Fan Foods

Limited' Company.

That we will expand upon our reliable system of Agents, who thus will oversee

greater capacity and circulation offices in all the key markets in Ghana.

That we, through our regularly developing system of Agents and related Vendors,

make more openings for work for all groups in Ghana.

That we will keep on furthering add to our dissemination frameworks and be available

in each Region of Ghana and grow past our fringes.

That a huge piece of our sustenance creation will be sent out to other African nations

and different landmasses in the World.

With the acknowledgment of these aspirations and dreams, we without a doubt will

turn into an Outstanding World Class Food creation association

38
 CHAPTER FOUR

DATA ANALYSIS AND FINDINGS

4.0 Introduction

The chapter presents the analyses of data in the area of the impact of impact of

product endorsement strategies on brand loyalty in Ghana with particular focus on

Fan milk Ghana Limited. Using SPSS statistical tool and Microsoft Excel, the results

of the data analysis are represented in tables and graphs. One hundred (180)

questionnaires were administered to respondents (owners of small businesses) and

155 retrieved after a week of administering. Items that were not answered on the

questionnaires were treated as missing. The analysis begins with demographic

analysis of respondents and then proceeds with the subsequent analysis based on the

objectives.

4.1 Background and Age Information on Respondents

This section provides the background information analysis of respondents. The

demographic discussed includes age, gender, educational background and number of

years with Fan Milk Ghana limited. Demographic characteristic are very critical in

assisting the researcher identify the target market of the company in-terms staff and

customers, the trend of retention rate of customers and the company‟s workforce. The

dominant age of the respondents was between 31 to 40 years who comprised 51%,

another 32% was between 22-30, 9% were aged below 21 years followed by ages 41

to 50 years (8%).This implies that the youth tends to be the target customers and staff

of Fan Milk Ghana. The results are represented in graphs below

39
Figure 4:1 Age of Respondents

4.2 Gender of Respondents

Further results from figure 4.2 indicate that the majority respondents were males who

constituted (56%) while 44% were female. These results are indicative of a slightly

male dominated field. Thus males are more retailers than females within the Fan Milk

distribution business in Ghana.

Figure 4.2 Gender of Respondents

40
4.3 Number of Years of Respondents Relationship With Fan Milk Ghana

As indicative of figure 4.3 below, the result indicated that, out of 155 respondents, 50

percent have had 6-10 years of relationship with Fan Milk Ghana whiles those

between 1to 5 years is about 32 % with few having 11years and above existence. This

indicates that Fan Milk Ghana have effective business strategies to stay within the

Ghanaian industrial market. This may also be attributed to it effective and quality

motivational packages design for it staff, business image and proper management of

staff.

Figure 4.3 Number of Years Of Respondents’ Relationship With Fan Milk

Ghana

4.4 Educational Background of Respondent

The instructive foundation of the respondent spoke to in fig 4.3 above shows that 51%

of the respondents are HND leavers with first degree taking after with 31% of the

respondent. The slightest in this class are those with PHD or more. This gathering

covers just 6% of the respondent. The prevailing way of HND leavers uncovers the

objective business sector of the organization's staff and clients. The result additionally

shows that the workforce societies of Fan Milk are basically HND holders. There is a

41
suggestion that, the organization utilizes expense cutting technique in it operations. In

this manner Fan Milk has the capacity pay less when contrasted with utilizing degree

or more holders‟ accordingly thusly monitoring money for different ventures

exercises. Additionally business people are accepted to have a low level of training

inside of the Ghanaian group along these lines retailers of Fan Milk are for the most

part HND Holders.

Figure 4.4 Educational Background of Respondent

4.5 Product Endorsement Strategies Adopted by Fan Milk Ghana.

As pointed out in the literature review, effective product endorsement strategies have

the promising of enabling customers becomes motivated and efficiently, raise income

and success.In the pursuit to look at the product endorsement strategies adopted by

Fan Milk Ghana, respondents were asked to comment on the various product

endorsement strategies adopted by the company and the most frequent one used. Their

responses were analyzed and presented in the graph below:

42
Figure 4.5: Product Endorsement Strategies Adopted by Fan Milk Ghana
Limited.

From the graph above, 50% of the respondent did indicate that celebrity endorsement

was one of the endorsement strategy adopted by the company. Thus the company uses

famous Ghanaian celebrities including Deda Ayew to endorse it product which has

the potential of increasing brand loyalty on the side of customers. Additionally, 25%

also indicated that, sponsorship was again an endorsement strategy adopted by the

company. Thus the company sponsors needy but brilliant students across the country.

Other social programs necessary to impact on the standard of living on the Ghanaian

citizens is also sponsored by the company. The sponsorship strategy also has the

potential increasing brand loyalty. 17% agreed on donor as an endorsement strategy

patronized by the company with very few as low 8% agreeing on breaking news. The

results therefore suggest that celebrity as an endorsement strategy dominates the

various endorsement strategy adopted by Fan Milk Ghana followed by sponsorship

43
strategy. The results again suggest that, Fan Milk Ghana is concerned about it social

responsibility.

4.6 Perception About The Effectiveness Of The Product Endorsement Strategies.

As indicated in the literature review, advertising with an appropriate product

endorsement strategy has the potential of enabling a company gain a competitive

advantage and consequently increasing turnover and profitability of the company. In a

quest to examine the effectiveness of product endorsement strategy adopted by the

company, respondents were asked to indicate their preference by either indicating

strongly agree, agree, neutral, disagree and strongly disagree on the various statement

pertaining to product endorsement strategy of the company. Their responses were

analyzed and presented in the descriptive statistics table below:

Table 4.1. Respondent Perception About The Effectiveness Of Product

Endorsement Strategies Of Fan Milk Ghana.

celebrity sponsorship breaking news

strategy strategy Donor strategy strategy
N Valid 155 155 155 155
Missing 0 0 0 0
Mean 1.0300 1.6800 1.7300 4.0700
Median 2.0000 2.0000 4.0000 4.0000
Mode 2.00 2.00 4.00 4.00
Std. Deviation .80221 .67987 .78438 .86754

Source: Field Survey, 2012.

Table 4.1 indicates that, respondent strongly agreed that celebrity endorsement

strategy was effective in achieving an increased brand loyalty of product. The mean

for this item is 1.03 approximately 1 (strongly agreed) which lies within the 95%

confidence interval. Respondent agreed to the statement that endorsing a product by

means of sponsorship was effective in enhancing brand loyalty of Fan Milk products.

44
Here, the standard deviation is 0.67987 recording a mean of 1.68 approximately 2

(agreed) which is still within the 95% confidence interval. Respondents further

agreed with the statement suggesting that donations as a means of endorsing a product

has the potential of enabling customers becomes loyal to the Fan Milk brand. Lastly

respondent disagree with the statement that endorsing a product by means of breaking

news has a positive effect on brand loyalty. The results revealed that celebrity

endorsement was very effective in achieving brand loyalty.

4.7 Impact of Product Endorsement Strategies On Brand Loyalty.

In order to effectively analyze the significant impact of product endorsement

strategies on brand loyalty the study employs regression analysis for the data. The

outcome is presented below.

Table 4.2: Model Summary Management Perspective

Std. Error of

Model R R Square Adjusted R Square the Estimate

1 .811a .657 .601 6.42897

a. Predictors: (Constant), Celebrity, sponsorship, donor and

breaking news strategy

Table above provides the R2 (coefficient of determination) value. The R2 value is

0.657 representing a moderate correlation. The value indicates a good degree of

determination of the dependent variable (brand loyalty) by the independents variables

(predictors). When the R2 value falls between 0.5 and .70 it is considered a good

correlation. The R2 value indicates how much of the dependent variable brand loyalty

can be explained by the independent variables (predictors). In this case, 66.0% can be

45
explained, which is good. Thus the degree of how loyal a customer is does not occur

by chance but rather based on the strategies adopted by the company.

Table 4.3 ANOVA of Regression

Sum of
Model Squares Df Mean Square F Sig.

1 Regression 5046.454 9 562.984 10.201 .000a

Residual 2238.724 56 55.190

Total 7285.178 65

a. Predictors: (Constant), Celebrity, sponsorship, donor and breaking

news strategy

b. Dependent Variable: Brand loyalty

Table above indicates ANOVA of regression. The ANOVA indicates how well the

independent variables significantly predict the outcome variable which is the brand

loyalty of the product. The Sig. value on the regression row indicated 0.00 which is

less than the p-value of 0.05 and indicates that, the model applied is significantly good

enough in predicting the outcome variable (brand loyalty). Thus there is 95%

confidence that the product endorsement strategies determine how loyal customer will

be to brand.

46
Table 4.4 Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) .563 .101 .465 5.595 .000

Celebrity strategy .094 .013 .352 7.318 .000

Sponsorship strategy .143 .022 .295 6.564 .000

Donor strategy .084 .016 .158 3.487 .001

Breaking news .056 .016 .294 5.185 .000

a. Dependent Variable: brand loyalty

Lastly, from the coefficient table above, the relationship between the product

endorsement strategies and brand loyalty can be established using the specified

strategies and it corresponding coefficients (B) highlighted in the coefficient table;

It can be establish that sponsorship strategy according to management is the most

influential strategy on brand loyalty with a percentage of 14.3. Also according to

management breaking news strategy is the least influential on brand loyalty with a

percentage of 5.6.Thus when company or Fan milk company embark on sponsorship

strategy, it turns to meet the needs of customers and also the society as a whole as a

form of corporate social responsibilities which eventually have great influence on

brand loyalty.

For instance the regression equation can be used to estimate the level of brand loyalty

= .563+ 0.143x (use of celebrity). Thus, if the use of celebrity strategy was 1 (Yes)

then the Impact on brand loyalty = 0.563 + 0.143 * 1 = 0.706. The value 0.706 is

47
approximately 1 (Very High) meaning that the strategy was effective and the impact

brand loyalty was Very High.

Table 4.5: Model Summary Staff Perspective

Std. Error of

Model R R Square Adjusted R Square the Estimate

1 .887a .787 .701 7.42897

a. Predictors: (Constant), Celebrity, sponsorship, donor and

breaking news strategy

Table above provides the R2 (coefficient of determination) value. The R2 value is

0.787 representing a strong positive correlation. The value indicates a good degree of

determination of the dependent variable (brand loyalty) by the independents variables

(predictors). When the R2 value is +.70 or higher it is considered a very strong

positive correlation. The R2 value indicates how much of the dependent variable

brand loyalty can be explained by the independent variables (predictors). In this case,

78.7% can be explained, which is very strong. Presupposes that the brand loyalty is

highly influence by certain strategies been adopted by the company.

Table 4.6 ANOVA of regression

Sum of
Model Squares Df Mean Square F Sig.

1 Regression 5066.854 9 562.984 10.201 .000a

Residual 2538.724 46 55.190

Total 7605.578 55

48
a. Predictors: (Constant), Celebrity, sponsorship, donor and breaking
news strategy

b. Dependent Variable: Brand loyalty

Table above indicates ANOVA of regression. The ANOVA indicates how well the

independent variables significantly predict the outcome variable which is the brand

loyalty of the product. The Sig. value on the regression row indicated 0.00 which is

less than the p-value of 0.05 and indicates that, the model applied is significantly good

enough in predicting the outcome variable (brand loyalty). Thus there is 95%

confidence that the product endorsement strategies determine how loyal customer will

be to brand.

Lastly, from the coefficients table below, the relationship between the product

endorsement strategies and brand loyalty can be established using the specified

strategies and it corresponding coefficients (B) highlighted in the coefficient table.

For instance the regression equation can be used to estimate the level of brand loyalty

= .563+ 0.094x (use of celebrity). Thus, if the use of celebrity strategy was 1 (Yes)

then the Impact on brand loyalty = 0.563 + 0.094 * 1 = 0.657. The value 0.657 is

approximately 1 (Very High) meaning that the strategy was effective and the impact

brand loyalty was Very High.

49
Table 4.7 Coefficienta

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) .563 .101 .465 5.595 .000

Celebrity strategy .094 .013 .352 7.318 .000

Sponsorship strategy .143 .022 .295 6.564 .000

Donor strategy .056 .016 .158 3.487 .001

Breaking news .084 .016 .294 5.185 .000

Table 4.8: Model Summary Customers Perspective

Std. Error of

Model R R Square Adjusted R Square the Estimate

1 .915a .837 .801 .1633

a. Predictors: (Constant), Celebrity, sponsorship, donor and

breaking news strategy

Table above provides the R2 (coefficient of determination) value. The R2 value is

0.837 representing a strong positive correlation. The value indicates a good degree of

determination of the dependent variable (brand loyalty) by the independents variables

(predictors). When the R2 value is +.70 or higher it is considered a very strong

positive correlation. The R2 value indicates how much of the dependent variable

brand loyalty can be explained by the independent variables (predictors). In this case,

83.7% can be explained, which is very strong. Presupposes that the brand loyalty is

highly influence by certain strategies been adopted by the company.

50
Table 4.9 ANOVA of regression

Sum of
Model Squares Df Mean Square F Sig.

1 Regression 5566.9 12 562.984 10.201 .000a

Residual 3538.7 46 55.190

Total 9105.6 58

a. Predictors: (Constant), Celebrity, sponsorship, donor and breaking

news strategy

b. Dependent Variable: Brand loyalty

Table above indicates ANOVA of regression. The ANOVA indicates how well the

independent variables significantly predict the outcome variable which is the brand

loyalty of the product. The Sig. value on the regression row indicated 0.00 which is

less than the p-value of 0.05 and indicates that, the model applied is significantly good

enough in predicting the outcome variable (brand loyalty). Thus there is 95%

confidence that the product endorsement strategies determine how loyal customer will

be to brand.

Table 4.10 Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) .563 .101 .465 5.595 .000

Celebrity strategy .036 .013 .352 7.318 .000

Sponsorship strategy .032 .022 .295 6.564 .000

Donor strategy .028 .016 .158 3.487 .001

Breaking news .022 .016 .294 5.185 .000

51
Lastly, from the coefficients table above, the relationship between the product

endorsement strategies and brand loyalty can be established using the specified

strategies and it corresponding coefficients (B) highlighted in the coefficient table.

For instance the regression equation can be used to estimate the level of brand loyalty

= .563+ 0.86x (use of celebrity). Thus, if the use of celebrity strategy was 1 (Yes) then

the Impact on brand loyalty = 0.563 + 0.36 * 1 = 0.923. The value is 0.923 which is

approximately 1 (Very High) meaning that the strategy was effective and the impact

brand loyalty was Very High.

52
 CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSIONS

5.0 Introduction

The chapter presents the summary of the main findings of the study with special focus

on the three objectives. The chapter ends with conclusion and recommendations

which have been made base on the findings of the study.

5.1 Summary of Findings

5.1.1 Product Endorsement Strategies Adopted by Fan Milk Ghana.

The analysis of the study revealed that, majority of the respondent did indicate that

celebrity endorsement was one of the endorsement strategy adopted by the company.

Thus the company uses famous Ghanaian celebrities including Deda Ayew to endorse

it product which has the potential of increasing brand loyalty on the side of customers.

Additionally, few also indicated that, sponsorship was again an endorsement strategy

adopted by the company. Thus the company sponsors needy but brilliant students

across the country. Other social programs necessary to impact on the standard of

living on the Ghanaian citizens is also sponsored by the company. The sponsorship

strategy also has the potential increasing brand loyalty. Some also indicated that,

donor as an endorsement strategy was patronized by the company with very few as

low 8% agreeing on breaking news. The results therefore suggest that celebrity as an

endorsement strategy was the major strategy employed by the company. This answers

the first objective.

53
5.1.2 Consumers Perception about The Effectiveness of the Product

Endorsement Strategies Adopted By Fan Milk Ghana.

Furthermore, the analysis revealed that, respondent strongly agreed that celebrity

endorsement strategy was effective in achieving an increased brand loyalty of

product. Additionally, respondent agreed that endorsing a product by means of

sponsorship was effective in enhancing brand loyalty of Fan Milk products.

Furthermore, respondents further agreed with the statement suggesting that donations

as a means of endorsing a product has the potential of enabling customers becomes

loyal to the Fan Milk brand. Lastly respondent disagree with the statement that

endorsing a product by means of breaking news has a positive effect on brand loyalty.

The results revealed that celebrity endorsement was very effective in achieving brand

loyalty but breaking news was an ideal means of endorsing a product.

5.1.3 Impact of Product Endorsement Strategies on Brand Loyalty.

According to the regression model, product endorsement strategies have an impact on

brand loyalty. The product endorsement strategies were statistically significant at p-

value of 0.05. Also the product endorsement strategies had a predictive power (R2) of

0.666 approximately 67 percent chance of predicting brand loyalty which was

moderate. This answers the third objective.

5.1.4 Brand Loyalty Rate of Fan Milk Ghana

The brand loyalty rate of fan milk Ghana was well illustrated when we conducted the

number of years of respondents‟ relationship with Fan Milk Ghana. Clearly we

noticed that majority of respondents have had 6-10 years of relationship with Fan

Milk Ghana whiles those between 1 to 5 years is about 32 % with few having 11years

and above existence. This indicates that Fan Milk Ghana have effective business

54
strategies to stay within the Ghanaian industrial market. This may also be attributed to

it effective and quality motivational packages design for it staff and products in

general, business image and proper management of staff. Alternatively the brand

loyalty of fan Milk has been impressive.

5.2 Conclusion

Item underwriting procedures are the key differentiator for organizations in

exceptionally focused businesses. As items get to be things, organizations draw in and

hold clients on the premise of a successful promotion administration. This study built

up that the item support systems received by Fan Milk Ghana incorporates Celebrity,

sponsorship and giver methodology which were viable and had an effect on brand

steadfastness.

5.3 Recommendations

This study presents some recommendations for future research regarding the impact

of product endorsement strategies on brand loyalty. There will be some

recommendations as such which are seen below;

Lack of Credibility (Brand Measurement Survey on Celebrities)

Advertising agencies need to be circumspect in choosing a celebrity to endorse a

product. This is because lack of credibility can affect a celebrity endorser and the

endorsed brand. This presupposes a vigorous background check of these celebrities

thus adopting both Pre and Post checks to always update themselves on the various

celebrities which are used on various products.

55
Corporate Social Responsibility: Companies as well as celebrities should embark on

corporate social responsibility to also increase the ambiences it has in the economy.

Embarking on a corporate social responsibility has a lot of effects on the brand by

positioning the brand and also been people‟s favourite thus brand preference. This can

also reduce the cost in the long run by exempting companies from certain tax

obligations.

Good Word of Mouth: Companies and advertising agencies should make it a priority

as part of their core values to embark on total quality management and standardisation

in the production and delivery goods and services to achieve good word of mouth.

Quality products turn to have a good word of mouth for the company by providing a

good image and have a long-term effect on its customers. A celebrity endorser an

individual who is known to the public for his or her achievements in areas other than

that of the product endorsed celebrity endorsers therefore need to take their public

lives seriously so as to have the credibility to attract attention, increase awareness of

the endorsed product and influence the purchasing decision of the targeted audience.

Brand Positioning Enhancement

As a result of long term benefit of advertising on the economy, the Federal

Government should compel all companies operating in the nation to educate

consumers and the general public about advertisement of their products. The company

should embark on companywide awareness of advertising through seminar and

workshops to educate and intimate all categories of the employees on the strategy.

Top management should be involved in the continuous evaluation and monitoring of

advertising to ensure that the goals and objectives set are achieved and appropriate

56
corrective actions are taken in the event of deficiencies. The company should

harmonize all departments so as to realize the goals and objectives of advertising.

5.4 Areas of Further Research

This research studied on the impact of product endorsement strategies on brand

loyalty. However, other researchers can also delve into other aspects of celebrity

endorsements. Research in this area requires inter disciplinary approaches as its

effects maybe social, psychological, economic et cetera. Only a few studies have

been conducted on advertising features including celebrity endorsement in Ghana. It

is therefore recommended that other researchers widen the scope of research to

include endorsements features and their persuasive effect on the targeted consumer.

57
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 APPENDIX I

QUESTIONNAIRE FOR MANAGEMENT

This questionnaire aims at investigating the impact of product endorsement strategies on

brand loyalty within Fan milk Ghana Limited. Please kindly assist us in this survey

processes by filling the questionnaire given below. Please indicate your preference

among alternative answers for each question by ticking in the appropriate box. Where

alternative answers are not provided, fill in the gaps provided. Respondents are assured of

the confidentiality of this exercise because it will be solely be used for academic purpose.

Thank you for your contribution.

Name of researcher: Frederick kessie

A. Background Information of respondent

1. What is your gender? A. Male [ ] B. Female [ ]

2. What is your age? 25 years and below [ ] Between 26 and 35 years [ ] Between

36 and 45years [ ] Between 46 and 55 years [ ] Above 55 years [ ]

3. What is your position? A. Chief executive Officer [ ] B. Branch manager [ ] C.

Staff

4. What is your level of education? A. J.H.S B. S.H.S C. Diploma D. Degree E. Masters

F. Masters and beyond

5. How long have you been working with Fan Milk Ghana Limited?

A. Less than 1year [ ] B. Between 2 and 5years [ ] C. Between 5 and 10

years [ ] d. More than 10years [ ]

B. Product endorsement strategies

7. Does the institution have product endorsement strategies? Yes [ ] No [ ]

8. What are these strategies? ...............................................................

63
9. Which of these strategies is more effective for the company?

…………………………………………………………………………………………

10. What level of management is responsible for the formulation of product

endorsement strategies? Board [ ] Top management [ ] Junior staff [

11. How will you describe the brand loyalty rate of the company?

Low [ ] Neutral [ ] High [ ]

12. How often do you receive customer complains?

Very often [ ] once a while [ ] Never [ ]

13. How would you rate the product endorsement strategies adopted by the

company?

A. Good [ ] B. Average [ ] C. Below average [ ] D. Poor [ ]

14. What do you think are the benefits the bank stands to gain by adapting to an

effective product endorsement strategy?

A. Good corporate image [ ] B. Positive mouthing [ ] C. Increase in profit [ ]

D. High customer retention [ ] E. all of the above [ ]

64
 C. Assessment of impact of product endorsement strategy on brand loyalty

To what extent do you agree with the following statement on product endorsement
strategy and brand loyalty Fan Milk Ghana Limited?
Key: SA-Strongly Agree A-Agree N-Neutral D-Disagree SD-Strongly

Disagree

Impact of product endorsement strategy on brand loyalty SA A N D SD

1. The product endorsement strategy contributes to customers
retention
2. The product endorsement strategy results in increase in sales of
product
3. The product endorsement strategy builds a positive image for
the company
4. Customers turnover increases from period to period
5. Customers are satisfied with product endorsement strategy
employed
by the company.
6. Staff do not willingly exit unless being asked by management
7. The market share of the company increases from year to year
8. The net income of the bank improves from year to year.

65
 APPENDIX II

QUESTIONNAIRE FOR STAFF

This questionnaire aims at investigating the impact of product endorsement strategies on

brand loyalty within Fan milk Ghana Limited. Please kindly assist us in this survey

processes by filling the questionnaire given below. Please indicate your preference

among alternative answers for each question by ticking in the appropriate box. Where

alternative answers are not provided, fill in the gaps provided. Respondents are assured of

the confidentiality of this exercise because it will be solely be used for academic purpose.

Thank you for your contribution.

Name of researcher: Frederick kessie

A. Background Information of respondent

6. What is your gender? A. Male [ ] B. Female [ ]

7. What is your age? 25 years and below [ ] Between 26 and 35 years [ ] Between

36 and 45years [ ] Between 46 and 55 years [ ] Above 55 years [ ]

8. What is your position? A. Chief executive Officer [ ] B. Branch manager [ ] C.

Staff

9. What is your level of education? A. J.H.S B. S.H.S C. Diploma D. Degree E. Masters

F. Masters and beyond

10. How long have you been working with Fan Milk Ghana Limited?

A. Less than 1year [ ] B. Between 2 and 5years [ ] C. Between 5 and 10

years [ ] d. More than 10years [ ]

B. Product endorsement strategies

7. Does the institution have product endorsement strategies? Yes [ ] No [ ]

8. What are these strategies? ...............................................................

66
9. Which of these strategies is more effective for the company?

…………………………………………………………………………………………

10. What level of management is responsible for the formulation of product

endorsement strategies? Board [ ] Top management [ ] Junior staff [

11. How will you describe the brand loyalty rate of the company?

Low [ ] Neutral [ ] High [ ]

12. How often do you receive customer complains?

Very often [ ] once a while [ ] Never [ ]

13. How would you rate the product endorsement strategies adopted by the

company?

A. Good [ ] B. Average [ ] C. Below average [ ] D. Poor [ ]

14. What do you think are the benefits the bank stands to gain by adapting to an

effective product endorsement strategy?

A. Good corporate image [ ] B. Positive mouthing [ ] C. Increase in profit [ ]

D. High customer retention [ ] E. all of the above [ ]

67
 APPENDIX III

QUESTIONNAIRE FOR CUSTOMERS

This questionnaire aims at investigating the impact of product endorsement strategies on

brand loyalty within Fan milk Ghana Limited. Please kindly assist us in this survey

processes by filling the questionnaire given below. Please indicate your preference

among alternative answers for each question by ticking in the appropriate box. Where

alternative answers are not provided, fill in the gaps provided. Respondents are assured of

the confidentiality of this exercise because it will be solely be used for academic purpose.

Thank you for your contribution.

A. Background Information of respondent

1. What is your gender? A. Male [ ] B. Female [ ]

2. What is your age? 25 years and below [ ] Between 26 and 35 years [ ]

Between 36 and 45years [ ] Between 46 and 55 years [ ] Above 55 years [ ]

3. What type of customer are you? A. individual [ ] B. institutional [ ]

4. What is your level of education? A. J.H.S B. S.H.S C. Diploma D. Degree E.

Masters

F. Masters and beyond

5. How long have you been a customer of Fan Milk Ghana Limited?

A. Less than 1year [ ] B. Between 2 and 5years [ ] C. Between 5 and 10 years [ ]

D. More than 10years [ ]

6. Which brand of Fan Milk product do you prefer?

..................................................................................................................................

7. Why?..........................................................................................................................

8. Which of the brand of Fan Milk product is cheaper? ...........................

9. On which occasions do you usually buy your preferred Fan Milk product?

68
 What factor affects your buying behavior towards a purchase of Fan Milk product?

..................................................................................................................................

10. Where do you usually get information about your preferred Fan Milk

product?

.............................................................................................................................

11. How satisfied are you with the Fan Milk product that you buy?

Very satisfied ( ) Satisfied ( ) Neutral ( ) Not Satisfied ( )

12. Would you always purchase this Fan Milk product? Yes ( ) Probably ( ) No ( )

13. Would you recommend this Fan Milk product to others you know?

Yes ( ) Not Sure ( ) No ( )

14. Do you have an idea of product endorsement? Yes [ ] No. [ ]

Impact of product endorsement strategy on brand loyalty SA A N D SD

1. I became loyal to Fan Milk product based on the company‟s product endorsement
strategy
2. I am satisfied with the product endorsement strategy employed by the company.

3. I will recommend Fan Milk Ghana to other people based on

the product endorsement strategy.
4. I will remain a customer of the company if product endorsement strategy is
maintained.
5. I will provide word of mouth advertising for the company based on the product
endorsement strategy employed by the company.

69