Nexus of Overall Cost of Celebrity Endorsement and Market Performance of Alcoholic Brewery Products in Lagos Metropolis, Nigeria

Abstract

The study examined the nexus between the overall cost of celebrity endorsement and market performance of alcoholic brewery products in Lagos Metropolis in Nigeria. The population of the study therefore was 1,184. The study adopted a census technique for this study. The reason behind this is to mitigate possible high rate of non-response during the survey. The study anticipated some level of non-response since the targeted products has capacity to intoxicate consumers. The study revealed that all the independent variables have a positive effect on product market performance, except cost of celebrity endorsement, with their respective coefficient values of 0.097984 for cost of celebrity advertising, 0.825558 for cost of celebrity selection process/audition, 0.363291 for cost of celebrity publicity and -0.385858 for cost of celebrity endorsement. While cost of celebrity selection process/audition exerts a positively significant effect on product market performance with 0.0370 probability value, the positive effects of cost of celebrity advertising and cost of celebrity publicity are not significant with their respective P-values of 0.4109 and 0.4625. Also, the negative effect of the cost of celebrity endorsement is insignificant with the probability of 0.5653. The study concluded the insignificant effect of cost of celebrity advertising and cost of celebrity publicity on product performance might be due to the failure of the firms in the Brewery industry to endorse celebrity that has the potentials to stimulate the buying behaviour of customers. The study further recommends that cost of advertising, cost of celebrity selection process/audition and cost of celebrity publicity should be accorded great attention in the whole process of celebrity endorsement. The amount to be expended should be given thorough evaluation in relation to the attributes of the celebrities.