The Effect of Celebrity Endorsement on Consumer Brand Loyalty

A Study on Telecommunication and Brewery Industries, Bamenda, Cameroon

Abstract

Purpose: This study seeks to investigate the relationship between celebrity endorsement (celebrity similarity, celebrity attractiveness, and celebrity popularity) and brand loyalty in the city of Bamenda, Cameroon. It also examined the comparative analysis between the telecommunication and brewery industries in Bamenda, Cameroon.

Method: This study employed a quantitative research design, incorporating surveys and causal research approaches. A total of 450 questionnaires were administered for each industry, including subscribers of telecommunication companies and consumers of brewery products in Bamenda, both in-person and online. 429 questionnaires were retained for telecommunication companies and 424 for brewery products. The multiple correspondence analysis was used to construct indices of celebrity endorsement and brand loyalty. The ordinary least squares (OLS) were used to test hypotheses.

Results: Data analysis indicates that all three indicators of celebrity endorsement have a significant positive effect on consumer brand loyalty. Results for both the telecommunication and brewery industries are statistically significant at the 1% level. However, the impact of celebrity endorsement on consumer brand loyalty is significantly more pronounced in the telecommunications sector than in the brewery sector. The study concluded that enhancing celebrity endorsement features will substantially increase brand loyalty among consumers.

Implications: This study has significant practical and theoretical implications for consumer behavior in developing countries, particularly Cameroon.