Implications of Celebrity Endorsement on Brand Equity

A Study in The Telecommunications Sector of Cameroon

Abstract

Purpose: The increasing reliance on celebrity endorsements in Cameroon's telecommunications sector has raised critical questions about their effectiveness in strengthening brand equity. This study examines the implications of celebrity endorsement (Celebrity trustworthiness, celebrity attractiveness, and celebrity popularity) for consumer brand equity among leading telecommunications companies in Cameroon.

Methods: This study used a quantitative cross-sectional research design. Using a causal research approach, 602 questionnaires were administered both in person and online (via Google Forms) to telecoms subscribers. The multiple correspondence analysis was used to construct indices for celebrity trustworthiness, attractiveness, and popularity. The Ordinary Least Squares (OLS) and the Seemingly Unrelated Regression (SUR) were used to test the hypotheses.

Results: The overall results indicate a positive and significant effect of celebrity endorsement on brand equity in Cameroon's telecommunications industry. All three constructs of celebrity endorsement were positive and significant at the 1% level. Celebrity popularity had the most tremendous impact on Brand equity, followed by celebrity trustworthiness. Celebrity attractiveness had the least impact on brand equity in Cameroon's telecommunications industry.

Implications: The study found that improving celebrity endorsement deals within a company increases consumer brand equity. Managers and Marketers should therefore focus more on getting celebrity endorsers who are popular and credible. Celebrity attractiveness is important, but should not be the main criterion in choosing an endorser. Decision-makers can rely on these insights to make strategic decisions within their companies.