The Influence of Celebrity Endorsement on Customer Loyalty: A Case of Econet Wireless Company

Abstract

This research investigates the influence of celebrity endorsement on customer loyalty, using the case of Econet Company. Most literature sources are available on developed countries, with a few on developing countries. A pragmatic philosophical approach involving the use of the exploratory, descriptive and explanatory research design was adopted to fully understand the research questions. Quantitative results were complemented by qualitative data obtained from interviews. In conducting the survey, a sample of 130 respondents was selected using the Krejice and Morgan (1970) sample estimation tables. The targeted respondents included the Econet Company customers. A Likert scale structured questionnaire was used to collect data. Spearman coefficient and multiple regression analysis were used to analyse data with the aid of the Social Package for Social Sciences (SPSS). The Cronbach Alpha test was performed, and all the values were greater than 0.7, which was therefore accepted (Nunnally and Bernstein, 1994). It was revealed that independent variables (celebrity reliability, celebrity expertise) and the mediating variables (customer satisfaction and customer trustworthiness) have a positive influence on customer loyalty according to the Spearman Correlation test, which yielded a minimum correlation coefficient of 0.58 and a maximum of 0.78 leading to the rejection of the proposed null hypothesis. The study recommended that Econet Company select celebrity endorsers based on the celebrity’s reliability, attractiveness, and expertise, as this contributes significantly to customer satisfaction and trustworthiness, which will result in customer loyalty. Furthermore, Econet Company must perform a well-thought screening and choose wisely the celebrity endorsers who align correctly with the image and values of the company’s brands or products. It must also avoid using celebrities with any kind of negative publicity. The study contributed not only to the literature on celebrity endorsements but also to filling the gap in the literature, providing immense usage for these techniques. Finally, the conclusion suggests that further research be carried out on a larger sample size and done on another