Effect of celebrity endorsement on telecommunication companies’ reputation

Abstract

PurposeThe study aims to assess the moderating role of celebrity characteristics in the relationship between celebrity endorsement and telecommunication companies’ reputation.Design/methodology/approachAnalysis of results was based on 700 customers in the telecommunication sector. Confirmatory factor analysis was conducted to check for validity and reliability of the observed items. A hierarchical regression model was estimated to test the various hypotheses set for the study.FindingsThe study finds that celebrity endorsement in itself had no significant effect on the reputation of telecommunication companies. Celebrity attractiveness, likeability and trustworthiness had a direct effect (positive) on the reputation of telecommunication companies and positively moderated the effect of celebrity endorsement on telecommunication company reputation. Celebrity expertise had no direct effect on telecommunication company reputation but positively moderated the effect of celebrity endorsement and telecommunication company reputation.Research limitations/implicationsThis study was purely quantitative. Future study could consider a mixed approach and include senior management members of the telecom firms for an in-depth interview.Practical implicationsIn signing on celebrities as brand ambassadors, management must pay particular attention to celebrity attractiveness, likeability and trustworthiness. This would be more rewarding to the firms.Originality/valueThe study adds to the little empirical knowledge available on celebrity endorsement in sub-Saharan Africa and telecommunication sector in particular.