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This paper explores the practice of Celebrity Endorsement as used in the developing nations

The Appropriateness of Celebrity Endorsement In Developing African Nations: A Study Of Cameroon and Kenya Ceasarine Nyaseda & Amstrong Ayuk IBA 8010 Spring 08. This paper explores the practice of Celebrity Endorsement as used in the developing nations

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This paper explores the practice of Celebrity Endorsement as used in the developing nations

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  1. The Appropriateness of Celebrity Endorsement In Developing African Nations: A Study Of Cameroon and KenyaCeasarine Nyaseda & Amstrong Ayuk IBA 8010 Spring 08

  2. This paper explores the practice of Celebrity Endorsement as used in the developing nations of Cameroon and Kenya. With Hofstede’s cultural dimensions, it initiates a newer way of viewing celebrity endorsement. • The writers introduce the CFC Model to demonstrate how Agency Theory and Leadership Contribute to the complexity of celebrity endorsement in Kenya and Cameroon. They also challenge the appropriateness of celebrity endorsement; a practice that has been successful in western societies, in Africa. This will be done with the use of two case studies involving sports celebrities; Samuel Eto of Cameroon and Paul Tergat of Kenya.

  3. CELEBRITY ENDORSEMENT Celebrity endorser is defined as “any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in and advertisement” (McCracken, 1989,p.311) The paper acknowledges the increasing trend of celebrity endorsement and why companies around the world are using this marketing tool to sell their products/ services and ideas.

  4. ORIGINS AND SIGNIFICANCE OF CELEBRITY ENDORSEMENT • Celebrities have long been used as the face behind products. Queen Victoria`s endorsement of Cadbury`s Cocoa is one of the more famous endorsements. Sherman (1985) • Scholars in the United States also explored celebrity endorsement by testing the effective celebrity endorser’s characteristics through deductive methodologies with student samples (Caballero et al. 1989; Debono and Harnish 1988; DeSarbo and Harshman 1985; Friedman and Friedman 1978). • Byrne et al (2003, p.289) states “celebrities can build, refresh and add new dimensions. What celebrities stand for enhances brands and they save valuable time in terms of creating the credibility a company has created in order to build its brands by transferring their values to the brand. When consumers see a credible celebrity endorsing a product, they think the company must be OK”. • All these statements point to the interest that is generated from the topic of celebrity endorsement and its development.

  5. CELEBRITY ENDORSEMENT IN CAMEROON AND KENYA • There has been an increase in the use of celebrities in both Kenya and Cameroon. • We explored celebrity endorsement in both countries by using case studies of two celebrities in the respective countries.

  6. CAMEROON SAMUEL ETO • Eto plays for the Cameroon national soccer team and also plays profession for FC Barcelona. • Named African player of the year three consecutive times. • Currently he’s face is been used as the 2010 South African World Cup. • UNICEF ambassador • Owns a soccer school in he’s native Cameroon • Notable endorsements are FIFA, Ford Motors (Europe), Puma Sportswear Group

  7. KENYA PAUL TERGAT • One of Kenya’s greatest success stories in the marathon field • Represent Kenya in the Olympic Games and world marathons. • World record of 2:04:55 2003 Berlin Marathon. • Five straight IAAF World Cross Country Championships (95-99) • UN World Food Programme (WFP) "Ambassador • Notable endorsements are Nakumatt, Yana Tyres, CFC Bank.

  8. COSMETIC ENDORSEMENT AND FUNCTIONAL ENDORSEMENT From the study we coined two terms to define the difference between endorsement in Cameroon and Kenya. Cosmetic endorsement • Refers to the use of a Celebrities not so much as to sell a products but just to associate the product/service idea with them. Done by companies that are successful in their industry and don’t have many competitors. Functional endorsement • Refers to the use of a Celebrity to enhance the image of a product and increase sales. Done by companies that enjoy firce competition in their industry.

  9. CONCEPTUAL MODEL (C.F.C MODEL) We coined the term CFC (Celebrity- Firm - Consumer) Model to establish two relationships in celebrity endorsement; The Firm and the Celebrity Endorserand The Celebrity Endorser and the Consumer. In it we will use the mediating factors of Exchange and National Culture to explain how Value can sometimes be hard to achieve within the above relationships. (SEE PAGE8)

  10. CULTURAL DIMENSION CAMEROON VS. KENYA Although the two countries in this study may exhibit similar traits on a general outlook, there are subtle differences that could in fact lead to dissimilar perspectives on celebrity endorsement.

  11. CULTURAL DIMENSION Based on the Hofstede Model we analyzed the two nations as follows. • Cameroon is more of a collective society than Kenya The keenness with which fans follow their sports heroes even off-season is not the same in Kenya where participation is often limited to current championships • Cameroon has a higher Power Distance than Kenya • Cameroon displays more masculine tendencies than Kenya Cameroonians therefore tend to be more assertive and competitive • Kenyans have a higher uncertainty avoidance than Cameroon Kenyans generally more cautious with their spending • Kenya has longer-term orientation vis-à-vis Cameroon This means that Kenyans are more thrifty and persevering than their Cameroonian companions

  12. AGENCY THEORY Agency Theory and Celebrity Endorsement • Agency relationship is defined as a contract under which the Principal engages another party (Agent) to perform some services on their behalf. • In this study the Principal is the Firm and the Celebrity is the Agent • Tellis (1998) puts it, “companies should try to create a long-term relationship with the celebrity. They want to create a clear and consistent brand strategy over time” But Tellis also thinks problems could occur when establishing long-term relationship. • The vampire effect” could happen which means the celebrity had suck the life-blood out of the product Byrne et al (2003)

  13. AGENCY THEORY • Proposition1a: A high level of collectivism is positively related to congruence ofthe Firm and Celebrities in developing African Nations. • Proposition 1b: Longer-term orientation is positively related to the success of Long-term Celebrity endorsement projects in developing African nations.

  14. AGENCY THEORY • There are also very many potential risk when creating a marketing campaign when using celebrity endorsers. Klebba and Unger (1982) • Because when negative information spreads about a celebrity, it not only influences the consumer`s view of the celebrity but also the endorsed product

  15. AGENCY THEORY • Proposition1c: Firms in developing African nations that are highly masculine and less risk averse are more likely to succeed in celebrity endorsement. • Proposition1d: Firms in developing African nations that have high uncertainty avoidance are less likely to succeed in celebrity endorsement.

  16. LEADERSHIP Leadership and Celebrity Endorsement • we are in an age where consumers and communities are paying close attention to leadership at administrative levels and thus it is crucial that organizations harmonize their internal structures to consumer/stakeholder expectations. • The research gives the origin of Leadership as being from Germany derived from the word Führerprinzip. • The Führerprinzip, German for "the leadership principle", refers to a system within which people are set at various ranks and is somewhat a military structure. • This principal was mostly used to describe tyrannical rulers such as Hitler, Sadam, Idi Amin etc. (Le Blanc, 2007). • This notion assumed a military definition in which there is an icon of sorts and those that follow him/her.

  17. LEADERSHIP Leadership styles The two leadership styles discussed in this paper in relation to celebrity endorsement were Transactional leadership and Transformational leadership. • Transactional leadership involves a symbiotic relationship between the leader and follower (Burns, 1978). • When we incorporate the agency theory, transactional leadership involves the Firm(Principal) and the Celebrity(Agent). From this we derive the following propositions.

  18. LEADERSHIP • Proposition2a: In highly individualistic African societies the costs of using a Celebrity may prove to be higher because of the utility maximizing effect. • Proposition2b: In a highly collectivist African society the celebrity may have a hardertime negotiating in self-interest. • Proposition2c: In an African society with higher power distance the celebrity is most likely to work under the Firm’s control. • Proposition2d: Firms in Africa that are highly risk averse will avoid the use of Celebrities to endorse their products because of the high levels of uncertainty involved.

  19. LEADERSHIP • Bass, 1985 in contrast favored the concept of transformational leadership that steers away from exchange and focuses on inspiration and motivation of followers. • Lizotte, 2005 who advocates for transformational leadership in endorsement and through the leaders of companies inspiring the consumer. • Deluga, 1988 moreover notes importance of transformational leaders in that they are able to bring followers together and to essentially influence or change their thoughts/ opinions. • Transformational Leadership deals with the lower part of our model which involves the Celebrity and Consumers.

  20. LEADERSHIP • From the relationship between consumers and celebrities, there is what is known as the transformational effect. • Transformational effect: the result of a celebrity influencing consumers and leading them to seek the celebrity’s likeness or products that he/she endorses. • As a basis of this discussion the following propositions were derived.

  21. LEADERSHIP • Proposition3a: High Power Distance is positively related to the transformational effect of Celebrity endorsement to consumers in developing African nations. • Proposition3b: A high level of collectivism is positively related to the transformational effect of Celebrity endorsement to consumers in developing African nations.

  22. SUMMARY AND IMPLICATIONS FOR MANAGERS AND RESEARCHERS • Celebrity endorsement can be classified as Cosmetic Endorsement or Functional Endorsement. • The paper offers a different perspective in which Firms and Researchers can view celebrity endorsement especially while applying it to developing African nations. • As pointed out in the study certain profiles of higher individualism, high uncertainty avoidance and long-term orientation (as in the Kenyan case) could develop into Cosmetic Endorsement • Higher collectivism, lower uncertainty avoidance and short-term orientation (as in Cameroon’s case) could favor Functional Endorsement.

  23. SUMMARY AND IMPLICATIONS FOR MANAGERS AND RESEARCHERS • The appropriateness of celebrity endorsement in developing African nations will also rely on the product’s personal success and the celebrity’s world exposure. • As we saw in the Cameroonian case, Samuel Eto holds a wider scope of coverage and is more appreciated as a celebrity within he’s country. On the flip side Paul Tergat, though world renown doesn’t hold much impact as a celebrity in Kenya. • These differences can be connected to the differences in cultural dimension of the two nations that then plays a significant role in the appropriateness of celebrity endorsement in the respective nations. • By identifying a gap in literature concerning celebrity endorsement and leadership, we hope that path for future research in this field is realized.

  24. SUMMARY AND IMPLICATIONS FOR MANAGERS AND RESEARCHERS • Future researchers are also exposed to the issues that ensue from the use of strategic practices (in this case celebrity endorsement) cross-nationally • Furthermore, the paper cautions against the generalization of regions which could be detrimental to the success of a project. If we looked at Kenya and Cameroon as Africa it is hard to see the subtle differences that could in fact hinder success of celebrity endorsements in the region. • In conclusion, this paper infers that in order to discuss celebrity endorsement cross-nationally, agency theory, transformational and transactional theories and most importantly the cultural dimensions should be considered.

  25. The end Ceasarine Nyaseda & Amstrong Ayuk IBA 8010 Spring 08

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