The Appropriateness of Celebrity Endorsement In Developing African Nations: A Study Of Cameroon and Kenya Ceasarine Nyaseda

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

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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.

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ORIGINS AND SIGNIFICANCE OF CELEBRITY
ENDORSEMENT

• Celebrities have long been used as the face
  behind products. Queen Victorias endorsement of
  Cadburys Cocoa is one of the more famous
  endorsements. Sherman (1985)
• Scholars in the United States also explored
  celebrity endorsement by testing the effective
  celebrity endorsers 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.

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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.

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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 hes face is been used as the 2010
  South African World Cup.
• UNICEF ambassador
• Owns a soccer school in hes native Cameroon
• Notable endorsements are FIFA, Ford Motors
  (Europe), Puma Sportswear Group

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KENYA

• PAUL TERGAT
• one of Kenyas greatest success stories
• in the marathon field
• represent Kenya in the Olympic Games and
• world marathons.
• world record of 20455 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.

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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 dont
  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.

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CONCEPTUAL MODEL (C.F.C MODEL)

• We coined the mane CFC (Celebrity- Firm -
  Consumer)
• Model to establish two relationships in celebrity
  endorsement The Firm
• and the Celebrity Endorser and 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)

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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.

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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

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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)

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AGENCY THEORY

• Proposition1a
• A high level of collectivism is positively
  related to congruence of the 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.

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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 consumers
  view of the celebrity but also the endorsed
  product

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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.

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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.

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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.

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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 harder time negotiating in
  self-interest.
• Proposition2c
• In an African society with higher power distance
  the celebrity is most likely to work under the
  Firms 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.

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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.

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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 celebritys likeness or products that
  he/she endorses.
• As a basis of this discussion the following
  propositions were derived.

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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.

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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 Cameroons
  case) could favor Functional Endorsement.

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SUMMARY AND IMPLICATIONS FOR MANAGERS AND
RESEARCHERS

• The appropriateness of celebrity endorsement in
  developing African nations will also rely on the
  products personal success and the celebritys
  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 hes country.
  On the flip side Paul Tergat, though world renown
  doesnt 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.

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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.

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The end

• Ceasarine Nyaseda Amstrong Ayuk IBA 8010
  Spring 08