The Effects of Celebrity Scandals on the Adoption Process

Abstract

The use of Celebrity Endorsement (CE) in Ghana by Corporations has become a dominate phenomenon in recent years. The introduction of CE makes it possible for Companies to engage a Celebrity as a brand endorser for its products and services. The expectation is that celebrities with their large followers through persuasive powers will attract customers to the brand in question. The study sought to find out how Celebrity Scandals does affect the diffusion of such products and services into societies or markets. Using top, middle and lower level managers of both private and public sector companies of the economy, thousand customers who patronize products and services of these companies were surveyed in Accra where all Companies, Ministries, Institutions and Departments are located. The study used Analysis of variance to test if factors have individual or joint influence on the response variable. It is an instrument for reviewing the goodness of fit of the chosen model. It is used to analyze treatments (factors) means by identifying sources of variability of the data.

The study revealed that though CE scandals are disturbing and have several business implications yet it does not move customers away from using the brand. The article further showed that Celebrity scandals do not abrogate the diffusion of product and services into societies.  Further, it was revealed that Customers do not buy products and services because of the Celebrity Endorsers but the reality is the benefits they derive from using such products and services. Therefore, CE scandals do not stop diffusion of products and services into societies or markets.

Key Words: Scandals, Celebrity, Endorsement, Diffusion