1.1 Introduction
Celebrity endorsement is a marketing strategy that involves the use of well-known public figures such as actors, musicians, athletes, or social media influencers to promote products and services with the aim of influencing consumer attitudes and behavior. Hotel patronage refers to the willingness and actual decision of customers to choose, visit, and repeatedly use the services of a particular hotel. Kotler and Keller (2016) stated that patronage is influenced by several factors including brand image, perceived quality, promotional strategies, and social influence. In recent years, celebrity endorsements have become a prominent promotional approach in the hospitality sector as hotels seek to appeal to customers' lifestyles, aspirations, and social identities. The presence of celebrities in hotel advertisements, events, and brand campaigns is believed to enhance visibility, credibility, and attractiveness of hotel services, thereby influencing customers' choice decisions (Spry, Pappu, & Cornwell, 2011).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.
1.2 Background of Study
In Nigeria, the adoption of celebrity endorsements in marketing began in the 1980s with the rise of popular musicians, actors, and sports figures being featured in advertising campaigns for consumer goods, telecommunications, and entertainment services (Eze & Okafor, 2020). Companies realised that well-known personalities could capture public attention more effectively than traditional advertising, leading to an increase in brand awareness and consumer patronage. According to Nwankwo (2018), celebrity endorsements in Nigeria initially focused on tangible products but gradually expanded into services, including hospitality and tourism, where brand image and reputation are critical in influencing customer choices.
The hospitality sector in Nigeria began to integrate celebrity endorsements into marketing campaigns more prominently in the 2000s. Hotels and resorts recognised that aligning with popular figures could enhance their public image, generate media coverage, and attract high-end clientele (Adebayo & Olaleye, 2019). Eko Hotels & Suites, one of the leading premium hotels in Lagos, is noted for leveraging celebrity endorsements in events, promotional campaigns, and social media marketing to increase bookings and improve customer loyalty. Celebrities are used not only to endorse the hotel's services but also to promote special events and hospitality experiences, reflecting a shift towards experiential marketing (Adeyemi, 2021).
The hospitality industry in Nigeria is a dynamic sector that is influenced by both service quality and strategic marketing practices. According to Eze and Okafor (2020), the use of celebrity endorsements in marketing is an increasingly popular strategy adopted by organizations to enhance brand visibility, improve customer engagement, and drive sales. They reported that celebrity endorsers attract attention and create a positive brand image, which in turn can influence consumer decision-making.
In the context of hotels, celebrity endorsements is viewed as a tool to differentiate a brand from competitors and create a perceived value that resonates with customers. Nwankwo (2018) asserted that the credibility, attractiveness, and popularity of a celebrity endorser is critical to the success of marketing campaigns, as customers are more likely to patronise establishments associated with trusted and admired figures. Similarly, Adebayo and Olaleye (2019) stated that the alignment between the celebrity's persona and the brand's identity is essential to ensure that endorsements positively impact customer loyalty and repeat patronage.
Studies in other service sectors have affirmed that celebrity endorsements is effective in generating awareness, shaping consumer perceptions, and influencing purchasing behaviour. Johnson (2017) contended that consumers often associate the qualities of the celebrity with the product or service being endorsed, which enhances perceived value and trust. On the other hand, some scholars have argued that celebrity endorsements may not always yield desired results, especially if there is a mismatch between the celebrity and the brand or if the audience perceives the endorsement as inauthentic (Oluwaseun, 2016).
In Nigeria, premium hotels such as Eko Hotels & Suites face stiff competition not only from local competitors but also from international hotel chains. Celebrity endorsements is increasingly being used as a strategy to attract both domestic and international customers. According to Adeyemi (2021), well-planned endorsement campaigns by hotels help in generating media attention, social media engagement, and direct patronage from target markets. They reported that hotels that strategically use celebrity endorsements experience a higher rate of bookings and customer loyalty compared to those relying solely on traditional advertising. This study is set against the backdrop of understanding the effectiveness of celebrity endorsements as a marketing strategy and its potential to influence hotel patronage in Nigeria, particularly within the competitive environment of Eko Hotels & Suites.
1.3 Statement of Problems
Investigation revealed that celebrity endorsements often influence customer patronage and consumer behaviour in sectors like bottled beverages and consumer goods, with findings suggesting that well known figures can enhance customer attention, loyalty, and repeat purchases when properly aligned with the brand's image and values (Eze & Okafor, 2020). However, limited research has specifically examined how celebrity endorsements affect the decision of guests to book and patronise hotels in the Nigerian context, where other factors such as service quality, brand reputation, and digital marketing tools also play significant roles in shaping customer choices.
It is also not well established whether the positive effects of celebrity endorsement observed in other Nigerian industries transfer to the hotel sector, given that hotel patronage is influenced by a combination of emotional, experiential, and functional factors that may interact differently with celebrity influence.
Furthermore, the literature suggests that celebrity endorsement may have mixed outcomes because the effectiveness of a celebrity endorsement is dependent on the match between the celebrity's persona and the brand, as well as on the perceived credibility and attractiveness of the endorser among the target audience (Nwankwo, 2018). In Nigeria, where hospitality brands like Eko Hotels & Suites compete not only on service quality but also on image and customer perceptions, there is a lack of clear evidence on whether celebrity endorsement is a significant driver of hotel visits and customer loyalty. It is against this backdrop that this study seeks to understand the relationship between celebrity endorsement strategies and hotel patronage behaviour.
1.4 Aim and Objectives of Study
The aim of this study is to examine the impact of celebrity endorsements on hotel patronage in Nigeria using Eko Hotels & Suites as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To examine how the credibility, popularity, and attractiveness of celebrity endorsers influence customer perception of the hotel.
- To evaluate the role of celebrity endorsements in enhancing the overall brand image and competitiveness of Eko Hotels & Suites.
- To determine the relationship between celebrity endorsements and customer awareness of Eko Hotels & Suites.
- To assess the effect of celebrity endorsements on customer loyalty and repeat patronage at Eko Hotels & Suites.
- To identify challenges and limitations in the implementation of celebrity endorsement strategies within the Nigerian hospitality sector.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What is the relationship between celebrity endorsements and customer awareness of Eko Hotels & Suites?
- How do celebrity endorsements affect customer loyalty and repeat patronage at Eko Hotels & Suites?
- To what extent do the credibility, popularity, and attractiveness of celebrity endorsers influence customer perception of the hotel?
- How does celebrity endorsement contribute to the overall brand image and competitiveness of Eko Hotels & Suites?
- What challenges are associated with implementing celebrity endorsement strategies in Nigerian hotels?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H01: There is no significant relationship between celebrity endorsements and hotel patronage at Eko Hotels & Suites.
- H02: Celebrity endorsements have a significant positive effect on customer awareness of Eko Hotels & Suites.
- H03: Celebrity endorsements significantly influence customer loyalty and repeat patronage at Eko Hotels & Suites.
- H04: The credibility, popularity, and attractiveness of celebrity endorsers significantly affect customer perception of the hotel.
- H05: Celebrity endorsements contribute significantly to enhancing the brand image and competitiveness of Eko Hotels & Suites.
1.7 Significance of Study
The outcome of this research will help hotel management, marketers, and advertisers understand which celebrity endorsement strategies will yield the highest impact on customer loyalty, awareness, and engagement. Also, the research will help hotel management design more effective marketing campaigns using celebrity endorsers.
Furthermore, the study will inform industry regulators and policymakers on best practices for ethical and effective marketing strategies. In addition, this study will benefit consumers by encouraging transparent and engaging marketing campaigns that meet their expectations and improve service experiences.
Lastly, the study will also contribute to academic literature by bridging gaps in knowledge regarding marketing effectiveness in the Nigerian hospitality industry.
1.8 Scope of Study
The study focuses on the impact of celebrity endorsements on hotel patronage within Lagos State, Nigeria, with Eko Hotels & Suites serving as the case study.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Celebrity Endorsement: Refers to the marketing strategy where well-known public figures such as actors, musicians, or sports personalities are used to promote a product, service, or brand (Eze & Okafor, 2020).
Hotel Patronage: The act of visiting, booking, or utilizing the services of a hotel; it reflects customer loyalty and frequency of stay (Adebayo & Olaleye, 2019).
Brand Image: The perception and reputation of a hotel in the minds of customers, influenced by marketing, service quality, and endorsements (Johnson, 2017).
Customer Loyalty: The tendency of guests to repeatedly choose the same hotel over competitors, often influenced by satisfaction and trust (Nwankwo, 2018).
Marketing Strategy: A plan designed to promote a product or service effectively, including tools such as celebrity endorsements, advertising, and social media campaigns (Oluwaseun, 2016).
Hospitality Industry: The sector that provides services such as lodging, food, and entertainment to customers, where guest experience is a key determinant of success (Adeyemi, 2021).
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