Brand Ambassador and Customer Patronage of FMCGs: Mediating Effect of Advertisement Believability

The market for fast-moving consumer goods (FMCGs) in the Nigerian food and beverage industry has been inundated with a massive amount of promotional messages. These messages have resulted from intense competition and rivalry among the organizations that market similar products. The objective of this study is to evaluate the effect of a brand ambassador on the patronage of FMCGs. Furthermore, we explore the mediating role of advertisement believability in the relationship between the variables. We use a questionnaire to elicit information from 400 respondents who are members of households in the metropolitan area of Kano that consumed Peak milk. Partial least square algorithms and bootstrapping techniques served as the tools of analysis with the aid of SMART-PLS 3. Our findings indicate that a brand ambassador has an insignificant direct effect on customer patronage and that advertisement believability has no mediating effect on the influence of a brand ambassador on customer patronage. The study recommends that managers of FMCGs should use a hybrid model of a brand ambassador and believable advertising to elicit the desired patronage from their target customers. Further, they should de-emphasis the supposed role of advertisement believability as a mediating factor on the influence of a brand ambassador on customer patronage

Currency Fusion and Trade Flows in West African Countries Application of the Gravity Model

Currency fusion to certain extent has been a subject of discussion within the modern economic era. Though, the West Africa formed their monetary institute (i.e. West Africa Monetary Institute, WAMI) however, the practice of common currency within the region is thinly accepted. This study then focuses on the economic fundamentals of currency union within the zone placing it firmly on the context of the theory of gravity model and by extension trade, with special reference to West African countries. Panel data estimation techniques were adopted; followed by the stability tests: standardized residual and confidence ellipse. The findings indicate that population growth is risk-free to the decision on currency union and, particularly, trade is another huge benefit in return for the adoption of currency fusion program within the West African region. Keywords: gravity model, output growth, optimum currency areas, panel co-integration, panel unit roots test, confidence ellipse, fixed effect model and random effect model

Application of Taylor Principle to Lending Rate Pass-Through Debate in Nigeria: A Parametric Approach

The paper makes clear evidences on the lending rate pass-through from policy to retail interest rates and points out some recent findings on implications for both monetary policy and financial variable flows. Thus the stability properties associated with monetary policy rules have attracted a substantial amount of attention.  Several studies argued that the comparatively successful conduct of monetary policy since the early 1980s is primarily due to the implementation of an appropriate policy rule. The estimation procedures follow the modern econometric methodology, such as, a parametric test which consists of the weighted least square technique, Unit root test and co-integration technique, respectively. Empirical result recommends that the pass-through is incomplete for Nigeria within the period under review, which contradicts the Taylor principle.  As the pass-through is incomplete, policy rates have to respond by even more to compensate for the smoothing of retail rates. Besides, our findings show that an incomplete pass-through has implications for the stabilizing role of monetary policy and the oscillations arising from price and liquidity shocks. JEL Classification: E43, E51, E52, E58 Keywords: Taylor Principle, Lending Rate Pass-Through, Liquidity Shocks, Weighted Least Square

A Parametric Debate of Corruption and Economic Growth in Sub-Saharan African Countries

This paper investigates the determinants of corruption and its impact on economic growth in 39 sub-Saharan African countries. The significance of this study would be to add to extant literature on causes of corruption in sub-Saharan African countries and the results obtain could further raise cautions about casual attempts at institutional reform. In an attempt to empirically investigate on corruption, the corruption index was obtained from the Worldwide Governance Indicators (WGI) and data for the study span from 1996 to 2011. In a Barro-styled economic growth model, the dynamic panel regressions were conducted for both corruption determinants and growth-corruption models. Panel unit root test following lm, Pesaran and Shin W-Stats, Model reliability tests and cointegration test were also conducted. From the model to find the determinants of corruption, empirical result suggests that natural resource (ore, fuel, food and Agriculture), rule of law, secondary school enrollment and foreign direct investment are relevant in explaining spate of corruption. Corruption was important in explaining GDP per capita. Overall, our result suggests that natural resource wealth, irrespective of the types (whether ores, fuel, food and agriculture) tends to consolidate and conserve bad political regimes which undermines appropriate social-cultural changes that in turn breeds corruption via institutional weakness, and in the process distorts economic growth dynamics in countries studied. Keywords: Corruption, Economic Growth, Barro-Growth Model, Institutional Weakness, Dynamic Panel Regression, Point-Source and Diffused Natural Resource

Can Non-Oil Exports boost Agriculture Sector Performance in Nigeria? A Tale for Oil Independency

The study examines the effect of non-oil export on the agricultural sector performance in Nigerian economy using empirical evidence and modern research analysis. The bulk of non- oil export of Nigeria comes from agriculture and pre-processed products. Hence, non-oil export from perspective of efficiency-seeking indicates that non-oil export always aim at taking advantage of poor-efficient production condition and boost the productive edge of resources. There is a general believe that non-oil exports commodities has nothing to do with sectoral growth in Nigeria, this role is therefore the major focus of this study. Modern econometric analysis is used to validate if there is any relationship between non-oil export and sectoral performance, we also conducted unit root test to detect the risk of non stationarity of any of the variables involve in the model specified. Having tested for unit root, the paper also considers cointegration test and a parsimonious result of the least square estimate is presented. Lastly, a causality analysis of the relevant variables was undertaken in order to verify the relevance of non-oil export on growth in Nigeria. Interestingly, non-oil export commodities fail to enhance growth of the economy in recent findings, while agriculture, openness and exports promote growth in both the short and long run in our dear country

Influence of celebrity endorsement and digital marketing on youth purchasing decisions: a comparative study of Ikorodu area

The continuous increase in the population of Nigeria, especially the youthful population characterized by innovative and dynamic needs, necessitates business firms to adopt opposite programmes and strategies to meet the needs of this segment of the market. Therefore, this study examined the influence of celebrity endorsement and digital marketing on youth purchasing decisions. The study utilized primary sources to gather the required data, and a sample size of 397, consisting of youths between the age of 15-35 years residing in Ikorodu L.G.A. was selected from the study’s population. Pearson moment correlation was used to test the formulated hypotheses, and the data was analyzed through the aid of SPSS version 23. The study finding revealed that source trustworthiness influences youth purchasing decisions more than social media engagement. More so, online reachability influences youth purchasing decisions than source alignment and that digital campaign has more effect on the youth purchasing decisions than source attractiveness. It was concluded that digital marketing has more effect on youth purchasing decisions than a celebrity endorsement. It was recommended that organizations with youthful target audiences adopt more digital marketing strategies as it influenced youth purchasing decisions than a celebrity endorsement.In recent years, the continuous increase in the population of Nigeria, especially the youthful population who are characterized by innovative and dynamic needs, necessitates business firms to adopt opposite programmes and strategies to meet theneeds of this segment of the market. Therefore, this study examined the influence of celebrity endorsement and digital marketing on youth purchasing decisions. The study utilized primary sources to gather the required data, and a sample size of 397 people,consisting of youths between the age of 15-35 years residing in Ikorodu L.G.A. was selected from the study’s population. Pearson moment correlation was used to test the formulated hypotheses, and the data was analyzed through the aid of SPSS version 23. The study finding revealed that source trustworthiness influences youth purchasing decisions more than social media engagement. More so, online reachability influences youth purchasing decisions than source alignment and that digital campaign has more effect on the youth purchasing decisions than source attractiveness. It was concluded that digital marketing has more effect on youth purchasing decisions compared to celebrity endorsement. It was recommended that organizations with youthful target audiences adopt more digital marketing strategies as it influenced youth purchasing decisions than a celebrity endorsement

Brand ambassador and customer patronage of FMCGs: mediating effect of advertisement believability

The market for fast-moving consumer goods (FMCGs) in the Nigerian food and beverage industry has been inundated with a massive amount of promotional messages. These messages have resulted from intense competition and rivalry among the organizations that market similar products. The objective of this study is to evaluate the effect of a brand ambassador on the patronage of FMCGs. Furthermore, we explore the mediating role of advertisement believability in the relationship between the variables. We use a questionnaire to elicit information from 400 respondents who are members of households in the metropolitan area of Kano that consumed Peak milk. Partial least square algorithms and bootstrapping techniques served as the tools of analysis with the aid of SMART-PLS 3. Our findings indicate that a brand ambassador has an insignificant direct effect on customer patronage and that advertisement believability has no mediating effect on the influence of a brand ambassador on customer patronage. The study recommends that managers of FMCGs should use a hybrid model of a brand ambassador and believable advertising to elicit the desired patronage from their target customers. Further, they should de-emphasis the supposed role of advertisement believability as a mediating factor on the influence of a brand ambassador on customer patronage.El mercado de bienes de consumo de rápido movimiento en la industria de alimentos y bebidas de Nigeria, se ha visto inundado con una gran cantidad de mensajes promocionales. Estos mensajes son el resultado de una intensa competencia y rivalidad entre las organizaciones que comercializan productos similares. El objetivo de este estudio es evaluar el efecto de un embajador de marca en el patrocinio de bienes de consumo masivo. Además, exploramos el papel mediador de la credibilidad de la publicidad en la relación entre las variables. Usamos un cuestionario para obtener información de 400 encuestados que son miembros de hogares en el área metropolitana de Kano que consumieron leche Peak. Los algoritmos Partial least square y las técnicas bootstrapping sirvieron como herramientas de análisis con la ayuda de SMART-PLS 3. Nuestros hallazgos indican que un embajador de marca tiene un efecto directo insignificante en el patrocinio del cliente y que la credibilidad de la publicidad no tiene un efecto mediador sobre la influencia de un embajador de la marca en patrocinio del cliente. El estudio recomienda que los gerentes de bienes de consumo masivo deben utilizar un modelo híbrido de embajador de marca y publicidad creíble para obtener el patrocinio deseado de sus clientes objetivo. Además, deberían restar importancia al supuesto papel de la credibilidad de la publicidad como factor mediador en la influencia de un embajador de la marca en el patrocinio del cliente