British Journal of Marketing Studies Vol.4, No.1, pp.1-20, February 2016 ___Published by European Centre for Research Training and Development UK (www.eajournals.org) 1 ISSN 2055-0219(Print), ISSN 2055-0227(online) MODIFICATION OF THE DIFFUSION MODEL AS A RESULT OF A NEW VARIANT CELEBRITY ENDORSEMENT Jacob O. Addo Department of Marketing, School of Business, Takoradi Polytechnic, Takoradi, Ghana ABSTRACT: This paper reports on findings from a research project that reflected upon the effectiveness of Celebrity endorsement (CE) and how it impacts on adoption. The study was undertaken to reflect upon the rate at which CE with the aid of modern technology have enhanced and transformed social interactions which have quickened communication within, between and among societies hence spreading information faster and easier throughout communities earlier than anticipated. The Rogers’ Diffusion and Adoption Model was applied to capture Customers and Business Executives experiences on using Celebrity Endorsers which provided a basis for observation and reflection. The research adopted both quantitative and qualitative methodology. Questionnaires were used to collect the data. The study surveyed 1000 Customers, and interviewed 30 Business Executives. The outcome of the study has proved that CE greatly impact on the diffusion process of products and services into markets at a faster rate than has been assumed. Hence it has modified the Rogers and Bass Diffusion model in 1983. KEYWORD: Celebrity, Endorsement, Diffusion, Adoption, Modified INTRODUCTION Celebrity Endorsement has been observed as an accelerator of diffusion of information on innovated products and services, technologies and ideas within, between and among societies and markets because, celebrity endorsement has greater influence on consumer acceptability rate of products and services and has the potential ability of diffusing innovation into societies at a faster rate. Celebrity endorsement has become one of the most accepted and a rewarding marketing communications tool (ad) in recent times. Companies spend large sums of money to contract celebrities to certify or endorse their products and services just to enhance their brands image, credibility, acceptability, and attractiveness. Marketers spend these enormous amounts of money annually on celebrity endorsement contracts based on the belief that celebrities will be effective interface for their products or brands (Katyal, 2007). For example, in the United States, Edrogan, Baker, and Tagg (2001), and Mistry (2006), estimated that approximately 25% of all televised commercials feature celebrities, 57% in Korea (Choi, Lee and Kim, 2005); and 70% in Japan (Money, Shimps and Sakano, 2006). Similarly, in Germany, approximately 12% of all advertising campaigns employ these endorsers (Ipsos Response, 2008 as cited in Erfgen, 2011) around 40% of the youth-products advertisement featured at least one celebrity in China (Chan, 2008). This shows that CE has assumed a wider dimension the world over because of its effectiveness in persuading its followers to accept the endorsed brand on the market.