Article Summary
The use of celebrity endorsements can be a good way to promote a brand, as long as the brand fits the celebrity. The article discusses three reasons why a company should use celebrity endorsements:
1. Celebrities have a large range of followers, giving them the ability to build brand equity which created product differentiation to consumers.
2. Companies can reach a global audience since celebrities have worldwide fan bases, and an endorsement can link the product to a celebrity's skills, making fans feel closer to and more like the celebrity.
3. Celebrity endorsements increase consumers' awareness of a product, since consumers are more likely to remember an ad linked to a celebrity.
However, not all celebrities are the right fit for all products. Endorsements can backfire if the celebrities are promoting something they would never use, giving the impression of nothing more than a sponsored advertisement.
Source: Erika Warne, "Why Brands Should Use Celebrity Endorsements," weareanthology.com, April 20, 2017.
-Refer to the Article Summary.One explanation for the increase in product sales because of celebrity endorsements is that people seem to receive ________ from goods they believe are popular.
A)more utility
B)diminishing utility
C)greater network externalities
D)increased path dependency

Question

Quizplus · Accepted Answer

The article states that celebrity endorsements can build brand equity and create product differentiation, which can lead to consumers perceiving more utility from the endorsed product.

Article Summary The Use of Celebrity Endorsements Can Be a Good Way