behavioral economics : why do you think demand for a product will often increase
ID: 1153046 • Letter: B
Question
behavioral economics : why do you think demand for a product will often increase if the product is endorsed by a celebrity.And also consider the other side of the question related to the firm.Many celebrities are paid to endorse products, but celebrity endorsements do come with risks. Once a firm is associated with a celebrity, consumers associate the product with the celebrity. This association can turn negative if the celebrity gets arrested or becomes associated with an embarrassing scandal. Should a company whose celebrity endorser was just arrested be guided by the amount already poured into making featuring the celebrity in its decision about whether or not to cancel the ad campaign? behavioral economics : why do you think demand for a product will often increase if the product is endorsed by a celebrity.And also consider the other side of the question related to the firm.
Many celebrities are paid to endorse products, but celebrity endorsements do come with risks. Once a firm is associated with a celebrity, consumers associate the product with the celebrity. This association can turn negative if the celebrity gets arrested or becomes associated with an embarrassing scandal. Should a company whose celebrity endorser was just arrested be guided by the amount already poured into making featuring the celebrity in its decision about whether or not to cancel the ad campaign? why do you think demand for a product will often increase if the product is endorsed by a celebrity.And also consider the other side of the question related to the firm.
Many celebrities are paid to endorse products, but celebrity endorsements do come with risks. Once a firm is associated with a celebrity, consumers associate the product with the celebrity. This association can turn negative if the celebrity gets arrested or becomes associated with an embarrassing scandal. Should a company whose celebrity endorser was just arrested be guided by the amount already poured into making featuring the celebrity in its decision about whether or not to cancel the ad campaign?
Many celebrities are paid to endorse products, but celebrity endorsements do come with risks. Once a firm is associated with a celebrity, consumers associate the product with the celebrity. This association can turn negative if the celebrity gets arrested or becomes associated with an embarrassing scandal. Should a company whose celebrity endorser was just arrested be guided by the amount already poured into making featuring the celebrity in its decision about whether or not to cancel the ad campaign?
Explanation / Answer
Ans
Celebrities are considered role models. Therefore people look for what they consume and use. Further since they are rich products associated with them are considered luxurious In recent past celebrities like cricketer Rohit kohli has endorsed only those products which they consider useful. This further given impression to fans that products are really worthy.
No it should not be guided by such decision. Otherwise it can face backlash and losses. It should immediately stop advertisements by such celebrities..This might also create goodwill.
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