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Business, 06.04.2020 18:09 thepantsgirl

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?

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