Celebrity Endorsement gone bad - A Conceptual Framework on the Impact of Negative Celebrity Endorsement on Consumer Behavior
Table of Figures
Figure 1: Meaning Movement and the Endorsement Process Source: McCracken (1989)……………………………………………………………..11
Table of Contents
1 Introduction
In todays society there is a heightened interest towards using celebrities to promote a particular product or brand and its positive effects are increasingly being recognized. Every year companies spend millions of dollars on endorsement contracts to align their brand and themselves with endorsers (e.g. celebrities).1
“When you have nothing important to say, get someone very important to say nothing for your brand.”2 The reason why celebrity endorsement has become an important role in the advertising industry is that businesses have realized that it is indispensible using celebrities if they wish to achieve a competitive advantage. “Strong, unique and favorable brand associations” help companies differentiate their products from those of competitors.3
Celebrities in Advertising can be traced back to the 19th century.4
Taking a closer look on advertising we find ourselves surrounded by celebrities. Approx. 25 percent of all televised commercials feature celebrities in their advertising campaign.5 But not only television is a popular medium for promoting a product - magazines, newspapers and the Internet are staring them as well.
The aim behind pursuing such marketing strategies is to gain attention, high brand exposure, interest, desire and action.6 The consequence is a positive influence of the advertised product through a celebrity and eventually a favorable effect on the brand image.7
While the benefits of using famous people as endorsers can be very appealing for companies, it is not without potential risks. Choosing the wrong celebrity can backfire and bring a huge financial downsize to the company. Negative information and publicity concerning the celebrity is one of the major risks associated with celebrity endorsement.8
For instance Tiger Woods
Figure 1: Meaning Movement and the Endorsement Process Source: McCracken (1989)……………………………………………………………..11
Table of Contents
1 Introduction
In todays society there is a heightened interest towards using celebrities to promote a particular product or brand and its positive effects are increasingly being recognized. Every year companies spend millions of dollars on endorsement contracts to align their brand and themselves with endorsers (e.g. celebrities).1
“When you have nothing important to say, get someone very important to say nothing for your brand.”2 The reason why celebrity endorsement has become an important role in the advertising industry is that businesses have realized that it is indispensible using celebrities if they wish to achieve a competitive advantage. “Strong, unique and favorable brand associations” help companies differentiate their products from those of competitors.3
Celebrities in Advertising can be traced back to the 19th century.4
Taking a closer look on advertising we find ourselves surrounded by celebrities. Approx. 25 percent of all televised commercials feature celebrities in their advertising campaign.5 But not only television is a popular medium for promoting a product - magazines, newspapers and the Internet are staring them as well.
The aim behind pursuing such marketing strategies is to gain attention, high brand exposure, interest, desire and action.6 The consequence is a positive influence of the advertised product through a celebrity and eventually a favorable effect on the brand image.7
While the benefits of using famous people as endorsers can be very appealing for companies, it is not without potential risks. Choosing the wrong celebrity can backfire and bring a huge financial downsize to the company. Negative information and publicity concerning the celebrity is one of the major risks associated with celebrity endorsement.8
For instance Tiger Woods
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