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

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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.Economists refer to an increase in sales due to celebrity endorsements as being the result of

Definitions:

Equipment

Tangible property used in the operation of a business that is not intended for sale, including machinery, tools, and vehicles.

Consolidated Balance

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one report.

Partial Equity Method

An accounting method used when an investing entity has significant influence but not full control over the investee, involving recording investments at cost and adjusting for the investor’s share of periodic net income or loss of the investee.

Dividends Received

Income received by investors, typically shareholders of a corporation, from the profits of the company.