The use of celebrity endorsements can increase brand recognition and sales, but partnering with the wrong celebrity can have a negative impact on a company. Two recently successful partnerships are Under Armour's teaming with Dwayne Johnson for their Project Rock 1 sneaker that sold out in only 30 minutes following its release, and Coca-Cola partnering with Selena Gomez for its "Share a Coke and a Song" campaign. On the flip side, Nike, who signed an endorsement deal with Tiger Woods in 2000, saw sales fall by $1.7 million and lost over 100,000 customers when the company announced it was standing by the golfer following his infidelity scandal. The article discusses four tips on choosing the correct celebrity endorser:
1. Make sure the product actually fits the endorser. There needs to be consistency between the product and celebrity.
2. Make sure the product performs as advertised, or risk negative customer perception of both the product and the endorser.
3. Choose drama-free endorsers that fit the values of the company and are not involved in any type of scandal.
4. Avoid endorsers that promote anything and everything, as customers recognize authentic and unauthentic promotion.
Source: Soline Demenois, "Why Celebrity Endorsement Works," therestlesscmo.com, October 17, 2019
-Refer to the Article Summary. Economists refer to an increase in sales due to celebrity endorsements, such as Under Armour's sales increase from its partnership with Dwayne Johnson, as being the result of

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Celebrity endorsements often lead to an increase in sales due to social influence, where consumers are swayed by the preferences or actions of the celebrities they admire.

The Use of Celebrity Endorsements Can Increase Brand Recognition and Sales