Article Summary The Use of Celebrities to Endorse Products Remains a Popular

Multiple Choice

Article Summary
The use of celebrities to endorse products remains a popular way for many companies to attract customers and keep their products relevant to their customers. The article discusses five factors that must be examined by a company when choosing a celebrity to endorse its product:
1. The cost of a superstar versus the value of a rising star
2. Finding a good fit between the celebrity and the image of the brand
3. Choosing someone who will promote the brand
4. Identifying valid metrics to measure success
5. The future appeal of the celebrity
Carefully chosen celebrity endorsements have proven to influence customers and enhance a brand's reputation, but as the list indicates, not all celebrities are the right fit for all products.
Source: David Schwab, " Keeping Up With The Evolving World Of Celebrity Endorsement," Forbes, June 27, 2015.
-Refer to the Article Summary above.Economists refer to an increase in sales due to celebrity endorsements as being the result of

A) network externalities.
B) the endowment effect.
C) social influence.
D) the ultimatum game.