Back in the 2000\u2019s, you couldn\u2019t sit through a commercial break without seeing the teen pop icon of that time, Britney Spears, endorsing Pepsi (a deal which brought her at least 50 million dollars<\/a>).<\/p>\n\n\n\n The Pepsi legacy was later continued by the most famous celebrity we know of, Beyonc\u00e9. She was paid millions to promote the carbonated drink, which outraged health advocacy groups. Many concerned people questioned her ethics, as to why she was supporting a drink that plays a major role in causing obesity. Let it sink in that she was part of Michelle Obama\u2019s \u201cLet\u2019s Move\u201d<\/em> fitness campaign before she signed with Pepsi. But as long as Pepsi sold more products and Beyonc\u00e9 received her fair share of the deal \u2013 they didn\u2019t care much.<\/p>\n\n\n\n Pepsi Beyonc\u00e9 \u2013 Limited edition can \u2013 Source<\/a><\/p>\n\n\n\n Earlier this year, Selena Gomez has been named the new face of the luxurious brand Louis Vuitton. The ads were rolled out via Instagram, which sure was a canny move since Gomez is the most-followed person on Instagram with a huge, global fan following. The post scored more than one million likes in the first two hours it was posted.<\/p>\n\n\n\n Jennifer Aniston is another celebrity with \u201cstar power\u201d as she tops the list of celebrity endorsements. Known for her youthful complexion, she has been endorsing Smart Water since 2010. There\u2019s actually an ad that says \u201cMy Secret Revealed.\u201d Sure.<\/p>\n\n\n\n With the growing importance of social media in a shopper\u2019s purchase journey, companies are evolving and stepping up the endorsement game across different channels. Just take a look at McDonald\u2019s strategy. They developed a surprising live experience in collaboration with the singer Jessie J, who boarded contest winners on a bus and performed her famous hits for an hour and a half. McDonald\u2019s live streamed the entire performance on all of their social media channels.<\/p>\n\n\n\n Source<\/a><\/p>\n\n\n\n But do celebrity endorsement really influence people\u2019s decisions?<\/p>\n\n\n\n A Taiwanese study<\/a> shows that consumers show greater recall of products that have been endorsed by celebrities \u2013 regardless of whether they are actual fans or not. The human brain recognizes celebrities similarly to how it recognizes people we actually know. The effect is that, if consumers happen to be fans, they place a higher value on products that celebrities are endorsing \u2013 it is as if they are receiving advice from a valued friend.<\/p>\n\n\n\n With celebrities vouching for or promoting their products, brands can increase awareness, trust and familiarity, which are important variables in the purchase decision-making process. Consumers feel more sympathetic towards a brand, if their products are promoted by a celebrity they admire or relate to. It\u2019s a simple psychological effect: Subconsciously people believe that purchasing a product that\u2019s promoted by a celebrity they admire, will allow them to emulate the celebrity\u2019s desired traits or attract similar people into their lives. They will associate the celebrities\u2019 success, beauty, athletic skill etc. with a particular product.<\/p>\n\n\n\n A recent study<\/a> by the University of Arkansas in collaboration with the Manchester Business School in London found that consumers (ages 18-24) take on an active role in developing their identities and appearance based upon celebrities. They are more susceptible to celebrity brand endorsements than other age groups. Research by Nielson<\/a> conducted in 2015 broke down the level of trust in advertising formats by different generations. It found that celebrity endorsements resonate more strongly with Generation Z (ages 15-20) and Millennial (ages 21-34) audiences.<\/p>\n\n\n\n Nielsen Report \u2013 Global Trust in Advertising<\/p>\n\n\n\n Brands are taking advantage of that by increasingly utilizing the social media communities of celebrities. Social media is a way for consumers, in particular those of younger demographics, to engage and build intimate connections with the celebrities they follow, making it THE place for these celebrities to plug a company or a product on their personal Social media accounts. Social media celebrities, such as Kim Kardashian or Justin Bieber, can be paid $20,000 for a single, 140-character tweet.<\/p>\n\n\n\n Pregnancy lips\u2026. @EOS<\/a> to the rescue! LOL https:\/\/t.co\/1da6CWjOW9<\/a><\/p>\n\n\n\n \u2014 Kim Kardashian West (@KimKardashian) May 28, 2013<\/a><\/p>\n<\/blockquote>\n\n\n\n @1800flowers<\/a> you guys have been supporting me since day one. Thank u and happy Mother\u2019s Day to all the mom\u2019s receiving flowers today<\/p>\n\n\n\n \u2014 Justin Bieber (@justinbieber) May 11, 2014<\/a><\/p>\n<\/blockquote>\n\n\n\n However, as these kinds of product placements disguised as normal posts can be regarded as a deceptive form of marketing, there are efforts underway to help identify these sponsored posts as ads.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.guided-selling.org\/wp-content\/uploads\/2024\/02\/Portfolio_ForWebsite_SangHeeJin.076-1024x576.jpeg\")
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<\/figure>\n\n\n\nThe Psychology behind Celebrity Endorsements and Consumer Decisions<\/h2>\n\n\n\n
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