Freakonomics Radio
594. Your Brand’s Spokesperson Just Got Arrested — Now What?
Jun 27, 2024
John Cawley, a professor of economics at Cornell University, delves into the risks and rewards of celebrity endorsements in branding. He discusses the fallout from Jared Fogle's scandal and its surprising minimal impact on consumer loyalty towards Subway. The conversation touches on how public perception and moral outrage shape market dynamics, alongside the ethical dilemmas brands face when aligning with celebrity figures. Cawley humorously navigates the complexities of these endorsements, raising intriguing questions about their true effectiveness.
43:38
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Quick takeaways
- Celebrity endorsements can boost sales but come with risks, as seen in Jared Fogle's scandal with Subway.
- Using celebrities in ads can build consumer trust, although it may shift attention from the product itself.
Deep dives
The Power of Celebrity Endorsements
Celebrity endorsements have a long history of influencing consumer behavior and product sales. From ancient Greece to modern times, attaching a well-known face to a brand has been a popular marketing strategy. The practice can be traced back to English pottery entrepreneur Josiah Wedgwood in the 1760s and even to ancient coins featuring gods and goddesses endorsing currency. While celebrity endorsements can significantly boost sales, there are risks involved, as seen in cases like the scandal involving Jared Fogle and Subway.
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