Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 68, Problem 6MCQ
To determine
To choose: Out of the given options, the one which states the reason for which the companies hire celebrities to endorse their products.
Expert Solution & Answer
Answer to Problem 6MCQ
The correct answer is option A.
Explanation of Solution
Yes, this is a true statement that in case a celebrity is endorsing a particular product or a brand, people have more faith in that product and they usually tend to buy the product endorsed by their favorite celebrity. As it signals that the product is made by a legitimate company. So, celebrity endorsement definitely has a positive impact on sales and the image of the company.
So, option A is correct in this case that companies hire celebrities to promote their product because it signals that the product is made by a legitimate company.
Chapter 68 Solutions
Krugman's Economics For The Ap® Course
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