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How Much Should Managers Pay for Celebrity Endorsements?

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  • Han-Kuang Tien

Abstract

Firms that choose to include celebrity endorsements in their advertisements are required to pay large sums in advance for these appearances, even though there is no guarantee of future sales of the target product. As such, managers require a method to evaluate the monetary value of including celebrity endorsements in advertising. In this study employing two experimental designs, we provide a rigorous and predictable framework to measure the potential marginal contribution of celebrity endorsements, which can serve as an objective standard for managers when calculating celebrity appearance budgets. Implications for researchers and practitioners are also discussed.

Suggested Citation

  • Han-Kuang Tien, 2017. "How Much Should Managers Pay for Celebrity Endorsements?," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 9(2), pages 68-77, April.
    • Handle: RePEc:ibn:ijmsjn:v:9:y:2017:i:2:p:68-77
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    References listed on IDEAS

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    More about this item

    Keywords

    celebrity endorser; celebrity premium; print advertising; conjoint analysis;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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