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.

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.