SEM eDynamics Unit 7

According to a 2010 Harvard Business School study, some product sales can increase by what percent as a result of celebrity endorsements?

• 10%

• 20%

• 30%

• 40%

A commodity may seek a sponsorship or an endorsement, but not both.

• True

• False

A highly popular, likeable, and stable celebrity would make a good endorser for any product.

• True

• False

All of the following are potential benefits of becoming a sponsor EXCEPT

• Monetary payment from the athlete, entertainer, or organization

• Increased goodwill toward the sponsor

• Enhanced brand visibility

• The opportunity to sell their products at events

An endorsement is typically made by

• A company

• A team

• An individual

• A nonprofit organization

An endorser must be popular in order to be effective.

• True

• False

At least one study has shown that consumers are more aware of a celebrity endorser’s flaws when he or she endorses a product that

• Is considered cheap

• He or she has little perceived knowledge of

• Is considered too expensive

• Is perceived as a fad

Celebrities don’t typically allow companies to use their name and likeness after the contract has been terminated.

• True

• False

Celebrities may legally endorse products that they have never used.

• True

• False

If a potential sponsor wants to know how the success of the sponsorship agreement will be measured, which section of the sponsorship proposal should the sponsor read?

• Executive summary

• Exclusivity

• Objectives

• Evaluation strategy