What are the advantages and disadvantages for companies of product endorsements? | Học Viện phụ nữ Việt Nam | PDF

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What are the advantages and disadvantages for companies of

product endorsements?

1. Advantages

A solid product endorsement can build brand credibility and equity:

(Endorsements reassure customers that the quality of a product will

meet their expectations)

Help your brand be able vĩ đại stand out and be distinct: (You have the

opportunity vĩ đại phối your business and brand messaging apart from what

your rivals are doing).

It creates a higher retention rate for future customers: (Customers

who convert for you have a higher retention rate when you have a proper

endorsement pitching your goods or services, as opposed vĩ đại a standard

advertisement)

2. Dis-

Hiring people vĩ đại endorse products is costly: (If you want vĩ đại put a

famous face with your product vĩ đại pitch it, there is going vĩ đại be a cost

associated with it that some businesses may not be able vĩ đại afford).

Product eclipsing: (There are times when an advertisement, an

endorsement, or even a celebrity may overcome the brand message that

is being offered vĩ đại consumers. This occurs when the endorser takes more

time or space in the advertisement from the product or service that is

being promoted).

Risk of reputational trouble: (Companies may also be caught in the

crossfire if one of their endorsing individuals is involved in a scandal. The

resulting negative image may spread vĩ đại the advertised brand.).