How Scandals Affect Celebrities Endorsements

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Earlier this year, Kellogg dropped its sponsorship of Michael Phelps, the gold-medal swimmer, after he was photographed using a marijuana pipe at a party. In 2003, Nutella and McDonald’s ended their deals with Kobe Bryant after he was accused of sexual assault in Colorado; the charges were eventually dropped. Now how will tiger woods actions affect his endorsements? Will they drop him or put him on the back burner? How will his situation affect other celebrities endorsements?

In business, credibility means a lot and honesty means a lot, and Accenture wants to be a company that can be trusted. Obviously Tiger Woods did some things that betrayed the trust of people who were close to him, and now organizations would surely distant themselves from him.

Accenture, the giant consulting firm, ended its 6 year marketing relationship with Tiger Woods on Sunday, showing once again that in advertising as in sports, there are no sure things after the exposure of his series of extra marital affairs. Following Accenture, it seems now other companies have also started ending their contracts with Woods. Companies like Gillette, AT&T, PepsiCo, EA Sports and Nike have also stopped their contracts with Woods.

celebrity endorsements wont actually take any hit just due to tiger wood scandal. Every celebrity is associated with certain aspect of quality and that is how people perceive them. Since we have an assortment of celebrities to admire, endorsement companies will choose the hottest celebrity at the time that fits their product image. This is called the mass appeal approach. This in turns mean that if the celebrity isn’t the most popular any more the endorsement companies will move on to the next celebrity. And due to this corporate also keeps on changing its endorsements as and when required therefore celebrity endorsement will not take a hit because of one celebrity. This isn’t the first celebrity scandal it wont be the last. We can put all the blame of Woods actions on...
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