ECON212-phase3DB - 73990

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Price: $7.00
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  • Posted on: Fri 05 Sep, 2014
  • Request id: # 73988
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How do people’s budget, income, and substitution effects fit in?

Considering George Foreman has no expertise on grills or fat-free cooking, one has to wonder why consumers were so influenced to buy the George Foreman Grill, in which he endorsed. Is consumer behavior really affected by celebrity endorsements? When asked in surveys, consumers claim that celebrity endorsements do not influence their buying decisions. Marketing strategist, Mark Babej, argues that responses to these surveys are unreliable “because advertisements appeal to the subconscious as well as the conscious mind” (Hubbard & O’Brien, 2012). There is some truth to this, for instance, Therefore, celebrity endorsements do influence my buying decisions. It comes down to utility, which is the satisfaction, or happiness the consumer gets when using or consuming a good or service in which they purchased. When a celebrity endorses a product that is successful, it raises the consumer’s utility which also raises the demand and shifts the demand curve to the right. These celebrity endorsements can sometimes fail or “backfire” if the celebrity falls into a scandal (Hubbard & O&