Explain celebrity endorsement


Celebrity endorsement. L&LAdvertising just signed a contract with movie star Lance Willard for celebrity endorsements of Bud's Best bacon. The president of the firm assigns the account to Annie, who soon learns the awkward fact that Lance has just become a vegetarian. The president assures her that all legal requirements for the endorsement are satisfied, but Annie is uneasy and consults the American Advertising Federation's Advertising Ethics and Principles. It states that "advertising containing testimonials shall be limited to those of competent witnesses who are reflecting a real and honest opinion or experience." When Annie interviews Lance, he assures her that Bud's Best has been his favorite brand of bacon since he was a kid. However, he learned during a recent medical checkup that his cholesterol is dangerously high, and his doctor advised him to avoid such high-cholesterol foods as bacon and eggs. He decided to avoid all meat, for good measure. Annie diplomatically asks Lance if he is comfortable endorsing bacon. Lance responds that his conscience is clean, because he will describe only the taste and quality of the product, which he genuinely believes are tops, and say nothing about whether bacons healthy. If consumers are going to eat bacon, they may as well eat the best. Besides, many persons can eat reasonable amount of bacon without adverse health effects. It is up to consumers to decide what kind of diet is right for them. Is it ethical for L&L to use Lance's endorsement? Is it ethical for Lance to give it?

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Microeconomics: Explain celebrity endorsement
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