Celebrity Endorsements Not likely to Influence the Wealthy

Luxury marketers should not expect much of a sales boost from hiring a celebrity to endorse their brands, according to a survey conducted by New York-based Luxury Institute. More than 1,000 wealthy Americans with a median income of $250,000 and a median net worth of $1.5 million were surveyed on their views on celebrity endorsements. "Only one percent of wealthy consumers say that a celebrity endorsement will spur them to purchase a luxury product or service, and a scant 5 percent say that endorsements will increase their consideration of such purchases," said Luxury Institute CEO Milton F. Pedraza. "At the negative extreme, 13 percent of wealthy consumers tell the Luxury Institute that they would definitely not consider a celebrity-endorsed luxury product or service." For two-thirds of wealthy Americans, their decision to buy luxury products and services is unaffected - either positively or negatively - by a celebrity endorsement. However, brand awareness can be impacted by celebrity endorsements. "Eighteen percent of the wealthy say that celebrity endorsements help them become aware of luxury offerings," Pedraza said. Additionally, some industries fare better than others: nearly one-third of the wealthy admit that celebrities can affect their choice of fashion designers and luxury hotels and resorts. About 25 percent say that emotional purchases of fragrances, spirits, watches, jewelry and automobiles can be swayed by a big-name endorsement. Also, celebrity pitches for wealth management firms, cruise lines, private jet service, destination clubs and major universities have some degree of influence on wealthy consumers. The biggest impact of endorsements: 45 percent say that celebrities help influence their choices of philanthropies.