Good Question. Would you be influenced?
While luxury brands are eager to get celebrities to show off their goods, the impact may be negligible, according to a new study. In fact, the survey found celebrity endorsements are twice as likely to backfire as they are to produce immediate sales results among wealthy consumers.
The Wealth Report, compiled by the Luxury Institute, finds only one percent of wealthy consumers (median income of $250,000 and net worth of $1.5 million) will buy a luxury product based on an endorsement from a celebrity. Only five percent say endorsements would increase their consideration of such purchases.
Of those surveyed, 13 percent would definitely not consider a celebrity-endorsed luxury product, and 63 percent said celebrity endorsements do not affect their decision-making at all.
But the report finds celebrity endorsements do raise awareness of luxury products and services. Of those surveyed, 18 percent said celebrity endorsements help them become aware of luxury offerings.
In terms of products, celebrities have the greatest power in promoting fashion designers, with 30 percent of those surveyed admitting celebrity influence in this category.
