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Steve Rapier Explains Why Car Insurance Companies Use Celebrities for Marketing

March 3, 2021  | 1 min read

In the United States alone there are thousands of car insurance companies, with the ten largest insurers providing coverage for the majority of customers. The top ten insurance companies often use celebrities or influencers to market their products. For example, State Farm is an NBA partner and cast basketball stars and other celebrities in their commercials. WalletHub asked Dr. Steve Rapier what does it mean and why car insurance companies use celebrity endorsers. “Celebrity endorsements are likely to be the most beneficial to a brand when the essence of the celebrity is aligned with the nature of the consumer's risk when making the decision related to the product/service category. Product categories, such as insurance, that may be viewed as high risk (high cost, long term duration, and highly visible to others) are typically influenced by the consumer's desire to minimize the risk of making a bad decision. This, therefore, requires that for the endorsement to be effective, the celebrity is not simply popular, but is meaningfully viewed as credible and trustworthy (Zipporah; Mberia, 2014). One who the consumer views as a reliable source of testimony,” said Dr. Rapier.

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