Tiger Woods was one of the most successful end highly paid celebrity endorsers i
ID: 1223386 • Letter: T
Question
Tiger Woods was one of the most successful end highly paid celebrity endorsers in the world, not just tor products rotated to his golf expertise, but also for razors, watches, cars, and several other product categories. What were these compares attempting to accomplish by paying Woods to endorse their products (include the concept of consumer marginal utility in your thinking)? How did the highly publicized 2009 scandal involving Woods' personal behavior effect his value as a product endorser? A dry cleaner in California encountered controversy for charging more to dry clean women's shirts than men's shirts. As an unhappy female customer noted. They charged me $1.50 for each of my husband's shirts, and he wean an extra Large. "They charged $3 .50 for each of mine, and I wear a small" The store owner explained that the difference stemmed from the need to hand iron her shirts became his automatic presser was not made to handle small-sized women's garments. Was this dry cleaner practicing price discrimination?Explanation / Answer
1) The 2009 crisis have eroded his personal value, He probably was one of the most highly paid people for endorsements.
The public image of the celebrity have gone down, This has made companies to look for alternative choices.
The fact is that celebrities are very popular and for many people they are the role models, This is one reason many companies want their products to be associated with famous people,
When the image of such celebrity goes down his brand endoresement value also goes down drastically.
2) No, he is not price discriminating.
The dry cleaner is clearly mentioning that small clothes cannot be handled by automatic presser, This is more of a technical problem than price discrimination. He is just charging for hand ironing, If kids clothes are bought even then you would end up paying more.
Small clothes are higher priced and big clothes are lower priced. This is not price discrimination.
If dry cleaner charges 10 dollars from one person and charges 11 dollars from another for same clothes then it is price discrimination.