Karen Becker, Associate Professor of Marketing & Interdisciplinary Business, was featured as an expert in a recent article in WalletHub discussing Cheap Car Insurance in New Jersey.
What does it say about car insurance companies that so many have celebrity endorsers?
In many cases, the use of a celebrity suggests companies know their target audience. Most companies, including insurance companies, know that celebrities help them stand out in crowded media environments, and help to build a sense of community. Although most people understand the value of car insurance, they do not like buying it. In fact, a recent poll showed that upwards of 75% of people distrust insurance companies. Celebrities are a way to break through and create a more personal connection that companies hope will build a sense of trust.
Do you think car insurance companies try to mislead customers or is it just marketing?
Celebrity and media influencers are not necessarily misleading consumers – they are a part of the marketing tool kit. As long as the company is not giving false information and using the celebrity as a beacon in a crowded media environment, then it is Ok.