Victor Chernetsky, assistant professor of marketing in Opus College of Business at the University of St. Thomas, was highlighted as an expert in WalletHub on marketing practices of car insurance companies.
From the Q&A:
What does it say about car insurance companies that so many have celebrity endorsers?
Many insurance companies aim to differentiate themselves from the competition. However, oftentimes, insurance companies “look the same” to customers. Using celebrities in promotional campaigns is one option to attract consumer attention and stand out on the market. Such an approach usually helps drive spontaneous brand awareness. When the time comes to buy insurance, consumers often have two or three companies in their “consideration set” – those companies they know of or have heard of in connection with the insurance industry. Still, managers who adopt this approach must thoughtfully select celebrities and match endorsers with their firm’s positioning and business objectives. Potential risks should also be considered. If the company is too strongly associated with a particular endorser, any adverse events happening to this person (i.e., negative PR) could subsequently negatively impact the company’s image.