Celebrity endorsements don't always work in a companies favor though. The company never knows when something a celebrity does could impact what people think about them. It could then reflect upon the company. For example, the Tiger Woods case. Tiger Woods was caught having an affair. He was endorsed by a great deal of organizations such as Nike, Gatorade, and EA Games. Although Nike and EA Games did not drop him Gatorade did. I am not entirely sure why they dropped him, but it would seem to me they wouldn't want their customers to think that they support him cheating. By continuing to support his career some may see it as they are over looking his infidelity. Nike didn't drop Tiger Woods because they think that in the long run, people will forget and the profit in the future is more than the loss they may be experiencing right now. So, although celebrity endorsements have the potential of creating great wealth for a company they can also cause loss.
Do you think that you are more attracted to products that are endorsed by your favorite celebrities? Have you ever stopped using a product that was endorsed by a celebrity who acted in a way you didn't agree with?