Question

LeBron James, Stephen Curry, and other athletes are paid huge sums of money by companies for celebrity endorsements. If endorsements by these athletes create a clear understanding among consumers of the companies' products in comparison to competing products, they can help with the firm's ________ strategy.

Answer 1

Answer: Positioning strategy

Explanation: Positioning strategy refers to the strategy in which the management tries to understand the strengths of the company. The management focus on showing these strengths to the customers so that the firm can achieve competitive advantage.

In the given case, the objective behind endorsing from celebrities is to make customers understand how the relative product is better than other products.

Thus, we can conclude that the celebrities could help the company with its competing strategy.