Cambridge , Massachusetts ( CNN ) -- The announcement that Accenture has decided to end its marketing relationship with Tiger Woods -- now that the superstar is making headlines for his infidelity and sudden break from the sport of golf -- is raising larger doubts about the strategy of relying on celebrity endorsers . Why would any firm center its marketing efforts on an athlete , particularly in today 's media landscape in which a celebrity 's missteps are so easily captured and disseminated via gossip and social-networking Web sites ? Would it not be better for firms to shy away from aligning themselves with celebrity endorsers ? While the strategy is inherently risky -- endorsers are people , after all , and people make mistakes -- and while Accenture 's decision to cut ties with Woods is probably justified given the circumstances , in general , the rewards of relying on endorsers very likely far outweigh the risks . Endorsers often create tremendous value for the companies that rely on their services -- that is why the best endorsers are so richly compensated , and why most top athletes in America make more money from sponsorships than from salary or winnings . Marketers of brands that employ the services of celebrities will know that few promotional strategies can impact the bottom line as much as -- and as quickly as -- forming an alliance with a celebrity . In a recent study in which I analyzed hundreds of athlete endorsements , I found that sales for brands in a variety of consumer-product categories jumped an average of 4 percent in the six months following the start of an endorsement deal , even after controlling for advertising expenditures and other factors that could be expected to drive up sales . Several brands saw sales rise with more than 20 percent after teaming up with an endorser . And important to managers , the strategy seemingly helps to differentiate brands from their competitors , which did not experience any spillover of increased sales . The study , co-authored with Jeroen Verleun , even showed that the stock market favorably responds to athlete endorsements : On the day such a deal is announced , the endorsed firm 's stock can be expected to increase nearly a quarter percent . And illustrating the payoff of betting on a winning athlete , stock prices further increase every time the athlete secures a major victory , such as a PGA championship . In fact , athletes with a strong track record emerged as particularly effective endorsers in the study in almost all possible respects . Why do celebrity endorsements work as well as they do ? One obvious explanation is that celebrities help firms to tap into their fan base . They open new markets . Consider tennis star Maria Sharapova , one of today 's most sought-after -- and , as our research shows , most effective -- endorsers : The mere fact that Sharapova promotes fashion label Cole Haan may encourage her most devoted fans to visit its shops , allowing Cole Haan to perhaps attract a younger and more diverse demographic . A second , more subtle , explanation is that endorsements trigger sales by reassuring consumers of the quality of the endorsed brand . Consumers often can not easily assess the true quality of products , at least not before they consume them . But seeing a celebrity attaching his or her name and good reputation to a product may help alleviate some of their uncertainty . Consciously or unconsciously , they might trust , say , Sharapova to endorse Prince tennis rackets only if those products truly are of premium quality . After all , Sharapova herself would be at risk of damaging her reputation if that were not the case . A third possibility is that an alliance with an endorser can convey important information about an attribute that helps differentiate a brand from its competitors . This is particularly helpful for attributes that are hard to explain , demonstrate , or measure . Canon 's reason for turning to Maria Sharapova was her reputation as someone who plays aggressively but with precision , and who has a sense of style -- exactly the kinds of attributes it hoped to emphasize in marketing its line of PowerShot cameras . This is probably where the partnership between Accenture and Tiger Woods went south . Judging by its advertising campaign over the years , the global consulting firm relied on Woods to emphasize attributes such as its strategic focus and discipline ( `` Strategy 80 % . Exit Strategy 20 % '' ) ; the payoffs of its risk-taking behavior ( `` Go On . Be a Tiger '' ) ; and its ability to recover from setbacks ( `` It 's What You Do Next That Counts '' ) -- precisely the kind of values that may be difficult to communicate under the current circumstances . So it is understandable that the firm decided to cut ties with Woods in order to limit a negative impact on its reputation . However , now that the company has responded , we should not lose sight of the bigger picture : Any short-term negative effects are very unlikely to outweigh the strong benefits the company experienced during its six-year relationship with the golfer . Marketers who rely on athlete endorsers know they can be in for a rocky road -- their allied partners can suffer from injuries , a loss of form , scandals , rumors , and a range of other woes -- and they need to adapt accordingly . But do n't expect firms to cut back on the strategy altogether , as endorsers on the whole generate considerable value . The opinions expressed in this commentary are solely those of Anita Elberse .
Tiger Woods endorsement deal highlights risks of relying on a celebrity to promote products . Anita Baker says her research shows firms with endorsers generally reap big profits . She says sales promotion and endorsements can boost a company 's stock price . Endorsements reassure customers about quality of products , she says .