Tiger Woods Scandal Summary
For instance, Tiger Woods’s scandal agitated a media madness, forcing some of his sponsors (Gillette, Accenture, and Gatorade,) to drop him. Knittel and Stango (2010) found that, in a week after Tiger Wood’s scandal came into light, organizations whose products were endorsed by him, encountered major drop in stock market, in respect to both the stock market and the competitor organizations. The main five sponsors (Gatorade, Nike, Accenture, Electronic Arts, and Gillette) lost 2% to 3% of their total market value after the scandal broke, and his three main sponsors; Electronic Arts, Nike, and PepsiCo (Gatorade) lost over 4%. Therefore because of these potential dangers, a brand must take extra precautions when hiring a star for endorsement.