594. Your Brand’s Spokesperson Just Got Arrested — Now What?

This podcast episode delves into the Jared Fogle scandal and its impact on Subway's brand reputation and consumer demand. It explores how Subway grew into a global franchise, largely due to Fogle's successful weight loss story and celebrity endorsement. However, the scandal revealed Fogle's involvement in criminal activities, causing severe repercussions for Subway. The episode also discusses the concept of repugnance and its influence on market transactions, as well as a research paper that examines the impact of the scandal on Subway's patronage. Surprisingly, the study found no significant change in Subway's patronage despite the negative information about Fogle. The episode further examines the effect of negative information on consumer behavior and firm reputation, as well as the costly and risky nature of celebrity endorsements in advertising. It also touches on the enduring popularity of celebrity endorsements and their ability to shape consumer choices. Overall, the episode provides insights into the complex dynamics and challenges associated with endorsements and their impact on brands and consumer decisions.