Psychological Factors: Celebrities generally satisfy the 'esteem needs' of an individual. Celebrities are very effective for products involving elements like good taste, self-image, and opinion of others (social conformity). These are generally lifestyle brands which are high involvement products. Stars are perceived to have a great lifestyle and using the product that they endorse gives a vicarious pleasure of following a similar lifestyle. For example a movie actress is expected to possess a flawless skin and a blemish free face. Her fans want to know the secret of her beauty, so she becomes a natural endorser for beauty related products (cosmetics, soaps, powder).

Propping Up Awareness and Trust Levels: When a celebrity endorses a product it benefits from customer's awareness of the product, which could include the perception of quality, educational value or a certain image which plays a huge role in adding to the reputation of the company. People assume they must be a good company to deal with. Studies show that using celebrities can increase consumer's awareness, capture their attention, make commercials more memorable and thereby strengthen the brand. The rationale of the consumer is "If the brand is good enough for a successful star, it is good enough for me".