What is the Paris Hilton Stock Index
The Paris Hilton Stock Index is a concept consisting of stocks associated with socialite Paris Hilton. Paris Hilton, one of the heirs to Conrad Hilton's fortune from the Hilton hotel chain, came to prominence through various television shows, social media and other public appearances that highlighted her wealth and luxurious lifestyle. The publicity led to Hilton becoming an influencer. Followers of the Hilton Index believe the companies Hilton is associated benefit from the residual attention fans give these products.
BREAKING DOWN Paris Hilton Stock Index
The Paris Hilton Stock Index consists of companies that could be in line to benefit from the promotional efforts, whether direct or indirect, by Paris Hilton. Some investors believe her influence on the consumer spending habits of her fans is material enough to track and warrant the creation of a portfolio concept reflective of those spending habits.
For example, Perfumania Holdings manufactures Hilton's chosen perfume line. News Corporation owns her reality TV show, "The Simple Life." Time Warner, which broadcast an interview Hilton did with talk show host Larry King after she was released from a jail sentence, which was generally regarded as one of her more famous interviews. Daimler AG makes the Mercedes-Benz cars Hilton favors. Carl Karcher Restaurants owns the Carl's Jr. franchise for which Hilton is a spokesperson. Amazon.com manages Hilton's jewelry line. CBS Corporation, through its Simon & Schuster arm, published her book. Lastly, Hilton is a spokesperson for clothing company Guess, Inc.
The Paris Hilton Index and Celebrity Endorsement
The Paris Hilton Index is a byproduct of celebrity endorsement, a traditional form of advertising or marketing strategy that companies use in an attempt to push their own brand by capitalizing on a celebrity’s name. Their social status and fame can be used to help promote a product or service. Fame can also be harnessed to raise awareness about environmental and social issues .
Marketers use celebrities to engender positive connotations of the brand they represent. Celebrity endorsement is particularly common among fashion and beauty brands, as illustrated by the rise of Paris Hilton. But celebrity endorsement is also quite typical for many lifestyle products such as cars and alcohol, and more recently, technology. The face recognition and communication skills that many celebrities have are an asset for brands wanting their goals and mission to reach a wide audience.