I always like the Tony Danza quote that goes something like, "My friend Bobby DeNiro told me never to name-drop."
I have to be totally honest, that I do. Not to do with celebs, as I have none that I know. But in business if I know someone that is known around here, I will casually name drop if it fits in order to sound more legit when trying to land a contract. So, it is on a small scale.
One time I did a total shameless name drop though. I still look back on it and feel like an ass hat. The name I dropped was a pro racer who frequented the place, so I knew it would be impressive. And I did it just because I could and wanted to look cool to the owner.