Cougar/Mellencamp is dressed in a nerdy sweater and generally bears no resemblance to the singer as we knew him just 5 years later. He looks a lot more like Potsie from Happy Days than the guy who sang "Pink Houses". Certainly, there is no way to watch this and make a connection to the guy whose song "This is Our Country" beat us to death by overuse in pickup truck commercials.
But the real entertainment value from this clip comes from the guys behind Cougar. In hot-pink tuxedos, there are 5 Pips-like backup dancers/singers who don't sing, but clap their hands real well. They essentially spend the entire song performing cheerleader dance routines not unlike those seen at high school football games.
There is no band, which would lead you to think it's all lip-synced. However, Cougar ad-libs a few times as if to make it clear to us that no lip-syncing shenanigans are going on.
Those two elements (lack of a band + backup dancers) converge in an especially funny/awkward attempt to act out the sax solo. Yes, you heard that right--a backup singer who doesn't sing acts out a saxophone solo at the 2:45 mark.
Amazingly embarrassing video. I bet he wants all the copies of this burned.