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This chapter takes a deeper look into understanding an increasingly popular advertising tool – product placement (PP) – by defining it, examining its usage and measuring its consequences, both from a marketing and a consumer welfare perspective. It also tries to reconcile these contradictory perspectives to achieve a common ground and a positive outcome for all stakeholders.

A literature review of current research findings, from both a marketing and public policy perspective, is used to arrive at a more balanced viewpoint of PP.

Public policy makers are advised to improve the consistency of current regulations in terms of PP disclosure in the media, regardless of where a programme is produced or broadcast, to help create savvier consumers. Marketers are advised not to fight against PP regulations, but rather to develop their creativity in order to avoid consumers rejecting the disclosed placement.

We address consumers’ ability to raise a protective shield when they encounter a PP situation. We explain how certain disclosures regarding the commercial intent of PP may be more effective than others, thereby empowering consumers to manage their behaviour and make informed decisions. We then describe how PP can be used to educate consumers about pro-social issues in an entertaining, non-patronising way.

This chapter proposes to go beyond the usual divide between advertisers and policy makers to arrive at a balanced view, considering the positive role that PP may play in education, while mitigating its potential negative impacts through effective consumer training.

This study aims to assesses the relative importance that Belgian consumers attach to different characteristics and marketing practices of ethically labelled coffee, i.e. type of ethical issue, label issuer, amount of information provided, distribution and promotion strategy and branding.

Buying behaviour is studied by means of a web‐based survey in a sample of 750 Belgian consumers, using conjoint analysis.

Consumers attach greatest importance to the distribution strategy of ethically labelled coffee, followed by the type of ethical label, and the issuer of the label. Ethically labelled coffee should be available in ordinary supermarkets and be presented along with non‐ethical coffee brands. Fair trade labelled coffee is by far the most preferred over eco‐ and bio‐labels. European government labels, or labels issued by non‐governmental organizations, are preferred over national (Belgian) government endorsed labels. Consumers prefer extra information on the package, in addition to a label. Out‐of‐shop promotion of the label and the type of brand are of minor importance. The results are similar across different socio‐demographic groups.

Implications for governments, NGOs, and manufacturers and distributors of ethically labelled coffee (and possibly other ethical products) are offered.

The contribution of the study is that it measures the relative importance of factors that have previously been identified as relevant in a realistic multi‐attribute preference‐formation framework.

Engaging in webcare, i.e. responding to online reviews, can positively affect consumer attitudes, intentions and behavior. Research is often scarce or inconsistent regarding the effects of specific webcare strategies on business performance. Therefore, this study tests whether and how several webcare strategies affect hotel bookings.

We apply machine learning classifiers to secondary data (webcare messages) to classify webcare variables to be included in a regression analysis looking at the effect of these strategies on hotel bookings while controlling for possible confounds such as seasonality and hotel-specific effects.

The strategies that have a positive effect on bookings are directing reviewers to a private channel, being defensive, offering compensation and having managers sign the response. Webcare strategies to be avoided are apologies, merely asking for more information, inviting customers for another visit and adding informal non-verbal cues. Strategies that do not appear to affect future bookings are expressing gratitude, personalizing and having staff members (rather than managers) sign webcare.

These findings help managers optimize their webcare strategy for better business results and develop automated webcare.

We look into several commonly used and studied webcare strategies that affect actual business outcomes, being that most previous research studies are experimental or look into a very limited set of strategies.

Past research suggests that heavy media multitaskers (HMMs) perform worse on tasks that require executive control, compared to light media multitaskers (LMMs). This paper aims to investigate whether individual differences between HMMs and LMMs make them respond differently to advertising in a media multitasking context and whether this stems from differences in the ability versus the motivation to regulate one’s attention. This is investigated by manipulating participants’ autonomy over attention allocation.

For the first study (n = 85), a between subjects design with three conditions was used: sequential, multitasking under low autonomy over attention allocation and multitasking under high autonomy over attention allocation. This study investigated the inhibitory control of HMMs vs LMMs in a very controlled multitasking setting. The second study (n = 91) replicated the design of study one in a more naturalistic media multitasking setting and investigated the driving role of motivation vs ability for cognitive load differences between HMMs and LMMs and the consequent impact on advertising effectiveness.

Study I suggests that HMMs perform worse on a response inhibition task than LMMs after multitasking freely (in which case motivation to regulate attention determines the process), but not after their attention was guided externally by the experimenter (in which case their motivation could no longer determine the process). Study II argues that when motivation to switch attention is at play, cognitive load differences occur between HMMs and LMMs. This study additionally reveals that under these circumstances, HMMs are more persuaded by advertisements (report higher purchase intentions) compared to LMMs, while no differences appear when only ability is at play.

Executive control exists of different components (Miyake et al., 2000). The current study only focused on the impact of media multitasking frequency on response inhibition, but it would be interesting for future research to investigate whether media multitasking frequency equally affects the other sub-dimensions. Additionally, the impairment of response inhibition has been shown to predict a large number of other behavioral and impulse-control outcomes such as unhealthy food choices and alcohol and drug use (e.g. Friese et al., 2008). Future research should consider investigating other consequences of heavy media multitasking behavior, both advertising related and unrelated.

From a practical point of view, understanding the mechanisms that are driving the effects of media multitasking on advertising effectiveness for different groups of media-consumers could make it easier for practitioners to efficiently plan their media campaigns. Based on the findings of this study, the authors can derive that HMMs will be more depleted in cognitive resources and inhibitory control when media multitasking compared to LMMs. Consequently, this makes them more prone to advertising messages. This knowledge is of great importance for advertisers who could, based here on, aim to target HMMs more often than LMMs.

Two experimental studies by the authors confirm and add value to previous academic findings about the negative relation between media multitasking frequency and tasks that demand executive control. This study contributed to the previous by investigating whether individual differences between heavy and light media multitaskers make them respond differently toward advertising and whether the driving mechanism of these differences is a lack of motivation or ability to efficiently shift attention.

The purpose of this paper is to investigate “how” and “when” the stereotypes of competence and warmth, that are evoked by a foreign company’s country-of-origin (COO), affect blame attributions and/or attitudes toward a company’s products when a company is involved in a product-harm crisis.

Study 1 (n=883) analyzes the psychological mechanisms through which perceived COO competence and warmth differently affect blame attributions and evaluative responses. Study 2 (n=1,640) replicates Study 1’s findings, and it also investigates how consumer ethnocentrism, animosity toward a country, and product category characteristics moderate the hypothesized COO’s effects.

COO competence leads to more favorable attitudes toward the involved company’s products. This effect increases when the company sells high-involvement or utilitarian products. COO warmth leads to more favorable attitudes toward the involved company’s products directly as well as indirectly by diminishing blame attributions. These effects increase when consumers are highly ethnocentric, or the animosity toward a foreign country is high.

This paper frames the investigation of COO stereotypes in a new theoretical and empirical setting, specifically, a product-harm crisis. It demonstrates that consumers differently evaluate a potential wrongdoing company and its harmful products in a product-harm crisis based on their perceptions of a company’s COO competence and warmth. Finally, it defines the moderating effects of individual, consumer-country-related and product characteristics on the hypothesized COO effects.

The purpose of this paper is to investigate how the globalization (vs localization) of different cues (advertising copy, brand name, spokesperson, brand logo) influences consumers’ perceived brand globalness.

The authors conducted conjoint analyses for two products differing in product category involvement (chocolates vs computer) with 200 consumers from the Netherlands. Additionally, based on cluster analysis, the authors divide respondents into two groups: local vs global consumer culture individuals, and the authors compare the results of the conjoint analysis for these two clusters.

Advertising copy is most important in determining perceived brand globalness. The spokesperson and the brand logo determine perceived brand globalness more strongly for a low-involvement product, whereas the brand name is more important for a high-involvement product. Further, the spokesperson and the brand logo are relatively more important for global consumer culture individuals, while local consumer culture individuals find the brand name and advertising copy relatively more important.

The most important cue to position a brand as global is the advertising copy. Brand managers of a low-involvement product and/or targeting global-minded consumers should concentrate on the spokesperson and the brand logo to position their brand. Managers of a high-involvement product and/or targeting local-minded people should focus on the brand name.

While a number of researchers have emphasized the importance of perceived brand globalness for international consumer behavior, the present study is the first to the authors’ knowledge to investigate the relative importance of different cues in creating perceptions of brand globalness.

The communication effect of four types of alcohol advertisement, i.e. humorous, warm, erotic and non‐emotional, are studied in Belgian and Polish samples of young consumers. Ad recognition, brand attribution, ad evoked feelings, cognitive and affective reactions, attitude towards the ad, the brand and purchase intention, are measured and compared between the Belgian and the Polish group. A lot of similarities between Polish and Belgian subjects emerge. Emotional appeals generate a more positive ad and brand attitude, and humour is the most effective emotional appeal. Basic ad evoked feelings are very similar in both groups. On the other hand, some differences are observed. Erotic ads do a better job in Poland than in Belgium. An evoked irritation leads to negative communication effects only in Belgium, but not in Poland. Polish consumers seem to rely more on cognitive responses to form an attitude towards the brand, while affective responses are more important for Belgium consumers.

The current study examines the effectiveness of brand integrations in music videos by taking into account the impact of both brand placement characteristics (i.e., brand prominence, valence of artist–brand relationship) and audience characteristics (i.e., artist connectedness).

A 2 (prominence: prominent vs. subtle) by 2 (valence: positive vs. negative) by 2 (connectedness: high vs. low) between-subjects experimental design is used. Each respondent first watched one music video via YouTube in which one branded product was placed either prominently or subtly. To manipulate the valence of the artist–brand relationship respondents were instructed to read a magazine article that revealed either a positive or negative attitude of the artist toward the placed brand. Two hundred twenty young adults participated in this study.

This study shows that prominent placements appear to be beneficial for the attitude toward the integrated brand when an individual is strongly connected to the artist in the music video, while subtle placements are beneficial both when an individual is weakly or strongly connected to the artist. Further, negative celebrity-brand relationships do not seem to affect brand attitudes in a negative way.

Embedding the brand in a music video gives marketers and advertisers the chance to reach consumers in a new, creative way. But this study shows that the advertiser should pay attention to the way in which the brand is integrated. Further, negative celebrity information does not seem to affect brand attitudes in a negative way. This makes the music video a very interesting medium for advertisers.

The current study contributes to previous research on brand placement by investigating the effectiveness of brand placements in music videos and the role of artist connectedness. In addition, the study is original as it includes valence in the model.