Vous êtes sur la page 1sur 14

The perceived effectiveness of overt versus

covert promotions
Fanny Fong Yee Chan
Department of Marketing, The Hang Seng University of Hong Kong, Shatin, New Territories, Hong Kong

Abstract
Purpose – The purpose of this study contributes to literature on marketing communications by empirically contrasting the effectiveness of a new
form of covert promotions (product placement in recipes) and an overt promotion (traditional advertisement). The mediating role of perceived
believability of promotional materials and the moderating roles of advertising skepticism and brand awareness were examined based on a
conceptual model.
Design/methodology/approach – A Web-based experiment with 2 (form of promotion: overt versus covert)  2 (brand awareness: low versus
high) between-subjects full factorial design was used. A public sample of 537 participants had participated in the study. The conceptual model was
further tested on 106 participants using stimuli of a fictitious brand.
Findings – A two-stage moderated mediation analysis shows that the perceived believability of promotional materials was a significant mediator of
the form of promotion and brand evaluations. Consumers showed a higher level of believability toward covert promotion, which, in turn, led to more
positive evaluations of the promoted brand. Advertising skepticism and brand awareness were found to significantly moderate the relationship
between form of promotion and attitudes toward the promoted brands. A similar pattern of results was obtained when stimuli of a fictitious brand
were used.
Originality/value – This research addresses an important issue in marketing communication and extends the understanding of the perception of
overt and covert promotions by examining the underlying mediating and moderating variables, which have rarely been explored before. The results
guide marketers in developing effective marketing communication strategies for well-known, less well-known and even new brands. It also directs
policymakers to consider whether integrated branded content in recipes should be disclosed to protect consumers from surreptitious promotions,
which may help to lower consumers’ skepticism toward advertising in the long run.
Keywords Advertising, Experimental design, Brand communication, Consumer behaviour, Brand awareness, Product placement
Paper type Research paper

Introduction search for surreptitious means for promotion. Practitioners


have gradually come to realize the weaknesses of a hard-sell
The advertising sector is currently facing increasing criticism approach and instead recognize the value of covert promotions.
from the general public and traditional advertising is continuing For example, Goodby, founder of Goodby and Silverstein,
to lose popularity (Belch and Belch, 2018). ACNielsen (2018) believed that “advertising works best when it sneaks into
has recently released a report, which shows that 92 per cent of people’s lives, when it does not look or feel like advertising”
consumers around the world trust word-of-mouth (Vagnoni, 1998, p. 1). Carl Laemmle, former president of
communications or recommendations from peers and family, Universal Studios, claimed that “if you jam advertising down
while only 47 per cent trust television, magazine and newspaper their (audiences’) throats and pack their eyes and ears with it,
advertisements. The unfavorable attitudes toward advertising you will build up a resentment that will in time damn your
together with the advancement in advertisement-skipping business” (Lehu, 2007, p. 17). Various forms of covert
techniques make traditional advertising hard to reach marketing communications have emerged, and product
audiences. Advertisement blocking also happens in digital placement has become more mature and sophisticated
media. PageFair and Adobe (2017) reported that worldwide (Hudson and Hudson, 2006; Kuhn et al., 2010). Product
advertising blocking has increased 41 per cent in 2015 causing placement is the integration of branded content into an
the advertising industry to lose nearly US$22bn in revenue. It entertainment context, such as television programs, movies,
implies that about 14 per cent of global advertising music or video games (Chan, 2012; Vaerenbergh, 2017).
expenditures were wasted. Although many consumers do not like seeing traditional
In view of the fierce competition in the advertising market advertising messages, they tend to be less resistant toward
and the rising of advertising costs, many marketers have tried to product placement; even though they understand that both are
promotional messages (Chan et al., 2017). Some practitioners
The current issue and full text archive of this journal is available on even regarded product placement as the “future of advertising”
Emerald Insight at: https://www.emerald.com/insight/1061-0421.htm (Russell and Belch, 2005; Smit et al., 2009) or a “strategic

Journal of Product & Brand Management


Received 23 June 2018
29/3 (2020) 321–334 Revised 6 December 2018
© Emerald Publishing Limited [ISSN 1061-0421] 1 May 2019
[DOI 10.1108/JPBM-06-2018-1912] Accepted 24 June 2019

321
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

must-have” in a company’s marketing communications mix contributes to the field of knowledge by exploring the
(Belch and Belch, 2018). mediating role of perceived believability of promotional
Placing brands and products in different media content has materials on the form of promotion and the consumer’s
been widely used. For example, brands were found to place evaluation of a placed brand.
their products in news articles or editorial content, which are In addition to the mediating effect, the current study also
termed advertorials (Eisend and Kuster, 2011). Recently, examines the moderating effect of advertising skepticism and
brands can increasingly be found placing their products in brand awareness. Although the selling intent of covert
recipes and research statistics support that recipes can be a promotions is subtle, some consumers may be more readily
powerful tool for food and grocery marketers. Luth (2017) able to detect it; especially those who have developed a high
research shows that consumers who shopped groceries online level of advertising skepticism. These consumers may be less
tend to spend a great amount of time on recipe websites and likely to evaluate an embedded brand positively, even though
they usually make online purchases right after they have visited they perceive the promotional material to be believable.
recipe websites. The market share of online grocery shopping is Therefore, this study also examines the moderating effect of
expected to reach 20 per cent by 2025. Companies selling advertising skepticism in the relationship between the
kitchenware or cooking utensils, such as German pool, have consumer’s perceived believability of promotional material and
created cooking recipes and cookbooks to promote their their brand evaluation. Previous research has found that brand
products instead of adopting traditional advertising. Although awareness is an important moderator in consumer’s processing
including real brands in a recipe may enhance its realism and of promotional material (Campbell and Keller, 2003; Chan
make it more informative, this outlet may be exploited by et al., 2016; Wei et al., 2008). However, studies comparing the
marketers as a promotional tool. Product placement in recipes effectiveness of advertising and product placement have
represents a covert form of promotion and its effectiveness primarily focused on well-known brands. For example, Uribe
compared with traditional advertisements has yet to be (2016) compared the effectiveness of a television commercial
empirically examined, even though researchers have made and the placement of an Apple MacBook. Davtyan and
frequent calls to compare product placements with other Cunningham (2017) compared the effectiveness of a product
message types (Balasubrimanian et al., 2006). Consequently, placement and a television commercial for the Heinz and
this study is the first to compare the effectiveness of overt and Snapple brands. They have called for further work to extend
covert promotions by investigating their relative impact on their investigations to less well-known brands (Liljander et al.,
brand attitudes. 2015). The current study is among the first to examine the
Although previous studies have attempted to examine the moderating role of brand awareness on the evaluation of brands
effect of overt and covert promotions, a direct comparison that are placed in overt and covert promotions.
between the two is rare and inconsistent findings have been A conceptual model was developed and a set of hypotheses of
recorded. For example, Wiles and Danielova (2009) found that the mediating and moderating effects of the form of promotion
product placement in films provides financial returns to both on the consumer’s evaluation of a promoted brand were
the placed brand and the film industry. However, their study proposed. In response to calls from previous studies to use
did not compare the financial returns of the same brand in more representative participant samples, the current study has
traditional cinema advertising and it also did not contrast the empirically tested the conceptual model on a general public
consumer’s perception toward the two forms of promotion. sample (Liljander et al., 2015). The conceptual model has also
Most previous studies of covert promotions have focused on been verified on another group of participants using stimuli of a
the cognitive effect, such as the recall and recognition of placed fictitious brand. The findings have both theoretical and
brands (Balasubrimanian et al., 2006; Bressoud et al., 2010). practical implications. They also guide marketers who wish to
Furthermore, research on the effect of covert promotions on develop more effective marketing communication strategies for
brand attitudes has generated mixed findings. brands that target various consumer cohorts.
Davtyan and Cunningham (2017) found that product
placement (i.e. covert promotion) led to more positive brand
Literature review and hypothesis development
attitudes than television commercials (i.e. overt promotion),
but the underlying mechanism has not been explored. In other Overt and covert promotions
words, the actual characteristics of product placement that Direct comparisons of the effectiveness of overt and covert
might be responsible for such differences were not determined. promotions are sparse and inconsistent findings have been
Colliander and Erlandsson (2015) show that informing recorded. The effects of covert promotions (e.g. advertorial
participants about the sponsored nature of a blog content advertising) have been compared with traditional advertising
affected one’s attitude toward the blog but not the attitude and (Eisend and Kuster, 2011). In these studies, the audience
purchase intention toward the placed brand. This suggests that tended to be more willing to pay attention to covert promotions
whether the persuasive attempt is covert or overt did not affect than advertising (Kim et al., 2001). Advertorial advertising has
the consumer’s attitude toward the promoted brand. These also been perceived to be more credible than traditional
studies also suggest that a mediator may be present in the advertising (Belch and Belch, 2018; Kim et al., 2010). A
relationship between the form of promotion and the significant difference was found in promotional messages that
consumer’s attitude toward the promoted brand. Specifically, appeared to be more editorial than those that appeared to be
the perceived believability of a covert promotion may be a key more commercial (Becker-Olsen, 2003). Tutaj and van
determining factor in the consumer’s evaluation of the brand Reijmersdal (2012) also found that participants were
information embedded in it. Therefore, the current study significantly less critical toward sponsored content than to

322
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

banner advertisements because they were less likely to associate placements were rated as more credible and likable than radio
sponsored content with persuasive intent. Consequently, commercials. Therefore, it is suggested that the form of
covert branded content was perceived as more informative and promotion may not have a direct impact on brand evaluation
less irritating than banner advertisements. Davtyan and but the relationship may instead be mediated by a third
Cunningham (2017) also found that covert promotion led to variable, which is termed “perceived believability.”
more positive brand attitudes than overt promotion, but the A covert promotion is less likely to promote something
underlying mechanism was not determined. Liljander et al. directly, and therefore, may appear to be less suspicious than an
(2015) found that overt marketing had a negative effect on overt promotion. Recipes provide guidance for food
behavioral intentions, while covert marketing did not affect the preparation, which could be regarded as more informative and
intended behavior. Furthermore, Colliander and Erlandsson trustworthy. Research shows that respondents rated recipes to
(2015) found that turning covert promotion into overt (i.e. be significantly less interesting and absorbing than fiction or
informing participants about the sponsored nature of a blog travel articles but they recalled advertisements placed close to
content) did not affect the attitude and purchase intention recipes better than those placed close to other editorial content
toward the promoted brand. Consequently, it appears that a (Norris and Colman, 1992). Consumers are more likely to
covert promotion is not necessarily more persuasive than an engage with information that they find to be useful or believable
overt promotion. and they are also more likely to evaluate it positively. It can be
Many researchers have argued that an overt promotion is less argued that a recipe generally provides more information to
favorable because the promotional intent of traditional consumers than a traditional advertisement, and therefore,
advertising is usually apparent, so the audience may become appears to be more useful and believable. Even though real
defensive when exposed to these messages. According to brands are placed in a recipe, the selling intent is less explicit
reactance theory (Brehm, 1966; Chadee, 2011), individuals than in traditional advertisements.
who recognize that an incoming message is intended to Traditional advertising is perceived to be fully controlled by
influence them may arouse their reactance and tend to react its sponsors, and hence, is viewed as less objective and
counter to the persuasive attempts, which results in less trustworthy (Balasubramanian, 1994). However, recipes
influence (Kivetz, 2005). Similarly, the elaboration likelihood appear to be endorsed by a third party other than the brand’s
model also suggests that individuals tend to scrutinize an owners. Limited persuasive cues are available to activate one’s
incoming message more carefully and elaborate it more processing and elaboration over the branded content (Petty and
extensively when they have a high degree of motivation to Cacioppo, 1983, 1986). Friestad and Wright (1999) believe
process the message (Petty and Cacioppo, 1983, 1986). It is, that one may require the activation of persuasion knowledge to
therefore, anticipated that individuals will find overt distinguish between program content and advertising material
promotions less trustworthy and will display less positive on television. Persuasion knowledge is considered to be an
attitudes toward it. They may then choose to react “important interpretive belief system because it tells people
discouragingly or even reject the persuasive messages to about situations where an intelligent purposeful outside agent is
reassert their independence. Alternatively, covert promotions skillfully trying to alter their inner self” (Friestad and Wright,
tend to trigger less reactance compared with traditional spot 1999, p. 186). Individuals are less likely to attribute
advertising (Gupta and Gould, 2007). information in a recipe to a commercial source, and hence, it is
Product placement in television programs, movies, music or less likely to activate consumer’s persuasion knowledge
video games is common and has been widely examined (Friestad and Wright, 1994). The less that a promotion is
(Balasubramanian et al., 2006; Chan, 2012). However, perceived to be overtly persuasive, the more accepting and
branded content in recipes represents a covert form of believable it may appear to the receivers (Jungkeun et al.,
promotion that has been increasingly adopted and has yet to be 2016). Nevertheless, the overt selling intention in traditional
systematically examined (Ruth, 2017). Traditionally, recipes advertising may trigger audiences to analyze the advertiser’s
have not been perceived as tools of promotion and may, motives and claims more extensively (Kirmani and Zhu, 2007).
therefore, appear to be more credible than conventional Therefore, they may show less trust toward the advertising
advertisements. This could be explained in terms of the third- information and find it less favorable. Previous research has
party endorsement effect and source credibility theory. Micu demonstrated that audiences first develop attitudes toward a
and Thorson (2008) found that online advertorials led to more promotional material before forming attitudes toward the
positive brand attitudes than online advertising. The promoted brand and there is a strong correlation between the
information was perceived to be supported by a trustworthy two (Brown and Stayman, 1992; MacKenzie et al., 1986).
news outlet and endorsed by the editors and journalists, and Consequently, it is anticipated that consumers will find a covert
therefore, appeared to be more believable. Similarly, promotion that appears to be endorsed by a third party to be
consumers may perceive a recipe appearing in a newspaper or more persuasive than an overt promotion that is perceived as
magazine as being endorsed by the editors and publishers, and coming from the brand owner directly. Perceived believability
they will consequently display higher trust toward it. Therefore, may also play a mediating role on the evaluation of brands
consumers are less likely to associate recipes with a deliberate appearing in overt and covert promotions. Consequently, it is
persuasive effort, even though brands are integrated into hypothesized that:
the recipe. The higher level of perceived believability of the
promotional material may then be transferred to the placed H1. The relationship between forms of promotion and brand
brand, which may be evaluated more positively. This effect was evaluations is mediated by the perceived believability of
demonstrated by Van Reijmersdal (2011), in which brand the promotional materials, such that participants will

323
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

find a covert promotion to be more believable; and they advertisements, recipes provide useful content/information that
will display more positive attitudes toward a brand may be less likely to irritate skeptical consumers and to trigger
appearing in a covert promotion than in an overt them to engage in intensive elaboration of the persuasion
promotion. attempts. Therefore, it is anticipated that skepticism toward
advertising may moderate the effect of the form of promotion
This discussion suggests that consumers may find covert on attitudes toward the promoted brands. Consequently, it is
promotions to be more believable, and hence, will develop hypothesized that:
more positive attitudes toward the promoted brand. Previous
studies also show that individuals who are positive toward H3. Advertising skepticism has a moderating effect on the
commercials are more likely to be persuaded than those who relationship between the form of promotion and
are neutral (Biel and Bridgwater, 1990). However, a more attitudes toward the promoted brands, such that
recent study showed that audiences were more conservative in consumers with a high level of advertising skepticism will
forming attitudes toward brands than toward promotional evaluate a promoted brand more negatively than
materials (Geuens et al., 2011). In other words, finding consumers with a low level of advertising skepticism
promotional material to be believable may not necessarily turn when the brand is promoted in an overt form; and such a
into positive attitudes toward the promoted brand. Attitudes difference will be less prominent when a brand is
toward advertising and promotion in general also affect promoted in a covert form.
attitudes toward a promoted brand (MacKenzie and Lutz,
1989). A general skepticism toward advertising may predispose Brand awareness refers to the extent of a consumer’s
consumers to be more critical and conservative in forming knowledge and experience with a particular brand (Kent and
brand attitudes (Boush et al., 1994), and hence, the Allen, 1994). It has also been shown to be an important
believability toward a promotional material may not be fully moderator in consumers’ processing of traditional
transferred onto the promoted brands. advertisements (Campbell and Keller, 2003) and product
Skepticism toward advertising is widely defined as the placement (Wei et al., 2008). Lehu and Bressoud (2008)
tendency toward disbelief of advertising in general and it can be argued that a brand’s awareness could affect its recall when
manifested in various facets, such as questioning the truth of placed in a film. Recent research suggests that the effect of
advertising claims, the motives of advertisers or the promotional formats on brand attitudes should be examined
appropriateness of advertising for various products or across various types of brands (Tutaj and van Reijmersdal,
audiences, etc. (Obermiller and Spangenberg, 1998, p. 160). It 2012). It is anticipated that brand awareness may moderate the
is anticipated that skepticism toward advertising, in general, direct and indirect effect of the form of promotion on attitudes
toward the promoted brands. The path between the form of
may moderate the relationship between perceived believability
promotion and perceived believability is supported by previous
of the promotional materials and attitudes toward the
studies (Belch and Belch, 2018), so the moderating effect is
promoted brands. In other words, consumers who found
likely to be on the relationship between perceived believability
promotional material to be believable may not fully transfer this
and attitudes toward the promoted brands.
positive perception onto the promoted brand when they possess
In line with the previous discussion, consumers are in general
a high level of skepticism toward advertising. Consequently, it
more defensive toward a traditional advertisement than toward
is hypothesized that:
a recipe, which is less likely to be associated with selling intent.
H2. Advertising skepticism has a moderating effect on When exposed to an advertisement featuring a less well-known
the relationship between perceived believability of the brand, individuals have little understanding about the brand
promotional materials and attitudes toward the and may exhibit more uncertainty and doubts about it (Eisend
promoted brands, such that consumers with a low level and Kuster, 2011). Therefore, they may scrutinize it more
of advertising skepticism will evaluate a promoted brand critically, which leads to less positive attitudes toward the
more positively when they perceive the promotional promoted brand. However, a recipe is unlikely to prompt
material to be believable than when they perceive it as defensive processing, especially when a not commonly known
not so believable; and such a difference will be less brand is placed. Consumers tend to concentrate more when
prominent for consumers with a high level of advertising reading a recipe. Furthermore, the involving and covert context
skepticism. of recipes is less likely to motivate consumers to associate a
recipe with a promotion. The less well-known brand is not a
Advertising skepticism may also moderate consumers’ strong persuasive cue to activate one’s persuasion knowledge
perceptions of overt and covert promotions. It is believed that and the intensive elaboration of the material (Friestad and
consumers who are skeptical toward advertising, in general, Wright, 1999; Wei et al., 2008). It also cannot prime consumers
may be more critical in processing promotional materials. to detect the promotional intent and consumers are less likely to
These consumers dislike advertising intruding into their be aware of the integration. In contrast, the information in the
personal space and they may be able to see right through it. recipe may aid the understanding of the less well-known brand
Consequently, it is, particularly, important to communicate to and enhance its evaluation (Edell and Burke, 1986). Dens and
skeptical consumers that they can trust the promotional source De Pelsmacker (2010) also found that less well-known brands
and the brand (Noble et al., 2008). In other words, creating were assessed more positively when advertised with an
something meaningful and worth reading (i.e. recipes in this informational appeal. Therefore, in the low brand awareness
case) appears to be more appealing to skeptical consumers than condition, covert promotions are believed to be more favorable
coaxing them into buying. Compared with traditional than overt promotions.

324
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

In contrast, a different pattern is envisioned in the high brand evaluated more positively by consumers who perceive
awareness condition. In this condition, consumers have the promotional material to be believable than
adequate knowledge about well-established products/brands, consumers who perceive it as not so believable; and such
and hence, there is little need of the more informative nature of a difference will be less prominent in the high brand
recipe in aiding their understanding of the brand (Giacalone awareness condition.
and Jaeger, 2016). They are more readily able to detect a well-
known brand when it appears in a recipe. A well-known placed
brand serves as a strong persuasive cue to activate consumers’ Methodology
persuasion knowledge (Friestad and Wright, 1999) and it can
A web-based experiment with a 2 (form of promotion: overt
prompt questions about the presence of commercial brands.
versus covert)  2 (brand awareness: low versus high) between-
For example, consumers may question the intent of embedding
subjects full factorial design was used to test the hypotheses
a brand in a recipe and may evaluate it more critically. The
derived from the research model (Figure 1). A web-based
critical evaluation of the placed brand makes consumers
experimental setting enabled the manipulation of the research
associate it with commercial intent and are thus more resistant
stimuli and maintained a high degree of control over the
toward it. This may result in less positive attitudes toward the
allocation of stimuli. The random allocation of research stimuli
promoted brand. This evaluation is expected to be even more
critical and negative than when processing traditional and a between-subjects design were enforced, while
advertisements. The selling intent of traditional advertisements participants were unaware of this. This also allowed the
is explicit and consumers are well aware that it is intended to participants to be exposed to the research stimuli in a less
persuade them, and therefore, the psychological reactance that artificial environment. The research design combined the
they may experience is weaker. Wei et al. (2008) found that merits of high internal validity in an experimental setting and
participants evaluated a well-known placed brand favorably high external validity in a naturalistic setting. A between-
when persuasion knowledge was strongly activated. However, subjects design was used to rule out any repetition and
their study only focused on covert promotions. Uribe (2016) carryover effects (Malhotra, 2012). It also helped to prevent the
compared the effectiveness between advertising and product participants from recognizing the research purpose.
placement with a focus on well-known brands (e.g. Apple). The experiment was administered in Hong Kong. A pretest
Similarly, Liljander et al. (2015) examined the effect of overt was first conducted with 50 participants of 18 years old or
and covert promotions of well-known brands only. above. Open-ended questions were used and participants were
In the current study, overt and covert promotions are directly asked to report on the appetizer that they liked the most and
contrasted. It is anticipated that consumers will display more was relatively easy to prepare. The results showed that potato
positive attitudes toward a well-known brand when it is salad was the most favorable appetizer among the participants
promoted overtly than when it is promoted covertly. In and they generally found it easy to prepare. The researcher and
contrast, consumers may prefer a less well-known brand to be three research assistants scanned a series of print
promoted covertly than overtly. Liljander et al. (2015) advertisements for salad sauce to identify the most appropriate
suggested that the differences between overt and covert one to be manipulated as the research stimulus. Print
promotions in perceived credibility and persuasive intention advertisements were used to allow the participants to pace
may be greater when the promoted brand is less well-known. themselves in viewing and to process the advertisement as they
This happens because consumers may not be confident about a wished. This helped to reflect the variation in attention and
less well-known brand, their attitudes toward the promoted elaboration triggered by the stimulus. Participants in the pretest
brand may rely largely on their perception of the promotional
material. However, when a brand is well-known, and hence, Figure 1 Conceptual framework of the perceived effectiveness of overt
consumers are more confident about it, they may have more and covert promotions
established attitudes toward the brand, which are less likely to
be affected by the perception of the promotional material. Perceived believability
Therefore, it is anticipated that a large difference in brand of promotional materials
attitudes will be found between consumers who perceive
H1
promotional materials to be less and more believable in the low 0.15****
H1 H2
brand awareness condition. It is hypothesized that: Advertising
0.69**** – 0.06*
skepticism
H4. Brand awareness has a moderating effect on the H5
n.s.
relationship between the form of promotion and H3
0.15*
attitudes toward the promoted brand, such that
Form of Attitude toward
consumers will evaluate a less well-known brand more
promotion the promoted brands
positively when it is promoted in a covert form; and H4
consumers will evaluate a well-known brand more – 0.15***

positively when it is promoted in an overt form. Brand


awareness
H5. Brand awareness has a moderating effect on the
relationship between perceived believability of
promotional material and attitudes toward the promoted Notes: ****p < 0.0001; ***p < 0.001; **p < 0.01; *p < 0.05;
brand, such that a less well-known brand will be and ns not significant

325
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

rated Kraft as the most known brand while Kühne was the least context. The random assignment of research stimuli to
known brand of salad sauce among Essential Waitrose, Kewpie participants enabled any potential differences among
and others. Kraft is an American brand that has been more participants and any pre-existing biases with the actual brands
heavily advertised than Kühne (a German brand). Kraft has (i.e. skepticism toward advertising, demographic
also appeared on the list of top 50 of the world’s most familiar characteristics, etc.) to be evenly distributed across treatment
brands and top 100 of the world’s most valuable brands, while conditions. The time spent viewing the research stimulus was
Kühne was not on the lists and has a low level of awareness automatically measured by Qualtrics and included as a
(SyncForce, 2018). statistical control.
The selected print advertisement was then edited to create In addition to the tested stimulus, all of the participants were
two advertisements, which were entirely identical except that invited to evaluate an advertisement for canned corn.
one featured the most known brand while the other featured the The insertion of this real filler advertisement helped to disguise
least known brand. These two advertisements represented the the research purpose and to improve the external validity. The
overt form of promotion. Two recipes for potato salad were participants were then asked to report their general
then developed, which again were exactly the same except that consumption pattern and monthly expenditure on household
one had the well-known brand placed while the other with the groceries. Their perceptions and evaluations of six global
less well-known brand placed. These two recipes represented brands – Kühne, Kraft, Pringles, Kowloon Diary, Del Monte
the covert form of promotion. According to the Federal Trade and Green Giant (the order of presentation was randomized) –
Commission, a product placement will be considered as a were recorded. The latter four brands were added as fillers. The
deceptive case if there are objective claims about the attributes participants who had been exposed to Kraft were asked to
of the placed product and the product is misrepresented in evaluate Kühne as well, and vice versa. This helped to take into
the media content (Petty and Andrews, 2008). Therefore, in consideration any pre-existing biases toward these two brands.
the recipe, the salad sauces were referred to as one of the Finally, all of the participants were invited to gauge the research
ingredients and no product descriptions were included. purpose. They were also linked to a debriefing page and
Although the two selected brands originated from two debriefed (Malhotra, 2012). The whole study lasted about
different countries and this is acknowledged as a limitation of 20 min. A pilot study with 60 participants was conducted to test
the study, it is believed that a country-of-origin effect was less the manipulation of the research stimuli and the flow of the
likely to be a concern (Melnyk et al., 2012) because both brands experiment.
were from developed countries, and hence, represented global
products to Hong Kong consumers. Consumers generally Research sample
assign superior quality and reliability to products from The participants were recruited via the existing database of a
developed nations (Steenkamp and de Jong, 2010) and professional market research agency, and they were
perceive these products as having higher product safety (Tse, compensated for their time and effort. Previous studies found
1999). Furthermore, Germany and the USA are the main that women and participants with higher education levels were
trading partners of Hong Kong (Kaynak and Kucukemiroglu, more skeptical toward advertising in general (Matthes and
2001). A previous study showed that Hong Kong consumers Wonneberger, 2014). Quota-sampling was adopted to ensure
had a preference for products from these two nations over the that none of these demographic characteristics invalidated the
others and they ranked the USA and Germany exactly the same relationships. A total of 537 participants with an almost equal
on various product attributes (Tse, 1999). Therefore, it is distribution across age groups (52.3 per cent years of age 18-34
believed that the country-of-origin of the selected products is and 47.7 per cent years of age 35 or above) completed the
less likely to exercise an effect and to confound the research study. There were slightly more female participants (54.2 per
findings. cent), as in other similar studies (Jin and Lutz, 2013). They also
matched the gender distribution of the local population. The
Research procedures and pilot study median monthly household income was US$4,500 and almost
The participants first answered a few basic questions (i.e. half of the sample (46.7 per cent) had attained a bachelor’s
normal country of residence, media consumption habit, etc.) degree or above.
and their levels of skepticism toward advertising, in general,
were checked. They were then randomly assigned to view one Research measures
of the four research stimuli (i.e. a traditional advertisement of a All of the measurement items were adapted from previously
well-known/less well-known brand or a recipe with the developed scales and they were further modified to maximize
placement of a well-known/less known brand), which were their fit to the local context (Table I). Back translations were
portrayed as extracted from an online newspaper. The used to establish translation equivalence (Mullen, 1995). The
participants were then invited to evaluate the perceived two categorical variables were the form of promotion (overt
believability of the stimuli using a scale adapted from versus covert) and brand awareness (low versus high). The
Beltramini (1982, 1988). To rule out any contextual effect, the manipulation of brand awareness was counter-checked by three
participants viewed the research stimuli in isolation without items (Nelson, 2002). Here, brand awareness is not simply
relating to a particular publication. In addition, no producer/ measured at the individual level, but is gauged at the aggregated
sender of the research stimuli was suggested, which minimized level and includes items such as “very well-known” and “used
any imposed source effect (Eisend, 2010). Therefore, the by lots of people.” Skepticism toward advertising was measured
perceived believability measure was directed to the promotional with nine items adopted from Obermiller and Spangenberg
material itself rather than the source of the material or its (1998). The mediating variable perceived believability was

326
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

Table I Reliability coefficients of the multi-item constructs


Constructs Cronbach’s alpha CR AVE VIF
Advertising skepticism (Obermiller and Spangenberg, 1998) 0.89 0.89 0.51 1.17
1) We can depend on getting the truth in most advertising
2) Advertising’s aim is to inform the consumer
3) I believe advertising is informative
4) Advertising is generally truthful
5) Advertising is a reliable source of information about the quality and performance of products
6) Advertising is truth well told
7) In general, advertising presents a true picture of the product being advertised
8) I feel I have been accurately informed after viewing most advertisements
9) Most advertising provides consumers with essential information

Perceived brand awareness (Wei et al., 2008) 0.83 0.90 0.76 1.02
1) Not known at all/very well-known
2) Used by few people/used by lots of people
3) Not familiar to me at all/very familiar to me

Perceived believability (Beltramini, 1982) 0.94 0.95 0.75 1.15


1) Not convincing/convincing
2) Not credible/credible
3) Unbelievable/believable
4) Unreasonable/reasonable
5) Dishonest/honest
6) Questionable/unquestionable
7) Not authentic/authentic

Brand attitude (Matthes et al., 2007) 0.75 0.85 0.61 –


1) Unappealing/appealing
2) Unattractive/attractive
3) Not delicious/delicious
4) Unhealthy/healthy

measured using Beltramini’s (1982) scale (see also Chang, product category (i.e. chocolates). In addition, it is uncertain if
2007). The dependent variable brand attitude was measured by consumers’ involvement in and experience with cooking may
items adopted from Matthes et al. (2007) and two more items also be critical factors other than the awareness of the promoted
were specifically added for the context of salad sauces (i.e. brand. The level of experience and enjoyment of cooking were
delicious and healthy). Similar to previous studies on branded thus measured. The research procedures and other measures
content, explicit brand attitude was measured were largely the same.
(Balasubramanian et al., 2014). All of the items used were
measured on seven-point Likert scales, ranging from “strongly Results
disagree” to “strongly agree.”
Reliability tests were conducted and the Cronbach’s (1951) The participants were equally distributed across the four
alpha, construct reliability (CR) and average variance extracted research conditions. There were no significant differences in
(AVE) values are reported in Table I. These values were above the research conditions with respect to gender [chi-square
the thresholds of 0.75, 0.70 and 0.50, respectively (Nunnally, ( x 2)(3) = 1.03 and p = 0.79], age group ( x 2(3) = 1.05 and p =
1978). Multicollinearity tests were conducted on the mediating 0.79), education ( x 2(9) = 8.16 and p = 0.52), income
and moderating variables, and all of the variance inflation ( x 2(18) = 4.64 and p = 1.00) or level of skepticism toward
factors (VIFs) were below the threshold of three, which advertising F(3, 533) = 1.89 and p = 0.13. Therefore, these
indicates that multicollinearity should not be an issue. In factors were unlikely to be confounding variables in the
addition, all of the constructs demonstrated discriminant research model.
validity (Table II) because the square root of the construct’s Manipulation checks showed that the manipulation of brand
AVE exceeded the corresponding inter-variable correlations awareness was highly effective. The participants reported a
(Fornell and Larcker, 1981). Therefore, it is concluded that all significantly higher level of awareness toward Kraft than Kühne
of the scales had adequate construct validity and reliability, and (MKuhne = 3.18, SD = 1.18 versus MKraft = 5.34, SD = 1.11;
were thus averaged to form overall scores for further analysis. t(536) = 28.79, p < 0.001). Manipulation checks also
In view of the fact that there could be pre-existing biases with confirmed that participants perceived a recipe to be
real brands, the conceptual model was further validated on 106 significantly more informative than a traditional advertisement
adults using stimuli of a fictitious brand (Fammi) of another (Mrecipe = 4.57, SD = 0.96 versus Mad = 4.0, SD = 1.41;

327
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

Table II Discriminant validity tests of the mediating, moderating and dependent variables
Constructs Advertising skepticism Perceived brand awareness Perceived believability Brand attitude
Advertising skepticism 0.71 – – –
Perceived brand awareness 0.15 0.87 – –
Perceived believability 0.36 0.08 0.87 –
Brand attitude 0.24 0.61 0.25 0.78

Note: Correlation is significant at the 0.01 level (two-tailed)

t(535) = 3.80, p < 0.001). The results of the participants’ p < 0.0001), and perceived believability of promotional
perception of the fillers were not of concern to the current materials was positively related to attitudes toward the
research, and consequently, are not analyzed or further promoted brands (b = 0.15, t = 4.31 and p < 0.0001). The
discussed. results revealed a significant indirect-only mediation effect of
perceived believability on the relationship between form of
Hypothesis testing promotion and brand attitudes, which supports Hypothesis 1.
To further mitigate any multicollinearity issue and to facilitate H2 proposed that the relationship between the perceived
the interpretation of the coefficients of the interaction terms, all believability of promotional materials and the participant’s
of the mediating and moderating variables were mean- attitude toward the promoted brands may be moderated by
centered. A dual moderated mediation model in PROCESS advertising skepticism. Moderated mediation analyzes showed
with ordinary least squares regression and bootstrap estimation that the perceived believability of promotional materials was
(with 10,000 bootstrapped samples) was used to test the direct significantly related to brand attitudes, while advertising
and indirect effects (Hayes, 2013). The independent variable skepticism negatively moderated that relationship (Table III).
was the form of promotion, the dependent variable was The index of moderated mediation of advertising skepticism
attitudes toward the promoted brands, and the mediator was was 0.06 (t = 2.31 and p < 0.05), which suggests a
the mean-centered perceived believability of the promotional significant moderated mediation. Participants with a low level
materials. Mean-centered advertising skepticism and brand of advertising skepticism were more likely to develop a positive
awareness served as moderators (SPSS process settings: attitude toward the promoted brand when they perceived the
Model 17). Table III summarizes the key findings of the tested promotional material to be believable than when they found it
hypotheses depicted in the conceptual model (Figure 1). The not to be so believable (Mhigh believability = 4.46, SD = 0.96
direct effect of the form of promotion on attitudes toward the versus Mlow believability = 4.09, SD = 0.96; t(260) = 3.05,
promoted brands was insignificant (b = 0.08, t = 1.16 and p < 0.005). The difference was insignificant for participants
p = 0.25, see Table III). In other words, brands promoted in with a high level of advertising skepticism (t(273) = 1.56 and
overt and covert forms were not evaluated significantly p = 0.12). Therefore, Hypothesis 2 is also supported. A
differently. However, the relationship was mediated by the graphical presentation of the interaction effect is shown in
perceived believability of the promotional materials. Figure 2.
Specifically, covert promotion was perceived to be significantly H3 and H4 predicted that the effect of the form of promotion
more believable than overt promotion (b = 0.69, t = 8.23 and on attitudes toward the promoted brands would be moderated

Table III Moderated mediation analyzes of the form of promotion on brand attitudes
Bootstrap analysis
Effect Description Coefficient SE t-statistic p-value 95 % CI
a Form of promotion on perceived believability (H1) 0.69 0.08 8.23 <0.0001 0.52,
0.85
b Perceived believability on brand attitudes (H1) 0.15 0.04 4.31 <0.0001 0.08,
0.23
c’ Form of promotion on brand attitudes 0.08 0.07 1.16 =0.25 0.22,
0.06
d1 Advertising skepticism on the relation of perceived believability and brand attitudes (H2) 0.06 0.03 -2.31 <0.05 0.11,
0.01
d2 Advertising skepticism on the relation of form of promotion and brand attitudes (H3) 0.15 0.07 1.96 <0.05 0.01,
0.29
d3 Brand awareness on the relation of form of promotion and brand attitudes (H4) 0.15 0.04 -3.47 <0.001 0.24,
0.07
d4 Brand awareness on the relation of perceived believability and brand attitudes (H5) 0.01 0.02 0.44 =0.66 0.03,
0.05
Notes: An overt promotion was coded as ‘1’ and a covert promotion was coded as ‘2’. Bootstrap analyzes are based on 10,000 resamples; the coefficients
are unstandardized; SE = standard error; and CI = confidence interval

328
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

Figure 2 The interaction between advertising skepticism and the Figure 3 The interaction between consumers’ advertising skepticism
perceived believability of promotional materials on brand attitudes and the form of promotion on brand attitudes

by advertising skepticism and brand awareness. As shown in


Figure 4 The interaction between brand awareness and the form of
Table III, advertising skepticism significantly moderated the
promotion on brand attitudes
relationship between form of promotion and attitudes toward
the promoted brands (b = 0.15, t = 1.96 and p < 0.05).
Participants with a high level of advertising skepticism
perceived a brand significantly more negatively than
participants with a low level of advertising skepticism when the
brand was promoted in an overt form (Mlow skepticism = 4.38,
SD = 1.07 versus Mhigh skepticism = 3.85, SD = 0.98;
t(263) = 4.16, p < 0.0001). The participants with varied levels
of advertising skepticism did not show significantly different
brand attitudes when the brand was promoted in a covert form
(t(270) = 1.82 and p = 0.07). Therefore, H3 is supported.
Similarly, brand awareness was found to significantly
moderate the relationship between form of promotion and
attitudes toward the promoted brands (b = 0.15, t = 3.47
and p < 0.001). The participants found the less well-known
brand to be more positive when it was promoted in a covert
than an overt form (Mcovert = 3.79, SD = 0.74 versus the promoted brand (b = 0.26, t = 3.01 and p < 0.005), which
Movert = 3.46, SD = 0.77; t(268) = 3.63, p < 0.0001). An supports Hypothesis 1. Advertising skepticism significantly
opposite pattern was recorded for the brand with high moderated the relationship between perceived believability of
awareness. The participants reported less positive attitudes promotional materials and attitudes toward the promoted
toward the well-known brand when it appeared in a recipe than brand (b = 0.19, t = 2.08 and p < 0.05). It was also found to
in a traditional advertisement (Mcovert = 4.46, SD = 0.82 significantly moderate the relationship between form of
versus Movert = 4.78, SD = 0.88; t(265) = 3.04, p < 0.005). promotion and attitudes toward the promoted brand (b = 0.42,
Therefore, H4 is strongly supported. A graphical presentation t = 2.06 and p < 0.05). Therefore, H2 and H3 are also
of the interaction effects is shown in Figures 3 and 4. H5 supported. In addition, no significant relationship was found
proposed a moderating role of brand awareness on the between consumers’ involvement in cooking and their
relationship between perceived believability of promotional evaluations of the promotional materials (b = 0.12, t = 1.20 and
materials and attitude toward the promoted brand, which was p = 0.24) and the fictitious brand (b = 0.09, t = 0.95 and p =
found to be insignificant (b = 0.01, t = 0.44 and p = 0.66). 0.35). The results further confirmed the robustness of the
Therefore, H5 is not supported. conceptual model.
To further validate the conceptual model, a moderated
mediation analysis was performed on the data set of the
Discussion and conclusion
fictitious brand (PROCESS: Model 15). The same pattern of
results was obtained. The direct effect of the form of promotion In response to earlier calls, this study empirically contrasted the
on attitudes toward the promoted brand was insignificant effectiveness of overt and covert promotions of a well-known
(b = 0.10, t = 0.57 and p = 0.57) while a significant indirect and a less well-known brand using a public sample (Liljander
mediation effect was found. Covert promotion was perceived to et al., 2015). A direct contrast between the effect of overt and
be significantly more believable than overt promotion (b = 0.46, covert promotions is sparse and inconsistent findings have been
t = 2.38 and p < 0.05), and perceived believability of recorded in previous studies. For example, studies that have
promotional materials was positively related to attitudes toward compared the effectiveness between advertising and product

329
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

placement have primarily focused on well-known brands environment and make sure that their promotional materials
(Davtyan and Cunningham, 2017; Uribe, 2016). The current are authentic. It has also been suggested that stricter self-
study is the first to extend this work to recipes, which are a regulatory efforts should be fostered in the advertising industry
covert form of promotion and is increasingly adopted by food to improve the advertising practices, and hence, lower the
and grocery marketers (Luth, 2017). Therefore, this represents consumers’ skepticism toward advertising in general.
the first study to empirically examine the mediating role of Consumers’ skepticism toward advertising, in general, was
perceived believability of promotional materials and the also a key moderator of the relationship between the form of
moderating roles of advertising skepticism and brand promotion and their brand attitudes. Individuals with high
awareness on the evaluation of brands placed in overt and advertising skepticism disliked being deliberately manipulated
covert promotions. The conceptual model was further or sold to, and thus, evaluated a brand promoted in an overt
validated using research stimuli of a fictitious brand and a promotion more negatively than individuals with a low level of
similar pattern of results was obtained, which confirmed the advertising skepticism. However, these two groups of
robustness of the model. The results have important theoretical individuals had similar attitudes toward a brand promoted in
implications and they are able to advance the field of covert form. Consequently, integrating brands in recipes
knowledge. The study is also able to provide pragmatic appears to be less offensive to the more informed and skeptical
recommendations to marketers who wish to develop effective group of consumers. It is recommended that marketing
marketing communication strategies for brands. managers should consider exploring less traditional promotion
It has previously been found that covert promotions are more methods and they should design the promotion to be as
persuasive than overt promotions, though the underlying authentic as possible when targeting this audience.
mechanism has yet to be explored (Davtyan and Cunningham, This study shows that brand awareness was another
2017). For example, some studies have revealed that the form of significant moderator of the effectiveness of the promotion,
promotion can affect the perception of the promotional materials which extends our understanding about the use of overt and
but not the promoted brand (Colliander and Erlandsson, 2015). covert forms of promotion for less well-known brands.
Based on a conceptual model, this study shows that the perceived Promoting brands via recipes and traditional advertisements
believability of the promotional materials was a significant had remarkably different effects for well-known and less well-
mediator of the form of promotion and brand evaluations. The known brands. Specifically, covert promotions were superior to
subtle promotion intent in covert promotions is less likely to overt promotions when the consumers lacked prior knowledge
trigger the consumer’s persuasion knowledge (Friestad and about the product while overt promotions were preferred to
Wright, 1994) and develop reactance toward the promotional covert promotions for well-known brands. It is believed that the
material (Brehm, 1966; Chadee, 2011). The participants information in traditional advertisements and recipes may serve
perceived covert promotions to be more believable, and different functions for well-known and less well-known brands.
therefore, they displayed more positive attitudes toward the In the low-awareness condition, the consumers had limited
promoted brands. The main effect of the form of promotion on knowledge about the brand. Therefore, the information that
brand attitudes was insignificant. The participants only positively was given in the recipe aided the individuals’ fluency of
evaluated a brand that was promoted in a covert form when they processing the placed brand, which resulted in more positive
perceived the promotional material to be trustful. This confirms attitudes toward the promoted brands. Meanwhile, these
the findings of previous research that consumers develop individuals were less alerted when they saw a less well-known
attitudes toward a promoted brand only after they have formed brand in a recipe. The selling intent was less prominent and the
attitudes toward the promotional material (Brown and Stayman, individuals might have been less prone to associate it with
1992; MacKenzie et al., 1986). Therefore, it is suggested that promotional objectives (Petty and Cacioppo, 1983). Therefore,
marketers should ensure that their promotional materials appear covert promotion was found to be more persuasive than overt
to be believable, no matter whether they are in overt or covert promotion for a less well-known brand.
forms. It is also suggested that some authentic cues should be In the high-awareness condition, consumers had a profound
subtly integrated into the promotional materials (Beverland et al., understanding about the brand and they may already have
2008). formed attitudes toward it. When evaluating a well-known
Previous studies have shown that individuals who are more brand that appears in a traditional advertisement (i.e. the
skeptical toward advertising are less likely to be persuaded (Biel typical exposure), consumers are less likely to exercise effortful
and Bridgwater, 1990) and they tend to be more conservative in processing and may tend to report their pre-existing attitudes
forming attitudes toward brands than toward promotional toward the brand; this evaluation is inclined to be relatively
materials (Geuens et al., 2011). The current study found that positive. Nevertheless, consumers may become alerted when
general skepticism toward advertising significantly moderated they see a well-known brand integrated in a recipe (i.e. the
the relationship between the perceived believability of the unusual form of exposure). They might then activate their
promotional materials and brand evaluation. The perceived persuasion knowledge and critically evaluate the persuasive
believability of the promotional materials was shown to be a attempt in the message (Friestad and Wright, 1994; Petty and
significant predictor of promotion outcomes when individuals Cacioppo, 1983). The consumers may also have been more
had a low level of advertising skepticism. However, consumers likely to experience cognitive dissonance because recipes are
with a high level of advertising skepticism were in general less supposed to be informative rather than promotional in nature,
positive toward the promoted brand, regardless of whether they which contradicted their existing beliefs (Festinger, 1957).
found the promotional material to be believable. Therefore, Consequently, they might have resisted the persuasion because
marketers should strive to create a trustworthy advertising of their desire to minimize their cognitive dissonance and

330
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

psychological reactance. Therefore, the individuals were less placement scene in a two-minute cooking show could be
positive toward a well-known brand when promoted in a covert compared with a traditional commercial. Furthermore,
form. product category was found to moderate the effectiveness of
The empirical findings of this study provide important advertising appeals (Geuens et al., 2011). This study has
feedback for marketers who wish to develop effective examined two product categories and obtained consistent
communication strategies, especially with regard to well- results. Future studies could extend to other product categories
known, less well-known and even new brands. For new or less or products with varied quality level to test the interaction
well-known brands, marketers should consider adopting more between product categories/quality level and form of
subtle and non-patronizing promotional methods. Integrating promotions.
branded content into recipes is a preferred promotional strategy This study chose an American and a German brand as the
over traditional advertising to consumers. In contrast, because research stimuli, which may lead to a country-of-origin effect.
most consumers are familiar with well-known brands, they can Although this was justifiable and was considered unlikely to be
readily recognize covert forms of promotion. Therefore, brand an issue for the research sample, future studies may examine
managers are advised to make the promotion and selling intent brands from the same origin. In the current study, brand
explicit when promoting well-known brands. The moderating awareness was found to be a significant moderator in
role of brand awareness in the relationship between the determining the effectiveness of overt and covert promotions.
perceived believability of the promotional materials and Dahlén and Lange (2005) found that strong (well-known)
attitudes toward the promoted brand was not supported in this brands were evaluated more positively when jointly promoted
study, although previous studies have envisaged this effect with weak brands than when promoted alone, whereas weak
(Liljander et al., 2015). The other variable of advertising brands were evaluated less positively when promoted with
skepticism probably dominated the moderating effect. strong brands than alone. Further studies may extend this work
Consequently, it is recommended that future studies to explore to brands with various levels of awareness or they may examine
the rationale behind this result. the joint integration of well-known and less well-known brands
Results of the current study also have a number of in promotions.
implications for public policy initiatives (Kuhn et al., 2010). Although a web-based experiment allowed the participants
This study found that consumers perceived covert promotions to view the promotional material in their favorite settings, other
to be more believable and they developed more favorable distractions may have been present. Consequently, future
attitudes toward the promoted brand, even though they should research may consider replicating this study in a laboratory
have been more alerted toward this kind of promotion. setting. In addition, this study did not specify the source of the
Therefore, policymakers should consider whether integrated promotional materials. Therefore, it is recommended that
branded content in recipes should be disclosed to protect further studies explore the interaction effect between messages
consumers from surreptitious promotions. Darke and Ritchie and sources by specifying that the research stimulus was
(2007) found that deceptive advertising led to higher distrust, extracted from either a less or a more reliable source (e.g. from
which adversely affected the credibility of subsequent mass newspapers/tabloids versus elite newspapers). This study
advertising. This appears to be a paradoxical issue–although investigated and treated traditional advertisements and brand
covert promotions are perceived as more believable in the first placement in recipes as independent persuasive devices. Future
instance, in the long run they might further reinforce skepticism research could look at the synergetic effect of overt and covert
toward advertising and promotions in general. promotions because integrated marketing communications are
becoming increasingly popular (Schweidel et al., 2014). In
Limitations and future studies addition, the repetition and wear-out effects of overt and covert
This section describes some of the methodological limitations promotions could also be compared. These examples represent
of this study, and makes a number of recommendations for fruitful areas for further investigations.
future research. The first limitation is that this study focused on
consumers of 18 years old or above. However, it is important to
References
examine the effect of information-coated promotions on
younger generations and to check whether the relationships ACNielsen (2018), “Report on global trust in advertising
established in this study will be moderated by the individuals’ and brand messages”, available at: www.fi.nielsen.com/
cognitive development. In a recent study, Van Reijmersdal et al. site/documents/NielsenTrustinAdvertisingGlobalReport.
(2015) found that boys of 8-12 years old found toy store pdf (accessed 13 April 2018).
catalogs (i.e. overt promotion) more persuasive than a brand- Balasubramanian, S.K. (1994), “Beyond advertising and
integrated magazine (i.e. covert promotion), even though they publicity: hybrid messages and public policy issues”, Journal
were more aware of the persuasive intent of the former. of Advertising, Vol. 23 No. 4, pp. 29-46.
Consequently, future studies may extend this work to the Balasubramanian, S.K., Patwardhan, H., Pillai, D. and Coker,
younger cohort or to adolescents. K.K. (2014), “Modeling attitude constructs in movie
As this study examined printed material (still images) using a product placements”, Journal of Product & Brand
web-based experiment, the results may be more applicable to Management, Vol. 23 No. 7, pp. 516-531.
the online context. It is recommended that this study could be Becker-Olsen, K.L. (2003), “And now a word from our
extended to audio-visual formats to test the applicability of the sponsor: a look at effects of sponsored content and banner
conceptual model. For example, the effectiveness of a brand advertising”, Journal of Advertising, Vol. 32 No. 2, pp. 17-32.

331
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

Belch, G.E. and Belch, M.A. (2018), Advertising and Promotion: Dahlén, M. and Lange, F. (2005), “Advertising weak and
An Integrated Marketing Communication Perspective, 11st ed., strong brands: who gains?”, Psychology & Marketing, Vol. 22
McGraw-Hill Irwin Publishing, Boston. No. 6, pp. 473-488.
Beltramini, R.F. (1982), “Advertising perceived believability Darke, P.R. and Ritchie, R.J.B. (2007), “The defensive
scale”, in Corrigan, D.R., Kraft, F.B. and Ross, R.H. (Eds), consumer: advertising deception, defensive processing, and
Proceedings of the Southwestern Marketing Association, Wichita distrust”, Journal of Marketing Research, Vol. 44 No. 1,
State University, Southwestern Marketing Association, pp. 114-127.
Wichita, pp. 1-3. Davtyan, D. and Cunningham, I. (2017), “An investigation of
Beltramini, R.F. (1988), “Perceived believability of warning brand placement effects on brand attitudes and purchase
label information presented in cigarette advertising”, Journal intentions: brand placements versus TV commercials”,
of Advertising, Vol. 17 No. 2, pp. 26-32. Journal of Business Research, Vol. 70 No. 1, pp. 160-167.
Beverland, M.B., Lindgree, A. and Vink, M.W. (2008), Dens, N. and De Pelsmacker, P. (2010), “Consumer response
“Projecting authenticity through advertising: consumer to different advertising appeals for new products: the
judgments of advertisers’ claims”, Journal of Advertising, moderating influence of branding strategy and product
Vol. 37 No. 1, pp. 5-15. category involvement”, Journal of Brand Management,
Biel, A. and Bridgwater, C.A. (1990), “Attributes of likable Vol. 18 No. 1, pp. 50-65.
television commercials”, Journal of Advertising Research, Edell, J.A. and Burke, M.C. (1986), “The relative impact of
Vol. 30 No. 3, pp. 38-44. prior brand attitude and attitude toward the ad on brand
Boush, D.M., Friestad, M. and Rose, G.M. (1994), attitude after ad exposure”, in Olson, J. and Stentis, K.
“Adolescent skepticism toward TV advertising and (Eds), Advertising and Consumer Psychology, Praeger
knowledge of advertiser tactics”, Journal of Consumer Publishers, pp. 93-107.
Research, Vol. 21 No. 1, pp. 165-175. Eisend, M. (2010), “Explaining the joint effect of source
Brehm, J.W. (1966), A Theory of Psychological Reactance, credibility and negativity of information in two-sided
Academic Press, New York, NY.
messages”, Psychology and Marketing, Vol. 27 No. 11,
Bressoud, E., Lehu, J.M. and Russell, C.A. (2010), “The
pp. 1032-1049.
product well placed”, Journal of Advertising Research, Vol. 50
Eisend, M. and Kuster, F. (2011), “The effectiveness of
No. 4, pp. 374-385.
publicity versus advertising: a meta-analytic investigation of
Brown, S.P. and Stayman, D.M. (1992), “Antecedents and
its moderators”, Journal of the Academy of Marketing Science,
consequences of attitude toward the ad: a meta-analysis”,
Vol. 39 No. 6, pp. 906-921.
Journal of Consumer Research, Vol. 19 No. 1, pp. 34-51.
Festinger, L. (1957), A Theory of Cognitive Dissonance, Stanford
Campbell, M.C. and Keller, K.L. (2003), “Brand familiarity
University Press, Stanford, CA.
and advertising repetition effects”, Journal of Consumer
Fornell, C. and Larcker, D.F. (1981), “Evaluating structural
Research, Vol. 30 No. 2, pp. 292-304.
equation models with unobservable variables and
Chadee, D. (2011), “Toward freedom: reactance theory
revisited”, in D. Chadee (Ed.), Theories in Social Psychology, measurement error”, Journal of Marketing Research, Vol. 18
Blackwell Publishing Ltd, New York, NY, pp. 13-43. No. 1, pp. 39-50.
Chan, F.F.Y. (2012), “Product placement and its Friestad, M. and Wright, P. (1994), “The persuasion
effectiveness: a systematic review and propositions for future knowledge model: how people cope with persuasion
research”, The Marketing Review, Vol. 12 No. 1, pp. 39-60. attempts”, Journal of Consumer Research, Vol. 21 No. 1,
Chang, C. (2007), “Diagnostic advertising content and pp. 1-31.
individual differences: testing a resource-matching Friestad, M. and Wright, P. (1999), “Everyday persuasion
perspective with a Taiwanese sample”, Journal of Advertising, knowledge”, Psychology and Marketing, Vol. 16 No. 2,
Vol. 36 No. 3, pp. 75-84. pp. 185-194.
Chan, F.F.Y., Lowe, B. and Petrovici, D. (2017), “Young Geuens, M., De Pelsmacker, P. and Faseur, T. (2011),
adults’ perceptions of product placement in films: an “Emotional advertising: revisiting the role of product
exploratory comparison between the United Kingdom and category”, Journal of Business Research, Vol. 64 No. 4,
Hong Kong”, Journal of Marketing Communications, Vol. 23 pp. 418-426.
No. 3, pp. 311-328. Giacalone, D. and Jaeger, S.R. (2016), “Better the devil you
Chan, F.F.Y., Petrovici, D. and Lowe, B. (2016), know? How product familiarity affects usage versatility of
“Antecedents of product placement effectiveness across foods and beverages”, Journal of Economic Psychology,
cultures”, International Marketing Review, Vol. 33 No. 1, Vol. 55, pp. 120-138.
pp. 5-24. Gupta, P.B. and Gould, S.J. (2007), “Recall of products placed
Colliander, J. and Erlandsson, S. (2015), “The blog and the as prizes versus commercials in game shows”, Journal of
bountiful: exploring the effects of disguised product Current Issues and Research in Advertising, Vol. 29 No. 1,
placement on blogs that are revealed by a third party”, pp. 37-50.
Journal of Marketing Communications, Vol. 21 No. 2, Hayes, A.F. (2013), Introduction to Mediation, Moderation, and
pp. 110-124. Conditional Process Analysis: A Regression-Based Approach,
Cronbach, L.J. (1951), “Coefficient alpha and the internal Guilford Press, New York, NY.
structure of tests”, Psychometrika, Vol. 16 No. 3, Hudson, S. and Hudson, D. (2006), “Branded entertainment:
pp. 297-334. a new advertising technique or product placement in

332
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

disguise?”, Journal of Marketing Management, Vol. 22 Matthes, J., Schemer, C. and Wirth, W. (2007), “More than
Nos 5/6, pp. 489-504. meets the eye: investigating the hidden impact”, International
Jin, H.S. and Lutz, R.J. (2013), “The typicality and Journal of Advertising, Vol. 26 No. 4, pp. 477-503.
accessibility of consumer attitudes toward television Matthes, J. and Wonneberger, A. (2014), “The skeptical green
advertising: implications for the measurement of attitudes consumer revisited: testing the relationship between green
toward advertising in general”, Journal of Advertising, Vol. 42 consumerism and skepticism toward advertising”, Journal of
No. 4, pp. 343-357. Advertising, Vol. 43 No. 2, pp. 115-127.
Jungkeun, K., Kim, J. and Marshall, R. (2016), “Are two Melnyk, V., Klein, K. and Völckner, F. (2012), “The double-
arguments always better than one? Persuasion knowledge edged sword of foreign brand names for companies from
moderating the effect of integrated marketing emerging countries”, Journal of Marketing, Vol. 76 No. 6,
communications”, European Journal of Marketing, Vol. 50 pp. 21-37.
Nos 7/8, pp. 1399-1425. Micu, A.C. and Thorson, E. (2008), “Leveraging news and
Kaynak, E. and Kucukemiroglu, O. (2001), “Country-of-origin advertising to introduce new brands on the web”, Journal of
evaluations: Hong Kong consumers’ perception of foreign Interactive Advertising, Vol. 9 No. 1, pp. 14-26.
products after the Chinese takeover of 1997”, International Mullen, M.R. (1995), “Diagnosing measurement equivalence
Journal of Advertising, Vol. 20 No. 1, pp. 117-138. in cross-national research”, Journal of International Business
Kent, R.J. and Allen, C.T. (1994), “Competitive interference Studies, Vol. 26 No. 3, pp. 573-596.
effects in consumer memory for advertising: the role of brand Nelson, M.R. (2002), “Recall of brand placements in
familiarity”, Journal of Marketing, Vol. 58 No. 3, pp. 97-105. computer/video games”, Journal of Advertising Research,
Kim, B., Pasadeos, Y. and Barban, A. (2001), “On the Vol. 42 No. 2, pp. 80-92.
deceptive effectiveness of labeled and unlabeled advertorial Noble, S.M., Haytko, D.L. and Phillips, J. (2008), “What
formats”, Mass Communication and Society, Vol. 4 No. 3, drives college-age generation Y consumers?”, Journal of
pp. 265-281. Business Research, Vol. 62 No. 6, pp. 617-628.
Kim, J., Yoon, H.J. and Lee, S.Y. (2010), “Integrating Norris, C.E. and Colman, A.M. (1992), “Context effects on
advertising and publicity”, Journal of Advertising, Vol. 39 recall and recognition of magazine advertisements”, Journal
No. 1, pp. 97-114. of Advertising, Vol. 21 No. 3, pp. 37-46.
Kirmani, A. and Zhu, R. (2007), “Vigilant against Nunnally, J.C. (1978), Psychometric Theory, 2nd ed., McGraw-
manipulation: the effect of regulatory focus on the use of Hill, New York, NY.
persuasion knowledge”, Journal of Marketing Research, Obermiller, C. and Spangenberg, E.R. (1998), “Development of
Vol. 44 No. 4, pp. 688-701. a scale to measure consumer skepticism toward advertising”,
Kivetz, R. (2005), “Promotion reactance: the role of effort- Journal of Consumer Psychology, Vol. 7 No. 2, pp. 159-186.
reward congruity”, Journal of Consumer Research, Vol. 31 PageFair and Adobe (2017), “Global ad blocking report”,
No. 4, pp. 725-736. available at: http://blog.pagefair.com/2015/ad-blocking-
Kuhn, K.L., Hume, M. and Love, A. (2010), “Examining the report (accessed 30 April 2018).
covert nature of product placement: implications for public Petty, R.D. and Andrews, J.C. (2008), “Covert marketing
policy”, Journal of Promotion Management, Vol. 16 Nos 1/2, unmasked: a legal and regulatory guide for practices that
pp. 59-79. mask marketing messages”, Journal of Public Policy &
Lehu, J. (2007), Branded Entertainment: Product Placement and Marketing, Vol. 27 No. 1, pp. 7-18.
Brand Strategy in the Entertainment Business, Kogan Page, Petty, R.E. and Cacioppo, J.T. (1983), “Central and peripheral
London. routes to persuasion: application to advertising”, in Larry, P.
Lehu, J. and Bressoud, E. (2008), “Effectiveness of brand and Woodside, A.G. (Eds), Advertising and Consumer
placement: new insights about viewers”, Journal of Business Psychology, Lexington Books, Toronto, pp. 3-23.
Research, Vol. 61 No. 10, pp. 1083-1090. Petty, R.E. and Cacioppo, J.T. (1986), “The elaboration
Liljander, V., Gummerus, J. and Söderlund, M. (2015), likelihood model of persuasion”, in Berkowitz, L. (Ed.),
“Young consumers’ responses to suspected covert and overt Advances in Experimental Social Psychology, Academic Press,
blog marketing”, Internet Research, Vol. 25 No. 4, New York, NY, Vol. 19, pp. 123-205.
pp. 610-632. Russell, C. and Belch, M. (2005), “A managerial investigation
Luth, R. (2017), 3 Ways to Use Recipes in Your Marketing, into the placement industry”, Journal of Advertising Research,
Brandingmag, 19 Aug 2017. Vol. 45 No. 1, pp. 73-92.
MacKenzie, S.B. and Lutz, R.J. (1989), “An empirical Schweidel, D.A., Foutz, N. and Tanner, R.J. (2014), “Synergy
examination of the structural antecedents of attitude toward or interference: the effect of product placement on
the advertisement in an advertising pretesting context”, commercial break audience decline”, Marketing Science,
Journal of Marketing, Vol. 53 No. 2, pp. 48-65. Vol. 33 No. 6, pp. 763-780.
MacKenzie, S.B., Lutz, R.J. and Belch, G.E. (1986), “The role Smit, E., Van Reijmersdal, E.A. and Neijens, P. (2009), “Today’s
of attitude toward the ad as a mediator of advertising practice of brand placement and the industry behind it”,
effectiveness: a test of competing explanations”, Journal of International Journal of Advertising, Vol. 28 No. 5, pp. 761-782.
Marketing Research, Vol. 23 No. 2, pp. 130-143. Steenkamp, J.E.M. and de Jong, M.G. (2010), “A global
Malhotra, N.K. (2012), Basic Marketing Research: Integration of investigation into the constellation of consumer attitudes
Social Media, 4th ed., Prentice Hall/Pearson Education toward global and local products”, Journal of Marketing,
International, Upper Saddle River, NJ. Vol. 74 No. 6, pp. 18-40.

333
Overt versus covert promotions Journal of Product & Brand Management
Fanny Fong Yee Chan Volume 29 · Number 3 · 2020 · 321–334

Tse, A.C.B. (1999), “Factors affecting consumer perceptions Further reading


on product safety”, European Journal of Marketing, Vol. 33
Nos 9/10, pp. 911-925. Bradley, A. (2010), “The time has come to embrace millennial
Tutaj, K. and van Reijmersdal, E.A. (2012), “Effects of online perspectives”, T 1 D, Vol. 64 No. 8, p. 22.
advertising format and persuasion knowledge on audience Hair, J.F., Black, W.C., Babin, B.J. and Anderson, R.E.
reactions”, Journal of Marketing Communications, Vol. 18 (2010), Multivariate Data Analysis: A Global Perspective,
No. 1, pp. 5-18. 7th ed., Pearson Prentice Hall, Upper Saddle River, NJ.
Uribe, R. (2016), “Separate and joint effects of advertising and Lutz, R.J. (1985), “Affective and cognitive antecedents of
attitude toward the advertisement: a conceptual framework”,
placement”, Journal of Business Research, Vol. 69 No. 2,
in Alwitt, L. and Mitchell, A. (Eds), Psychological
pp. 459-465.
Processes and Advertising Effects, Erlbaum, Hillsdale, NJ,
Vaerenbergh, Y.V. (2017), “Consumer reactions to paid versus
pp. 45-65.
unpaid brand name placement in song lyrics”, Journal of
Maheswaran, D. and Meyers-Levy, J. (1990), “The influence
Product and Brand Management, Vol. 26 No. 2, pp. 151-158.
of message framing and issue involvement”, Journal of
Vagnoni, A. (1998), “Not skimming: ‘got milk?’ May be
Marketing Research, Vol. 27 No. 3, pp. 361-367.
goodby Silverstein most recognized at work”, available at:
SyncForce (2018), “Top 50 most familiar brands”, available
http://adage.com/article/news/skimming -milk-goodby-
at: www.rankingthebrands.com/The-BrandRankings.aspx?
silverstein-s-recognized-ad-work-goodby-silverstein-intelligent-
rankingID=361&year=799 (accessed 30 May 2018).
work-a-sales-pitch/66072/ (accessed 15 June 2018).
Van Reijmersdal, E.A. (2011), “Mixing advertising and editorial
content in radio programmes: appreciation and recall”,
About the author
International Journal of Advertising, Vol. 30 No. 3, pp. 425-446.
Van Reijmersdal, E.A., Rozendaal, E. and Buijzen, M. (2015), Fanny Fong Yee Chan is an Assistant Professor of
“Boys’ responses to the integration of advertising and Marketing at School of Business, The Hang Seng University
entertaining content”, Young Consumers, Vol. 16 No. 3, of Hong Kong. Her research interests include marketing
pp. 251-263. communications, culture and consumer psychology. Her work
Wei, M., Fischer, E. and Main, K.J. (2008), “An examination of has been published in the International Marketing Review,
the effects of activating persuasion knowledge on consumer International Journal of Advertising, Journal of Marketing
response to brands engaging in covert marketing”, Journal of Communications, Marketing Intelligence and Planning, Journal of
Public Policy & Marketing, Vol. 27 No. 1, pp. 34-44. Product and Brand Management, Journal of Promotion
Wiles, M.A. and Danielova, A. (2009), “The worth of product Management, Asian Journal of Communication, The Marketing
placement in successful films: an event study analysis”, Review, and others. Fanny Fong Yee Chan can be contacted
Journal of Marketing, Vol. 73 No. 4, pp. 44-63. at: fannychan@hsu.edu.hk

For instructions on how to order reprints of this article, please visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm
Or contact us for further details: permissions@emeraldinsight.com

334

Vous aimerez peut-être aussi