Examining the covert nature of product placement: implications for public policy

Abstract

As consumers become better educated and more skeptical of traditional forms of advertising and competition, more fierce new forms of marketing communication have emerged which aim to influence audiences unobtrusively. Product placement has attracted ongoing debate as to whether this practice is covert, unethical and influences consumer welfare. This paper will examine the nature and practice of product placement in order to fully disclose and examine this practice. It will offer a conceptualization of the role of product placement in ethical marketing practice, the impact on customer welfare and implications for public policy. Exploration of the current issues surrounding covert marketing practices, consumer welfare, consumerism and ethical practice will be conducted. This paper is a conceptualization and offers a taxonomy of product placement attributes and their role in ethical marketing, consumer welfare and public policy. Implications for management and theory are discussed