An Examination of the Effects of Activating Persuasion Knowledge on Consumer Response to Brands Engaging in Covert Marketing

Both marketers who use covert marketing tactics and those who seek to help consumers deal with them assume that people will be less amenable to covert marketing appeals if they are alerted to such appeals because their theories and beliefs about persuasion tactics—that is, their persuasion knowledge—will be activated. However, there has been little direct examination of the extent to which activating persuasion knowledge actually affects consumer responses to brands that engage in covert marketing. Building on prior research on covert marketing and marketplace persuasion knowledge, the authors investigate the effects of activating persuasion knowledge and explore potential moderating factors. The findings from three experimental studies indicate that activation can negatively affect consumer evaluations of embedded brands; however, negative effects are qualified by perceived appropriateness of covert marketing tactics and by brand familiarity. Further evidence indicates a condition under which activation can actually have a positive effect on consumer evaluations.