Product Placement Effectiveness in 360° Video: The Impacts of Perceived Control and Presence, Moderated by Technology Condition

Abstract of the study: Product placement has become important in different media formats, where more immersive technologies influence effectiveness differently. This study is the first to examine the influence of the technology-related variables of 360° video on consumers’ cognitive, affective and conative responses, moderated by two different technology conditions (a 2D computer monitor vs. a head-mounted display). A between-subject design with a mixed-method approach was employed, where quantitative results were analyzed and juxtaposed with qualitative results from a semi-structured interview. Although the product placement effectiveness was not significantly different in a direct comparison between the conditions, the results provided several statistically significant findings associated with technology-related factors: 1) Different levels of presence and control naturalness between the devices, 2) The influence of perceived presence on brand recall, moderated by technology condition, 3) The influence of perceived presence and control on the brand attitude of particular brands, moderated by technology condition, and 4) The influence of brand attitude on purchase intentions.