The Effect of Product Placement Strategies on Customer Behavior: A Prospective of Foote, Cone and Belding (FCB) Grid Model

Abstract

This paper explores the effect of product placement strategies on customer behavior in the Chinese context and the results will help companies in China select appropriate marketing strategies to achieve sustainable development. Following the Foote, Cone and Belding (FCB) grid model, we construct a product difference model in which products are classified into four types, namely High Involvement/Thinking, High Involvement/High Feeling, Low Involvement/Thinking, and Low Involvement/High Feeling. Further, we conduct a questionnaire survey to analyze the effect of product placement strategies on various behaviors, including awareness, recognition, attitude and purchase intention. The results of repeated measures of General Linger model suggest that Chinese customers accept product placement strategies. Furthermore, among the four product types, the positive effect of product placement strategies on customer behavior is more pronounced in the Low Involvement/High Feeling product type. However, the purchase intention of Chinese customers is stable and hard to change. The results also help the company to avoid misleading advertising and to design sustainable marketing strategies by applying more effective tools in terms of specific product types. As a result, the company will reduce financial expenditure to achieve sustainable development.