The purpose of this dissertation is to investigate the relationship between product placement and purchase intention within the luxury market. After providing an overview of previous studies about the practice of product placement, the researcher focuses on the effects of product placement on consumers. The last part of the literature review defines the research context – luxury brands market – and offers a linkage between product placement and luxury brands.
The research method involved is qualitative. The qualitative research has been conducted through a focus group involving a research sample of Italian female consumers aged 21-30. The focus group was undertaken in order to provide a deep understanding of product placement effectiveness, consumers’ degree of involvement with product placement of luxury brands and the relationship between product placement and purchase intention within the luxury market.
Results show that product placement has no direct effect on purchase intentions of luxury brands but it creates all necessary pre-conditions that lead to the purchase of luxuries. Product placement affects consumers’ emotional domain, mainly brand interest and desire. Moreover research findings reveal the adequacy of product placement as marketing tool for the promotion of luxury brands. Author keywords: Product placement, purchase intention, luxury brands