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Joo-Hyun Lee (2003). Advertising in interactive television: How audiences' interactions with ads affect perceptions of programs and brands. Michigan State University.

Abstract
Consumers are passively exposed to most commercials in a conventional television environment unless they take active steps to avoid them. On the contrary, interactive product placements (iPPL) in an interactive television (ITV) environment would deliver the advertising message only upon the consumer's request. Traditional product placements (PPL) aim to put the audience in contact with the advertiser's brand through simple exposures, so traditional PPL studies focus on the effect on the consumer's memory. This dissertation recognizes that the iPPL can generate actual interactions from the consumer while watching the program, and examines how the iPPL and its interactive natures can change the audience's consumption patterns of programs and the advertising effectiveness in an ITV environment. The primary purpose of this dissertation is to predict the types of products, programs, and audiences that would generate improved effectiveness of iPPL before ITV becomes widely diffused. In particular, this dissertation examines the audience's involvement with product categories, involvement with the program, attitudes toward the program, and attitudes toward the characters in the program in relation to the audience's attitude toward the brand and the interactions made to iPPLs. An experiment was conducted in a computer lab with 396 participants, and an interactive ITV interface created for the experiment was played on computer screens. The results indicate that a consumer with higher levels of involvement with a product category could recall more brands and demonstrated more active interactions with the iPPL compared to the consumers with lower levels of product involvement. This dissertation proposed that higher levels of involvement with a program will cause a lower amount of interactions and recalled brands, but the results show that the program involvement and the amount of interactions are positively associated. Consumers' positive attitudes toward the program and a character in the program are found to be transferred to the attitude toward the brands. Consumers who demonstrated more active interactions with iPPLs showed a bigger increase in their levels of involvement with the program compared to the consumers who demonstrated less active interactions. Finally, structural equation models were analyzed to investigate the overall relationships of the variables. The results were specific to each particular brand and character. These findings have implications for advertisers and the current television industry.



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