An exploratory study of the impact of stealth marketing on consumer buying decisions

Abstract

Stealth marketing, also known as undercover or buzz marketing, is a technique that relies on advertising products to consumers without them realizing it. The most common forms of stealth marketing are hidden product placement, celebrity endorsements, viral marketing, bait-and tease marketing, and brand pushers. In an era where celebrity endorsements and brand pushers (influencers) are heavily active in promoting products and services on social media platforms, understanding the impact of stealth marketing on brand awareness, brand image, and purchase intention has become critical for managers. This study has been undertaken to understand how consumer perception is affected when consumers are exposed to traditional and stealth marketing techniques. To test the impact, we tested the relevant factors (brand image and purchase intention) by showcasing two different marketing campaigns to the same set of users. We then measured the impact before and after telling the user base about the stealth marketing technique applied. Based on our results, we find that stealth marketing does not have a significantly different impact on brand image and purchase intention if the consumer is unaware of the type of marketing technique employed by the company. Based on our research findings, we can conclude that companies should rely on stealth marketing only in cases where they are confident that consumers will not find out about the technique used.