Cross-promotion in marketing: An examination of the effects of product fit and brand fit on memory retention and attitude formation

Abstract

This dissertation explores the manner in which a marketing strategy known as cross-promotion affects consumer processing and evaluation of promotional information. Specifically, variation in key dimensions of cross-promotion is examined to determine the effects on attitude formation and memory retention. Cross-promotion is defined as any promotion that combines two or more different products and brands in a cooperative manner. Based on the presence of both multiple products and multiple brands, a unique aspect of cross-promotion is the two-dimensional nature of fit on both the brand and the product levels. It is this two-dimensional fit that is examined as the key variable that affects both memory and attitude. Literature in the fields of cognitive and social psychology provides a foundation for the development of a theoretical framework of cross-promotion. Specifically, the concepts of categorization and congruency provide a relevant application of the how distinct items present in a given context affect cognitive and evaluative processes. Based on this literature, it is proposed that brand fit and product fit each affect different dimensions of elaboration in distinct manners. The involvement of elaboration processes in cross-promotional evaluation leads to the logical development of hypothesized relationships between cross-promotional fit and memory and attitude. A 2 x 2 factorial experiment is designed as a means of testing the hypotheses. Using original print advertisements as stimuli, participants are presented with cross-promotional material in a laboratory setting and tested for levels of the dependent measures. The data from this study are examined through a series of ANOVAs. Results provide partial support for the hypotheses. The most interesting finding is the confirmation that a low level of brand fit, crossed with a high level of product fit, can actually lead to the highest level of memory retention and the development of more positive attitudes than when both dimensions of fit are high.