Answer to Question 1
A growing technique for reaching consumers is the selective placement of products within the context of television programs viewed by the target market. Product placement is a form of advertising that strategically locates products or product promotions within entertainment media to reach the product's target markets. Apple is considered to be an expert at product placement. For instance, it partnered with Netflix to have several of its iPads and iPhones in the TV series House of Cards. Such product placement has become more important due to the increasing fragmentation of television viewers who have ever-expanding viewing options and technology that can screen advertisements (e.g., digital video recorders such as TiVo). Researchers have found that 60 to 80 percent of digital video recorder users skip over the commercials when they replay programming. In-program product placements have been successful in reaching consumers as they are being entertained. Reality programming in particular has been a natural fit for product placements, because of the close interchange between the participants and the product.
Answer to Question 2
B
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