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The Media and Their Advertisers: Exploring Ethical Dilemmas in Product Coverage Decisions

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  • Diego Rinallo
  • Suman Basuroy
  • Ruhai Wu
  • Hyo Jeon

Abstract

Marketers are increasingly relying on promotional practices (variously labeled as stealth marketing, hybrid messages, covert advertising) based on the diffusion of product information by third parties that appear to be independent of advertisers. In this paper, we examine to what extent the media treat their advertisers favorably, providing these advertisers’ products extra visibility in supposedly neutral editorial content. Empirically, we model the determinant of media coverage of Italian fashion products in an extended dataset of consumer magazines in Italy, France, Germany, UK, and the USA. Research findings show that advertising is an important determinant of product placements in editorial content, and this result is consistent across countries and publishers. Our results imply that resource-rich advertisers engaging in compensatory advertising (that is, advertising investments that compensate poor product quality) might bias media coverage in their favor. Consumers will consequently be exposed twice to favorable messages about those products, in both advertisements and media content, resulting in higher purchases and reduced consumer welfare. Copyright Springer Science+Business Media B.V. 2013

Suggested Citation

  • Diego Rinallo & Suman Basuroy & Ruhai Wu & Hyo Jeon, 2013. "The Media and Their Advertisers: Exploring Ethical Dilemmas in Product Coverage Decisions," Journal of Business Ethics, Springer, vol. 114(3), pages 425-441, May.
    • Handle: RePEc:kap:jbuset:v:114:y:2013:i:3:p:425-441
    DOI: 10.1007/s10551-012-1353-z
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    1. Pehlivan, Ekin & Berthon, Pierre & Hughes, Mine Üçok & Berthon, Jean-Paul, 2015. "Keeping up with The Joneses: Stealth, secrets, and duplicity in marketing relationships," Business Horizons, Elsevier, vol. 58(6), pages 591-598.
    2. Michelle Nelson & Jiwoo Park, 2015. "Publicity as Covert Marketing? The Role of Persuasion Knowledge and Ethical Perceptions on Beliefs and Credibility in a Video News Release Story," Journal of Business Ethics, Springer, vol. 130(2), pages 327-341, August.
    3. Andrea L. Micheaux & Dominique Crié & Annabel Martin-Salerno & Daphné Salerno, 2018. "The importance of being Earnest in social media: juxtaposing Oscar Wilde’s script with an empirical case study to examine digital deceit from the blogger’s perspective," Post-Print hal-01828584, HAL.

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