Winning Versus not Losing: Exploring the Effects of In-Game Advertising Outcome on its Effectiveness

Prior literary works on product placement in games predominantly focus on a host of game and brand characteristics to eventually explore their effects on consumers’ psychological responses and behavior. One primary facet of in-game advertising (IGA) that has largely been ignored is game outcome in terms of winning and losing and its effect on consumers’ nature of information processing. This article explores the effect of IGA outcome and performance feedback shown to players on their motivation expressed in terms of induced regulatory focus. Further, the effects of regulatory focus are examined on players’ implicit and explicit memory, game and brand attitude, and emotions. A conceptual framework highlighting afore-mentioned relationships is developed and empirically tested which reveals that IGA outcome and performance feedback in the form of game messages plays a major role in explaining players’ motivation which in turn also affects their memory and attitude. Managerial implications, limitations, and scope for future research are also discussed.