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Xuxez is a sports apparel retailer that targets the teen market. It has been having trouble reaching its target audience through traditional promotion. Readership of magazines and newspapers has declined among the teen market. Research also shows that when watching television, teenagers will often switch to a different channel whenever a commercial comes on. Xuxez decides to pay to have the main characters in the popular teen series Riverdale wear its newest line of sportswear during certain episodes. It hopes to familiarize viewers with its newest brand.

Refer to Scenario 16.2. The type of promotional activity used is based on _______.

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Final answer:

Xuxez uses product placement by having Riverdale characters wear their sportswear to reach teenagers, a demographic that avoids traditional ads.

Step-by-step explanation:

The type of promotional activity used by Xuxez, a sports apparel retailer, is based on product placement. Unlike traditional advertisements, product placement involves incorporating a brand or its products into the content of an entertainment medium. In the case of Xuxez, the company has chosen to have characters in the popular teen series Riverdale wear its newest sportswear line during episodes. This approach aims to familiarize the audience with the brand in a setting that does not feel like conventional advertising, thereby reaching the target demographic, teenagers, who tend to avoid traditional ads.

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