Introduction Consumers’ memory can be influenced by product placement in advertisement, and the placement are able to change consumers’ attitudes toward the products even toward the brands. It is important to understand the consumer’s memory that can use in how to improve the placement. This literature review is to discuss the processes of information transfers to memory, what type of memory can be developed, how consumers use these memory, the relationship between those memory and product placement. This literature review will focus on the study area of consumer behavior, consumer research, marketing and advertising research. In this research, the memory processes will be discussed, including encoding, and retrieval. Then, the factors of influence retrieval will be outlined. At the same time, the applications of product placement will be examined throughout. Memory have ability to encode, store and retrieval information. Encoding can categorize the information which is perceived from advertisements or experiences and converted it into a construct that can be stored in the brain. Retrieval is calling back the stored information with some cues. Encoding Friestad and Thorson (1993) who base on several theories to propose that there are two types of encoding. The first one is called experimental processing. People do not have any particular goals or task when they are watching advertising. Their cognitive resources are distributed and may be guided by the characteristics of the advertising, and the information from advertising has been processed and stored as an experience. In this type of encoding, the processes of categorization, evaluation and integration are at a low level (MacInnis & Jaworski, 1989). Therefore, this information will be contained in people’s memory, which is a representation of viewer’s