Effectiveness of product placement in movies: The impact of product placement and product recall in

movies

Synopsis Phase - EvaluationTHOMSON JOSEPH

P14214

Study Generalities

• Research Question How does the product placement and

product recall impact the movie viewers?

Research Objectives

• To understand the relationship between the product/Brand placement and product/Brand recall.

• To understand how product placement affects a consumer’s buying behaviour

• How does product placement affects the customer loyalty towards the brand

• To understand Influence of product placement in consumers recall and attitude towards products

Research Relevance

• “Product or brand placement continues to be an important practice within advertising and integrated marketing communications in which advertisers push their way into content far more aggressively than ever before” (The Economist, 2005).

• It is estimated that two-thirds of TV viewers cut the sound during commercials, channel-surf, or skip them altogether because they are annoying or irrelevant (Kiley, 2006).

• Even though measures of its effectiveness have been problematic, product placement is a fast growing multi-billion dollar industry (McDonnell and Drennan, 2010). According to the research company PQ Media, global paid product placements were valued at $3.07 Billion in2006 with global unpaid product placements valued at about $6 Billion in 2005 and $7.45 Billionin 2006.

• Nielsen Media Research has shown that product placement in television shows can raise brand awareness by 20% (Cebrzynski, 2006). Tsai, Liang, and Liu (2007) found that higher brand awareness results in a greater recall rate, more positive attitudes, and a stronger intention of buying.

Research relevance Consider the following data of survey

• “90% of people with digital video recorders skip TV ads.

• “To be seen, brands now have to get inside the content.

• “Cinema admissions for 2009 to April 30 stand at 55.2 million, a 14.2% increase on the same periods in 2008.

• “Research shows product placement in content boosts brand awareness, raises brand affinity and encourages prospective purchasers.

• “60% of viewers felt more positive about brands they recognized in a placement.

• “45% said they would be more likely to make a purchase

Limitations of the study

• Demographic limitations(southern part of India-Kochi).

• Global availability of the product .• Product placement in mollywood movies are rare.

• The product placement can only be understood to people who are a bit brand conscious.

Research Model and Hypothesis

• Research Model

• imBRAND PLACEMENTACCEPTANCE (BPA)

BRAND PLACEMENTRECALL (BLP)

PREFERENCE

LOYALTY

INTENTIONS TOPURCHASE

BRAND PLACEMENT

EFFECTIVENESS

VARIBLE DEFINITION• DEPENDENT VARIABLE

o EFFECTIVENESS OF PRODUCT PLACEMENT: Product placement is the purposeful incorporation of commercial content into non-commercial settings, that is, a product plug generated via the fusion of advertising and entertainment (Ginosar and Levi-Faur, 2010).

• INDEPENDENT VARIABLE o Product placement RecallRefers to the ability of the consumers to correctly generate and retrieve the brand in their memory. A brand name that is well known to the great majority of households is also called a household nameo Product placement Acceptance Product placement Acceptance in human psychology is a person's assent to the reality of a situation, recognizing a process or condition (often a negative or uncomfortable situation) without attempting to change it, protest.

VARIBLE DEFINITION

• Brand loyalty is a result of consumer behavior and is affected by a person's preferences. Loyal customers will consistently purchase products from their preferred brands, regardless of convenience or price.

• Intentions to purchase: A plan to purchase a particular good or service in the future.

o Brand preference • It is when you choose a specific company's product or service

when you have other, equally-priced and available options. Brand preference is a reflection of customer loyalty, successful marketing tactics, and brand strengths

Important papers included in the literature review.

• Argan, M.; Velioglu, M.N. & Argan, M.T. (2007). Audience Attitudes Towards Product Placement in Movies: A Case from Turkey. Journal of American Academy of Business,Cambridge, 11(1), March, 161-168

• Balasubramanian, S.K. (1994). Beyond Advertising and Publicity: Hybrid Messages and Public Policy Issues. Journal of Advertising, 23(4), 29-46

• Journal of Management and Marketing Research Product placement effectiveness,Product placement effectiveness: revisited and renewed

• IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 85-93, www.iosrjournals.org

Research Hypothesis

• H1: Movie viewers’ acceptance of Brand placement has a significant influence on Brand Recall

• H2: Movie viewers’ acceptance of Brand placement has a significant positive influence on their behaviour and attitude toward a brand (preference, loyalty and intentions to purchase)

• H3: Movie viewers’ brand placement recall has a significant positive influence on their behaviour and attitude towards a brand (preference, loyalty and intentions to purchase).

Research Methodology

• Respondent: Hardcore English movie viewers• Sample size :125• Age group : 21-35• Sampling method-Convenience Sampling(five point Likert

scale)

• Statistical method proposed for analysis: Correlation and Regression analysis

Research Instruments and Questionnaire – Source(s)

• International journal of management and marketing research “volume 5 number 2 2012 ,39”:the impact of brand placement and brand recall in movies: empirical evidence from Malaysia.

• “An Empirical Study of Effectiveness of Product Placement in Hindi Movies Compare to Television Shows “Hirenkumar Jayantkumar Patel, Avani Chauhan.