Description
This is Documentation which deals with product placement in movies, a trend which has started relatively recently in movies to enhance brand recall for a product/service. The research will delve into the types of product placement in movies and find out which one is more effective. The research will also look for any possible dependency between the age or gender of a viewer and brand recall resulting from product placement.
Product Placement in Movies
Authors: Jasneet Singh Wahan (09FT-066) Sameer Mahajan (09FT-078) Rahul Pangasa (09FT-113) Ravit Madan (09FT-117)
Table of Contents
Abstract ................................................................................................................................................... 3 Keywords................................................................................................................................................. 3 Introduction ............................................................................................................................................ 4 Research Gaps......................................................................................................................................... 8 Objective of Study ................................................................................................................................... 9 Research Questions ................................................................................................................................ 9 Research Hypothesis ............................................................................................................................... 9 Methodology......................................................................................................................................... 10 Research Design................................................................................................................................ 10 Sample Design .................................................................................................................................. 11 Data Gathering .................................................................................................................................. 11 Data Processing and Analysis ........................................................................................................... 11 Report Preparation ............................................................................................................................ 12 Budget ............................................................................................................................................... 12 Time Schedule .................................................................................................................................. 13 Discussion, observations and variables selected for study................................................................... 13 Brand Identification .......................................................................................................................... 13 Brand recall distribution ................................................................................................................... 14 Brand recall and how recently movie was seen ............................................................................... 14 Brand recall and perceived movie rating .......................................................................................... 14 Brand recall and movie media .......................................................................................................... 15 Brand recall and age group ............................................................................................................... 15 Brand recall and gender .................................................................................................................... 15 Brand recall and inclination to use/buy ............................................................................................ 15 Conclusions ........................................................................................................................................... 16 Future Work .......................................................................................................................................... 16 Bibliography .......................................................................................................................................... 17 Print................................................................................................................................................... 17 Websites ........................................................................................................................................... 17 Annexure A............................................................................................................................................ 18
Abstract
This research paper deals with product placement in movies, a trend which has started relatively recently in movies to enhance brand recall for a product/service. We shall be dealing with viewers of Indian origin while conducting our research. The research will delve into the types of product placement in movies and find out which one is more effective. The research will also look for any possible dependency between the age or gender of a viewer and brand recall resulting from product placement. Brand recall is likely to get effected depending upon the number of people accompanying a person watching a movie. Also, if a movie is not to the liking of an individual, the product placement in that movie may not generate a brand recall. Through this paper, therefore, we try to look into these intricacies of the entire product placement process.
Keywords
Product Placement: The inclusion of a product, package, signage, a brand name or the name of the firm in a movie or in a television programme for increasing recall of the brand and instant recognition at the point of purchase. Placements can be in form of verbal mentions in dialogue, actual use by character, visual displays such as corporate logo on a vehicle or billboard, brands used as set decorations, or even snatches of actual radio or television commercials. Brand Recall: The extent to which a brand name is recalled as a member of a brand, product or service class. In terms of brand exposure, companies want to look for high levels of unaided recall in relation to their competitors. The first recalled brand name (often called "top of mind") has a distinct competitive advantage in brand space, as it has the first chance of evaluation for purchase. Implicit visual mode of product placement: This is a mode of product placement in movies/TV programmes where a brand is shown without verbal reference to brand name / benefits / usage by actor/actress Implicit audio mode of product placement: This is a mode of product placement in movies/TV programmes where a brand is shown without visual reference to brand name but brand name or benefits or usage by actor/actress is verbally communicated Explicit mode of product placement: This is a mode of product placement in movies/TV programmes where a brand is used in scene with high plot connection due to character usage but without audio support Integrated explicit mode of product placement: This is a mode of product placement in movies/TV programmes where benefits and attributes of brand/product are mentioned by actor/actress with both audio and visual presentation and plot connection
Brand awareness: It is the strength of brand node or trace in the memory as reflected by consumer’s ability to identify the brand under different conditions. Brand image: It is the set of perceptions, held in the consumer’s memory, as reflected by brand associations.
Introduction
A product placement is the inclusion of a product, package, signage, a brand name or the name of the firm in a movie or in a television programme for increasing recall of the brand and instant recognition at the point of purchase. Placements can be in form of verbal mentions in dialogue, actual use by character, visual displays such as corporate logo on a vehicle or billboard, brands used as set decorations, or even snatches of actual radio or television commercials. The objective of this communication strategy is to expose audience to a brand, whereby the effect can be maximized in terms of increased brand awareness and higher recall, so that the customer will buy the brand which has the highest recall; and to satisfy the customer to optimal level. Because of proliferation of advertisements and the consequent difficulty in getting commercial messages to reach and influence potential customers, product placement appears as an interesting alternative to traditional marketing communication tools. Arranged product placement deals fall into two categories: ? Trade-off of integration or placement for a supply of product ? Financial compensation for placement or integration The most common type of deal is a simple exchange of the product for the placement. Example, let's say the production team wants lead actor to display a quirky affinity for a particular type of beverage. This will come across rather strongly over the course of the program -- which means the chosen product could get a lot of air time. It turns out that someone on the crew knows someone who works for that beverage. The production people approach the beverage company folks with a proposal and a deal is made; in exchange for the airtime, the cast and crew are provided with an ample supply of the beverage at work. Example: the movie Koi Mil Gaya where the lead actor drinks a lot of Bournvita. Sometimes, a gift of the product isn't an appropriate form of compensation, so money powers the deal. Imagine that the marketing team at Tag Heuer has heard about this project and feels that, given the star power of the actor playing lead, this project would be a great vehicle for showcasing its product. Someone from Tag Heuer approaches the set dresser with a financially lucrative proposal. Eventually, they come to an agreement and the wristwatch casually appears in several scenes.
Review of Literature
Research Paper Topic: Cross-Cultural Generalizability Study of Consumers’Acceptance of Product Placements in Movies. Author: Martin Eisend Pros: The study shows that product placement acceptability of ethically charged/controversial products is generalizable over different cultures, but not product placement acceptability of neutral products. The universe score shows that attitudes towards product placement for ethically charged/controversial products can be described as “indifferent” (in between “acceptable” and “unacceptable”) consistently over all countries, while neutral products are highly accepted, though the acceptance varies from country to country. The results hold for males and females and are independent of changing product placement acceptance over the years. The findings support cross-cultural convergence of consumer perceptions for problematic marketing and divergence for other issues. Cons: This study is useful from the perspective where a marketer wishes to enter a culturally different market, such as entering a different country altogether. This study however, does not take into account how within a country, a marketer can place a brand in movies so as to gain maximum brand recall. This is something that we have taken up in our study. ___________________________________________________________________________ Article Topic: Cinema Screen Advertising: An Old Technology With New Promise For Consumer Marketing Authors: Bruce A. Austin Journal: Journal of consumer marketing Year : 1986 Pros: This article identifies that the concentration levels of the audience are relatively high in a cinema hall so using motion picture advertising shall be an effective way of generating brand recall. Cons: Though this article has identified the importance of the environment of a cinema hall in enhancing brand recall for a product, it ignores the subtlety involved in brand placement in a movie scene, where the concentration levels of audience is bound to be much higher. Motion picture advertising prior to a movie or in an interval may not be very effective as the viewers are trying to either settle down or get snacks for themselves during that period.
Article Topic: TV advertising is dying, and PVRs(Personal Video Recorders) are the culprit. Authors: HARRIS, JIM
Source: Backbone; Apr/May2009 Pros: This article identifies the need of product placement in TV programmes as people in the USA are moving towards the use of Personal Video Recorders so as to skip the advertisements. So, TV serials like American Idol show the judges drinking coke, which is actually product placement for coke. Cons: This article does not delve into the details of product placements, such as what kind of product placement is more effective, whether there is any kind of dependency between the gender/age of a viewer and brand recall etc. This is something that we have taken up in our research. Research Paper Topic: Is Effective Product Placement in Movies?: A Cross-Cultural Study Between French and Spanish Consumers. Authors: Jose Torrano, Technical University of Cartagena, Spain Enrique Flores, Technical University of Cartagena, Spain Pros: This study evaluates the effectiveness of a product placement process among the viewers in two different countries in relation to preconceived notions about a brand. This study determines whether outcomes of product placement are country specific. Cons: This article does not delve into the details of product placements, such as what kind of product placement is more effective, whether there is any kind of dependency between the gender/age of a viewer and brand recall etc. This is something that we have taken up in our research. Research Paper Topic: Product Placement in Bollywood Movies Authors: Subhadip Roy, Asst. Professor, ICFAI Institute for Management Teachers, Hyderabad. Saurabh Bhattacharya, Research Scholar ICFAI Institute for Management Teachers, Hyderabad. Pros: This research paper enumerates the then latest Bollywood Movies and the products been placed in them. It also identifies that the modes used for product placement in such movies were both verbal and visual. products ranging from low involvement fast moving consumer goods (FMCG) to high involvement products such as automobiles are being placed in movies. Cons: The paper does not evaluate any dependency between the various types of product placement, brand recall and demography of the viewers.
Research Paper Topic: Product Placements- The Impact of Placement Type and Repetition on Attitude Author: Pamela Miles Homer Pros: This research paper evaluates the positive or negative impact of type of product placement, categorized as subtle or prominent, and repetition of the brand in a movie. This is highly useful for a marketer as he can evaluate how he can place his brand effectively without irritating the viewer. Cons: The definition of subtle or prominent placement type may be subjective, so a more clear categorization of product placements should be defined. Research Paper Topic: Integrating Placement And Audience Characteristics To Assess The Recall Of Product Placements In Film: Findings From A Field Study Authors: Etienne Bressoud, Jean-Marc Lehu, Cristel Antonia Russell Pros: This research incorporates into a single model characteristics of product placements in films and characteristics of the consumers and their viewing environment to assess the memorability of the placements. Cons: The research consisted of conducting a survey on a focused group who were given DVDs of movies and their responses related to brand recall were noted the following day. This might have led to skewed responses as focused group already knew that it is going to be questioned upon the particular movie. So, the brand recall obtained with this experiment may be higher than under normal course. Research Paper Topic: Assessing The Value Of Product Placement From The Consumer's Perspective. Authors: Daugherty, Terry Gangadharbatla, Harsha Yeo Jung Kim, Logan, Kelty Pros: This research paper intends to expand the understanding of product placement by identifying whether consumers value this marketing communication tactic in a similar manner as advertising. An online survey administered to a sample of panel participants (n=1545) reported how informative, entertaining and irritating product placement is to them with the subsequent data used to test a proposed value model of product placement. Cons: This research captures consumer attitudes pertaining to product placement but does not focus on the effect of demography on brand recall resulting from product placement. Also,
this research considers product placement as a whole but doesn’t consider the various modes in which a product may be placed. Research paper Topic: A Comparison Of Consumers' Responses To Traditional Advertising And Product Placement Strategies: Implications For Advertisers. Authors: Daugherty, Terry Gangadharbatla, Harsha. Pros: This research paper compares the consumer attitude towards conventional advertising vs product placement. This can help a marketer to promote his product/service through the appropriate channel. Cons: This research captures consumer attitudes pertaining to product placement and advertising but does not focus on the effect of demography on brand recall resulting from product placement. Research Paper Topic: Product Placement as a Communication Tool: Role of Public Relation Firms Authors: Niklas Berglund and Erik Spets Supervisor: Manucher Ferhung Pros: The research paper elucidates the role of a public relations firm in product placement. A public relations firm is more well versed with how to communicate a brand more effectively than the firm that owns the brand and hence its role needs to be studied so as to gain competitive advantage. Cons: The study is limited to agents’ perspective of product placement procedure.
Research Gaps
The already conducted researches pertaining to product placement that we have studied have the following shortcomings: ? Most of them consider product placement as a whole and do not delve into the types of product placements. So they do not emphasize what kind of a product placement is generally used in movies. Even if the types of product placements are defined, they are vague in nature and how they are defined is largely subjective. Most of them do not try to find out the degree of association between the demography of the viewers and brand recall. Our research, therefore, intends to incorporate all the above which will enable a marketer to evaluate what products/services will be promoted effectively via the product placement mode in relation to the demography of the viewers.
? ?
Objective of Study
The purpose of this study is to determine the effect of product placement in movies on brand recall and attitude towards those brands. A careful review of the research purpose led to the development of following research objectives: (1) To identify which of the following product placement has the best brand recall: (a) Implicit visual: Brand is shown without verbal reference to brand name / benefits / usage by actor/actress (b) Implicit audio: Brand is shown without visual reference to brand name but brand name or benefits or usage by actor/actress is verbally communicated (c) Explicit: Brand is used in scene with high plot connection due to character usage but without audio support (d) Integrated explicit: benefits and attributes of brand/product are mentioned by actor/actress with both audio and visual presentation and plot connection (2) To identify any relationship between brand recall and how recently the movie was seen (3) To identify any relationship between brand recall and perceived movie rating (4) To identify any relationship between brand recall and medium for watching movie (5) To identify any relationship between brand recall and age group (6) To identify any relationship between brand recall and gender (7) To identify any relationship between brand recall and intention to use/buy
Research Questions
(1) Which type of product placement in movies results in the best brand recall? (2) Is there any relationship between how recently a movie is seen and the extent of brand recall associated with a product placement in that movie? (3) Is there any relationship between the rating of a movie and the extent of brand recall associated with a product placement in that movie? (4) Is there a relationship between the medium of watching movie and the extent of brand recall associated with a product placement in that movie? (5) Is there a relationship between the age-group of movie viewer and the extent of brand recall associated with a product placement in that movie? (6) Is there a relationship between the gender of movie viewer and the extent of brand recall associated with a product placement in that movie? (7) Is there any relationship between brand recall associated with a product placement in that movie and the intention of the movie viewer to buy or use that product?
Research Hypothesis
(1) The different types of product placements result in equal brand recall (2) There is no significant relationship between how recently a movie is seen and the extent of brand recall associated with a product placement in that movie
(3) There is no significant relationship between the rating of a movie and the extent of brand recall associated with a product placement in that movie (4) There is no significant relationship between the medium of watching movie and the extent of brand recall associated with a product placement in that movie (5) There is no significant relationship between the age-group of movie viewer and the extent of brand recall associated with a product placement in that movie (6) There is no significant relationship between the gender of movie viewer and the extent of brand recall associated with a product placement in that movie (7) There is no significant relationship between brand recall associated with a product placement in that movie and the intention of the movie viewer to buy or use that product
Methodology
Research Design
The research is both descriptive and causal in nature. The survey research method is our basic research design. Each respondent was administered a survey questionnaire either in softcopy or in hardcopy. The online survey was hosted on www.surveygizmo.com and administered to respondents through email. The offline version was administered to respondents personally in shopping malls, multiplexes and cinema halls. The respondent was generally expected to respond to the survey questions in 5-7 minutes. The question(s) design is as following: Question In which language do you prefer to watch a movie? What kind of movies do you like? (Rank in Order of your Preference Most - At the Top, Least - At the Bottom) What is the Movie Name that you watched most recently? Have you seen any brand in this movie? Mention the brand name you saw. Which among the above brands do you use/want to use? Why did you watch this movie? On the whole, how do you rate the movie? When did you watch this movie? Had you previously seen this movie? Where did you watch the movie? Did anyone accompany you when you were watching the movie? If the answer to the above question is “Yes”, then how many people accompanied you? Where did you saw the brand on the screen? If you watched movie on TV/Laptop, did you watch entire Type of scale/question Nominal Ordinal Open ended Nominal (dichotomous) Open ended Category Nominal Category Nominal Nominal Nominal Nominal (dichotomous) Nominal Nominal Nominal
movie in one go or in parts? Your Age Gender Your Occupation
Nominal Nominal Nominal
Sample Design
A survey of approximately 300 individuals located in different parts of India provides the database for this study. Target population comprised of respondents in an age-group of 12 to 65.The sample was selected on a probability basis using simple random sampling. However our survey was affected due to non-response error as only 130 respondents participated in the survey. We categorise responses affected with response bias due to deliberate falsification unconscious misrepresentation. These responses were not included for analyses in our research.
Data Gathering
Data gathering was done through online survey questionnaire designed and hosted by:
Research analyst Rahul Pangasa (09FT-113) Jasneet Singh Wahan(09FT-066)
Ravit Madan (09FT-117)
It was administered to respondents in different parts of the country. The offline survey questionnaire is same as the online version but printed on regular A4 sheets. The fieldworkers (our project members) will conduct this survey in shopping malls, multiplexes and cinema halls. The following team members will be assigned as fieldworkers in different parts of Delhi/NCR:
Field workers Ravit Madan(09FT-117) Jasneet Singh Wahan(09FT-066) Rahul Pangasa(09FT-113) Sameer Mahajan(09FT-078) Location Ghaziabad Delhi NOIDA Gurgaon
Data Processing and Analysis
For data processing and analysis standard editing and coding procedures were used. Simple tabulation and cross tabulations were used to analyze the data. This was done using MS Excel pivot tables. Further the research hypothesis was tested and conclusions drawn by doing the
chi-square test of independence/cross tabulation using SPSS 17. For data coding, editing and results of chi-square tests please refer to Annexure A – SPSS data sheets. The analyses is as following: (1) The explicit product placement results in highest brand recall (2) Chi square test of independence shows that p < 0.05 therefore our null hypothesis below stands rejected: There is no significant relationship between how recently the movie is seen and the extent of brand recall associated with the type of product placement in that movie (3) Chi square test of independence shows that p > 0.05 therefore our null hypothesis below is accepted: There is no significant relationship between the rating of a movie and the extent of brand recall associated with the type of product placement in that movie (4) Chi square test of independence shows that p < 0.05 therefore our null hypothesis below stands rejected: There is no significant relationship between the medium of watching movie and the extent of brand recall associated with the type of product placement in that movie (5) Chi square test of independence shows that p < 0.05 therefore our null hypothesis below stands rejected: There is no significant relationship between the age-group of movie viewer and the extent of brand recall associated with the type of product placement in that movie (6) Chi square test of independence shows that p > 0.05 therefore our null hypothesis below is accepted: There is no significant relationship between the gender of movie viewer and the extent of brand recall associated with the type of product placement in that movie (7) Chi square test of independence shows that p < 0.05 therefore our null hypothesis below stands rejected: There is no significant relationship between brand recall associated with the type of product placement in that movie and the intention of the movie viewer to buy or use that product
Report Preparation
A written report was prepared and an audio visual presentation in MS Power Point was made and presented by the group for submission towards the partial fulfilment of requirements in Business Research Methodology.
Budget
Cost of printing the questionnaires = 150 INR
Cost of pens (30 Pens @ INR 9) Cost of Miscellaneous Stationary
= 270 INR = 100 INR
Fuel Cost Incurred in travel for conducting survey (4 Trips @ INR 175) = 700 INR _________________ Total Cost Incurred for Conducting Survey = 1220 INR
___________________
Time Schedule
Sno 1 Stage in Research Process Formulation of research purpose & objectives Research Design & Sample Design Data Gathering Data Processing and Analysis Report Preparation Start Date November 1, 2009 End Date November 9, 2009
2. 3. 4. 5.
November 10, 2009 November 26, 2009 December 6, 2009 December 7, 2009
November 25, 2009 December 6, 2009 December 7, 2009 December 8, 2009
Discussion, observations and variables selected for study
Brand Identification
Brand Identification
Responses for brand identification Responses for no brand identification
31% 69%
Brand recall distribution
Brand Recall Distribution
Explicit Implicit Audio 12% 2% 7% Implicit Video Integrated Explicit
79%
Brand recall and how recently movie was seen
Time
During the previous week More than week and less than a month Older Today Yesterday
Explicit 11 3 6 49 2 71
Implicit Audio 0 0 0 11 0 11
Implicit Video 0 1 0 0 1 2
Integrated Explicit 1 4 1 0 0 6
Grand Total 12 8 7 60 3 90
Grand Total
?
Observations show that brand recall is directly proportional to how recently a movie was seen
Brand recall and perceived movie rating
Excellent Very Good Good Bad Very Bad Pathetic 5 4 3 2 1 0
Implicit Audio 1 0 0 4 5 1 11 Implicit Video 0 0 0 2 0 0 2 Integrated Explicit 0 0 0 3 1 2 6 Grand Total 11 0 3 35 24 17 90
Movie Rating Explicit
Pathetic Very Bad Bad Good Very Good Excellent
Grand Total
10 0 3 26 18 14 71
?
The brand recall for movies perceived as Good, Very Good and Excellent is more than the brand recall for bad, very bad and Pathetic movies
?
In the disliked category brand placement in pathetic movies generates a much greater brand recall than in bad and very bad movies ?
Brand recall and movie media
A respondent may have seen the movie through multiple movie media
Explicit 61 Implicit Audio 11 Implicit Video 2 Integrated Explicit 1 Grand Total 75 13 5 0 Movie media
Multiplex/Cinema Hall TV Laptop Projector Screen
?
7 0 0 6 4 0 0 1 0 0 0 0 Brand recall is the highest for movies seen in multiplex and cinema halls
Brand recall and age group
Age Group Implicit Implicit Audio Video 7 3 0 12-21 53 6 2 22-31 8 1 0 32-41 0 1 0 42-51 3 0 0 52-65 71 11 2 Grand Total ? Brand recall is the highest in age group of 22-31 Explicit Integrated Explicit 0 1 2 2 1 6 Grand Total 10 62 11 3 4 90
Brand recall and gender
Gender
Female Male
Explicit 32 39 71
Grand Total
Implicit Audio 5 6 11
Implicit Video 0 2 2
Integrated Explicit 3 3 6
Grand Total 40 50 90
?
From the above data we do not see an observable pattern with respect to a comparison between brand recall through product placement in movies of males and females respectively
Brand recall and inclination to use/buy
Inclination to buy/use
Yes No
Explicit 61 8
Implicit Audio 11 0
Implicit Video 2 0
Integrated Explicit 1 7
Grand Total 75 15
?
People have an inclination to use or buy the product/brand communicated through brand placement in movies
There is no policy implication associated with our research
Conclusions
(1) The different types of product placements result in different brand recall. Explicit product placements result in the highest brand recall. (2) There is a significant relationship between how recently a movie is seen and the extent of brand recall associated with the type of product placement in that movie. Most recent movies are associated with best brand recall (3) There is no significant relationship between the rating of a movie and the extent of brand recall associated with the type of product placement in that movie. However if we combine the categories good, very good and excellent then they have a better recall as compared to the category combining bad, very bad and pathetic movies. (4) There is a significant relationship between the medium of watching movie and the extent of brand recall associated with the type of product placement in that movie. Movies viewed in a multiplex or a Cinema hall have the highest brand recall (5) There is a significant relationship between the age-group of movie viewer and the extent of brand recall associated with the type of product placement in that movie. The age group of 22-31 has the highest brand recall. (6) There is no significant relationship between the gender of movie viewer and the extent of brand recall associated with the type of product placements in that movie. (7) There is a significant relationship between brand recall associated with the type of product placement in a movie and the intention of the movie viewer to buy or use that product. Viewers generally prefer to buy or use a product which is placed in a movie.
Future Work
We also wanted to study the following areas from industries point of view to build a 360 degrees perspective on product placement in movies and brand recall. However we could not do so because of time and resource constraints as it required holding personal interviews with Film directors, film producers, actors, media partners and brand managers. Some of these areas which can be explored in future study on this subject are: (1) How the brand gets associated with a particular movie and at what stage the involvement begins? (2) What are the channels through which brands negotiate their placement in movies? (3) The importance and role of media agencies in product placement (4) How much revenue does product placement generate at various stages of the value chain and how is it measured? (5) Study of cross cultural parameters with respect to product placement in movies.
Bibliography
Print
? Balasubramanian, S. K. (1994), “Beyond Advertising and Publicity: Hybrid Messages and Public Policy issues”, Journal of Advertising, 23(4), pp 29-47 Business World, May 2006. Subhadip Roy, Saurabh Bhattacharya “Product placement in Movies “ Journal of Marketing Trends. Martin Eisend, “A Cross-Cultural Generalizability Study of Consumers’Acceptance of Product Placements in Movies” Journal of current issues and research in advertising, Spring 2009 Jose Torrano and Enrique Flores, Is effective product placement in movies? : A cross cultural study between French and Spanish Consumers, Advances in Consumer Research – volume 36 Pamela Miles Homer, “The impact of placement type and repetition on customers”, The Journal of advertising, Fall 2009 Michael A. Wiles and Anna Danielova ,“The worth of product placement in successful films: An event study analysis” , Journal of Marketing,2009
? ?
?
? ?
Websites
? ? ? ? ?
?
www.domain-b.com www.brandchannel.com www.businessofcinema.com www.agencyfaqs.com www.exchange4media.com www.mediae2e.com
Annexure A
Questionnaire
Survey Questionnaire
Survey Data Sheet
Survey Report
SPSS Data and Result Sheets
doc_877191582.docx
This is Documentation which deals with product placement in movies, a trend which has started relatively recently in movies to enhance brand recall for a product/service. The research will delve into the types of product placement in movies and find out which one is more effective. The research will also look for any possible dependency between the age or gender of a viewer and brand recall resulting from product placement.
Product Placement in Movies
Authors: Jasneet Singh Wahan (09FT-066) Sameer Mahajan (09FT-078) Rahul Pangasa (09FT-113) Ravit Madan (09FT-117)
Table of Contents
Abstract ................................................................................................................................................... 3 Keywords................................................................................................................................................. 3 Introduction ............................................................................................................................................ 4 Research Gaps......................................................................................................................................... 8 Objective of Study ................................................................................................................................... 9 Research Questions ................................................................................................................................ 9 Research Hypothesis ............................................................................................................................... 9 Methodology......................................................................................................................................... 10 Research Design................................................................................................................................ 10 Sample Design .................................................................................................................................. 11 Data Gathering .................................................................................................................................. 11 Data Processing and Analysis ........................................................................................................... 11 Report Preparation ............................................................................................................................ 12 Budget ............................................................................................................................................... 12 Time Schedule .................................................................................................................................. 13 Discussion, observations and variables selected for study................................................................... 13 Brand Identification .......................................................................................................................... 13 Brand recall distribution ................................................................................................................... 14 Brand recall and how recently movie was seen ............................................................................... 14 Brand recall and perceived movie rating .......................................................................................... 14 Brand recall and movie media .......................................................................................................... 15 Brand recall and age group ............................................................................................................... 15 Brand recall and gender .................................................................................................................... 15 Brand recall and inclination to use/buy ............................................................................................ 15 Conclusions ........................................................................................................................................... 16 Future Work .......................................................................................................................................... 16 Bibliography .......................................................................................................................................... 17 Print................................................................................................................................................... 17 Websites ........................................................................................................................................... 17 Annexure A............................................................................................................................................ 18
Abstract
This research paper deals with product placement in movies, a trend which has started relatively recently in movies to enhance brand recall for a product/service. We shall be dealing with viewers of Indian origin while conducting our research. The research will delve into the types of product placement in movies and find out which one is more effective. The research will also look for any possible dependency between the age or gender of a viewer and brand recall resulting from product placement. Brand recall is likely to get effected depending upon the number of people accompanying a person watching a movie. Also, if a movie is not to the liking of an individual, the product placement in that movie may not generate a brand recall. Through this paper, therefore, we try to look into these intricacies of the entire product placement process.
Keywords
Product Placement: The inclusion of a product, package, signage, a brand name or the name of the firm in a movie or in a television programme for increasing recall of the brand and instant recognition at the point of purchase. Placements can be in form of verbal mentions in dialogue, actual use by character, visual displays such as corporate logo on a vehicle or billboard, brands used as set decorations, or even snatches of actual radio or television commercials. Brand Recall: The extent to which a brand name is recalled as a member of a brand, product or service class. In terms of brand exposure, companies want to look for high levels of unaided recall in relation to their competitors. The first recalled brand name (often called "top of mind") has a distinct competitive advantage in brand space, as it has the first chance of evaluation for purchase. Implicit visual mode of product placement: This is a mode of product placement in movies/TV programmes where a brand is shown without verbal reference to brand name / benefits / usage by actor/actress Implicit audio mode of product placement: This is a mode of product placement in movies/TV programmes where a brand is shown without visual reference to brand name but brand name or benefits or usage by actor/actress is verbally communicated Explicit mode of product placement: This is a mode of product placement in movies/TV programmes where a brand is used in scene with high plot connection due to character usage but without audio support Integrated explicit mode of product placement: This is a mode of product placement in movies/TV programmes where benefits and attributes of brand/product are mentioned by actor/actress with both audio and visual presentation and plot connection
Brand awareness: It is the strength of brand node or trace in the memory as reflected by consumer’s ability to identify the brand under different conditions. Brand image: It is the set of perceptions, held in the consumer’s memory, as reflected by brand associations.
Introduction
A product placement is the inclusion of a product, package, signage, a brand name or the name of the firm in a movie or in a television programme for increasing recall of the brand and instant recognition at the point of purchase. Placements can be in form of verbal mentions in dialogue, actual use by character, visual displays such as corporate logo on a vehicle or billboard, brands used as set decorations, or even snatches of actual radio or television commercials. The objective of this communication strategy is to expose audience to a brand, whereby the effect can be maximized in terms of increased brand awareness and higher recall, so that the customer will buy the brand which has the highest recall; and to satisfy the customer to optimal level. Because of proliferation of advertisements and the consequent difficulty in getting commercial messages to reach and influence potential customers, product placement appears as an interesting alternative to traditional marketing communication tools. Arranged product placement deals fall into two categories: ? Trade-off of integration or placement for a supply of product ? Financial compensation for placement or integration The most common type of deal is a simple exchange of the product for the placement. Example, let's say the production team wants lead actor to display a quirky affinity for a particular type of beverage. This will come across rather strongly over the course of the program -- which means the chosen product could get a lot of air time. It turns out that someone on the crew knows someone who works for that beverage. The production people approach the beverage company folks with a proposal and a deal is made; in exchange for the airtime, the cast and crew are provided with an ample supply of the beverage at work. Example: the movie Koi Mil Gaya where the lead actor drinks a lot of Bournvita. Sometimes, a gift of the product isn't an appropriate form of compensation, so money powers the deal. Imagine that the marketing team at Tag Heuer has heard about this project and feels that, given the star power of the actor playing lead, this project would be a great vehicle for showcasing its product. Someone from Tag Heuer approaches the set dresser with a financially lucrative proposal. Eventually, they come to an agreement and the wristwatch casually appears in several scenes.
Review of Literature
Research Paper Topic: Cross-Cultural Generalizability Study of Consumers’Acceptance of Product Placements in Movies. Author: Martin Eisend Pros: The study shows that product placement acceptability of ethically charged/controversial products is generalizable over different cultures, but not product placement acceptability of neutral products. The universe score shows that attitudes towards product placement for ethically charged/controversial products can be described as “indifferent” (in between “acceptable” and “unacceptable”) consistently over all countries, while neutral products are highly accepted, though the acceptance varies from country to country. The results hold for males and females and are independent of changing product placement acceptance over the years. The findings support cross-cultural convergence of consumer perceptions for problematic marketing and divergence for other issues. Cons: This study is useful from the perspective where a marketer wishes to enter a culturally different market, such as entering a different country altogether. This study however, does not take into account how within a country, a marketer can place a brand in movies so as to gain maximum brand recall. This is something that we have taken up in our study. ___________________________________________________________________________ Article Topic: Cinema Screen Advertising: An Old Technology With New Promise For Consumer Marketing Authors: Bruce A. Austin Journal: Journal of consumer marketing Year : 1986 Pros: This article identifies that the concentration levels of the audience are relatively high in a cinema hall so using motion picture advertising shall be an effective way of generating brand recall. Cons: Though this article has identified the importance of the environment of a cinema hall in enhancing brand recall for a product, it ignores the subtlety involved in brand placement in a movie scene, where the concentration levels of audience is bound to be much higher. Motion picture advertising prior to a movie or in an interval may not be very effective as the viewers are trying to either settle down or get snacks for themselves during that period.
Article Topic: TV advertising is dying, and PVRs(Personal Video Recorders) are the culprit. Authors: HARRIS, JIM
Source: Backbone; Apr/May2009 Pros: This article identifies the need of product placement in TV programmes as people in the USA are moving towards the use of Personal Video Recorders so as to skip the advertisements. So, TV serials like American Idol show the judges drinking coke, which is actually product placement for coke. Cons: This article does not delve into the details of product placements, such as what kind of product placement is more effective, whether there is any kind of dependency between the gender/age of a viewer and brand recall etc. This is something that we have taken up in our research. Research Paper Topic: Is Effective Product Placement in Movies?: A Cross-Cultural Study Between French and Spanish Consumers. Authors: Jose Torrano, Technical University of Cartagena, Spain Enrique Flores, Technical University of Cartagena, Spain Pros: This study evaluates the effectiveness of a product placement process among the viewers in two different countries in relation to preconceived notions about a brand. This study determines whether outcomes of product placement are country specific. Cons: This article does not delve into the details of product placements, such as what kind of product placement is more effective, whether there is any kind of dependency between the gender/age of a viewer and brand recall etc. This is something that we have taken up in our research. Research Paper Topic: Product Placement in Bollywood Movies Authors: Subhadip Roy, Asst. Professor, ICFAI Institute for Management Teachers, Hyderabad. Saurabh Bhattacharya, Research Scholar ICFAI Institute for Management Teachers, Hyderabad. Pros: This research paper enumerates the then latest Bollywood Movies and the products been placed in them. It also identifies that the modes used for product placement in such movies were both verbal and visual. products ranging from low involvement fast moving consumer goods (FMCG) to high involvement products such as automobiles are being placed in movies. Cons: The paper does not evaluate any dependency between the various types of product placement, brand recall and demography of the viewers.
Research Paper Topic: Product Placements- The Impact of Placement Type and Repetition on Attitude Author: Pamela Miles Homer Pros: This research paper evaluates the positive or negative impact of type of product placement, categorized as subtle or prominent, and repetition of the brand in a movie. This is highly useful for a marketer as he can evaluate how he can place his brand effectively without irritating the viewer. Cons: The definition of subtle or prominent placement type may be subjective, so a more clear categorization of product placements should be defined. Research Paper Topic: Integrating Placement And Audience Characteristics To Assess The Recall Of Product Placements In Film: Findings From A Field Study Authors: Etienne Bressoud, Jean-Marc Lehu, Cristel Antonia Russell Pros: This research incorporates into a single model characteristics of product placements in films and characteristics of the consumers and their viewing environment to assess the memorability of the placements. Cons: The research consisted of conducting a survey on a focused group who were given DVDs of movies and their responses related to brand recall were noted the following day. This might have led to skewed responses as focused group already knew that it is going to be questioned upon the particular movie. So, the brand recall obtained with this experiment may be higher than under normal course. Research Paper Topic: Assessing The Value Of Product Placement From The Consumer's Perspective. Authors: Daugherty, Terry Gangadharbatla, Harsha Yeo Jung Kim, Logan, Kelty Pros: This research paper intends to expand the understanding of product placement by identifying whether consumers value this marketing communication tactic in a similar manner as advertising. An online survey administered to a sample of panel participants (n=1545) reported how informative, entertaining and irritating product placement is to them with the subsequent data used to test a proposed value model of product placement. Cons: This research captures consumer attitudes pertaining to product placement but does not focus on the effect of demography on brand recall resulting from product placement. Also,
this research considers product placement as a whole but doesn’t consider the various modes in which a product may be placed. Research paper Topic: A Comparison Of Consumers' Responses To Traditional Advertising And Product Placement Strategies: Implications For Advertisers. Authors: Daugherty, Terry Gangadharbatla, Harsha. Pros: This research paper compares the consumer attitude towards conventional advertising vs product placement. This can help a marketer to promote his product/service through the appropriate channel. Cons: This research captures consumer attitudes pertaining to product placement and advertising but does not focus on the effect of demography on brand recall resulting from product placement. Research Paper Topic: Product Placement as a Communication Tool: Role of Public Relation Firms Authors: Niklas Berglund and Erik Spets Supervisor: Manucher Ferhung Pros: The research paper elucidates the role of a public relations firm in product placement. A public relations firm is more well versed with how to communicate a brand more effectively than the firm that owns the brand and hence its role needs to be studied so as to gain competitive advantage. Cons: The study is limited to agents’ perspective of product placement procedure.
Research Gaps
The already conducted researches pertaining to product placement that we have studied have the following shortcomings: ? Most of them consider product placement as a whole and do not delve into the types of product placements. So they do not emphasize what kind of a product placement is generally used in movies. Even if the types of product placements are defined, they are vague in nature and how they are defined is largely subjective. Most of them do not try to find out the degree of association between the demography of the viewers and brand recall. Our research, therefore, intends to incorporate all the above which will enable a marketer to evaluate what products/services will be promoted effectively via the product placement mode in relation to the demography of the viewers.
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Objective of Study
The purpose of this study is to determine the effect of product placement in movies on brand recall and attitude towards those brands. A careful review of the research purpose led to the development of following research objectives: (1) To identify which of the following product placement has the best brand recall: (a) Implicit visual: Brand is shown without verbal reference to brand name / benefits / usage by actor/actress (b) Implicit audio: Brand is shown without visual reference to brand name but brand name or benefits or usage by actor/actress is verbally communicated (c) Explicit: Brand is used in scene with high plot connection due to character usage but without audio support (d) Integrated explicit: benefits and attributes of brand/product are mentioned by actor/actress with both audio and visual presentation and plot connection (2) To identify any relationship between brand recall and how recently the movie was seen (3) To identify any relationship between brand recall and perceived movie rating (4) To identify any relationship between brand recall and medium for watching movie (5) To identify any relationship between brand recall and age group (6) To identify any relationship between brand recall and gender (7) To identify any relationship between brand recall and intention to use/buy
Research Questions
(1) Which type of product placement in movies results in the best brand recall? (2) Is there any relationship between how recently a movie is seen and the extent of brand recall associated with a product placement in that movie? (3) Is there any relationship between the rating of a movie and the extent of brand recall associated with a product placement in that movie? (4) Is there a relationship between the medium of watching movie and the extent of brand recall associated with a product placement in that movie? (5) Is there a relationship between the age-group of movie viewer and the extent of brand recall associated with a product placement in that movie? (6) Is there a relationship between the gender of movie viewer and the extent of brand recall associated with a product placement in that movie? (7) Is there any relationship between brand recall associated with a product placement in that movie and the intention of the movie viewer to buy or use that product?
Research Hypothesis
(1) The different types of product placements result in equal brand recall (2) There is no significant relationship between how recently a movie is seen and the extent of brand recall associated with a product placement in that movie
(3) There is no significant relationship between the rating of a movie and the extent of brand recall associated with a product placement in that movie (4) There is no significant relationship between the medium of watching movie and the extent of brand recall associated with a product placement in that movie (5) There is no significant relationship between the age-group of movie viewer and the extent of brand recall associated with a product placement in that movie (6) There is no significant relationship between the gender of movie viewer and the extent of brand recall associated with a product placement in that movie (7) There is no significant relationship between brand recall associated with a product placement in that movie and the intention of the movie viewer to buy or use that product
Methodology
Research Design
The research is both descriptive and causal in nature. The survey research method is our basic research design. Each respondent was administered a survey questionnaire either in softcopy or in hardcopy. The online survey was hosted on www.surveygizmo.com and administered to respondents through email. The offline version was administered to respondents personally in shopping malls, multiplexes and cinema halls. The respondent was generally expected to respond to the survey questions in 5-7 minutes. The question(s) design is as following: Question In which language do you prefer to watch a movie? What kind of movies do you like? (Rank in Order of your Preference Most - At the Top, Least - At the Bottom) What is the Movie Name that you watched most recently? Have you seen any brand in this movie? Mention the brand name you saw. Which among the above brands do you use/want to use? Why did you watch this movie? On the whole, how do you rate the movie? When did you watch this movie? Had you previously seen this movie? Where did you watch the movie? Did anyone accompany you when you were watching the movie? If the answer to the above question is “Yes”, then how many people accompanied you? Where did you saw the brand on the screen? If you watched movie on TV/Laptop, did you watch entire Type of scale/question Nominal Ordinal Open ended Nominal (dichotomous) Open ended Category Nominal Category Nominal Nominal Nominal Nominal (dichotomous) Nominal Nominal Nominal
movie in one go or in parts? Your Age Gender Your Occupation
Nominal Nominal Nominal
Sample Design
A survey of approximately 300 individuals located in different parts of India provides the database for this study. Target population comprised of respondents in an age-group of 12 to 65.The sample was selected on a probability basis using simple random sampling. However our survey was affected due to non-response error as only 130 respondents participated in the survey. We categorise responses affected with response bias due to deliberate falsification unconscious misrepresentation. These responses were not included for analyses in our research.
Data Gathering
Data gathering was done through online survey questionnaire designed and hosted by:
Research analyst Rahul Pangasa (09FT-113) Jasneet Singh Wahan(09FT-066)
Ravit Madan (09FT-117)
It was administered to respondents in different parts of the country. The offline survey questionnaire is same as the online version but printed on regular A4 sheets. The fieldworkers (our project members) will conduct this survey in shopping malls, multiplexes and cinema halls. The following team members will be assigned as fieldworkers in different parts of Delhi/NCR:
Field workers Ravit Madan(09FT-117) Jasneet Singh Wahan(09FT-066) Rahul Pangasa(09FT-113) Sameer Mahajan(09FT-078) Location Ghaziabad Delhi NOIDA Gurgaon
Data Processing and Analysis
For data processing and analysis standard editing and coding procedures were used. Simple tabulation and cross tabulations were used to analyze the data. This was done using MS Excel pivot tables. Further the research hypothesis was tested and conclusions drawn by doing the
chi-square test of independence/cross tabulation using SPSS 17. For data coding, editing and results of chi-square tests please refer to Annexure A – SPSS data sheets. The analyses is as following: (1) The explicit product placement results in highest brand recall (2) Chi square test of independence shows that p < 0.05 therefore our null hypothesis below stands rejected: There is no significant relationship between how recently the movie is seen and the extent of brand recall associated with the type of product placement in that movie (3) Chi square test of independence shows that p > 0.05 therefore our null hypothesis below is accepted: There is no significant relationship between the rating of a movie and the extent of brand recall associated with the type of product placement in that movie (4) Chi square test of independence shows that p < 0.05 therefore our null hypothesis below stands rejected: There is no significant relationship between the medium of watching movie and the extent of brand recall associated with the type of product placement in that movie (5) Chi square test of independence shows that p < 0.05 therefore our null hypothesis below stands rejected: There is no significant relationship between the age-group of movie viewer and the extent of brand recall associated with the type of product placement in that movie (6) Chi square test of independence shows that p > 0.05 therefore our null hypothesis below is accepted: There is no significant relationship between the gender of movie viewer and the extent of brand recall associated with the type of product placement in that movie (7) Chi square test of independence shows that p < 0.05 therefore our null hypothesis below stands rejected: There is no significant relationship between brand recall associated with the type of product placement in that movie and the intention of the movie viewer to buy or use that product
Report Preparation
A written report was prepared and an audio visual presentation in MS Power Point was made and presented by the group for submission towards the partial fulfilment of requirements in Business Research Methodology.
Budget
Cost of printing the questionnaires = 150 INR
Cost of pens (30 Pens @ INR 9) Cost of Miscellaneous Stationary
= 270 INR = 100 INR
Fuel Cost Incurred in travel for conducting survey (4 Trips @ INR 175) = 700 INR _________________ Total Cost Incurred for Conducting Survey = 1220 INR
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Time Schedule
Sno 1 Stage in Research Process Formulation of research purpose & objectives Research Design & Sample Design Data Gathering Data Processing and Analysis Report Preparation Start Date November 1, 2009 End Date November 9, 2009
2. 3. 4. 5.
November 10, 2009 November 26, 2009 December 6, 2009 December 7, 2009
November 25, 2009 December 6, 2009 December 7, 2009 December 8, 2009
Discussion, observations and variables selected for study
Brand Identification
Brand Identification
Responses for brand identification Responses for no brand identification
31% 69%
Brand recall distribution
Brand Recall Distribution
Explicit Implicit Audio 12% 2% 7% Implicit Video Integrated Explicit
79%
Brand recall and how recently movie was seen
Time
During the previous week More than week and less than a month Older Today Yesterday
Explicit 11 3 6 49 2 71
Implicit Audio 0 0 0 11 0 11
Implicit Video 0 1 0 0 1 2
Integrated Explicit 1 4 1 0 0 6
Grand Total 12 8 7 60 3 90
Grand Total
?
Observations show that brand recall is directly proportional to how recently a movie was seen
Brand recall and perceived movie rating
Excellent Very Good Good Bad Very Bad Pathetic 5 4 3 2 1 0
Implicit Audio 1 0 0 4 5 1 11 Implicit Video 0 0 0 2 0 0 2 Integrated Explicit 0 0 0 3 1 2 6 Grand Total 11 0 3 35 24 17 90
Movie Rating Explicit
Pathetic Very Bad Bad Good Very Good Excellent
Grand Total
10 0 3 26 18 14 71
?
The brand recall for movies perceived as Good, Very Good and Excellent is more than the brand recall for bad, very bad and Pathetic movies
?
In the disliked category brand placement in pathetic movies generates a much greater brand recall than in bad and very bad movies ?
Brand recall and movie media
A respondent may have seen the movie through multiple movie media
Explicit 61 Implicit Audio 11 Implicit Video 2 Integrated Explicit 1 Grand Total 75 13 5 0 Movie media
Multiplex/Cinema Hall TV Laptop Projector Screen
?
7 0 0 6 4 0 0 1 0 0 0 0 Brand recall is the highest for movies seen in multiplex and cinema halls
Brand recall and age group
Age Group Implicit Implicit Audio Video 7 3 0 12-21 53 6 2 22-31 8 1 0 32-41 0 1 0 42-51 3 0 0 52-65 71 11 2 Grand Total ? Brand recall is the highest in age group of 22-31 Explicit Integrated Explicit 0 1 2 2 1 6 Grand Total 10 62 11 3 4 90
Brand recall and gender
Gender
Female Male
Explicit 32 39 71
Grand Total
Implicit Audio 5 6 11
Implicit Video 0 2 2
Integrated Explicit 3 3 6
Grand Total 40 50 90
?
From the above data we do not see an observable pattern with respect to a comparison between brand recall through product placement in movies of males and females respectively
Brand recall and inclination to use/buy
Inclination to buy/use
Yes No
Explicit 61 8
Implicit Audio 11 0
Implicit Video 2 0
Integrated Explicit 1 7
Grand Total 75 15
?
People have an inclination to use or buy the product/brand communicated through brand placement in movies
There is no policy implication associated with our research
Conclusions
(1) The different types of product placements result in different brand recall. Explicit product placements result in the highest brand recall. (2) There is a significant relationship between how recently a movie is seen and the extent of brand recall associated with the type of product placement in that movie. Most recent movies are associated with best brand recall (3) There is no significant relationship between the rating of a movie and the extent of brand recall associated with the type of product placement in that movie. However if we combine the categories good, very good and excellent then they have a better recall as compared to the category combining bad, very bad and pathetic movies. (4) There is a significant relationship between the medium of watching movie and the extent of brand recall associated with the type of product placement in that movie. Movies viewed in a multiplex or a Cinema hall have the highest brand recall (5) There is a significant relationship between the age-group of movie viewer and the extent of brand recall associated with the type of product placement in that movie. The age group of 22-31 has the highest brand recall. (6) There is no significant relationship between the gender of movie viewer and the extent of brand recall associated with the type of product placements in that movie. (7) There is a significant relationship between brand recall associated with the type of product placement in a movie and the intention of the movie viewer to buy or use that product. Viewers generally prefer to buy or use a product which is placed in a movie.
Future Work
We also wanted to study the following areas from industries point of view to build a 360 degrees perspective on product placement in movies and brand recall. However we could not do so because of time and resource constraints as it required holding personal interviews with Film directors, film producers, actors, media partners and brand managers. Some of these areas which can be explored in future study on this subject are: (1) How the brand gets associated with a particular movie and at what stage the involvement begins? (2) What are the channels through which brands negotiate their placement in movies? (3) The importance and role of media agencies in product placement (4) How much revenue does product placement generate at various stages of the value chain and how is it measured? (5) Study of cross cultural parameters with respect to product placement in movies.
Bibliography
? Balasubramanian, S. K. (1994), “Beyond Advertising and Publicity: Hybrid Messages and Public Policy issues”, Journal of Advertising, 23(4), pp 29-47 Business World, May 2006. Subhadip Roy, Saurabh Bhattacharya “Product placement in Movies “ Journal of Marketing Trends. Martin Eisend, “A Cross-Cultural Generalizability Study of Consumers’Acceptance of Product Placements in Movies” Journal of current issues and research in advertising, Spring 2009 Jose Torrano and Enrique Flores, Is effective product placement in movies? : A cross cultural study between French and Spanish Consumers, Advances in Consumer Research – volume 36 Pamela Miles Homer, “The impact of placement type and repetition on customers”, The Journal of advertising, Fall 2009 Michael A. Wiles and Anna Danielova ,“The worth of product placement in successful films: An event study analysis” , Journal of Marketing,2009
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Websites
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www.domain-b.com www.brandchannel.com www.businessofcinema.com www.agencyfaqs.com www.exchange4media.com www.mediae2e.com
Annexure A
Questionnaire
Survey Questionnaire
Survey Data Sheet
Survey Report
SPSS Data and Result Sheets
doc_877191582.docx