2008 Oxford Business &Economics Conference Program
ISBN : 978-0-9742114-7-3
Predicting the effectiveness of product placement: a study on the execution strategy
and impacts on hierarch of effects
Stella So Lai-man,
Susanna Kwok Wai-yee
Department of Marketing
The Chinese University of Hong Kong
Abstract
The rapid increase in the volume and variety of product placement approaches
nowadays has marked the importance of product placement techniques when put into
practice.
This paper reports the different categories of product placements techniques
known as implicit, explicit, integrated and non-integrated product placements in the context
of TV soap opera programmes in Hong Kong.
Furthermore, this study examines the
hierarchy of effects of the different categories of product placement and suggests important
implications for promotional practice and future research.
Introduction
As the consumer market has becoming more fragmented, marketers in recent decade
turned to a variety of communication channels in their efforts to reach customers. One of
the emerging channels that have been exploited frequently in recent years is product
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placement. Product placement is not a new concept in the field of promotion. Schudson
(1984) describes the receptivity of Hollywood to influence attempts by cigarette firms in
1920s as a results from actors and actresses smoking in the movies.
In recent years,
product placement has been more organized to enhance product communications and which
attracted the attention from academics (Babin and Carder, 1996; DeLorme and Reid, 1999;
Gould, Gupta, and Grabner-Krauter, 2000; Gupta and Gould, 1997; Karrh, 1998; Nebenzahl
and Secunda, 1993; Ong and Meri, 1994).
Product placement has been defined as “a paid product message aimed at influence
movie or TV audiences via the planned and unobtrusive entry of a branded product into the
movie or TV programme” (Balasubramanian, 1994). There are several key advantages of
product placement, which ranges from cost-effectiveness to positive audience perception and
brand association (Delorme & Reid, 1999; Gould, Gupta, & Grabner-Krauter, 2000).
Comparing with traditional advertising messages, the product placement sponsor’s identity is
kept hidden and this type of hybrid messages enable the sponsor to control the message
content, and in the meantime disguise the commercial origins and appear believable. In
addition, brand placements often involve an implicit endorsement by the celebrity using the
brand which would have influences on attitudes toward the brand (Avery & Ferraro, 2000),
such as the influence of James Bond on BMW and Spider-Man on Dr.Pepper.
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Effectiveness of Product Placement
Most of the past research studies of product placement attempt to measure the
effectiveness, especially at effects on brand recall, recognition, and attitudes (Babin and
Carder 1996; Gupta, Balasubramanian and Klassen 2000; Gupta and Lord 1998; Karrh 1994;
Ong and Meri 1994; Vollmers and Mizerski 1994).
Overall speaking, results from the past
research found respondents to have positive view towards product placement in terms of
higher recall/ recognition, positive attitudes and preference ( D’Astous & Chartier, 2000;
Karrh 1994; Saberwahl et al. 1994; DeLorme et al. 1994 and Nebenzahl & Secunda 1993;
Bhatnagar, Aksoy, & Malkoc 2002). However, some studies on the effects of product
placement yielded mixed results with respect to the recall or recognition of brands placed.
Research studies found that recall of placed brands was weak and perceptions differ by
product class (Ong and Meri, 1994; Gupta and Gould, 1997). This has to do with the
ethical concerns about product placements as well as concerns about specific products such
as alcohol, guns and tobacco. Furthermore, according to Ong & Meri’s study in 1994, 77%
of viewers recalled seeing Coke while watching the movie Falling Down, but only 18%
recalled seeing Hamm’s Beer in the movie. The mixed results are due to the failure to
recognize the multidimensional nature of product placement, such as the effectiveness of
product placement of different modes (visual, audio) (Gupta and Lord 1998); the
effectiveness of product placement of the type of placement (prop or more integral to the
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story) (Brennen, Dubas, and Babin, 1999); the effectiveness as a function of the nature of
measurements (explicit or implicit) (Law and Braun, 2000; Alain d’Astous and Nathalie
Seguin 1999; Tiwsakul, Hackley & Szmigin 2005); the ethical concerns of product
placements ( Gupta and Gould 1997) etc.
According to a recent research work, product placement strategies can be classified into
three main types: implicit product placement, integrated explicit product placement and
non-integrated explicit product placement (Tiwsakul, Hackley & Szmigin 2005).
In the
study, implicit product placement refers to the placement of a branded product within a
television programme without formally expressed. These products do not play an active role
in the programme and often seen on shelf at the background. On the other hand, a branded
product that is formally expressed within a television programme is defined as an integrated
explicit product placement which plays an active role, e.g. the actors or actresses consuming
the products.
Non-integrated explicit product placement means that a branded product
which is formally expressed (the sponsor’s name is presented) but it is not integrated within
the contents of the programme.
Interestingly, results indicated that the implicit product
placement gets the most negative consumer evaluation, in other words, consumers prefer the
more explicit product placement. The implicit placement might be perceived as less ethical
because of the association of subliminal effects.
The level of integration of a brand into the editorial content of a program has significant
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effects on brand image and effectiveness. The ways that product placement are conveyed
also has a crucial effect on the consumers as people learned through “formed associations”.
Bandura (1977) suggested that product demonstrations in product placements help people to
learn how to use products quickly. Consumers shape self-relevant information through an
“association principle” linking their own self concept and identity with the desirable images
in the programme.
The viewer will then establish association with the personality in the
programme, and then the brand. As a result, consumers will perceive the demonstrated
brands or products as more natural than those direct and manipulative selling messages.
A
transformational linkage is then developed between the programmes or movies and the
product placed (Delmore, Reid and Zimmer 1994; Russell 1998). Ultimately, this will
increase the adoption likelihood for placed products and services. Affective reactions to
marketing stimuli are important to our understanding of consumers’ attitudes when doing
advertising or promotion, and therefore, in this study we are attempting to investigate the
effects on consumers’ attitudes and behaviour in relations to exposures of explicit and
integrated versus implicit and non-integrated stimuli. In addition, we will also measure the
relationship between consumers’ attitudes and perceived value toward product placement
and the hierarchy of effects (cognitions, affection and purchase intention) on the brand
placed.
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Outcome variables of product placement
Past literature of product placement is relatively sparse; and most studies focus on the
mental stages of consumers, such as awareness/understanding, interest/liking, and purchase
intention (Barry 1987; Barry and Howard 1990). In a model developed by Balasubramanian,
Karrh and Patwardhan (2006), the outcomes discussed product placement literature can be
divided into cognitive, affective and conative classes.
(a) Cognitive outcome
So far, most placement studies are preoccupied with cognitive effects which measure
advertising effectiveness, such as recognition, salience, or recall.
Comparing to
advertisement, placements are better integrated with editorial content than ads and the
impact of program-induced mood on message processing depends on the valence of mood
and the degree to which the placement is congruent with editorial content (Aylesworth and
MacKenzie 1998). Therefore, the cognitive outcomes for a brand in a product placement
would be more effective if the placements are congruent and integrated to the editorial.
However, studies show that placements only generate short-term memory effects that
consumers are unable to retain the brand memory for long term (Babin and Carder 1996;
Baker and Crawford 1995; Gupta and Lord 1998; Johnstone and Dodd2000; Karrh 1994;
Nelson 2002; Sabherwal, Pokrywczynski, and Griffin 1994).
Studies have found that
viewers may retain long term memories of certain placements, but only for those placements
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that prompted more conscious processing during exposure (Krugman 1965; Synott 1991;
DeLorme and Reid 1999).
Therefore, cognitive outcomes are more appropriate for
placements that elicit moderate to high levels of conscious processing.
In other words,
placements messages which are subliminal and prompt unconscious processing are not
effective in influencing consumers’ cognitive response. This argument is in line with the
past research that subliminal embeds do not influence measures of cognitive processing
(Aylesworth, Goodstein and Kalra 1999). Therefore, we predict the cognitive response is not
positively related to non-integrated product placements with subliminal messages.
Hypotheses One
H1: The effect on cognition is higher when product placement (pp) is integrated and
explicit than when pp is non-integrated and implicit
(b) Affective outcome
Advertising professionals are not just interested in the cognitive responses, traditional
measures of advertising effectiveness, there are increasing number of studies focusing on the
affective responses or feelings generated from advertising or product placements
(Aylesworth, Goodstein and Kalra 1999). These affective reactions or feelings not just
influencing attitudes toward advertisements, but also have direct impact on brand
perceptions. Many of these research work suggested that subliminal messages have effects
on affective reactions to the message (Moore 1982; Key 1973; Edwards 1990; Edell and
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Burke 1987); low to moderate levels of conscious processing also produce impact of a
placement on brand attitudes (MacInnis and Jaworski 1989; Alba and Hutchison 1987;
Russell (2002)).
An interesting research finding argued that brand memory and brand
image are not related, i.e. brand image becomes more positive regardless of viewers’
memory of the brand placements. It is further pointed out that the integration of a brand into
the editorial content of a programme has a significant effect on brand image (Reijmersdal,
Neijens and Smit 2007).
People tend to develop affective reactions toward the product and
brands in moods and feelings as the more they are exposed to the brand placed.
In this
study, we predict the affective response is positively related to integrated product placements
with explicit messages.
Hypothesis Two
H2: The effect on affection is higher when pp is integrated and explicit than when pp is
non-integrated and implicit.
(c) Conative outcome
Despite the evidence that subliminal embedded messages may affect feelings and affective
reactions generated by product placements, there is no convincing evidence showing that
subliminal messages affect behaviour which is the ultimate goal of advertising (Moore 1982;
Trappey 1996; Aylesworth, Goodstein and Kalra 1999). Purchasing behaviour is considered
to be too complex which involves purchase intentions and product choice that subliminal
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messages may not be effective (Caccavale, Wanty, and Edell 1982; Moore 1982, Trappey
1996).
Therefore, we predict the conative response is not positively related to
non-integrated product placements with implicit messages.
Hypothesis Three
H3: The effect on purchase intention is higher when pp is integrated and explicit than
when pp is non-integrated and implicit
Attitudes and perceptions toward placements
The volume and sophistication of product placements are growing impressively and
rapidly. Studies have found that product placements receive more acceptability, higher
evaluations and affective outcomes than advertising as placements are perceived to be less
intrusive (Gupta & Reid 1997; Nebenzhal & Secunda 1993; Paradun & McKee 1996;
Hackley 2003; Karrh, McKee & Pardun 2003).
Attitudes toward placements, i.e. the
acceptability, involvements and perceptions of audiences, are important influential elements
for the effectiveness of placements. However, there is a lack of literature on the attitudes
towards product placement and its effectiveness.
Most of the past research studies on the
effectiveness of product placement attitudes focused on the ethical acceptability (Nebenzahl
and Secunda 1993); gender influences (Gould, Gupta, and Grabner-Krauter 2000; Gupta and
Gould 1997; McKechnie and Zhou 2003); cultural influences (Karrh, Frith, and Callison
2001; McKechnie and Zhou 2003) and viewers’ involvement with the programme
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(Bhatnagar, Aksoy, and Malkoc 2004). Only a few research studies have examined the
effects of attitudes and perceptions toward product placements (Morton and Friedman, 2002).
Therefore, in this study we will measure correlations between the attitudes and the hierarchy
of effects, i.e. the effects on cognition, affections and intention to purchase. A research
study conducted by Polly and Mittal (1993) investigated the overall global attitudes toward
advertising and had discovered the attitudes were depicted as a function of a series of beliefs
reflecting the effects of seven factors (three personal factors and four societal factors).
Personal factors include product information, social role and image, and hedonic/pleasure
while the societal effects include good for economy, materialism, value corruption, and
falsity/ no sense.
In this study, we will modify and simplify the Polly and Mittal model to
develop a 5 factors model in explaining the attitudes and perceptions toward product
placements. The five factors of consumer attitudes and perceptions are:
1.
product placements are entertaining
2. product placements are acceptable
3.
product placements are credible
4.
product placements are informative
5.
product placements give brand confidence
We believe that consumers who rank high in these five factors of attitudes and
perception will result in higher product placements hierarchy-of-effects (HoE). Therefore,
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we predict that:
Hypothesis Four
H4a: Positive attitudes toward product placement will result in greater understanding of
the product placed
H4b: Positive attitudes toward product placement will result in greater affection for the
product placed
H4c: Positive attitudes toward product placement will result in higher purchase
intention of the product placed.
Methodology
(a) experimental design
A 20-minutes video tape featuring two Chinese TV soap operas with two different product
placement clips and regular commercials are recorded. In order to avoid subjects who may
have been suspicious of the true purpose of the experiment and biased the results, we have
inserted regular commercials in-between the clips of product placement. A famous actor and
a famous actress were featured in the two product placement clips. The two product
placement clips are
1) soya sauce – implicit, non-integrated execution
2) 3G mobile phone (3G) – explicit, integrated execution
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Prior to the experiment and survey, a pretest was conducted. A total of 37 respondents were
selected to view the clips and answer a well-constructed questionnaire. In addition, a
manipulative test was also conducted to ensure that no biased responses caused by celebrity
preference. From the results, it is clear that there is no significant difference between the
preferences of the two celebrities (Actress Sit and Actor Fong) and which confirmed that the
celebrity effects would not affect the subjects’ opinions in the experiment (Table 1).
Table 1: Manipulative Test on Celebrity Difference
Mean
S.D.
Overall preference towards the
Sit
0.00
1.00
actor/actress
Fong
0.00
1.00
t
Sig.
0.00
0.857
(b) sample
A good cross section of 125 subjects, aged from 18 to 55 from the population is invited to
view the tape in a classroom setting without being informed of the research objectives. After
viewing the tape, participants are then asked to answer a well-constructed questionnaire that
is distributed to them. The questionnaire is organized around the hierarchy-of-effects model
of three broad categories: cognition (recall); affect (attitudes); and conation (purchase
intention) on the product placement clips. Participants are also asked on their general
attitudes towards product placement developed based on the “5-Factor model”.
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(c) questionnaire design
The questionnaire is divided into three different sections. Section I is product placement
specific questions, first on soya sauce and then on 3G, with 5-point scale with “5” for
strongly agree and “1” for strongly disagree, asking participants whether the product
placement clip provides them with information and increase their product knowledge, helps
to generate positive affection on the related brand, and intensifies their purchase intention.
Section II is also 5-point scale questions on general attitudes towards product placement
developed based on the “5-Factor model”, including ‘entertaining’, ‘acceptable’, ‘credible’,
‘informative’ and ‘develop brand confidence’. Section III is demographic questions on
gender, age and monthly personal income.
Test Results
The research data indicates that the execution style has tremendous impact on product
placement recall rate. For non-integrated and implicit execution (soya sauce), the recall rate is
relatively low, only 35 out of 125 respondents (28%) reported that they have seen the product
in the tape. Whereas, 88 out of 125 respondents (70%) reported that they have seen the mobile
phone that is explicitly and integrated in the soap opera with the celebrity using it.
Based on respondents who reported to have recalled both soya sauce and 3G product
placements in the video clip (N=35), Table 2 indicates that “explicit/integrated execution”
can achieve greater influence and significant difference on the viewers all along the
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hierarchy-of-effects, for cognition (t = -4.77, p<0.01), for affection (t = -5.11, p<0.01), and
for conative (t = -3.82, p<0.01). Hence, hypotheses one to three are supported. However, the
effects on respondents wear down gradually from cognition to conation, the result is
consistent will previous findings
Table 2: Hierarchy-of-effects (N=35)
Mean
t
-4.77***
Understand
Implicit/non-integrated execution (soya sauce)
2.49
Explicit/integrated execution (3G)
3.34
-5.11***
Positive Attitude
Implicit/non-integrated execution (soya sauce)
2.23
Explicit/integrated execution (3G)
3.20
-3.82***
Purchase Intention
Implicit/non-integrated execution (soya sauce)
2.40
Explicit/integrated execution (3G)
3.03
*p<.10; **p<.05; ***p<.01
Previous studies rarely correlate respondents’ attitude towards product placement as a
predictor, execution style with results based on hierarchy-of-effects. In this study, we
hypothesize that those with positive attitudes towards product placement as a promotion tool
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based on the “5-factor model” generate greater understanding, affection and higher purchase
intention. The results show that even people exhibit the same kind of attitude towards
product placement on the five different dimensions, namely entertaining, informative,
credibility, acceptance and brand confidence, their responses are still highly associated and
affected by execution style. A regression analysis was employed to test the hypotheses 4a, 4b
and 4c with the product placements HoE as the dependent variables and the 5 factors of
consumer attitudes ( entertaining, acceptable, credible, informative and brand confident)
toward product placements as independent variables.
Table 3 summarizes that for explicit
and integrated execution (F varied from 4.6 for cognition outcome, 3.7 for affection outcome
to 3.7 for conative outcome, all significant at 0.01 level), as for implicit/non-integrated
execution (F varied from 2.33 for cognition, 0.88 for affection and 1.02 for conative, only
cognition is significant at 0.10 level).
Conclusively, hypothesis 4a to 4c can only be partially supported as explicit and
integrated execution manages to generate more predictive results than implicit and
non-integrated execution in spite of people’s general attitudes towards product placement.
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Table 3: “5-factors Model” correlates with HoE
Outcome
Explicit/Integrated
Implicit/Non-integrated
3G
Soya Sauce
R²
F
R²
F
Cognition
0.21
4.6***
0.23
2.33*
Affection
0.17
3.7***
0.10
0.88
Conative
0.17
3.7***
0.11
1.02
*p<.10; **p<.05; ***p<.01
Discussion and conclusion
The current study examines the effect of product placement on people’s
hierarchy-of-effect, namely cognitive, affective and conative outcomes. The results indicated
that most crucial factor for product placement effectiveness depends on the execution styles,
explicit and integrated, managed to be more effective and influential on people’s responses.
The ‘5-factor model’ on people’s general attitudes towards product placement, however,
cannot significantly predict a correlation with the hierarchy-of-effect in this study. As an
exploratory study it is interesting to note that external factor such as promotion execution
style is more predictive than the internal factor such as general attitudes towards product
placement (Figure 1), more in-depth study should be conducted on this aspect.
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Figure 1: 5-Factor Model as predictors for Hierarchy-of-effects
Predictors
Execution Style
Results
(Hierarchy-of-effects)
(√) Cognition
Entertaining
Implicit/Non-integrated
Credible
(X) Affection
(X) Conative
Informative
Acceptable
Explicit/Integrated
(√) Cognition
Develop brand
(√) Affection
Confidence
(√) Conative
However, the number of respondents who managed to recall both implicit and explicit
execution is relatively small (N=35) in this study, a larger valid sample size definitely helps
to portray a more concrete relationships in-between. Further, people’s product knowledge
and involvement for individual product is not considered in this study, both can be important
independent variables that, in turn, affect the hierarchy-of- effects. With limited promotion
budget and the inclination of using product placement to replace advertising, it is also
important to investigate people’s level of skepticism on advertising or product placement and
the outcome effectiveness. Lastly, the difference and similarity in-between western and
eastern culture on the ‘5-factor model’ correlated with the ‘hierarchy-of-effect’ should also
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be studied.
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