CBAPTER2

REVIEW- OF LITERATURE

Chapter 2

2.1

SCOPE OF REVIEW

With meteoric rise in product placement since the successful product

placement of Reese's Pieces candy in Hollywood movie Extra Terrestial

[1982], academicians and researchers began to take active interest in

this form of marketing, fully understanding its commercial impact

(Caro, 1996).

A stream of research on product placement in movies and TV serials

appeared since the increase in its popularity. These studies discussed

product placement in movies and TV from various perspectives. This

chapter reviews these studies which fall under one or more of the

following perspectives:

>- Product placement as marketing communication tool

>- Content analyses of product placement

>- Qualitative studies of product placement

>- Product placement practitioners' beliefs

> Effects of product placement exposure

>- Ethical considerations of product placement

>- Cross-Cultural Studies in Product Placement

2.2

THEORETICAL BACKGROUND

Modern marketers have adopted the Holistic Marketing concept which

recognizes that everything matters with marketing: the consumer.

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employees, other companies, competition, as well as society as a whole.

Integrated marketing is one of the dimensions of holistic marketing,

which states that the marketer's task is to devise marketing activities and

assemble fully integrated marketing programs to create, communicate,

and deliver value for consumers (Kotler, Keller, Koshy & Jha, 2009).

The integrated marketing mix consists of the four Ps: Product - having the

product the buyer wants, Price - at the right price, Place - where the buyer

wants it, Promotion- letting the buyer know about it (Kotler, Keller, Koshy

& Jha, 2009). Modem marketing calls for much more importance of the

fourth P of Promotion. It is not sufficient to develop a good product, price it

attractively, and make it accessible. Companies must also communicate

with present and potential stakeholders, and the general public. For most

companies, the question is not whether to communicate, but rather what to

say, how to say it, to whom, and how often (Kotler, Keller, Koshy & Jha,

2009).

Marketing communication is the means by which firms attempt to inform,

persuade, and remind consumers - directly or indirectly - about the products

and brands that they sell; it represents the voice of the brand and is a means

to establish a dialogue and build relationships with consumers. Done right.

marketing communication can have a huge payoff (Kotler, Keller, Koshy &

Jha, 2009).

The crucial role of marketing communication has to be played in an

increasingly tough communication environment m recent times.

Communication gets harder and harder as more and more companies

clamor to grab an increasingly empowered consumer's divided attention.

Technology and other factors have profoundly changed the way

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communication is processed by consumers. Consumers themselves are

taking a more active role in the communication process and deciding what

they want to receive and how they want to communicate to others about the

products and services they use. To effectively reach and influence target

markets, marketers are creatively employing multiple forms of

communication.

The marketing communication mix consists of two major categories: mass

communication and personal communication (Kotler, Keller, Koshy & Jha,

2009). Although there has been an enormous increase in the use of personal

communication by marketers in recent years, the fact remains that mass

media, if used correctly, can still dramatically improve the fortunes of a

brand or company. Marketers are trying to come to grips with how to best

use mass media in the new communication environment.

Mass communication uses various communication tools like Advertising,

Sales Promotions, Events and Experiences, and Public Relations (Kotler,

2009). One tool that has not been mentioned in the above list but is more

common according to several authors IS Product Placement

(Balasubramanian, 1994; Gupta, Balasubramanian & Klassen, 2000).

2.3

PRODUCT PLACEMENT AS MARKETING

COMMUNICATION TOOL

In order to expose media audiences to product-related information, two

mass communication tools are often relied upon- advertising and publicity.

While advertising refers to communication that is paid for and which clearly

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identifies the message sponsor, publicity represents messages that are not

paid for, and which do not identify the sponsor (Cohen, 1988).

These defmitions yield an asymmetric structure of advantages and

disadvantages with respect to advertising and publicity, considering the two

basic elements of marketing communication - the message and its perceived

source.

With respect to the first element, the message, the sponsor has control over

its content and format in advertising which is a key advantage. But in case

of publicity such control is the media's prerogative, which is a key

disadvantage (Cohen, 1988).

The second element, the perceived source, is important because it directly

influences message credibility. Since publicity messages do not identify the

sponsor or the actual message source, audiences tend to perceive the media

as the legitimate source of any featured brand-related story. As a result,

publicity messages appear credible and objective, which is a key advantage.

In contrast, these desirable message qualities are less often associated with

advertising, given its obvious purpose of financial gain to the sponsor

(Schudson, 1984). Typically, advertising messages tend to evoke

widespread skepticism (Calfee & Ringold, 1988). This IS a key

disadvantage of advertising.

Viewed from the marketers' perspective, both advertising and publicity

have shortcomings. Neither advertising nor publicity provides the desirable

benefit-mix whereby the sponsor retains control over the message while the

audience perceives the message as credible. Product placement, another

distinct tool of marketing communication, promises this benefit mix.

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2.3.1

PRODUCT PLACEMENT: A COMBINATION OF ADVERTISING

AND PUBLICITY

Product placement is a combination of advertising and publicity, designed

to influence the audience by unobtrusively inserting branded products in

entertainment programs such that the viewer is unlikely to be aware of the

persuasive intent (Balasubramanian, 1994 ).

Balasubramanian (1994) defines product placement specifically with

respect to the media of movies and TV programs as a paid product message

aimed at influencing movie (or television) audiences' product beliefs and/or

behaviors favorably via the planned and unobtrusive entry of a branded

product into a movie (or television program).

According to Balasubramanian (1994), product placement is one type of

hybrid message; hybrid messages include all paid attempts to influence

audiences for commercial benefit using communications that project a non­

commercial character wherein audiences are likely to be unaware of the

commercial influence attempt and/or to process the content of such

communications differently than they process commercial messages.

Communication in this genre can be characterized as hybrid messages

because they creatively combine key elements from the definitions of

advertising and publicity (i.e., they are paid for and do not identify the

sponsor) such that their respective advantages are consolidated, and their

shortcomings are avoided. Because they are paid for, hybrid messages

provide a basis for the sponsor to control key message aspects such as its

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content and format; because they covertly or overtly disguise their

commercial origins, hybrid messages may appear believable.

As Balasubramanian (1994) noted, product placements are generally paid

for, just as advertising, but are not identified as paid persuasion efforts by

sponsors, which makes them similar to publicity. Therefore, the sponsor

gets the best of both the traditional forms of communication, i.e. advertising

and publicity. In spite of the sponsor having some limited control over the

communication (subject to editorial considerations of the movie or

television show), the communication is not usually identified explicitly as a

persuasion attempt by the audience.

The above discussion is pictorially depicted in Figure 2.

Fig 2. Product placement as combination of adverting and publicity

ADVERTISING PUBLICITY

- Advantage Advantage I• Control over message No identified

perceived source

Disadvantage Disadvantage Identified source

No control over message

PRODUCT PLACEMENT

.. Advantage ,.. Control over message

Advantage :.. No identified I"

perceived source

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2.3.2

PRODUCT PLACEMENT:

TRADITIONAL ADVERTISING

Chapter 2

A COMPARISON WITH

Traditional advertising in this context refers to TV commercial

advertisements which are telecast during program breaks, or commercial

advertisements which are shown in theatres before the beginning of the

movie or during intermission.

According to Nebenzahl and Jaffe (1998), product placements in movies

and TV serials can be contrasted with traditional advertising (and other

marketing communications) along two dimensions: (1) the extent to

which the sponsor of the message is disguised, that the message is a paid

advertisement is disguised, or both (2) the extent to which the persuasive

message is secondary to the main message of the communication.

In case of traditional advertising, the product sponsor is not disguised

and the persuasive effort by the sponsor is generally clear to the

audience. With respect to the second dimension, the advertising message

is the salient part of communication and not secondary to any other

message in traditional advertising. In contrast, a good product placement

is different from a traditional advertisement on both ofthese dimensions.

The placement of the product in a scene in a movie or TV serials is not

connected with the company as an explicit attempt to persuade, and the

brand is presented in the context of a story. Considering the second

dimension, the persuasive effort is generally secondary to the main

communication of the movie or television serial.

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Friestad and Wright's ( 1995) Persuasion Knowledge Model is relevant

to considerations of how product placements may differ from traditional

advertising. Persuasion knowledge is a set of interrelated beliefs

consumers hold related to persuasion attempts by marketers. These

beliefs focus on the perceived goals and tactics marketers use to

persuade consumers, the perceived appropriateness and effectiveness of

these tactics. as well the consumers' perceptions of their own ability to

cope with marketers' persuasion efforts.

Friestad and Wright ( 1995) suggested that when consumers are

confront~d with communication that is recognized as an attempt to

persuade, a fundamental change of meaning occurs. The communication

is processed differently when recognized as a persuasion attempt, as

against when no such recognition occurred. Consumers may get

distracted from the message, disengage from the communication, and

develop assessments of the persuasion effort and the company related to

the communication. When consumers view a traditional advertisement,

their evaluation of the message occurs in the context of this persuasion

knowledge generated by the awareness that the advertisement is a

persuasive communication. For a product placement in a movie or

television show, however, a consumer's persuasion knowledge may not

be activated because there is a Jack of identification of the placement as

a persuasion attempt. Therefore, the hidden and secondary nature of

product placements may not activate the processes that typically put a

consumer on guard in the case of traditional advertising.

As also noted by Grigorovici and Constantin (2004). compared to

traditional advertising, product placement is less likely to be recognized

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as persuasive, and thus prevents viewers from counter argumg,

scrutinizing, or rejecting the message.

In a similar discussion by Lee and Faber (2007), it was noted that

consumers may be looking differently on product placements in

entertainment media than on traditional advertising in a couple of ways.

With traditional advertising, consumers typically recognize the function

of the brand message, which activates consumer skepticism and

persuasion knowledge, which in tum can serve to counteract and limit

persuasive effects. Product placement is less likely to activate these

defense mechanisms. When watching a movie or TV drama, consumers'

defenses are weakened and they become more receptive to the messages.

Moreover, when attending to traditional advertising, the brand message

is the primary focal activity for the viewer. With product placement,

however, consumers are consciously attending to the entertainment

content, which occupies their primary attention and the brand message

is secondary to the entertainment content.

According to Martha and Kirk (1994), product placment affects the

consumer's subconscious and hence is a subliminal stimulation.

Different viewpoints exist regarding the effectiveness of usmg

subliminal stimulation to commnunicate the brand message. Some

researchers contend that such subliminal stimuli are usually so weak that

not only is the recipient unaware of them but the stimuli do not have any

sensory effect at all, thereby making the effect of the communication

negligible (Broyles, 2006; Andriasova & Wagner, 2004). However,

other researchers believe that subliminal advertising can actually work

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and that its use by marketers to influence purchase decisions is justified

(Cristel, 2002; Moore, 1982).

According to Russell ( 1998), product placement differs from advertising

in that it is mostly indirect and does not usually intend to provide the

viewers factual information about the product. Hackley, Tiwsakul and

Preuss (2008) suggest it may be the implicit and potentially deceptive

nature of product placement which makes it attractive to brand owners.

Wells (1989) discussed two kinds of advertising formats: lectures and

dramas. Lectures are advertisements that present outwardly to the

audience, similar to what a speaker would do in a lecture hall. The

television audience is spoken to and is presented with an argument and

evidence. According to Wells (1989), an effective lecture presents facts

to be believed and should be credible in the presentation of these facts; it

is generally clear that there is a persuasion attempt being made. In

contrast, Wells suggested that a drama advertisement draws the

audience into a story. Drama advertisements are like movies, novels, and

other stories in that they can present a lesson about how the world

works. An important aspect of drama advertisements is that they work

by allowing the audience to make an inference about the advertised

brand from the story that is presented in the advertisement: this

inference may provide a stronger impression than if the audience had

been told the point through a lecture format. Wells ( 1994) indicated that

an effective drama advertisement must engage the viewer and must be

believable as a story. Part of the effectiveness of drama advertisements

is that they draw the viewer into the story in such a way that the viewer

forgets that the story is a persuasive attempt. With drama advertising,

the normal skepticism that consumers may have with respect to

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advertisements is reduced when they see the product in the context of a

story.

This idea is consistent with the work of Deighton, Romer and McQueen

( 1989) on the use of drama to persuade. In the case of drama

commercials, compared with argument commercials (i.e., lecture

advertisements), they found that viewers are less disposed to argue and

believe the appeal to the extent that they accept the commercial's

verisimilitude and respond to it emotionally. A product placement could

therefore be considered as the ultimate form of drama advertising. The

product is in the context of a story, but rather than being in a story of a

few seconds, the product is in a story that lasts for the duration of the

movie or TV program.

These discussions indicate that the noncommercial and somewhat

hidden secondary nature of product placements make them inherently

different from traditional advertising. This suggests that viewers may

not process them in the same way as they would an advertisement.

2.3.3

THE PSYCHOLOGICAL PROCESS OF PRODUCT

PLACEMENT

In one of the earlier studies, Sutherland ( 1981) associated the

mechanism of product placement with agenda-setting theory. According

to Sutherland ( 1981 ), if something appears frequently in the media, it is

raised up on our agenda of things to think about. In effect, consumers

infer what is popular from movies, television programs, and pop songs

without the media explicitly calling attention to specific products.

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Furthermore, product placements render brands more instantly

accessible in memory, which is a key component of brand development

(Sutherland, 1981 ).

In the late 1990s, researchers started considering the multidimensional

nature of product placements and how they can differ on each of these

dimensions. This brought forth the possibility of a variety of

psychological processes operating when a viewer sees a brand in the

context of a movie or television show.

McCarty (2004) has noted three levels in the psychological process of

product placement. At the most basic level, the process may be akin to

affective classical conditioning, especially when a product placement is

merely seen or mentioned in a story. Affective classical conditioning is

pairing an unconditioned stimulus with a conditioned stimulus so that

good feelings associated with the scene are transferred to the brand

(Baker. 1999). Russell ( 1998) suggested that products in the background

of a scene may often be processed by this non-conscious association

between the brand and the scene. The conditioning process simply

requires a viewer to make an association between the response to the

scene (i.e., the good feelings) and the brand that is placed.

If affective conditioning is indeed the process at work for simple and

brief product placements, a potential complication for the placement of a

brand arises. When viewers are watching a movie or television show,

they typically experience a variety of both positive and negative feelings

during the course of the story. including joy, anger, fear, disbelief.

hatred, and sadness. It may be difficult to predict which feeling will be

associated with the brand. There is the possibility that a negative feeling

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will be linked to the brand. For example, in a scene of the movie The

Silence ofthe Lambs [1991], crumpled wrappers and cups of Arby's, a

fast food restaurant chain, were among the debris in a rather shabby

house of a serial killer in the movie. Focus group respondents reported a

negative association between Arby's and the character in the movie,

indicating that if they ate at Arby's, they would be reminded of the killer

(Fournier & Dolan, 1997).

At the second level of the psychological processing is the construct of

the mere exposure theory. Mere exposure suggests that viewers will

develop favorable feelings toward a brand simply because they are

repeatedly exposed to the brand (Baker. 1999). Janiszewski's (1993)

work showed that mere exposure may result in more favorable attitudes

toward a brand, even though the viewer does not necessarily recall the

exposure to the brand. It would seem that mere exposure may help

explain some types of product placements, particularly ones involving

brands presented as props in one or more scenes of a movie.

A third and higher order of psychological processmg IS the

transforn1ational processing, which may occur when product placements

are more involved than a simple mention of the brand in the dialogue or

the logo visible in the scene (Russell, 1998). Product placements may

have more plot connection in the story and not simply be a prop used in

a scene. Transformational processing occurs in transformational

advertising, wherein the experience of using a product is transformed or

changed such that the product becomes more than it would otherwise be,

making it richer. warmer. more exciting. and/or more enjoyable (Puto &

Wells, 1984). Transformational processing also occurs in lifestyle

advertising. wherein a product is associated with a way of life, perhaps

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presenting it in the context of glamorous life or the good life (Solomon

& Englis, 1994).

In a similar way, a viewer's expenence of using a brand can be

transformed by product placements, because the product is not merely

seen in a functional sense but becomes part of the story context and is

endowed with characteristics associated with the movie or TV program.

A product placed in a movie or TV program can profit from the way of

life that the story presents.

Thus, many product placements are more than just a matter of a brand

being seen or mentioned in a movie or TV program, they benefit from

their connection to the plot (McCarty. 2004). Connection to the plot

makes a placement a different phenomenon and brings to bear a whole

set of psychological processes that are likely to be absent for a prop·

placement. Therefore, product placement IS a complex,

multidimensional concept that may operate at different levels and affect

viewers through a variety of psychological processes (McCarty, 2004).

2.4

CONTENT ANALYSES

PLACEMENT

OF PRODUCT

Content analyses of product placement deal with examining the use of

brands in movies and TV serials. Researchers have quantified and

examined the prevalence of product placements through various content

analyses studies. Of special interest are placements of cigarettes, tobacco

and liquor, as these are not advertised directly in many countries.

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Troup (1991) sampled 25 top-grossing Hollywood movies of 1989 to

analyze the frequency and characteristics of brand placements in the

movies. On an average 18 product placements per movie were found,

with comedies having the most placements, followed by dramas. Most

brands were displayed in positive or neutral settings. Low-involvement

consumer products such as soft drinks accounted for 68% of all brands

in the movies examined.

In a follow-up of Troup's (1991) study, Sopolsky and Kinney (1994)

sampled 25 top-grossing Hollywood movies of 1991. An average of 14

product placements was found in the movies. Automobiles and foods

were most frequently reported product categories. Comedies and dramas

were found averaging the same number of brands, followed by action

movies. No differences were found in the frequency of brands in

positive, neutral, or negative contexts. Low-involvement consumer

products accounted for 70% of all brands in the movies.

Brands have been found in television programs too. A content analysis

of 112 hours of prime-time television programming from sports to news

to reality shows during the spring of 1997 found that there were close to

30 brand appearances per hour (A very & Ferraro, 2000).

In a study by Galician (2004) of 15 top grossing movies released in the

years 1977, 1987 and 1997, automobiles turned out to be the most

dominant type of product placement with 21% of the appearances

featuring an automobile.

According to a report by PQ Media (2005), majority of spending in the

US and other markets was derived from five key product categories:

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transportation and parts, apparel and accessones, food and beverage,

travel and leisure, media and entertainment.

Prevalence of product placement in Hindi movies was studied m a

content analysis of 20 hit movies from 1997 to 2006 (Vora, 2008). The

average placement per movie was found to be in the range of 9-14

placements. Soft drinks and automobiles were found to be the more

frequently placed products, with Cola giants Coke and Pepsi taking

away most number of placements in all the years. Also, it was found that

movies in 2006 used more etTective modalities of product placement as

compared to 1997.

There is evidence that product placement of ethically-charged products

has been increasingly used both in movies and television programs. The

ethically-charged products were defined by Gupta and Gould ( 1997) as

products which specifically aroused ethical concerns. Ethically-charged

products included alcoholic beverages, tobacco and guns. These

products were considered especially harmful for vulnerable teen

audiences.

Several content analyses of television and movies suggest that cigarettes

appear in movies at a much higher rate than they should, given the

prevalence of smoking in the general population (Christenson,

Henriksen, & Roberts, 2000: Everett, Schnuth, & Tribble, 1998:

Sargent, Tickle, Beach, Dalton, Ahrens, & Heatherton. 2001; Stockwell

& Glantz, 1997). It has been noted by Karrh ( 1998) that tobacco firms

have made efforts to place their brands in movies and television

programs; for example, Brown & Williamson Tobacco Corp. placed its

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cigarette products in movies Where the boys are [1984} and Rocky IV

[1985].

A study of the top 25 US box-office movies from 1988 to ! 997 showed

that 32% of those movies rated for adolescent audiences contained

tobacco brand names (Sargent, Tickle, Beach, Dalton, Ahrens. &

Heatherton, 2001 ).

Another content analysis of 200 movies from 1996 and 1997 found that

89% of all movies included references to smoking or smoking behavior,

and 17% of the characters who appeared to be under the age of 18

smoked (Roberts, Henriksen & Christenson, 1999).

Diener (1993) found increased incidence of alcohol consumption

displayed in daytime television dramas in 1991 compared to 5 years

earlier. In a content analysis of four episodes of 42 of the most popular

television shows among adolescents and adults in 1998, Christenson et

al. (2000) found that approximately 22% of all television episodes

contained either references to smoking or smoking behavior, though

smoking occurred more often in shows aimed at adults than in shows

aimed at adolescents.

2.5

QUALITATIVE STUDIES OF PRODUCT

PLACEMENT'S MEANING TO AUDIENCES

Researchers carried out qualitative studies in order to find the audience's

interpretation of product placement. In a qualitative study, DeLorme,

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Reid and Zimmer (1994) studied a homogeneous sample 29 college

students who were frequent moviegoers. A focus group was conducted

to better understand moviegoers' interpretations of product placement.

The respondents were shown a 15-minute custom-made videotape of

brands in different movie clips. The findings of the study are discussed

next.

The study uncovered three interrelated movie-specific themes:

appreciating realism, noticing the familiar, and relating to characters.

Participants liked subtle use of brands in movies because it added

realism to the stylistic aspects of movie scenery. Product placements

were judged to add authenticity to movies when associated with a

particular setting, time period, or context. Generic products were

irritating because they interfered with realism and involvement; though

excessive brand exposure was disliked because it was distracting.

Respondents particularly noticed and liked familiar branded products

and services that they themselves had previously purchased and

consumed in their everyday lives.

The respondents also felt that product placements provided relevant

infonnation about the character's personality, lifestyle, and role in the

movie plot and compared that information with their own lives. Product

placement enabled them to empathize with and relate to characters and

further involved them in the movie.

DeLorme and Reid (1999) extended their earlier qualitative work among

college students to 99 non-student movie-goers of varying ages and

frequency of movie attendance, thus maximizing differences among

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heterogeneous sample groups that included both frequent and infrequent

moviegoers and two age brackets (younger/older). Based upon focus

groups and depth interviews, experiences and interpretations of non­

student respondents were purposefully collected so that constant

comparisons could be made with the previous college student-only

sample. The findings of the study are discussed next.

Over and above the three movie-specific themes uncovered in 1994, this

study came up with four new consumption-specific themes: tools for

purchasing decisions, tools for identity and aspirations, change and

discomfort, and belonging and security. Each of these themes represent

interpretations that not only are linked to movie-specific aspects of

brand prop exposure, but also extend beyond the movie viewing

expenence to larger, everyday aspects of moviegoers' consumer

behavior.

;,... Tools for purchasing decisions:

Product placements were associated with consumption patterns and

decision-making. Interpreted apart from the movie itself: product

placements were thought to perforn1 such everyday marketing-related

functions as reinforcing consumer confidence, reducing cognitive

dissonance or standing as symbols of distrust. In the context of everyday

life. product placements were judged significant because they assist in

providing useful information for making or reinforcing purchased­

related choices, even though their promotion intent was acknowledged

by the respondents. In particular, older infrequent moviegoers expressed

distrust of brands placed in movies. They tended to interpret product

placements more in relation to their own consumption experiences and

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apart from v1ewmg expenences and interpretations than younger or

frequent moviegoers.

> Tools for identity and aspirations:

Product placements allow the reliving of past (nostalgia) events and the

vicarious experience of living others' experiences. As such, product •

placements were part and parcel of the everyday aspects of social

experience, enabling individuals to compare their consumption worlds

with those depicted in movies. Brands in movies also were seen as

significant in that they enable further understanding and appreciation of

the respondents' social worlds. Product placements were judged to

provide information beyond the specifics of the viewing experience,

including a measure of how respondent worlds compare with the worlds

featured in movies, irrespective of arguments about realism and fantasy.

Exposure to previously purchased brands was judged to validate and

reinforce identities, consumer decision making, and purchasing patterns.

> Change and discomfort:

To the older respondents, product placements represented signs of

cultural change, emotional discomfort, and feelings of concern. Many in

the older quadrants reported remembering in their lifetime when movies

generally did not have actual brand names placed in the context. To

them, brands in movies were associated with the changing nature of

everyday life, including the movie viewing experience--from the theater

being a 'sacred' atmosphere to being a less sacred, more commercial

place. More accustomed to a brand-free experience than their younger

counterparts. older respondents associated product placements with

feelings of insecurity. frustration, and fear of change. They interpreted

encountered brands as threats to, infringements on, and pollutants of the

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sacredness of the viewing experience. The older moviegoers associated

product placements with manipulative power and negative consequences

for the viewing public, especially children.

> Belonging and Security:

To the younger respondents, product placements were associated with

an invitation to cultural belonging and feelings of emotional security.

Such moviegoers had grown up with brands in movies and were

accustomed to the practice. In addition. these younger people had grown

up with much more marketing and advertising in general and therefore

they expected to encounter brands in movies. Product placements

encountered in a particular movie are associated with viewers' own self­

impressions as consumers. As such, product placement information is

used by viewers to confirm or disconfirm identities and lifestyles.

To summanze the qualitative study by DeLorme and Reid (1999),

whether product placements are judged to be excessive, inappropriate, or

unrealistic, moviegoers were aware of the persuasive intent of product

placements. As in the 1994 study by DeLorme and Reid, respondents

considered themselves immune to the persuasive power of brands

encountered in movies; they believed that the appearance of brand in

movies was neither deceptive, nor manipulative, nor harmful.

Regardless of age or movie-going frequency, respondents were active

participants in the viewing experience and interpret brands encountered

in movies~ brands in movies symbolized social change to the older

movie-goers and belonging and security to younger ones.

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2.6

STUDIES BASED ON

Chapter 2

PRODUCT

PLACEMENT PRACTITIONERS' BELIEFS

Karrh ( 1995) conducted the first published study of practitioners' beliefs

about product placement. It was a small-scale survey of 23 members of

Entertainment Resources and Marketing Association (ERMA), the

leading product placement industry group in US. The respondents

included product placement agents, studio representatives, and corporate

marketing executives. The survey was organized around four categories

of items: the executional factors believed to be most effective in product

placement, the brand characteristics believed to contribute to

effectiveness, the measurement tools most appropriate for capturing

placement effects on movie audiences, and beliefs about the practice

itself.

It was found that practitioners believed unaided recall to be the best

measure of placement success. Audience size and placement cost have

been viewed as important factors; these variables enable some

comparison to other marketing communication tools via a cost-per­

thousand framework. Respondents believed that product placement is

most efTective when the product has a recognizable package or design, is

positively portrayed in the movie, and there is additional promotional

support (movie trailers or advertisements). The practitioners consider the

best measures of product placement effectiveness to be recall and

recognition.

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Pardun and McKee (1996) carried out a survey of 89 media directors at

full-service advertising agencies in United States in order to gain a better

understanding of practitioners' perspectives on the practice of product

placement as part of an overall media strategy. Pardun and McKee

(2000) again did a survey of 106 professionals at public relations firms.

Majority of the respondents in both the studies by Pardun and McKee

( 1996; 2000) were found to be relatively knowledgeable and enthusiastic

about the practice of product placement in movies. Respondents in both

the studies acknowledged the positive and long-term role of product

placement in movies, considered the potential for a national audience to

be the most important benefit, and expected to increase their usage of

product placement in the future. They considered the potential for a

national audience, price of the placement and theme of the movie as the

most important factors in deciding upon inclusion of product placement . . m mov1es.

In a similar study by Karrh, McKee and Pardun (2003), 28 members of

ERMA, the leading product placement industry group, were surveyed.

The purpose of this study was to examine practitioners' perceptions of

product placement usage and effectiveness and to compare the results

with previous surveys of practitioners (Karrh. 1995; Pardun & McKee,

1996, 2000). The findings ofthe study are discussed next.

';- Beliefs about executional factors:

Compared to the respondents from Karrh (1995) study, practitioners in

2003 believed showing the brand in use. omitting competing brands. and

gaining publicity for the placement itself are more important for success.

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One potential tool - aided recall - was judged as a more appropriate

measure than was the case eight years prior.

)..- Beliefs about brand characteristics:

As was the case with potential executional factors, there was a

substantial jump in the importance assigned to individual brand

characteristics for effective placements as compared to earlier study

(Karrh. 1995). Respondents placed more importance on six of the eight

brand characteristics presented to them: a very recognizable package or

design; an already well-known brand; a number of strong competitors; a

brand that was new to the market; a brand that most program viewers

already used; and a product that had been shown in a number of other

mov1es.

While there was some apparent contradiction in beliefs, for example,

brand is already well known and brand is new to the market were both

viewed as more important to placement success, the substantial increase

in importance assigned to six of eight brand characteristics suggested

that practitioners saw a more complex set of success factors at the brand

level.

> Beliefs about appropriate measure for effects of placements:

Change in sales was believed to be the most appropriate measure for

showing the etTects of placements. Apart from change in sales. other

measures included tracking viewer recall, using control-test groups,

consumer brand awareness, press coverage, return-on-investment (ROI)

measures, cross-national responses, company productivity and return on

investment, and visits to related internet sites.

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)..- Measures actually used to evaluate placements:

While increased sales and increased press coverage were mentioned,

respondents also said they evaluate the number of impressions of films

or television programs; the actual length of the placement itself,

including whether a verbal mention is included; and calculations of pro­

rated media values of placements. Other evaluative tools included client

satisfaction and whether the product or service is associated with the

lead actor.

To summanze the results, this study by Karrh, McKee and Pardun

(2003) indicated only a mild move toward more quantitative measures

of product placement effectiveness. Unaided recall and brand

recognition were still the two most popular means of assessing product

placements, although the tracking of subsequent related sales, the

measurement of trade and general press coverage methods were growing

in use. The only significant change from the prior survey (Karrh, 1995)

was practitioners' belief about aided recall being an effective

measurement tool as well.

2.7

EFFECTS OF

EXPOSURE

PRODUCT PLACEMENT

The most active area of academic research on product placement relates

to the effects of product placement on viewers. Product placement has

established as an effective marketing communications tool that has the

ability to build awareness, generate recall, shape attitudes and purchase

intention towards the brands placed. Audience recall of placed brands is

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the measure most widely used and cited by practitioners to represent

product placement effectiveness (Karrh, McKee & Pardun, 2003).

Previous research suggested that product p!acement can influence brand

recognition, recall and attitudes (Babin & Carder, 1996b; Brennan,

Dubas & Babin, 1999; Karrh, Frith & Callison, 2001; Gibson & Maurer,

2000; Gould, Gupta & Grabner-Krauter, 2000; Gupta & Lord, 1998).

There have been studies investigating the impact of product placement

on consumer purchase intention (Baker & Crawford, 1996; Gould et al.,

2000; Karrh et al.. 2001: Morton & Friedman, 2002).

Karrh (1994) studied 76 undergraduate students usmg experiment

method to assess communication effects of five brands placed within 33-

minute clip of Raising Ari:::ona [1987]. It was found that brand

recognition and recall did exist, though there was no significant

ditTerence in brand evaluations.

Ong and Meri's (1994) theatre exit survey of 75 theatregoers found low

unaided recall of product placements. Recall ability and patterns difTered

greatly among individual respondents, with 78% of the respondents

correctly recalling the brand Coke. Other brand appearances were

recalled in rates ranging from 4-40%. The respondents who did

remember brands in movies did not indicate increased purchase

intentions.

Vollmers and Mizerski (1994) sampled 71 college students in

experiment method to assess communication effects of one brand placed

within a six-minute movie clip of Gorillas in the Mist [1988] and one

brand placed within a six-minute clip of Mr. and Mrs. Bridge [1990].

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High unaided recall of brands placed within the movie clips was found,

but no significant difference between the treatment and control groups in

terms of affect for the products appearing in the movies was noted.

Baker & Crawford (1996) studied 43 postgraduate students in Scotland

after exposure of a particular full-length film containing several brands;

found high levels of aided and unaided recall as well as a higher level of

short-term purchase intention for the product embedded in movies.

Vollmers ( 1995) sampled 140 second, fourth and sixth grade children

using experiment method to assess communication effects of children's

exposure to eight placements within the movie Lassie [1994}. Subjects

recognized brands in the movie, but no change was found in affect or

immediate preference toward the placed brands.

In another similar study, Babin & Carder (1996b) sampled 98 college

students to test viewers' recognition of 36 brands appearing in each of

the full length movies Rocky Ill [1982} and Rocky V [1990]. It was

found that respondents correctly recognized brands appearing within

their respective movies and could distinguish them correctly from

brands not present in the movies. Eighteen of the brands in Rocky Ill

[1982} and twelve ofthe brands in Rocky V [1990} had recognition rates

of over 30%. This is the cut-off that some professionals use to mark a

placement as successful (Steortz, 1987).

Babin and Carder (1996a) again sampled 108 college students using

simulated theater viewing experiment method to assess communication

effects of 39 brands placed within full-length movie, Rocky Ill [ 1982}. It

was found that brand memorability was significantly greater for

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treatment than control group for more than 25% of the 39 brands

appearing in the movie. No significant differences were found between

groups in terms of attitudes towards 15 of the brands examined.

The studies of Gould et al. (2000) and Karrh et al. (200 1) supported the

result that product placement positively influenced purchase intention.

Morton and Friedman (2002) focused on the relationship between

product placement beliefs. such as perceptions, awareness and feelings,

on behaviors like trial intention or purchase intention. Their findings

showed a correlation between consumer evaluation and purchase

intention.

According to Bhatnagar, Aksoy. and Malkoc (2002), people had

stronger memories for brands and claims that were placed versus those

that were traditionally advertised. Of the people who remembered the

brands and brand claim, more had difliculties in remembering where

exactly placed messages were encountered, which raised the possibility

that the effects of placed messages were more powerful, yet the

internalization process was subtler when compared with the effects of

advertised messages.

Nielsen Media Research carried out a Product Placement Valuation

Study in the context of TV programs in US wherein more than 10,000

individuals participated in the screening of 50 programs across various

channels (Czaja, (2006). The aim was to demonstrate and quantify the

value that product placement contributes to traditional television

advertising. The key findings of the study are discussed next.

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);... The reinforcement of a commercial spot with a placement for the

same brand during the program is a very effective way to boost

brand awareness. Specifically, 46.6% of viewers exposed to a brand

in the form of a standalone commercial were able to recognize it, but

that rate climbs to 57.5% when a product placement was combined

with the commercial.

>- The addition of a product placement to a commercial spot for the

same brand does not appear to have an edge over a standalone

commercial in terms of motivating viewers to purchase that brand.

Whether the brand was presented as a product placement,

commercial or both, a little more than one third of all viewers

expressed high interest in the brands they were able to recognize.

>- Product placements appear to be at least as effective as a commercial

spot in improving viewers' general attitude toward a brand. Nearly

60% of all viewers felt more positive about the brands they were able

to recognize in a placement.

The findings of these studies on etTects of product placement on

consumers were conflicting at times. This could possibly be due to a

failure on researchers' part in considering the multidimensional nature

ofproduct placements (McCarty. 2004).

2.7.1

MULTIDIMENSIONAL NATURE OF PRODUCT PLACEMENT

Researchers started considering different dimensions of product

placement execution in movies and TV programs in late 1990's and

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thereafter. Much of the research on product placement in movies and TV

programs has focused on explanatory variables describing the various

dimensions of the product placement execution.

The multidimensional nature of product placement in movies and TV

programs has been explained by variables such as: modality, i.e. audio,

visual, and audiovisual (Law & Braun, 2000; Russell, 2002), congruity

with the plot (Russell, 2002), type of movie or TV program, i.e action,

romance, quiz/variety, mini-series/drama, and infom1ationlservice

(d'Astous & Seguin, 1999; Roehm, Roehm & Boone. 2004), exposure

time (Brennan, Dubas, & Babin, 1999) and prominence. Various

researchers have discussed and/or operationalized prominence as the

size of the product or logo, centrality in the screen. integration into the

plot, centrality to the plot, number of mentions, duration on screen.

strength of the placement and/or modality (Auty & Lewis, 2004; Babin

& Carder, 1996b; Bhatnagar, Aksoy & Malkoc, 2004; Gupta & Lord,

1998; Law & Braun, 2000; Russell, 2002). These are also the variables

that detem1ine the amount a marketer is willing to pay for the placement

(Bhatnagar, Aksoy & Malkoc 2004 ).

Researchers have widely categorized product placements in difTerent

forms based on one or more of the dimensions mentioned above. For

example, Shapiro (1993), in the context of movies, classified product

placement into four types: a. That provides only clear visibility

(product/brand name shown); b. That is used in a scene; c. That has a

spoken reference; d. That provides hands-on use and mentioned by a

main star.

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Turcotte (1995) distinguished three types of product placements: visual

only (the appearance ofthe product, service, brand name or logo), audio

only (the authors in the program report the product, service, brand name

or logo) and combined audio-visual (showing a brand and at the same

time mentioning the name of the brand or conveying a brand-relevant

message in audio form).

D' Astous and Seguin ( 1998) defined three types of product placements:

Implicit, Integrated Explicit and Non Integrated Explicit. An implicit

product placement is one where the brand, the firm or the product is

present within the program without being formally mentioned. It plays a

passive, contextual role. In the implicit product placement, the logo, the

brand name, or the name of the tirm appear without a clear

demonstration of product benefits. A product placement is integrated

explicit whenever the brand or the firm is formally mentioned within the

program, that is, it plays an active role. In this type of product

placement, the attributes and benefits of the product are clearly

demonstrated. A nonintegrated explicit product placement is one where

the brand or the firm is formally expressed, but is not integrated within

the contents of the program. The sponsor name may be presented at the

beginning, middle or end of the program, or it may be part of the

program title.

Russell ( 1998) categorized placements along three dimensions called the

Tripartite Typology of Product Placement: visual, auditory, and plot

connection. The visual dimension refers to the appearance of the brand

on the screen. So-called screen placements can have different levels,

depending on the number of appearances on the screen, the style of

camera shot for the product, and so forth. The second dimension is

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auditory or verbal, and it refers to the brand being mentioned in a

dialogue. Such script placements also have varying degrees, depending

on the context in which the brand is mentioned, the frequency with

which it is mentioned, and the emphasis placed on the brand name (tone

of the voice, place in the dialogue, character speaking at the time, etc.).

Finally, the plot connection dimension refers to the degree to which the

brand is integrated in the plot of the story. Whereas lower plot

placements do not contribute much to the story, higher plot placements

constitute a major thematic element (Holbrook & Grayson, 1986), taking

a major place in the story line or building the persona of a character. A

mere mention of the brand or a brief appearance of the product on the

screen would be considered lower plot. However, cases where a brand is

closely tied to the plot or closely connected to the characters constitute

higher plot placements. For example the internet service provider AOL

was intimately tied to the plot and closely connected to the characters in

the movie You've Got Mail [1998}, much like the use of BMW cars in

James Bond movies

The Tripartite Typology of Product Placement (Russell, 1998) had

special importance in measuring the effectives of product placement.

Earlier studies of product placement measured effectiveness of product

placements in terms of how well they were remembered (Babin &

Carder, 1996b; Gupta & Lord, 1998; Steortz. 1987). This reliance on

brand recall and recognition measures presumed that the effects for

memory are similar to the ctTects for attitude.

However, the absence of correlations between memory and attitude

measures often found in the persuasion literature (e.g., Petty, Cacioppo,

and Schumann 1983) challenged this assumption and suggested that the

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memory-attitude relationship is not necessarily linear. Since recall may

be a poor predictor of persuasion (Mackie and Asuncion 1990), it was

suggested that research on the effectiveness of product placements

should investigate both memory and attitude effects.

2.7.2

INFLUENCE OF PRODUCT PLACEMENT DIMENSIONS

The Tripartite Typology ofProduct Placement (Russell, 1998) allowed a

dual focus to studies of effectiveness of product placement by

determining not only how a placement is cognitively processed and thus

whether it will be recalled, but also how it affects consumers' attitudes.

The processing and persuasive impact of each type and combination of

placements is discussed next.

Research on modality of presentation in audiovisual contexts suggested

that the visual and auditory channels indeed differ in the amount of

meaning that they carry. The visual channel serves to create the context

in which the story is set. For instance, branded products are used as

props to make television set more realistic (Solomon & Englis, 1994:

Solomon & Greenberg, 1993). The auditory channel, on the other hand,

carries the script of a television program, and as a result, information

presented verbally is inherently more meaningful than visual

information. Because individuals can process auditory information in a

television program even when they are not looking, the auditory

modality serves as a conveyor of semantic information through speech

(Rolandelli, Wright, Huston & Eakins, 1991 ). In fact, as compared with

visual stimulation, auditory information is often characterized by its

Chapter 2

Klein, 1976). Each modality of presentation, i.e. audio and visual, thus

contributes a certain level of meaningfulness to the story.

These modality characteristics are important because meaningful stimuli

become more integrated in a person's cognitive structure (Lehnert,

1981 ), are processed more deeply, and thus generate greater recall

(Craik & Lockhart, 1972) and elaboration.

The third dimension of the product placement framework, plot

connection, also characterizes a dimension of meaning. Higher levels of

plot connection characterize instances when the brand makes a

significant contribution to the story and will thus facilitate memory. This

effect of meaning was found in several studies of the influence of

narrative structure and story on the recall of information from movies.

Roberts, Cowen, and MacDonald ( 1996) showed that recall of implicit

primary information from constituent parts of the narrative was better

than recall of secondary explicit information because its meaning

depends on the story and is therefore linked to important information via

the macro-structure. Therefore, the level of plot connection determines

the role and meaningfulness of a placement in a story and qualifies the

effects of modality, as specified next.

In considering the difTerent combinations of modality and plot

connection, it is clear that there can either be a match or a mismatch

between modality and plot connection. Matches can take the form of

higher plot audio placements, where verbally mentioned brand names

that contribute to the narrative structure are indeed highly connected to

the plot, or lower plot visual placements, where visual brands that

should serve an accessory role to the story are indeed lower in plot

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connection. On the other hand, mismatches occur when audio

placements are lower in plot connection or visual placements higher in

plot connection.

This conceptualization suggests a tum to the congruency/incongruency

literature to understand the memory and attitude effects associated with

each type of placement. The incongruency literature maintains that,

while little elaboration occurs when infom1ation is congruent,

incongruency triggers cognitive elaboration (Mandler, 1982). As a

result, incongruent information is memorable because it prompts

attention and provokes elaboration (Heckler & Childers, 1992).

Mismatches between modality and plot will thus improve memory for

the placement. However, empirical evidence also supports the fact that

the increased elaboration associated with extreme incongruency has an

adverse efTect on evaluations (Lee & Mason, 1999; Meyers-Levy &

Tybout, 1989). Indeed, while increasing attention to the placement,

incongruency will also prompt viewers to think about the reason for the

brand's presence in the show. This brand-relevant thinking will result in

corrective mechanisms, such as counter argumentation or reactance, if

the placement is perceived as inappropriate (Friestad & Wright, 1995).

Therefore. while congruous placements will be perceived as acceptable,

incongruous placements are likely to raise viewers' suspicion and

prompt counter argumentation. Conditions where modality and plot

connection match will thus lead to greater attitudinal evaluations than

those where modality and plot connection do not match. The fact that

information incongruency affects memory and attitude measures

differently suggests that the combined effects of modality and plot

connection will differ depending on how well the plot connection

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matches the modality of presentation of the brand. In other words, the

plot connection will interact with the modality of presentation of the

brand in affecting memory and attitudes.

The literature reviewed above suggests that ( 1) auditory stimuli are more

meaningful than visual stimuli and thus generate more elaboration (2)

higher levels of plot connection also trigger more elaboration (3)

mcongruency between modality and plot connection increases

elaboration but adversely affects attitudes. Since increased elaboration

leads to improved memory, auditory placements will be remembered

better than visual placements, regardless of their plot connection.

However, among visual placements, higher plot ones only will result in

greater memory, because of their unexpected use of the visual modality

for carrying central information. Higher plot visual placements will thus

be remembered better than their lower plot, congruous, counterparts.

The expected attitudinal effects are drawn from the incongruency

literature discussed above. Congruous placements, higher plot audio and

lower plot visual, appear acceptable to the viewers and do not prompt

them to think about the reason for their presence in the show. In

contrast, incongruency between modality and plot connection is likely to

raise viewers' suspicion and counter argumentation. This incongruency

happens when the mention of the brand in the dialogue is not justified

by the story (lower plot audio) or when a visual brand becomes an

obvious focus of the story when it should serve an accessory role (higher

plot visual).

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Based on the Tripartite Typology of Product Placement (Russell, 1998)

and congruency/incongruency literature, Russell (2002) carried out an

experimental study with I 07 TV program viewers. It was found that

higher plot visual placements were remembered better than lower plot

visual placements, but the level of plot did not affect memory for the

audio placements. Russell (2002) also found that lower plot visual

placements were more persuasive (result in greater attitude change in the

positive direction) than higher plot visual placements, and higher plot

audio placements were more persuasive than lower plot audio

placements. Thus, incongruent placements were remembered better than

congruent ones; however, attitude toward the brands changed more in

instances with congruent placements.

In another study with I 03 movie-goers, D' Astous and Chartier (2000)

classified product placement into various types based on congruity with

a scene, degree of appearance, and association with a movie star to

examine the effectiveness of product placement. Their findings showed

positive attitudes toward product placement were obtained in three kinds

of situations: ( 1) when the product appeared with a movie star; (2) when

the product placement was congruent with a scene presented; (3) and

when the product was shown prominently. Moreover, even though

placement associated with the movie scene brought positive attitudes

toward product placement, it reduced consumer recall and recognition of

brands embedded in a movie.

Law and Braun (2000) attempted to understand the impact of product

placements as a function of the nature of the measurements (explicit

memory and implicit choice), the centrality of the placement to the plot,

and the modality of the placement. An interesting finding of their study

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was that products that were seen, but not heard, were least recalled but

had more influence on choice than those only heard or seen and heard.

The researchers suggest that this has implications for the way viewers

process product placements in that placements that may not be

consciously remembered may nevertheless have influences on viewers'

brand choices.

Brennan, Dubas and Babin ( 1999) differentiated the prominence of on­

set placements, which are paired with a character or otherwise

conspicuously displayed, from creative placements that appear only in

the background of a program. The effect of type of placement (on-set or

creative) and exposure time on the recognition of the placement was

investigated. In their study, greater brand recognition was generated

from prominent onset placements. Further, exposure time positively

affected brand recognition, but only for prominent, on-set placements,

indicating that the type of placement was a more influential factor in

consumers' recognition of the product appearing in movies than the

exposure time of the product.

Gupta and Lord ( 1998) examined the impact of product placement on

consumers' recall in terms of product placement types, such as

prominence/subtlety and audio only/visual-only presentation. The study

differentiated prominent placements (shown in foreground as opposed to

background, shown by itself as opposed to sharing visual fields with

other brands, and having a long time of exposure) from subtle ones. The

result found prominent appearance of a product brought better consumer

recall compared to TV commercials as well as a subtle appearance of

product. It was also found that an audio mention of the brand without a

visual depiction produced a higher recall rate than did a visual

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placement without audio reinforcement. These studies suggest a

hierarchy of memory effects according to placement modality of a

visual-verbal combination, followed by verbal-only and then visual-only

placements.

Zimmer and DeLorme ( 1997) sampled 52 non-student moviegoers in

order to determine the effect of placement type and a disclaimer on

recalL recognition, and attitude toward product placement. Simulated

theater viewing experiment method was used involving a full-length

movie containing 16 brands. An average recall level of 33% and average

recognition level of 55% across the 16 brands was found. Results

showed a positive effect on memory for placements in the foreground of

a scene. verbally mentioned, that used humor, and that involved

character usage. A disclaimer heightened recall and recognition in some

instances, though negative attitude was expressed towards the

disclaimer.

Karrh ( 1994) studied 7 6 undergraduate students usmg experiment

method to assess communication effects of five brands placed within 33-

minute clip of Raising Arizona [1987]. It was found that prominent

product placement can lead to higher recall/recognition. Brand salience,

i.e memorability of a brand relative to other brands in its product

category. was significantly higher only for one brand that was

prominently and repeatedly displayed. There was no significant

difference in brand evaluations. Product placement may heighten brand

salience for less familiar products and when the brand is the focus of a

scene or an integral part of the movie plot.

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Sabherwal, Pokrywczynski, and Griffin (1994) sampled 62

undergraduate students to test aided and unaided recall and brand

associations in ditTerent types of placements in a ten minute movie clip

from Days ofThunder[1990}. It was found that audio-visual placement

can lead to higher levels of recall/recognition than visual only

placement. Combination of audio-visual product placements seemed to

foster information processing and subsequent brand name recall.

Steortz ( 1987) sampled 304 theatergoers in theater exit survey and

telephone survey using Burke day-after recall method to assess the

communication effects of 29 brands placed in six different full-length

films. The study found that aided recall scores averaged 38%. However,

recall depended on placement characteristics, with visual/verbal

placements averaging 57% recall followed by verbal endorsements

(51%), visual implied endorsements (33%), background props (8%), and

the presence of a logo or brand name (8%). Also, character usage of

brands produced significantly better recall than brands displayed as

background props.

Vollmers (1995) sampled I 40 second, fourth and sixth grade children

through experiment method to assess communication effects of

children's exposure to eight placements within the movie Lassie [ 199-1}.

Brand recognition seemed to be influenced by placement type.

Some dimensions seemed to have limited or no effect on the

effectiveness of product placement. According to a study by d'Astous &

Seguin ( 1999) with TV viewers, exposure time influenced recognition

only when the product placements were central to the story. The sponsor

image (i.e., positive, negative, or neutral) had no signiticant impact on

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consumers' evaluative and ethical judgments; but viewers were found to

better evaluate product placements within television programs when the

product is clearly related to the contents of the program ( d' Astous &

Seguin, 1999).

In another study by Pokrywczynski (2005), a prominent, on-set product

placement were found to be successful regardless of the viewer

involvement with the scene.

Among the very scant research done in India on effectiveness of product

placement, Panda (2004) sampled 80 postgraduate student respondents

in a post-exposure scenario using product placements within movie clips

selected from four successful Hindi movies. High recall, recognition and

positive attitude was reported. There was 100% recall and recognition

rate for brands like Coke, probably due to higher placement of that

brand in the sequences selected for the study. Well-known brands were

recalled more than lesser-known brands. Explicitly placed brands had

higher recall (aided recall of all brands > 60) and recognition rates than

brands which remained in the background. The type of product

placement was found to be significant, irrespective of the brand being

well known or lesser known.

2.7.3

INFLUENCE OF CONTEXTUAL DIMENSIONS

Various studies have examined the influence of contextual dimensions

on the effectiveness of product placement in movies and TV programs.

Contextual dimensions include characteristics like consumer's product

involvement. program liking, program involvement. brand familiarity

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and brand consciousness. Various studies have examined the influence

of these dimensions on effectiveness of product placement.

There exists enough research that confirms the effect of the mood

induced by television program content on viewers' responses to

traditional TV commercials (Kamins. Marks & Skinner, 2001; Axelrod,

1963: Goldberg & Gom. 1987). Murry. Lastovicka and Singh (1992)

found that viewers' liking of programs positively influenced the attitude

toward the advertisement and the attitude toward the brand.

Past literature has shown that program-induced psychological responses

influence processmg of traditional commercials placed within the

program. For recall, most studies have shown the intensity of the

program involvement negatively afTects memory due to attention or

cognitive capacity deficits (Thorson & Reeves. 1986; Lord & Bumkrant,

1993). Because consumers attend to and process central information

from the medium, they do not have the capacity to also attend to non­

central elements such as advertisements or brands.

Previous research hypothesized that high product involvement led to

positive consumer evaluations of advertising. Involved consumers felt

that the products were especially relevant to their lives (Flynn &

Goldsmith. 1993), and participants paid greater attention to and showed

greater interest in advertisements under high product involvement

conditions. Higher levels of product involvement produced more

elaboration. and led to positive attitudes toward the advertisement and

the brand (Celsi & Olson, 1988). When applied to product placements,

highly involved consumers were more likely to pay attention to movie

scenes featuring a target product and tend to exhibit more positive

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reactions to the target brand than consumers with low product

involvement.

Lord and Gupta (2002) noted a negative relationship between cognitive

program involvement and product placement recall.

Russell, Norman and Heckler (2004) developed a construct of

connectedness characterizing the degree to which TV characters appear

as referent others for TV viewers. In this study evidence was found of

the effect of connectedness on memory for brand and products placed in

the program, though the study did not examine these effects at the

attitudinal and behavioral level.

The study by Pokrywczynski (2005) found that viewers highly involved

in the scene showed slightly higher overall brand recall for a variety of

products featured in a movie. It may be that high involvement viewing

conditions otTer the opportunity for more brands, particularly those that

have a less prominent role as props or background material, to register

among viewers.

Russell and Stern (2006) found that consumers aligned their attitudes

toward products with the characters' attitudes to products and that this

process was driven by the consumers' attachment to the characters of

television serial comedies.

Nelson and Devanathan (2006) studied 86 Indian college students living

in the US for less than I year. It was found that movie involvement had

negative impact product placement recall: whereas brand-consciousness

was positively related to product placement recall.

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In a study by Choi (2007), it was found that respondents with high

product involvement exhibited more positive reactions to the placed

products than those with low product involvement.

According to a study by Cowley and Barron (2008), prominent

placements can negatively impact brand attitudes of viewers who report

high levels of program liking. Conversely, viewers reporting lower

levels of program liking shift brand attitude in a positive direction after

exposure to a prominent placement. However, the positive shift in brand

attitude for participants with lower program liking disappears when a

persuasive-intent prime precedes exposure to the placement. Subtle

placements are less likely to result in negative shifts in brand attitude.

2.8

ETHICAL CONSIDERATIONS OF PRODUCT

PLACEMENT

The study of ethics has roots in ancient Western and Eastern

philosophies which try to answer questions such as what is the good life

or what is the highest good? These philosophies result in two sides of

the means and ends debate about the control of marketing

communications messages.

On one hand, marketing communications messages m capitalist

democracy are an integral part of the free expression and interchange of

ideas. Consequently. it can be argued that nothing should be allowed to

limit the content or extent of promotional messages.

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On the other hand, it can be argued that marketing communications

messages should be controlled on grounds of morality and social policy.

The ethics of marketing communications depends upon how they are

carried out (content and media targeting) and the individual's ethical

judgments because in themselves these activities can be seen as ethically

neutral. Promotional messages are a central dynamic of wealth creation

in advanced economies; they facilitate competition and communicate

offers.

Thus ethical considerations in marketing communications, including

product placement, present debatable problems for researchers. Product

placement is not without controversy (Gupta & Gould, 1997: Vollmers

& Mizerski, 1994). Ethical concerns surrounding product placement

practices can be viewed in terms of two main aspects: general ethical

concerns about the practice and specific concerns about particular

product categories (McKechnie & Zhou, 2003: Gould, Gupta &

Grabner-Krauter, 2000).

2.8.1

GENERAL ETHICAL CONCERNS AND ACCEPT ABILITY OF

PRODUCT PLACEMENT

Critics have already voiced their concern about the increasing

embeddedness of marketing efforts within the popular culture and the

intensifying commercialization of films (Wasko. Phillips & Purdie

1993). Ethical issues that arise from product placement include general

ethical concerns, such as the potentially excessive, influential or even

subconscious' nature of some product placements.

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One of the strongest criticisms of product placement concerned the

feeling that it entails 'subliminal' or 'subconscious' promotional effects

(Morton & Friedman, 2002; Gupta & Gould, 1997). It can affect people

below their level of conscious awareness, so that they are not necessarily

able to control their acceptance or rejection of the product placement

messages. There was evidence of public and regulatory concern

regarding deliberate use of subliminal and messages by marketers,

especially for alcohol and cigarette products (Chen & Simpson, 2000).

Another major concern with the practice of product placement is that

some people perceive product placement as a deceptive practice because

it causes people who are unaware of the persuasive intent of the product

placement to engage in purchase behaviours (Gupta, Balasubramanian &

Klassen, 2000; DeLorme & Reid, 1999; Karrh, 1998).

A key element of product placement is that its promotional motive is

hidden (Balasubramanian, 1994 ). Conventional advertising often meets

with consumer skepticism and resistance. Because of this hidden

character, product placement is able to circumvent consumers' critical

faculties.

Nebenzahl and Jaffe ( 1993) argued that product placement would be less

ethical than traditional advertising because it represented a hidden,

disguised persuasion attempt.

Movie critics have expressed concern that product placement

jeopardizes the artistic integrity of movies. For example, Miller ( 1990)

criticized the motion picture industry not only for excessive product

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placements, but also for the movies themselves, which were claimed to

becoming just long advertisements.

The first published study of general audience attitudes towards product

placement practice came from Nebenzahl and Secunda (1993). A group

of 171 American college students was asked open-ended conceptual

questions about the practice of placement, in addition to a number of

closed-ended questions. In general, the respondents did not object to

placements in movies; they also reported preferring placement to more

overt forms of in-cinema advertising. Over 70% of the concepts

mentioned from the open-ended questions were positive in tone. About

25% of respondents consistently indicated that placement should be

banned or strongly restricted, generally on ethical grounds. Although

respondents view product placement as an effective marketing tooL they

would accept it only to a certain extent. For example, the use of product

placement for authenticity was found acceptable, because it added to the

realism of the movie. However, product placement probably seemed to

be excessive (both in time on screen and/or in being given blatant or

obvious prominence) or overly influential. A small minority of

respondents objected to product placement because they felt it was

deceptive.

Ong and Meri (1994) included two items tapping perceptions of the

ethics of product placement in exit surveys of cinema audiences.

Respondents generally disagreed with the statements "'product

placement is unethical" and '"I am opposed to product placement".

Respondents had generally positive attitudes toward the practice of

product placement.

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In a study by Baker & Crawford (1995) with 43 postgraduate students in

Scotland, it was found that most respondents had a neutral attitude

towards product placement and recognized it as an element in

promotional mix. While 48% of their subjects considered product

placement a form of subliminal advertising, only 19% had an overall

negative attitude towards the practice and 23% felt movies containing

placements should include some sort of disclosure statement to the

audience.

Gupta and Gould ( 1997) studied American moviegoers' perceptions of

ethics and acceptability of the practice of product placement in movies.

In a survey of 1 012 American college students, a generally positive

attitude towards placement was found.

Similarly, a study by Zimmer and DeLorme ( 1997) with 52 non-student

moviegoers also found that respondents had generally positive attitudes

toward the practice of product placement.

According to Simmons National Consumer Study in US in 2005. it was

found that 46 percent of audiences did not mind product placement in

movies (Sauer. 2005).

In a study by Argan, Velioglu and Argan (2007) among Turkish movie­

goers, a generally favorable attitude toward product placement was

found, though extensive commercial usage of product placement in

movies was perceived as ethically less acceptable.

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2.8.2

ETHICAL CONCERNS ABOUT SPECIFIC PRODUCT

CATEGORIES

This ethical aspect was concerned with the use of specific products in

the practice of product placement, the so-called ethically-charged

products. The ethically-charged products were defined in the study by

Gupta and Gould (1997) as products which specifically aroused ethical

concerns. Ethically-charged products included alcoholic beverages,

tobacco and guns. In general, marketing and advertising of ethically­

charged products are very controversial and raises moral questions.

The ethical concerns about the placement of ethically-charged products

were more controversial if it involved vulnerable audiences, especially

children. since their sensitivity to this type of subtle promotional tool

may not have developed (A very & Ferraro, 2000). In addition, children

saw these placed product categories even though they are not supposed

to (Gupta. Balasubramanian & Klassen. 2000).

According to Gupta and Gould ( 1997). ethical concerns about product

placement were viewed as a precursor of attitudes towards the

placement. towards the brand and towards the purchase. Therefore,

practitioners should be aware of ethical concerns of their practices,

considering where the consumers draw the line between realism and

relentless commercialization.

With regard to product placement this concern was greater because of

the lack of control regulatory authorities can exercise over promotions in

this context (Gould, Gupta & Grabner-Krauter, 2000: Gupta.

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Balasubramanian & Klassen, 2000; McKechnie & Zhou, 2003). Product

placement deals are often struck between the studio and brand owner,

evading the scrutiny of bodies responsible for advertising and

promotion.

According to Ong and Meri ( 1994 ), certain product categories such as

alcohol, cigarettes and guns were judged less acceptable for product

placement than others. Similarly, Gupta and Gould (1997) also found

that respondents perceived ethically-charged products in product

placement as less ethical than other product categories. These more

controversial products were viewed less favorably than other products.

In a study of viewers' evaluations of product placement in movies,

Gupta, Balasubramanian and Klassen (2000) found that the attitudes

towards product placement for ethically-charged products were

significantly more negative for the "like advertising less" segment when

compared to the "like advertising more" segment. Both segments

perceived ethically charged products less acceptable than other product

categories.

2.8.3

INFLUENCE OF CONSUMER CHARACTERISTICS

Various studies have investigated whether consumer's acceptability of

product placement was influenced by their characteristics like gender,

age, frequency of watching the program, level of brand-consciousness

(Ong & Meri, 1994; Burkowski & Ugras 1998; Gupta Balasubramanian

& Klassen, 2000; Peterson. Baltramini & Kozmetsky, 1991).

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Gupta and Gould (1997) noted that general acceptability of placement

was higher for more frequent movie viewers. It was found that males

held more positive attitudes towards the placement of ethically-charged

products (e.g. cigarettes) than females (Gupta & Gould, 1997; Gupta,

Balasubramanian & Klassen, 2000; Milner, Fodness & Morrison 1991 ).

Nelson and Devanathan (2006) studied 86 Indian college students living

in the US for less than 1 year. It was found that consumer's individual

difference of brand-consciousness was not positively related to attitude

toward product placement but brand-consciousness was positively

related to attitude toward product placement as means to enhance a

movie's realism.

The study by Argan, Velioglu and Argan (2007) among Turkish movie­

goers found that movie going frequency positively affected the attention

paid to product placement. whereas gender, age, education and income

level did not affect attitudes towards product placement.

2.9

CROSS-CULTURAL STUDIES IN PRODUCT

PLACEMENT

Cross-cultural consumer studies are often used to examme the

consumption patterns and tastes across nations. According to an

empirical research by de Mooij & Hofstede (2002), it was concluded

that cultural differences will lead to more heterogeneous behaviors and

that culture has become a more useful explanatory variable than national

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wealth for predicting and explaining consumer behavior across a range

of European countries.

Much of the world's advertising is converging with the development of

global media vehicles, agreements among nations for common

advertising regulations and the implementation of global advertising

strategies. But the question remains whether the consumer's beliefs

about advertising practices are really converging or not.

One key to understanding similarities and differences in responses to

product placement is to understand attitudes towards the media in

general, which may influence the effectiveness of advertising messages

within those media. For example, in a cross cultural study by Chen and

Allmon ( 1998), it was found that compared to USA and Australia, the

Taiwanese had more positive views of print-based media and more

negative views of electronic media.

Knowing consumers' beliefs about product placement practices across

cultures has important consequences. If both media programs and

product placements are created on the assumption of converging

·attitudes, while the attitudes in fact remain divergent, then many global

advertising and promotion strategies will fail. If the consumers' attitudes

vary across countries, marketing a standardized campaign across cultural

boundaries may have varying effects, some of which could be negative

(Neal. Quester & Hawkins. 2000: de Mooij & Hofstede, 2002). This is

in line with Wang's (1996) tripartite approach which suggests that three

variables should be taken into account when formulating a global

strategy: country. product and consumer segment (individual

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differences), with any combination of interaction between these

variables requiring standardization strategy modifications.

Thus it is important to replicate research on product placement across

cultures. Replication means the reproducibility or stability of research

results (Monroe. 1992). Replication has an acknowledged role in

marketing and the social sciences and its advancement (Monroe, 1992;

Easley, Madden & Dunn, 2000; Hunter, 200 I). Replication contributes

to the establishment of external validity, by enabling the generalization

of findings to other populations (Easley, Madden & Dunn, 2000).

Although product placements are being used around the world, (Britt,

2002), most research has been conducted with US consumers. DeLorme

and Reid ( 1999) suggested the need to investigate product placements

internationally because many brands may mean nothing to foreign

audiences; others may be associated not with just brand-specific

consumption, but also with larger cultural values and lifestyles. Foreign

audiences may also interpret international and domestic brands

differently within their own domestic films.

Gould, Gupta and Grabner-Krauter (2000) were the tirst to study the

impact of product placement on consumer attitudes and potential

purchase intention cross nationally in three countries - Austria. France

and the United States. The results showed that consumers of the United

States were more likely to accept product placement compared to other

countries and also more likely to purchase products appearing in the

movies, although product category and individual differences were

significant as well. Moreover, consumers of the three countries had

varied attitudes towards the placement of ethically-charged products. US

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respondents were more favorable towards product placements than were

Austrians or the French for 'non-ethically charged' products. Males

were more accepting than women were of ethically charged products

across countries.

The study by Karrh, Frith and Callison (200 I) made cross-cultural

comparisons between Eastern and Western culture, in contrast to the

study by Gould, Gupta and Grabner-Krauter (2000), which was tested

among countries in Western culture only. The study by Karrh et al.

(200 I) compared audience attitudes toward product placement between

Singapore and in United States. It was found that both sets of

respondents paid attention to brands in movies and TV; US respondents

paid more attention to their social identities: Singaporeans were less

likely to perceive brand appearances as paid advertising, were more

concerned about ethics of brand placement and more supportive of

government restrictions on placement activities.

McKechine and Zhou (2003) studied differences in vtewer attitudes

toward product placement in movies between China and the United

States. It was found that the Chinese were less likely to accept product

placement in movies and their acceptability was less influenced by the

frequency of watching movies, as compared to the United States

consumers. Meanwhile, both the Chinese consumers and the United

States consumers were more concerned about placing ethically charged

products like cigarettes and alcohol than other product categories.

A quasi-experimental study was carried out in Germany and USA in

order to detect awareness and attitude effects of the respective

placements as well as general evaluations (Patrick Rossler & Julia

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Bacher, 2002). The results indicated small but noteworthy differences

between the American and the German audience. To a certain degree,

product placement was more effective on the awareness dimension in

Germany and more efTective on the evaluative dimension in the USA (a

result that may be traced back to the perceived function of creating a

realistic impression). High placement awareness led to smaller attitude

effects in Germany, while a lower degree of awareness in America

enhanced the impact on product assessment.

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