Product Placement in Movies - Academy of Marketing

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appeals less favourably. Similar results on the dimension performance orientation were found in Diehl, Terlutter and Mueller’s (2008) study. It is likely that individuals with different cultural orientations will respond differently to prominently placed brands. Consumers’ attitude toward product placement of different product characteristic is seldom explored in previous literature (Tiwsakul, Hackley and Szmigin 2005). McCarty (2004) pointed out that it is important to investigate what type of product/brand could benefit more from product placement. Respondents in McKechni and Zhou’s (2003) study reported that they are less likely to notice a placed brand if they are not familiar with it. It is possible that a well-known brand will be more persuasive than an unknown brand if placed in movies. Pae, Samiee and Tai (2002) suggested that well-known brands with transformational appeals were more successful in assertive and performance-oriented culture (such as HK). It is because well-established brands are synonymous with excellence in performance and success. In other words, cultural orientation may moderate the effect of brand awareness on perceived brand effectiveness. Currently movie producers are not obligated to notify audience for any upcoming placed brands in the movie. Recently, the EU is considering passing a law which requires movie producers to announce product placements at the beginning of the movie (Eisend, 2009). Previous studies indicate cultural differences with respect to regulating product placement. Viewers in an assertive culture, the US, generally do not think that it should be banned or regulated by the government (Sung, Gregorio and Jung 2009) whereas respondents from a less assertive culture, Singapore, agreed that the government should regulate the use of branded products in movies (Karrh, Frith and Callison 2001). Therefore it is believed that the two cultural dimensions “assertiveness” and “performance orientation” identified by House, Hanges, Javidan, Dorfman and Gupta (2004) will moderate the relationship between placement characteristics and placement effects. Research in consumer behaviour and social psychology proposed that effortlessly evaluating message arguments and product attributes is unlikely to happen (Petty and Cacioppo 1981). The elaboration likelihood model (ELM) is widely used in previous literature to understand how consumers process persuasive messages (Petty and Cacioppo 1986). When watching a movie, we are less defensive and tend to be more receptive of the presented information (Tsai, Liang and Liu 2007). Product placement in a stimuli-rich environment (movies) is less likely to attract defensive processing. It is usually more embedded than traditional advertisement thus is harder to detect the persuasive intent and activate one’s persuasion knowledge. However, a prominent, a priori notified placement or a placement of an unknown brand may be more likely to draw audience’s attention towards it. Their persuasion knowledge is triggered and may lead to extensive processing of the messages (Friestad and Wright 1994; 1995). They may counterargue with the promotional content and are less likely to be persuaded. Therefore it is also hypothesized that prominence, brand awareness and prior notification lead to variations in placement processing which then mediate placement effectiveness. Research Plan and Methodology The UK and HK were chosen for comparison because they are two promising markets for product placement. The ban of product placement on television has just been lifted in the UK. Product 4
placement industry in HK is now rapidly expanded to the online medium (Eaton 2009). There is a pressing need to understand how consumers in the two markets perceive and evaluate placed brands. In addition, the two share very similar political, economic and social infrastructures but differ considerably on the two dimensions of concern (assertiveness and performance orientation. The research is divided into three phases: Phase I: Exploratory interviews. Thirty two in-depth interviews were conducted to tap HK and UK audiences’ general understanding and perceptions of product placement. Specifically the five aspects were explored: (a) respondents’ movie consumption habit and their general understanding and experience about product placement; (b) their perception of different execution styles of product placement; (c) the effectiveness of product placement, (d) their views towards product placement and advertising in general, and (e) their regulatory and ethical concerns of product placement. All the interviews were conducted face to face and audio recorded. The interviews help to validate the conceptual framework and refine the experimental design of the later phase. Phase II: Content analysis. A content analysis of movies released in HK and the UK in 2010 with the highest box-office hits each week was conducted. The analysis documents the movie types, the frequency and execution of product placement. Both paid and non-paid placements were included since it is hard to judge if the producer had received money from a brand or not. This also applies to purposeful and non-purposeful placements because it is almost impossible to judge the intention of a placement. The content analysis helps to map the prevalence of product placements that moviegoers in the UK and HK were exposed to and also to identify the pool of research stimuli that could be used in the next phase. Phase III: Experimental Study. Based on the pool of research stimuli selected from the second phase, a series of five-minute segments of movies was chosen and edited. All the research stimuli identified were pretested with twenty consumers to make sure that the manipulations are valid. Participants were invited to watch one of the video clips and respond to an online survey. A 2 (low vs. high prominence) X 2 (unknown vs. well-known brands) X 2 (without vs. with prior notification) between-subject full factorial experimental design was used. A sample size of 540 is targeted (with 270 UK and 270 HK participants). Two matched samples are intended so that direct comparisons of the underlying mechanisms of product placement between Eastern and Western consumers can be made which helps to confirm the stability of the model across cultures (Cadogan 2010). Preliminary Findings from Exploratory Interviews and Content Analysis Exploratory interviews indicate that both samples are heavy consumers of movies. They watch movies every week and some even watch everyday. Watching movies online or from DVDs are more and more popular among this young cohort. Preliminary results show both convergence and divergence of the two samples in the perception of product placement. Views towards advertising and product placement in general. The UK sample is relatively more positive about advertising. They see advertising a part of the daily lives which is essential to sponsor free programme services. HK audiences are comparatively less positive probably due to the fact that they have been bombarded by abundant ads which exist almost everywhere. Some of them comment 5
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