Running head: Product and service placement: A cross-cultural study Exposé Product and service placement: A cross-cultural study on how Italian and German moviegoers are affected by the different modalities of this marketing practice Submitted by Marco Medusa European Master in Business Studies University of Kassel
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Running head: Product and service placement: A cross-cultural study
Exposé
Product and service placement: A cross-cultural study on how
Italian and German moviegoers are affected by the different
modalities of this marketing practice
Submitted by
Marco Medusa
European Master in Business Studies
University of Kassel
Exposé: Product and service placement: A cross-cultural study
2
Table of Contents
LIST OF ABBREVIATIONS ................................................................................................. 3
Exposé: Product and service placement: A cross-cultural study
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3. The conative part: the last two steps, “conviction” and “purchase”, define the
component which is related to the person’s motivation and final decision to buy the
product (Lavidge & Steiner, 1961).
Customer-Based Brand Equity Model This model is directly connected to the concept of brand equity. This expression is used to
refer to an immaterial resource held by a company that is based on the knowledge of the
brand in a determined market. The idea behind this concept is that once a brand is well
known among consumers, this reputation directly influences the sales of a product distributed
by that specific company.
The fundamental reasons that justify the research on brand equity are two: one has a financial
nature while the second one is more connected to strategy. The former justification is linked
to the necessity of giving an economic and monetary quantifiable value to the brand, because
in accounting it is considered as an intangible asset and its value is necessary in order to be
included in the balance sheet of the company. The latter reason is that brand value can be
considered as a strategic move to boost the output of marketing activities, as it can affect
consumers’ willingness to buy products or services marketed with that particular brand
(Keller, 1993).
There are two dimensions that allow consumers to acquire a certain knowledge towards a
specific brand, (a) the brand awareness, which consists in the consumer’s ability to recall that
brand in disparate situations and (b) the brand image, which is a more judgmental level as it
is referred to the picture that a consumer has built of that brand in his mind (Keller, 1993).
Keller, in his research, defines customer-based brand equity as “the differential effect of
brand knowledge on consumer response to the marketing of the brand” (1993, p. 1).
In the light of this, a brand presents a positive CBBE (Customer-Based Brand Equity) if
consumers answer more enthusiastically to marketing mix components of a product that is
sold under that brand instead of another false different brand.
Dual Coding Theory
Paivio in 1971 asserted that two elements drive a person to process the impulses coming from
the outside: “the imagery system and the verbal system” (Runquist, 1973). Paivio thought
that these two systems work as mediators in the process of coding that each one of us usually
do when we are interacting with external stimuli, which are then elaborates through various
mental steps that make us collecting them and putting them aside in our memory afterwards.
Exposé: Product and service placement: A cross-cultural study
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Paivio (1971), after considering singularly image and words as drivers of information to the
receiver, stated that images’ dynamism could help persons to remember longer the stimuli
that they have been exposed to.
These two imagery and verbal systems usually work independently, but sometimes image and
verbal stimuli are delivered together to the recipient, and that’s when the dual coding takes
place, with both the imagery and verbal memory working simultaneously to store the
information.
This theory is strictly related to BP and especially taking into consideration the three different
modalities through which a product/service/trademark is placed in movies/TV series.
Mere Exposure Theory Zajonc (1968) defines mere repeated exposure as that psychological effect that brings people
to appreciate more things when they are more familiar with them. He states that this effect
can be considered as a sufficient condition under which consumers’ who are faced to a
particular stimulus have their attitudes towards it reinforced.
This is the main reason why, in the advertising world, marketers put a lot of emphasis in
linking brand logos and trademarks to engaging characteristics of the products or services
they are selling (Zajonc, 1968). Thus, a linear process starts from the moment when
consumers get to know about the existence of that product/service until they are finally
confident and familiar with it thanks to the ads to which they have been exposed during, and
mere exposure takes place.
Starting from the consideration that BP has been increasingly adopted in movies over the
years (Galician & Bourdeau, 2004), de Gregorio and Sung (2010) argued that as the number
of movies watched by a person increases, he is going to be exposed to an greater amount of
BP appearances. And as the mere exposure theory states, the more consumers are going to be
faced with BP, the higher will be their familiarity with them, and therefore their attitudes
towards BP will be enhanced (de Gregorio & Sung, 2010).
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3. Literature review Author Year Title Published Content
Product Placement La Ferle, C. / Edwards, S. M.
2006 Product placement: How brands appear on television
Journal of Advertising, 35(4)
Analysis of BP in TV programs, study of the different BP modalities, reasoning on the differences between BP and plugs, comparison between the placement of consumer products, services, sports, entertainment.
Najmi, M. / Atefi, Y. / Mirbagheri, S.
2012 Attitude toward brand: An integrative look at mediators and moderators
Academy of Marketing Studies Journal, 16(1)
This study investigates the influence of BP on consumers’ attitude toward brands; the authors develop a model that analyses the roles of different mediators.
de Gregorio, F. / Sung, Y.
2010 Understanding attitudes toward and behaviors in response to product placement
Journal of Advertising, 39(1)
Study conducted among more than 3,000 of adults using a scheme which takes into consideration peer communication and studying how this influence the attitude of consumers toward different
Exposé: Product and service placement: A cross-cultural study
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brands. Homer, P. M. 2009 Product
placements. The impact of placement type and repetition on attitude
Journal of Advertising, 38(3)
Analysis on how the repetition of a branded products on TV programs and the different modalities of BP affect the attitude toward that brand, comparison between prominent and subtle placements.
Redondo, I. 2012 The behavioral effects of negative product placements in movies
Psychology and Marketing, 29(8)
Studies on different types of negative BP, comparison between extrinsic and intrinsic negative placements, consideration on how even negative placements can positively influence both consumers’ attitude toward the brand and companies’ sales.
Van , A. 2010 The evolution of product placement in film
The Elon Journal of Undergraduate Research in Communications, 1(1)
Study on the evolution of BP across 100 years of Hollywood movies.
Cowley, R. / Barron, C.
2008 When product placement goes wrong. The effects of program liking and placement prominence
Journal of Advertising, 37(1)
Why and when BP negatively influences attitude toward brands, liking/disliking TV programs, Persuasion
Exposé: Product and service placement: A cross-cultural study
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Knowledge Model
Morton, C. R. / Friedman M.
2002 “I saw it in the movies”: Exploring the link between product placement beliefs and reported usage behavior
Journal of Current Issues and Research in Advertising, 24(2)
Research that links together consumers’ perception of product placement with their inclination to buy, analysis of the relation existing between BP and movie viewers beliefs.
Karrh, J. A. 1998 Brand placement: A review
Journal of Current Issues & Research in Advertising, 20(2)
General definition of brand placement, framework of theories which analyze this phenomenon, affective link between viewers and characters of TV programs.
Shrum, L. J. 2004 The psychology of entertainment media. Blurring the lines between entertainment and persuasion
Book Consumer psychology, BP and persuasion.
Burke, C. M. / Edell, J. A.
1986 Ad reactions over time: Capturing changes in the real world
Journal of Consumer Research, 13(1)
Attitude toward ads, different exposures across the time, ads liking.
Campbell, M. C. / Keller, K. L.
2003 Brand familiarity and advertising repetition effects
Journal of Consumer Research, 30(2)
Knowledge that consumers have about products, link between brand familiarity and repetition effectiveness.
Guennemann, F. / Cho, Y. C.
2014 The effectiveness of product placement by
Journal of Service Science, 7(1)
Brand awareness, brand image,
Exposé: Product and service placement: A cross-cultural study
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media types: Impact of image and intention to purchase
brand familiarity considered by analyzing vehicle’s placements in different kind of media.
Verhellen, Y. / De Pelsmacker, P.
2015 Do I know you? How brand familiarity and perceived fit affects consumers’ attitudes towards brands placed in movies
Springer Science Brand familiarity, brand attitude and product prominence, and brand attitude and plot connection.
Gupta, P. B. / Balasubramanian, S. K. / Klassen, M. L.
2012 Viewers’ evaluations of product placements in movies: Public policy issues and managerial applications
Journal of Current Issues & Research in Advertising, 22(2)
Public issues related to BP that is analyzed considering the points of view of different players in this market, viewers’ attitude toward BP.
Edell, J. A. / Burke, M. C.
1987 The power of feelings in understanding advertising effects
Journal of Consumer Research, 14(3)
How advertising is affected by consumers’ feelings. Feelings toward advertisements.
Burke, M. C. / Edell, J. A.
1989 The impact of feelings on ad-based affect and cognition
Journal of Marketing Research, 26(1)
Feelings role toward ads and analyzed to understand the effects of advertising.
Service versus product Abernethy, A. M. / Butler, D. D.
1992 Advertising information: Services versus products
Journal of Retailing, 68(4)
Comparison between product and service advertising.
Cravens, D. W. / Holland, C. W. / Lamb, Jr., C. W. / Moncrief, III, W.
1988 Marketing’s role in product and service quality
Industrial Marketing Management, 17
Definition and analysis of product and service quality,
Exposé: Product and service placement: A cross-cultural study
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C. examining how marketing actions can improve the perception of this qualities.
Prominence effect Gupta, P. B. / Lord, K. R.
2012 Product placement in movies: the effect of prominence and mode on audience recall
Journal of Current Issues & Research in Advertising, 20(1)
BP versus advertising recall effectiveness, comparison between audio and visual BP.
Lehu, J. M. / Bressoud, E.
2009 Recall of brand placement in movies: interaction between prominence and plot connection in real conditions of exposure
Recherche et Applications en Marketing, 24
Viewers perception analyzed to understand the existing link between plot connection and prominence in BP, brand recall degree.
van Reijmersdal, E. A.
2009 Brand placement prominence: Good for memory! Bad for attitudes?
Journal of Advertising Research.
Two laws describing relation between BP and viewers feedbacks, positive influence of BP prominence on consumers’ memory of the brand
Product placement economic worth Mandese, J. 2004 How much is
product placement worth? Advertisers search for a measurement standard
Broadcasting & Cable, 134(50)
Economic analysis of the cost related to BP in American TV programs.
Wiles, M. A. / Danielova, A.
2009 The worth of product placement in successful films: An event study analysis
Journal of Marketing, 73(4)
Analysis of companies’ investments in BP industry and evaluation of their effective worth.
Exposé: Product and service placement: A cross-cultural study
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Karniouchina, E. V. / Uslay, C. / Erenburg, G.
2011 Do marketing media have life cycles? The case of product placement in movies
Journal of Marketing, 75(3)
Analysis focused on the worth of BP investments in cinema, habituation-tedium theory.
Product placement effectiveness Yang, M. / Roskos-Ewoldsen, D. R.
2007 The effectiveness of brand placements in the movies: Levels of placements, explicit and implicit memory, and brand-choice behavior
Journal of Communication, 57
Three different levels of BP, memory, attitude toward brands and behaviors of consumers, implicit and explicit memory.
Redker, C. / Gibson, B. / Zimmerman, I.
2013 Liking of movie genre alters the effectiveness of background product placements
Basic & Applied Social Psychology, 35(3)
BP of products already known by viewers and liking/disliking the movie reshape their attitude toward the brand.
Williams, K. / Petrosky, A. / Hernandez, E. / Page, Jr., R.
Product placement effectiveness: Revisited and renewed
BP definitions, usage and scope, elements that influence its effectiveness.
Lehu, J. M. / Bressoud, E.
2007 Effectiveness of brand placement: New insights about viewers
Journal of Business Research, 61
Reaction of viewers the day after having seen the movie.
Product placement and ethics Ong, B. S. 1995 Should product
placement in movies be banned?
Journal of Promotion Management, 2(3-4)
Fairness of BP in relation to Federal Trade Commission bans, consumers’ consideration from an ethical point of view.
Hackley, C. / Tiwsakul, R. A. / Preuss L.
2008 An ethical evaluation of product placement: A
Business Ethics: A European Review, 17(2)
Ethical consideration concerning BP and other
Exposé: Product and service placement: A cross-cultural study
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deceptive practice?
marketing practices.
van Reijmersdal, E. A. / Tutaj, K. / Boerman, S. C.
2013 The effects of brand placement disclosures on skepticism and brand memory
De Gruyter Mouton.
BP disclosures in TV programs and movies, disclosures regulations, viewers’ attitude toward them.
Hierarchy of effects Lavidge, R. J. / Steiner, G. A.
1961 A model for predictive measurements of advertising effectiveness
Journal of Marketing, 25(6)
Advertising main functions, different steps of HoE.
Alexandris, K. / Tsiotsou, R. H.
2012 Testing a hierarchy of effects model of sponsorship effectiveness
Journal of Sport Management, 26
HoE related to sponsorship in a sport context.
Barry, T. E. The development of the hierarchy of effects: An historical perspective
Analysis of the evolution of hierarchy of effects (HoE) across the decades.
Brand equity Keller, K. L. 1993 Conceptualizing,
measuring, and managing customer-based brand equity
Berry, L. L. 2000 Cultivating service brand equity
Journal of the Academy of Marketing Science, 28(1)
Marketing for service companies, service branding model, strategies adopted by service companies to manage brand equity.
Dual coding theory Paivio, A. 2014 Intelligence, dual
coding theory, and the brain
Intelligence, 47 Dual Coding Theory (DCT), relation between verbal and
Exposé: Product and service placement: A cross-cultural study
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nonverbal cognition.
Mere exposure theory Burgess II, T. D. G. / Sales, S. M.
1971 Attitudinal effects of “Mere Exposure”: a reevaluation
Journal of Experimental Social Psychology, 7
Mere exposure analysis from Zajonc definition, two studies investigating the relationship between exposure frequency and attraction, and between affect and familiarity
Zajonc, R. B. 1968 Attitudinal effects of mere exposure
Journal of Personality and Social Psychology Monograph Supplement, 9(2)
Link between mere exposure and the effects this phenomenon has on people’ attitudes.
Exposé: Product and service placement: A cross-cultural study
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4. Problem statement and research questions
Even though it is simple to find different kind of studies and researches on BP in literature,
this topic is continuously changing, both because technological techniques and national
legislations are evolving in order to improve BP effectiveness and regulations of this
marketing practice, respectively.
What researchers have still not properly explored is the difference between products and
services advertising, and, in the specific, the placement of these two different goods in
movies and TV programs.
In the United States, at the beginning of the 1990s, more than a half (53%) of the money that
consumers totally spend every year is connected to the purchase of different kind of services
(Abernethy & Butler, 1992). In the past two decades this percentage has been continuously
increasing, and in 2014 consumers spending in services amounted to the 66% of the total
personal expenditures (Bureau of Economic Analysis).
These data clearly justify the importance of conducting researches on how not only products,
but also services are placed in the different mass media.
Thus, the main research question that we are investigating on, and one of the central points of
our whole work, is as follows:
Do products and services appear differently when placed in movies?
In addition to that, we would like to analyze how different variables (movie liking, frequency
of watching, placement prominence, placement modalities) influence consumers’ attitude and
behavior toward placements of products and services in movies.
In this context, it necessary to give a clear definition of attitude and behavior in order not to
fall in the logical trap of considering them as the same entity.
Attitude can be defined as deep-rooted personal judgments that every person holds towards
other people, things, and general topics such as marketing practices (Solomon, Bamossy,
Askegaard, & Hogg, 1999).
Thus, while attitudes are more related to the sphere of personal feelings generated by
particular stimuli, behaviors can be considered as the consecutive step that involves
Exposé: Product and service placement: A cross-cultural study
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consumers’ willingness to make decisions and actions linked to that attitude object (Solomon
et al., 1999).
It is important to specify that, while from a general point of view behaviors can be considered
as the logical consequences of attitudes, actually it would be wrong to believe that positive
attitudes towards an object always generate positive behaviors. In fact, as discussed by
Solomon et al. (1999), it is possible to find many evidences in literature proving that there
isn’t always a direct linkage between how a person feels about something and his/her
behavior towards it.
The goal of this research, and thus of the following hypothesis is to see if moviegoers have
the same attitude and behaviors towards services they have toward products that are placed in
movies.
Usually, the reason why people spend a lot of time watching movies and TV Series is that
they like doing so, and it is reasonable to think that if love it they will be more keen in
appreciating the different components that take place in these media. Therefore, people who
watch movies/TV programs more frequently tend to understand and better accept BP.
Frequency is, in fact, one of the discriminants that influence viewers acceptance and positive