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Chapter 2

2. Chapter 2: Review of the Literature

2.1. History of global product placement

2.2. History of Indian product placement

2.3. Production

2.4. The product placement process

2.5. Product placement effectiveness

2.6. Development of product placement practice

2.7. Product placement in integrated marketing communications mix

2.8. Product placement in marketing communications mix

2.9. Characteristics of product placement communications

2.10. Ethics of product placement

2.11. Benefits of product placement

2.12. Potential disadvantages in product placement implementation

2.13. Product placement media

2.14. Organization for product placement and practical implementation

2.15. Product placement strategy formation

2.16. Efficacy of product placement: Brand recognition and recall

2.17. Factors affecting recognition and recall of product placement

2.18. Important out come from literature review for this study

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2.1 History of global product placement

Product placement started as a periodic barter arrangement for lowering film and television

costs is now a vehicle for multimillion-Rupee integrated promotional campaigns‖ (Karrh, McKee,

& Pardun, 2003). Friedman (1985) found that the incidence of brand name appearances within

both best-selling novels and popular songs has continually and substantially increased since

World War II. Because of the success of product placement, it has become popular across the

media. The practice is prominent in television shows (Avery & Ferraro, 2000; Russell, 2002;

Taylor, 2003), movies (Gould, Gupta, & Grabner-Krauter, 2000; Delorme & Reid, 1999), music

videos (Chang, 2003), and computer/video games (Nelson, 2002). In recent years, marketers

are now moving more aggressively, seeking star roles for their brands in feature films (D‘Orio,

1999; McCarthy, 2000), video games (Gunn, 2001; Rodgers, 2002), magazines (Fine, 2004),

and television shows (Elliot, 2002; Vagnoni, 2001). The content analysis conducted by Galician

and Bourdeau (2004) showed that automobiles were the leaders in Hollywood product

placements in 1977, 1987, and 1997. Among all different types of media, product placement

has become a multi-million dollar business, as marketers search for new methods that will give

exposure to specific brands and products

Past product placement research has identified several program-related, placement-related and

viewer-related variables. However, their integrative effects on viewer attitudes to the brand have

not been studied from an empirical perspective. Research integrates key constructs from these

categories in a unified model, examines their relative strength. Key findings reveal the central

position of attitude to product placement.

Product placement in the media has been viewed as a fusion of advertising and publicity

(Balasubramanian, 1994). It is believed that in the near future, there is a good possibility that

product placement will be an important revenue source for screen television networks

(Schneider, 2002). As the practice of product placement continues to increase at swift rates,

there is no sign of discontinuance or even slowing down in the near future. It has become a

widely used form of increasing product awareness in various types of media. The increase of

use has spark storm as to whether it should be regulated, and/or even allowed. Critics argue

that the audience is incarcerated and may be unaware of the passive messages that they are

receiving. Studies have noted the increase in product placement; simultaneously consideration

has been given for the audience as receivers of the message. Considering the history and

dimensions of product placement, it can be argued that though product placement is a booming

industry, its success is dependent on viewers‘ individually conceived feelings regarding products

and/or services.

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Karrh (1998) estimated that 90% or more of product placements are done on negotiated

basis, where the product or service is traded for publicity in the program. However, more

recently, some deals have been quite large and have included large sums of money being

exchanged for placement services. For example, BMW invested an estimated $20 million on the

placement campaign that launched the Z3 roadster (Hammer & Brown, 1997; Maynard & Scala,

2006). The Z3 made a prominent appearance in the James Bond film Golden Eye, as well as in

most of the advertisements and trailers for the film (Einstein, 1997). Product placements are on

a meteoric rise in the Hollywood. Greater numbers of advertisers are looking for alternatives to

traditional advertising avenues, in search of more effective ways to reach an ever-elusive

audience. Producers‘ desire to achieve realism on screen and the need for alternative sources

of funding are further feeding the exponential growth of product placements and branded

entertainment. It is safe to say that such advertising strategies are here to stay. However, the

United States lawmakers have been largely ignoring the changes that these new advertising

strategies have brought on public programming. These changes bear significant consequences

for consumers and producers alike. Not only does the average viewer have the right to know

when he is being subjected to an advertisement, but producers also need to know what kind of

protection their artistic works will be afforded. (Lee, 2008).

Table No. I Product Placement in Hollywood

Brief Overview over the years

Movie Product (s) Remarks

Scarface (1932) White Owl Cigars $250,000 worth of

Advertising

Dinner at Eight Coca Cola Pictures of Jean Harlow and

(1933) other glamorous stars

swigging soda pop

You‘ll never get rich Chesterfield cigarettes Starring Fred Astaire

(1941)

The African Queen Gordon‘s Gin Product thrown overboard

(Early 1950s) by Katherine Hepburn‘s

character in the movie

Superman II (1979) Marlboro

E.T. (1982) Reese‘s Pieces Sales up 65%

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Never say never again Winston and Camel cigarettes Sean Connery and others

(1982) shown smoking these

Brands

Risky Business Ray-Ban Sunglasses

(1983)

Bull Durham (1988) Jim Beam Whiskey

License to Kill (1988) Lincoln, Larks Aston Martin replaced by

Lincoln Continental Mark

VII; free cars donated for

the film

Home Alone (1990) Budget Rent-a-Truck

Groundhog Day Jim Beam Whiskey

(1993)

The Firm (1993) Stripe Beer Sales increased by more

than 50%

Strictly Ballroom Coca Cola

(1993)

Pulp Fiction (1994) McDonald‘s & Burger King A lengthy conversation

about the two brands

Goldeneye (1995) BMW Z-3 One of the most successful

new-car launches ever

Jerry Maguire (1996) Reebok Backfired, company bad-

mouthed in movie by Cuba

Gooding Jr.

Anastasia (1997) Chanel perfume Product placement in an

animated movie; Chanel did

not pay for the visibility,

though

Men in Black (1997) Ray-Ban sunglasses Worn by Will Smith

Tomorrow Never Visa card, Avis car rentals, Reckless use of products

Dies (1997) BMW cars and motorcycles, throughout the movie; Over

Smirnoff vodka, Heineken beer, $100 million placement deal

Omega watches, Ericsson cell

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phones, L'Oreal makeup

Armageddon (1998) Ray-Ban Sunglasses

Small Soldiers (1998) Hasbro action toys Movie based on action toys;

script revolved around these

toys made by Hasbro

Where the heart is Wal-Mart Character lives in the store

(2000)

I am Sam (2001) Starbucks, Nike Sean Penn shown as an

employee of Starbucks

The Italian Job (2003) Mini Coopers

Shrek 2 (2004) Baskin-Robbins ice cream Shrek & Fiona drive

through a town that has a

Baskin-Robbins store; three

new flavors tied to the

movie created in real life

Pearl Harbor Pepsi (Coke) Negative placement for

Coke as Coke bottles shown

as being used as blood

containers, while characters

sipped Pepsi sodas

The Faculty Tommy Hilfiger Cast given outfits from the

Tommy Hilfiger Jeans line

in exchange for appearing in

an ad

Back to the Future Pepsi products

Demolition Man Taco Bell ―In the future, everything is

Taco Bell….‖

You‘ve Got Mail AOL, Apple, IBM and

Starbucks

Austin Powers Pepsi and Starbucks

Cast Away (2000) FedEx and Wilson

Men in Black II Mercedes Benz, Ray-Ban

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sunglasses, Sprint, Burger King

Wayne‘s World Nuprin, Pepsi, Pizza Hut, Characters shown hawking

Reebok these products

Josie and the America Online, American

Pussycats Express, Bebe, Billboard

Magazine, Bugles, Campbell's

Soup, Coke, Entertainment

Weekly Magazine, Evian, Ford,

Gatorade, Kodak, Krispy

Kreme, McDonald's, Milky

Way, Motorola, Pepperidge

Farm Cookies, Pizza Hut,

Pringles, Puma, Ray-Ban, Sega,

Starbucks, Steve Madden,

Target, and T.J. Maxx

Herbie, The Love Bug Volkswagen Beetle

RoboCop Ford Taurus

Back to the Future DeLorean

Smokey and the Pontiac Trans Am

Bandit

The world is not BMW Z8

Enough

Lara Croft : Tomb Jeep Wrangler Rubicon

Raider

I, Robot (2004) Audi RSQ concept car Audi created the concept car

for the movie

The Matrix (1999) Duracell batteries

Beauty Shop Fiji Water

What Women want Nike

Panic Room Evian

My Big Fat Greek Windex

Wedding

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You‘ve Got Mail AOL, Starbucks, New York Film‘s title changed from

Times ―You have mail‖ to

―You‘ve got mail‖ to match

the AOL phrase exactly

Jurassic Park Ford Explorer

Jurassic Park 2 Mercedes Benz SUV

Rocky Wheaties, Hugo Boss

Max Keeble‘s Big Nike, Coca Cola, Apple Coke being consumed in the

Move Computers cafeteria

How High Nike, Adidas, Sam Adams beer

O Puma

Bandits Adidas, Pepsi

The One Pepsi

Hardball Pepsi

Hearts in Atlantis Pepsi

Life as a house Coca Cola

Serendipity Coca Cola, USA Today

Newspaper

Glass House Coca Cola, AOL Coke shown being

consumed at dinner and at

the movies, main character

shown using AOL

Rat Race Coca Cola

Bubble Boy Coca Cola

Kate & Leopold Apple computers, Colgate, Hugh Jackman shown

Gillette, Hungryman frozen TV trying to use these products

Dinners

Slackers Apple computers

Domestic Disturbance MSN An MSN account shown

being used by John Travolta

Snow Dogs Kawasaki, Powerade, ESPN

Orange County Spongebob Squarepants This cartoon is popular with

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(Nickelodeon cartoon) kids as well as teenagers

and adults

Black Hawk Down USA Today newspaper

Vanilla Sky Kodak and Marriott Hotels Billboards for these

products shown in the

background

The Caretakers Pepsi

Good Will Hunting Dunkin‘ Donuts

American Gigolo Giorgio Armani

Boogie Nights Fresca, 7-Up, Chevrolet References to the mentioned

Corvette Brands

Forrest Gump Dr. Pepper Incorporated into the

Dialogues

Grease Philip Morris cigarettes

Rocky II Philip Morris cigarettes

Little Shop of Horrors Philip Morris cigarettes

Crocodile Dundee Philip Morris cigarettes

Die Hard Philip Morris cigarettes

Who framed Roger Philip Morris cigarettes

Rabbit

Field of Dreams Philip Morris cigarettes

Analyze This Merrill Lynch

2.2 History of Indian product placement

The very first product placement that can be noticed is in the movie called Bobby, in 1970 for

Rajdoot Motorcycle. It can be said that the product placement has reached Hindi Film industry,

the Indian cinema very late but now has been in focus of the marketers for advertising their

products. The product placement is taking place in both ways verbal or visual or both. The

products that are marketed range from fast moving consumer goods (FMCG) to high interest

products like automobiles. The product placement mainly has three components namely, the

production houses, the product placement agencies and the clients/ companies. Earlier the

producers contacted the companies directly but as the film Industry has grown and so also the

marketing of products, there is a need for the placement agencies to step in. The product

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placement agencies may be the advertising agencies or in-house marketing departments of the

companies. The agencies mediate between the clients and the producers by providing scripts

and specifications about how better the product can be placed and viewed by the audience.

(Russel & Belch, 2005).

Although the format of Hindi film industry has changed over the years, a typical Hindi film is

histrionic filled with song and dance, sophisticated sets, and bright and delicate costumes based

on values and emotions such as family, love and religion. Cheesy and colorful with rhythmic

melodies, Hindi films resemble Hollywood musicals to a certain degree. The storyline and the

plots of Hindi movies follow a predominantly formulaic tradition. At the center of the plot is often

a love story, where lovers overcome great odds to be together. A disparity on the theme is the

revenge saga, where a common man victimized by a powerful villain overcomes great odds to

take revenge. These central themes are mixed with liberal doses of action, romance, comedy,

thrill and dynamic twists and turns. Most Hindi films are developed around customary themes of

star-crossed lovers, censorious families, protective love triangles, corrupt politicians, villainous

rogues, dramatic reversals of fortune and unbelievable coincidences. However, recent

developments have indicated that some filmmakers are moving away from the formulaic

romantic or action movies. They have begun to segment their audiences and are trying to

develop formats and themes that fill all niches (Sinha, 2009). Indian audiences are now exposed

to different genres and styles and have come to expect good scripts ranging across varying

storylines.

Filmmakers can no longer ignore the diversity of their viewers and are diversifying their

product portfolio to reach a greater number of audiences. Formulaic or otherwise, various

threads of influence are found in Hindi Film industry films, primarily the-story-within-a-story

tradition from Indian epics, the song-and-dance-routine from Hollywood musicals, the village

tradition of epic narration and the spectacle and melodrama of Indian theatre.

Critics, historians and authors have acknowledged that Hindi films reflect an assimilation of

different influences starting from theatre to Hollywood; however, this same group acknowledges

that despite the inspiration, Hindi films are thematically and structurally distinctive. ( Sen, 2010)

Hindi films have come a long way from the Lumpier tradition of ―placing the world within one‗s

own reach to one where the magic of illusion and escapism is lightly draped over the thick fabric

of reality. In other words, the Indian film industry enchants viewers by presenting them with a

different world from their own. Though Hindi films are more ―exhibitionistic and less indirect in

nature than Hollywood films, Indian audiences watch them to escape the real world. The Hindi

Films typically showcase a world that is conjured and entertaining but with strong links to

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emotions and values that are real and palpable (Hirsch, 2009). In this context, Hindi films are

basically ―blend products where global references have been adapted to a more Indian context

. (Kavoori and Punathambekar, 2008).

Films enable fleeting inner emotions with universal appeal to transcend time, place and

language through the permanent images of cinematic expression. Although a dream can only

be remembered after the fact, a film can be watched over and over on videotape or digital video

disk (DVD) (Halpern, 2003). This illusory nature of films provides filmmakers the creative license

to integrate exotic locations, elaborate set designs and sophisticated costumes. It also allows

filmmakers to create their own rules of logic to meet a variety of artistic and marketing needs.

The song and dance routines in Hindi films play a special role in product placement. An

example of this can be seen in the box-office hit Kuch Kuch Hota Hai. A total of 144 product

placements are featured in the movie, which is an emotional love story set against a college

backdrop. The story of the film shows the relationship between three college students and

provides the perfect setting for promoting youth brands. The film is replete with fashion brands

like Polo Sport, GAP, Speedo and others that target youth, like Pepsi and Nescafe. The first

branded attire shown is a DKNY shirt worn by the female protagonist in the 19th minute of the

film. In the following ten minutes fifteen different clothing brands are presented on screen. The

first song and dance sequence of the movie, showcases brands like DKNY, GAP, D&G and

Pepsi. The song and dance sequence is extraneous to the plot of the film and is a flight of

fantasy that allows the director to integrate brands and entertain at the same time. In general,

identified clothing labels are predominantly printed or sewn on T-shirts. In addition, brands also

occur on sweatshirts and sportswear. This is often presented in scenes illustrating sports and

leisure activities. Mostly, people wearing these products are 20 and 30 year old students who

have rich parents, enabling them to purchase higher-end designer clothes. For Pepsi, a brand

attempting to connect with Gen Y, the movie was a perfect fit. The song that displays the bond

and camaraderie between two friends and reflects the easy-going-air of college life was

something to which Pepsi‗s target audience could relate. This example demonstrates how

product placement can be easily integrated into the formulaic nature of the films and their

ethereal settings. Given the ease with which products could be placed, financers, directors and

producers alike see product placement as a way of balancing marketing and production costs.

(Sen, 2010).

All film productions in Hindi Film industry fall into two categories – mainstream, commercial,

high budget films produced by well known and larger production houses; and low-budget, niche

films made by an individual producers or smaller and less-known production houses.

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There is no fixed rule, however, for how the films are made, financed or distributed. In

some cases the producer may double as the financer while in other situations the producer may

obtain funds from financial institutions. Distributors sometimes finance the film for exclusive

distribution rights. (Sen, 2010).

The analysis of 30 movies showed that there were a total of 299 product placements, an

average of 10 for each movie. Of the 299 placements, 129 were found in Bollywood movies and

170 were found in Hollywood movies. Almost 200 different brands were identified in the selected

30 movies, out of which a few were common in both the industries. The number of brand

appearances in Hollywood movies varied from 10 to 50 per year, as compared with Bollywood’s

25 to 30 per year (Gokhale, 2010).

Indian film industry is becoming more systematic and structured in every function and activities.

Priya Village Roadshow which began as a movie theater in the nation‗s capital region,

expanded into distribution and recently also started dabbling in production and finance. Adlabs,

a key Indian film processing company, recently attracted huge investments from India‗s biggest

telecom corporation, Reliance, and moved into production, exhibition, distribution and finance of

films. UTV, which started out as a television production company soon moved into film

production, marketing and distribution and is currently one of the biggest domestic film

distributors (Lorenzen and Taeube, 2007). Percept Picture Company was created by Percept,

an advertising agency in a joint venture with the Hindi TV channel and film distributor Sahara

One, to tap the potential of in-film marketing and to ensure a constant supply of films and film-

related content to Sahara One‗s TV channel. Sahara One did not succeed in integrating film

production in its joint venture with Percept Picture Company, and exited the venture, focusing

upon film distribution and finance. Percept now produces finances and distributes films on a

much larger scale. Several film productions, distribution and exhibition companies have been

listed on the Indian stock exchange and have issued shares to the public. There is a growing

interest by global studios in the Indian film market; these studios are increasingly producing and

distributing Hindi movies.

Current trends in Hindi Film industry show that more than looking into scripts and turning

attention to creative details like integration, brand marketers consider factors like potential for

box-office success, lead actors, frequency of placements, length of placements, and so on.

However, the study suggests that viewers give little consideration to whether the lead actor is

the brand ambassador for the product, the movie earns box office success, the brand is

mentioned in the dialogue and the product is shown frequently and/or for a long period of time.

19

Though the above-mentioned factors are deemed inconsequential by viewers, the study

suggests that there are certain other key placement characteristics such as integration, usage

and familiarity that play a role in influencing purchase decisions. Consider the movie where the

hero wakes up in the morning and gargles with Pepsi. The placement of the brand is so

seamless that the viewer does not question it. What the director does is portray a lifestyle that is

young, urban, cool yet irreverent; a tone that is carried out throughout the movie.

Table No. II Product Placement in Hindi Film industry

Brief Overview over the years

Movie Product (s) Remarks

Taal

Coca-Cola,Thums

Up,BMW,Screen 20% of the Taal

Magazine,Sony Cam,Diet production budget came

Coke,Nescafe,MTV,BPL,Honda just from Coca-Cola.

Rumours also have

it that Subash Ghai

shot two sets of

scenes, one with

Pepsi and the other

with Coke,

Hum Tum Times of India Group, Lays

Koi Mil Gaya Karizmaa. Hero Honda,

Love Ke Liye Kuch Mc Donalds,

Bhi Karega

Dilwale Dulhania

Le Canned Stroh's Stroh's is said to

Jayenge have paid Rs 15 lakh

to the producers for

15 sec display

Jo Jeeta Wohi BSA SLR

Sikandar

Hum Saath Saath Coca-Cola.

Hain

20

Chalte Chalte Hyundai Santro, Castrol

Kuch Na Kaho Coca-Cola,Mentos

Baghban Ford Ikon, ICICI Bank, Tata Tea Total benefit to the

producers from

associating with the

brands is in the

range of Rs 3-4

crore.

Khakee Thums Up

Road Tata Safari

An Evening in

Paris Coke

2.3 Production

There are a number of production houses escalating in India, many of which are ventures by

Indian actors. Several stars today largely work under their home production banner, or

selectively undertake a co-production with an established studio. This model has largely come

into play on account of the revenue sharing pattern that is able to compensate the high fees

otherwise demanded by these stars. The Indian film industry is expected to grow at increasing

annual growth rate. The contribution of domestic theatrical revenues to the overall industry pie is

expected to reduce slightly, while the share revenues from cable and satellite rights is expected

to increase going forward .

2.4 The product placement process

The placement of brands and products within films allows an ordinary setting to be

developed for the products which are then portrayed in either conventional or unconventional

everyday situations of use. Furthermore, cinema film allows the use of color, movement and

sound, meaning that products and brands can be shown at their very best, and often with time

frames and a quality of exposure that cannot be equaled by any other communication tool.

Product placement also permits typological segmentation of the public it reaches. Every film has

its own particular identity and this is usually quite evident even in the advertising trailers, which

aim to attract specific sectors of the public. So, product placement is a powerful tool available to

21

marketers which can be used to direct corporate communication at a specific public that is well

defined within its own distinctive profile.

Before this medium emerged as an important revenue channel for filmmakers, producers and

placement agencies, product placement was primarily used as a means of surrogate advertising

for products that could not be advertised on regular mass media. Tobacco manufacturers have

for long been accused of promoting smoking through the portrayal of the macho hero who is

depicted brandishing a cigarette and blowing smoke at the villain‘s face. Many critics still feel

that it is a medium for ―hidden but paid‖ subliminal messages. Their worst fears are that it is the

younger generation, generally, that is taken in by the charms of the products being used by their

favorite stars and scrupulous marketers who just want to increase their revenues may exploit

this. Placement of ethically charged products like cigarettes, arms and ammunitions, alcoholic

beverages etc. has long been a point of contention between filmmakers and regulatory

authorities. As mentioned earlier, audiences generally have no means of escaping product

placements embedded in films or television and hence are subconsciously exposed to certain

products that may be harmful for them. Hence, it is extremely important to have in place

regulations that ensure that product placement is used as an effective marketing tool for

products and not as a means for surrogate advertising of forbidden products.

As the product placement industry has boomed in Hollywood, a newly recognized Hollywood

icon is Mark Burnett. Mark Burnett Productions has produced multiple reality television

programs that integrate product placement and advertising clients in ―closer-than-ever

relationships‖ as the practice rapidly expands (Grainger, 2004).

2.5 Product placement effectiveness

Brands are manipulated on occasion because product corporations do not wish to be affiliated

with messages from movies and television shows, or because the product is being portrayed in

a defamatory light. A tactic called brand-modification has been used in some studies to evade

this problem. While the purposes for the modifications vary, some studies demonstrates that the

minor changes are not significant enough to cause the viewer to realize that he or she is seeing

something other than an authentic brand.

Much of the time brand placements are made at a cost for the brand. The results of these data

show that if the alternative to product placement is brand modification, then the well-known

branded products have little need to pay for the placement (as the modified products are

apparently still an advertisement for the authentic brands). Congruently, products or logos that

22

are not as well-known are not as well-advertised by modifications. It is possible that a brand

logo would have been more recognized and had greater recall if the actual brand logo had

appeared in the clip. It is also possible that Sony and Oster could have benefited not only from

the product placement itself, but from the association that Sony and/or Oster would have had to

Washington‘s Oscar-Award-Winning performance, as well.

Due to the nature of the movie or message that was conveyed in Training Day, Sony

and Oster may have deliberately chosen not to place products in the movie. If that was the

case, such product manufacturers need to be aware of the results of this study as it

demonstrated that there was still some recognition and association made with the authentic

brands, and the branded product logos were not manipulated enough to disassociate the

product from the movie. In the interest of the products that become associated to movies for

whatever reason, manufacturers may choose to pursue the establishment of guidelines and

regulations that protect their product from such subtle modifications that most of the viewing

public fails to make any distinction between the actual brand and the brand-modification. There

are brand modifications in movies that viewers associate with authentic products even if the

brands are not being placed as products. While movie producers maintain a feeling of reality by

simple modifications, brand manufacturers could be dissatisfied and unaware of the strength

and consistency of the associations into which brand-modified products are assimilated when

only minor changes are made.

Bartlett‘s (1932) study of schemas told a story and asked the participants to retell the story

multiple times in a longitudinal study. He found that the story used did not fit the expected style

for his audience, and in their retelling of the story, they made accommodations to fit their pre-

existing schema. While in this study, the participants were only asked to recall and recognize

the brand placements once, there were accommodations made to fit prior brand exposure. If the

study had included participants that were 30-year-old homemakers, it would have been likely

that there would have been increased recognition/assimilation of the kitchen appliance brand

modification. Instead, young adults—who have a generally different preexisting knowledge

structure—recall and recognize the Foster label as beer.

Product placement studies have shown that reviews and recognition of such a nature

are shown to benefit the products placed. As also mentioned in the review of literature, subtle

use of products is liked by viewers as the overall feeling is that product placement contributes to

realism and generic props lessen artistic value.

2.6 Development of product placement practice

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Product placements have evolved differently for movies and television. Accordingly, they

are regulated by a different set of rules. Product placements were rare in Hollywood movies until

the 1970s, when producers discovered that costs could be saved and realism achieved by

placing brand-name props directly into the movies. However, it wasn‘t until 1982 that producers

and advertisers alike realized the power of product placements on the consumer. Lee (2008)

discusses that placement of Reese‘s Pieces in the movie The Extra-Terrestrial, sales increased

by 65%. Other branded products soon encountered similar successes. After Tom Cruise wore

Ray-Ban sunglasses in the film Risky Business in 1983, sales of Ray-Bans skyrocketed by 55%.

Product placement in television began quite differently from product placement on the silver

screen. It was not uncommon for advertisers to sponsor entire television programs, with

advertising agencies playing key production roles in the initial decades of television. Thus,

product placements were commonplace. This began to change in the 1950s, when the Federal

Communications Commission (FCC) enacted the ―payola laws.‖ As stipulated by FCC rules,

television producers must now disclose their programs‘ sponsors. However, motion pictures

(even when aired on television), cable programs, and first-run syndication programs are exempt

from the FCC‘s sponsorship disclosure rules. (Lee, 2008)

While product placements and brand sponsorships are hardly new, what is striking about

such practices today is how systematic and sophisticated the efforts to integrate brands and

brand messages into entertainment venues have become. The integration strategy meets the

needs of both producers and advertisers. Producers are looking to nontraditional partners to

finance and support their programs. In addition, they want to achieve authenticity, which means

characters interacting with real products, ones the audience can identify with and ones that it

itself consumes. Advertisers are stimulated by a different set of incentives. Technological

advances such as the Internet, digital video recorders, and video iPods have led to increasing

audience fragmentation, making it harder for advertisers to reach consumers and resulting in

advertisers searching for innovative ways to influence their customers.

Product placement can also be used to develop the image connotations of an existing product.

In this case it is necessary to define the image characteristics of products which, although they

have been on the market for some time, are almost totally interchangeable with competitive

products because they are part of a traditionally poorly differentiated supply, as in the case of

mineral waters. In fact, the qualifying effect that a film can have for a brand as a result of

product placement is subject to the transience of memory. On the other hand, the brand

survives longer than one‘s memory of the film and the characteristics associated to it in the film,

24

and it draws on numerous tools to develop its own distinctive traits. From a long-term

perspective and from the viewpoint of promoting companies, every product placement can

therefore be examined in depth, not only for the benefits it can produce in terms of

communication, but for the transience of the effects developed and therefore for the need to

activate additional tools that become necessary in order to achieve the company‘s

communication objectives. In this sense, product placement must be assessed in relation to the

possibility of its being sustained, in the short term, by other communication initiatives that have

positive repercussions on the film‘s popularity. Companies that have identified product

placement as a tool of corporate communication with particular characteristics seem to be

moving in this direction, i.e. towards the association of product placement with other corporate

communication tools on one hand, and towards the choice of innovative forms of product

presentation in the film and in the promotion of the films and of product placement itself on the

other.

2.7 Product placement as an integrated marketing communications tactic

Product or brand placement as a marketing and communication tool is compelling, yet

unsubstantial. It can generate recall and reinforce brand messaging. However, to affect

purchase behavior and generate sales, brand placements need to be supplemented by other

marketing and advertising activities. To create the desired impact within the overall marketing

mix, brands need to pay close attention to the three C‗s of brand placement as outlined in the

thesis namely, category, consumer and character. Though the conclusions outlined have been

based on a small sample size of possibly similar-thinking individuals, there is some indication

that category, consumer and character are the most important elements in a product placement

initiative. Clearly, more work needs to be done to understand how brand placement can impact

the overall reputation and success of a brand if this field is going to develop in a systematic

manner.

As placements become an increasingly important part of the media landscape, it is critical to

understand how and when they are effective. Friestad and Wright (1994) argue that persuasion

knowledge evolves over time; as consumers become more familiar with a tactic, their

interpretations and evaluations change. They note that as comparative advertising increased in

the 1970s and 1980s, the increased savvy of consumers toward the comparative strategy

altered their reactions to the advertisements. In the same manner, as the consumer develops

more sophisticated persuasion knowledge about less intrusive tactics, such as product

placement, the effects reported in the priming condition may become increasingly common.

25

2.8 Product placement in marketing communications mix

As with other corporate communication tools, where costs and benefits are management

controllable, product placement has its own very distinctive features, which determine the

advantages and limits of its use. As far as advantages are concerned, product placement offers:

• A pre-arranged ‗prominence effect‘

• Planned emergence of products and brands

• Development of active audience interest

• A predetermined level of product and brand crowding

• High audience segmentation

• The opportunity to present product categories for which advertising constraints and limits

may be in place

• Gradual investment

A further feature of product placement is the Pre -determinability of product and brand placed in

a film, in other words, in the corporate communication. Dense placement results in lower

visibility for the corporate communication, which translates into lower efficacy of the

communication media employed. The success of a film, and the profits to be made from it, are

secondary to public and critical appreciation. Film production companies must, therefore, limit

product placement in films. Product placement is constrained by the public‘s ability to accept the

presence of brands in films. Placement should not be perceived as a disruption but rather

accepted as something that furthers the development of the film‘s action. Obviously this doorsill

is extremely variable and depends to a great extent on the viewer‘s demography.

It may be said that product placement is used as a corporate communication tool linked to the

values, methods and timeframes of the work, typically a film, within which it is placed. As such,

placement amplifies the effects of the film on the awareness and perception of the

brand/product, but, at the same time, limits the opportunities available to the company to

intervene or control. On the one hand, this action on active audience interest is constrained by

the variability of the values and success of the medium involved; on the other hand, there lies

the opportunity to work with high impact media, such as cinema and television. However, in the

later case, timeframes and methods of distribution cannot be programmed and this factor limits

any means of forecasting the spatial and temporal distribution of the corporate communication.

Brand placement is most commonly referred to as the practice of displaying or showcasing

branded products in popular entertainment. The public relation function has traditionally used a

variety of media platforms and interpersonal tools to develop and support a brand‗s reputation.

26

Traditional tools like news releases, special events, press kits incorporating varied media have

been typically used to communicate with a brand‗s users and develop a positive relationship

with them. This roster of tools has expanded over the years with public relations practitioners

experimenting with numerous new media tools and approaches.

Practitioners, understanding that members of different publics attend to various channels

differently, have been receptive to experimentation and change in the choice of medium for

message dissemination. In addition, there is a frequent need for public relations practitioners to

position a client‗s product or service in the context of naturally occurring activities and connect

at a more subtle and sub-conscious level with users. A film provides the perfect naturally

occurring context for message dissemination and public relations practitioners use it as a

platform to build positive relationships between organizations and their many publics. Though

not an overt promotion, brand placement is a way of integrating branded products naturally into

the setting, plot, dialogue, background and scene of an entertainment program to increase

visibility among consumers/viewers. Brand placement in some companies has been placed

within the realms of marketing; however, that product placement falls under the umbrella of

public relations and is distinguished from advertising agency placement in that most placements

are not paid for Brand placement primarily impact the reputation and image of the company and

not sales. In fact, most trade and academic research concentrates on the recall value of brand

placements and not on sales impact. This thesis attempt to link brand placement to ethical

concern and thereby, to brand recall.

Initially known as product placement, this practice has been called a variety of names: brand

placement, in-film advertising, branded entertainment and brand integration. Through its

evolution it has also been known as brand casting, brand cameo and embedded marketing. In

this thesis all of these terms are used interchangeably and are collectively described as a

cooperative effort of advertisers and creator of entertainment products in which trademarked

goods are embedded into popular entertainment products in order to encourage their

consumption, prevailing entertainment and artistic concerns (Schejeter, 2005). The Center for

Media and Democracy describes product placement as a form of advertisement‖ that does not

disclose to consumers its promotional intent (Source Watch, 2005). In reality, brand placement

falls in the space between advertising, promotion and entertainment and, for this reason has

been characterized as a amalgam advertisement (Balasubramanian, 1994). Brand placement is

not restricted to films and can extend to television, radio shows, video games, song lyrics, music

videos and plays (Wasko, Phillips and Purdie, 1993). Despite the variety of entertainment

channels, the main purpose of brand placement is the same: generating additional finance for

27

the author, the medium or the production and creating a platform for the advertiser to introduce

brand references into the consumers‗ experience of the entertainment (Russell and Belch, 2005;

Lehu and Bressoud, 2007).

2.9 Characteristics of product placement

Product placement usually involves a promoting company and a movie production company.

The former aims to place a specific product or brand in a given context, while the later searches

for correct remuneration in return for granting visibility to the ‗placement‘. Depending on the

activities performed, the operational aspects of the placement can vary. First of all, some

initiatives are limited to the placement of the promoting company‘s product or brand in the film,

but they may also extend to their management in collateral activities such as advertising posters

or the promotional trailers that launch the film. These initiatives create products that are

separate from the film because they are conceived specifically to market it. The trailers are

destined to have more visibility than the film they promote, and they are communicated by

numerous media and address a far broader target than the audiences who will actually watch

the film. In addition to the actual ‗placements‘, the parties may agree to develop licensing

activities or other types of promotional programmes. Through licensing, cinema production

houses grant other companies the right to exploit characters or images from a film, in exchange

for the payment of royalties. In numerous legal systems, this activity is regulated by a precise

contract and allows the companies involved to develop and market products (and occasionally

services too) that reproduce characters or settings from the film. This form of licensing is very

widespread in the world of children‘s films particularly cartoons and it may take place with or

without the placement being defined. In the first case in particular, licensing defines an

additional element compared to product placement and helps to alleviate relations between film

production and the company promoting the placement. A product placement can also be

associated with other forms of promotion, usually described as cross promotion or back-end

promotion, through which promoting companies back the distribution of the film in which the

product is placed, giving visibility to the film and to the association it establishes with the product

or brand. In these cases, the purpose of the communication is to inform the public of the

existence of a precise product placement, for example, by proposing the main scenes from the

film in which the placement occurs, or by referring to characters from the film in association with

the product to be promoted. The benefits of cross promotion are felt in particular by the

promoting company which can thus make its association with the film known to the general

public, drawing on its recognition and image on the market. On the other hand, film production

28

companies also exploit the advantages of the communication created by the cross promotion,

obtaining greater visibility for the film, which is promoted at the expense of the promoting

company. Depending on the frequency with which this tool is employed, the companies involved

may create organizational units whose purpose is specifically to manage it. In the case of

cinema production Executive Studios are created to systematically manage placements within

the films produced. It will therefore be the Executive Studios that analyze the screenplay, look

for placement opportunities and contact any promoting companies that might be involved.

Promoting companies that invest regularly in placements can set up special units themselves,

as Anheuser-Bush, Ford, AT&T, Kodak and Coca-Cola have done in the United States, to

analyse studios‘ proposals and to collaborate actively on the definition of the best positioning

solutions. Product placement agencies‘ slot in between these players: they are professional

structures that specialize in activating and managing this type of corporate communication tool.

These agencies first appeared in the second half of the 1980s, in the Hollywood area, and they

replaced the specialized units of promoting companies and production houses, or worked with

them, dealing with the operational aspects of the placement process. Their activities start from

an examination of the film in production, envisage the identification of potential placements of

brands and products, and continue with the selection of promoting clients. They manage the

placement on their behalf, draft the contract and protect the customers‘ interests when the

scenes in which the product or brand will be placed are recorded.

The agencies can be contacted directly by promoting companies looking for a placement or by

production companies wishing to identify possible promoters, when the producers are not in a

position to manage the relations that would result from it. The product placement market is

founded on the existence of finite and stable relations between parties that know each other and

can establish trusting relationships. In many cases, it is the bonds of friendship and

acquaintanceship, rather than specific contract clauses that enable a contract to be developed

and respected.

Films do not only create awareness of the products presented, they also influence their image.

In this sense, a product placement in a film or in other forms like television serials, cartoons, etc.

Conveys the message, and transfers its own specific values to it, in the way the latter are

perceived by the audience. The values of a scene or character are known in advance (before

deciding a product placement), while the effects that can be achieved among the audience are

changeable and unpredictable in all their implications. As a result, product placement makes it

possible to plan and define in detail the association between the scene/character/use and the

product/brand during the development of the film, in order to establish the production

29

responsibilities, direction and brand ownership in the contract. However, product placement

cannot programme the hoped-for effects of a scene and the associations it contains. These

effects depend on the associations that the audience makes with the scene and the entire film,

the appreciation on which the success of the film depends and, therefore, the possibility of

expanding or damping the values associated with the brand. In product placement, the choice of

the setting and the characters that the brand is associated with, and the possibility of verifying

its correct positioning during filming, reduces the risk of ineffective or even harmful placements.

2.10 Ethics in product placement

As product placement has become a common marketing tool, products are integrated so

carefully that the audience can be completely unaware of the product presence as a form of

marketing. Because of the possibility that the audience may not be aware of its subjection to

product placement, there is a continual debate as to whether product placement is an ethical

practice. Product placement reaches a captive audience, provides relatively greater reach than

traditional advertising, demonstrates brand usage in naturalistic settings (that could sway an

unaware consumer), and offers an alternative advertising option for alcohol and tobacco, both of

which are restricted from broadcast television (DeLorme & Reid, 1999).

The issue of creative control also brings up the problem of clutter versus exclusivity. With the

rise of product placements, branded has also grown. For example, in the motion picture The

Dukes of Hazzard, about twenty brands were featured, including Beefeater Fun, Budweiser,

Cadillac, Coca-Cola, Dodge, Doritos, Ford, Levi‘s, Miller, Motorola, Nike, Ray-Ban, Tabasco,

Volvo and Yahoo!. Such mass-integration trend begs the question: are these heavily-branded

productions little more than advertisements disguised as entertainment, meant to deceive

consumers who are already paying to view them? Do such integrated media cross the line from

commercial to the non-commercial arena? In the wake of technological advances, such

questions need to be addressed.

The increase of branded entertainment, programs that are built around a brand, has brought

with it a host of new issues. Because the program is built around a specific brand or brands, the

line between entertainment and advertisement is blurred. Essentially, the problem lies in

deciding whether the program remains in the non-commercial sphere, which carries

substantially more rights and privileges, or whether it has entered the commercial sphere.

Amendment may prove to be crucial to how much leeway producers are accorded in using third

party trademarks and publicity rights. In addition, its commercial/non-commercial status will

30

determine whether product claims need to be substantiated. Product claims in non-commercial

programming do not need to be substantiated, which means entertainment programs may show

products being misused or being used to do things they would not be able to do in reality. For

example, a show can feature a bicycle being able to leap over cars at racing-car speed, even

though that specific model would not be able to perform in this manner in real life. The

proliferation of product placements has thus given birth to a variety of issues like, Within what

contexts do product placements deceive or even harm the consumer, Do producers and

advertisers really have a legal right to display products freely and What are the legal regulations

that guide both producers and advertisers?

2.11 Benefits of product placement

There are several reasons why product placement has been the advertisement strategy of

choice in recent years. First, it is cost-efficient. For example, as a film gets aired repeatedly from

its theatrical debut to televised broadcast and home video rentals, the cost of product placement

per thousand exposures decreases to mere paise. Second, it is a chance for brands to be

displayed without other competition.

Third, entertainment programs, whether movies or television shows, can be pre-selected to

target desired consumer groups. In addition, seeing a favorite character or actor use a particular

product can, consciously or subconsciously, be very persuasive to consumers. Associating

brands with actors and contexts allows advertisers to manipulate the images or the usages that

they want associated with their products. Finally, product placements are effective in solving the

ever-increasing rise of ―advertising avoidance,‖ a term that encompasses all tactics that

consumers use to avoid advertisements, from muting audio and flipping channels during

commercial interruptions of their programs to ―zapping‖ them out with the digital video recorder.

All of these factors have contributed to the product placement revolt. Today, product placements

are highly desired by both the advertising and entertainment industries. Contrary to the past,

now ―advertisers clamor for the opportunity to pay for the right to participate in product

placement and more significantly, branded integration opportunities. The rise of product

placements and branded entertainment has brought with it a whole host of issues and

controversies ranging from public policy debates to unsolved legal problems. The issue of

creative control concerns many, including producers and consumers. Moving on the spectrum

from free product placements to payment for specific product integration, the pressure on

producers to defer some creative control to advertisers will be inevitable. Much controversy

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exists over whether brand-controlled productions are able to remain artistically viable and hold

an audience while refraining from becoming nothing more than infomercials.

2.12 Potential disadvantages in product placement implementation

The placement seems even more seamless. Additionally, viewers also want to see brands in a

more dynamic environment where it is used and tried by characters in films. Static brand

displays such as billboards in the background, brand labels on products that is a part of the set

décor and a mere mention of the brand name in the dialogue does not create positive consumer

impact. The study indicates that it is important for brands to be shown in familiar situations, in

which case brand marketers have to identify scripts and characters that their target customers

can relate to. The study also found that it is equally important for brands to be shown in use.

Hence, it is important to make sure that the scene that contains the placement is realistic and

that the viewer can find a point of reference with his or her own life. This is possible only when

the film reflects viewers‘ life experiences. Therefore, reality-based films form a more effective

medium than films that are far removed from reality like those dealing with the future or super

heroes. In-film brand placement is a high-risk model in the sense that placements have to be

thought through right from the script stage. The core idea of the brand and the film has to be

well integrated and then one has to wait for weeks after the film is released or longer to realize

its potential. There is a chance that the brand placement does not create the desired impact and

to prevent such failures marketers should go all out to promote the film and the placement. The

survey suggests that viewers in India still rely on traditional advertising and promotions to learn

about product placements. In fact, viewers indicate that they are motivated to buy the brand if

brand placements are supplemented by articles and features in traditional media that talk about

these placements. Going forward, in-film placement combined with associative marketing will be

a more comprehensive marketing solution than simple brand placement. Micro-targeting is used

by political candidates in election campaigns. This involves using voter demographics, behavior

and attitude insights to develop predictive market segmentation. There is enough evidence to

indicate that micro-targeting viewers could be an effective strategy for brands pursuing in-film

placement strategies. The study shows that demographics have an influence on how brand

placements are viewed by consumers and how these same placements influence consumer

behavior. Micro-targeting consumers through a carefully developed brand placement plan would

be an effective predictive marketing tool. As per the survey, different audience segments display

different attitudinal and behavioral reactions towards brand placements. Marketers should avoid

the one-size-fits-all brand placement strategy and adopt a differentiated approach in order to

32

influence consumer attitude and behavior. The survey shows that male consumers would be

most likely to visit new places and buy fashion brands, technology products and food and

beverage after viewing a brand placement in that product category. It would, therefore, be more

effective if marketers place brands in those categories in movies with male themes such as

action, thrillers and sports. Again, males are more receptive to food and beverage placements

than women, which means that it would be easier to motivate men to buy food and beverage

products through brand placement than women.

Previous literature has suggested that too many brand placements can result in less attention

devoted to each individual placement (Burke and Srull 1988; Kent and Allen 1993; Webb and

Ray 1979) due to clutter (Webb and Ray 1979) and information overload (Malhotra, Jain, and

Lagakos 1982). More product placement in a movie does not necessarily affect the value of a

given placement in a negative way. Marketers may actually benefit from aligning themselves

with a movie with other placements: Given the confirmed importance of selecting the movie for

placement, existing placement agreements can signal suitability and serve as qualifiers

(Karniouchina, Uslay, & Erenburg, 2011).

2.13 Organization for product placement and practical implementation

Many people are involved in determining product placement. Practitioners of brand placement

include clients, advertising agencies, public relations firms, production studio departments, and

independent ―brokers,‖ such as the previously mentioned Mark Burnett Productions (DeLorme

and Reid, 1999). Since mode and prominence of brand placement can vary from the obvious to

the subtle and may be visual, audio, or both, all these elements factor into the cost to marketers.

Understandably, then, when product placement involves payment, fees are typically based on

the amount and type of exposure in a film.

Digital technology permits the use of devices such as personal computers and television for

similar functions. This digital ―convergence‖ also makes it possible to provide consumers with

interactive services. Until quite recently the term ―interactivity‖ was little more than a buzzword.

In the case of television broadcasting, for instance, it simply meant selecting programs or

choosing tele-text pages. Viewers wishing to interact further had to communicate with

broadcasters or advertisers by email, telephone, or letters. Industry observers report this

situation is about to change dramatically with the introduction of enhanced television devices

(e.g., set-top boxes) that allow viewers to interact directly with web-based information.

33

In practical terms, viewers will be able to use their remote controls to purchase goods

associated with the broadcast without having to go online with their personal computer. The

change opens up possibilities for advertisers, not only in traditional spot advertising, but also in

connection with products appearing within regular programming. Putting products directly into a

program or film is referred to as ―product placement‖ or ―brand placement.‖ Product placement

is currently used as a means to help finance movies and TV programs. The combination of

interactivity and product placement could alter the market for product placement considerably.

First, it is likely to enlarge the market substantially and, hence, raise its weight in program

financing. Traditional product placement is limited to branded products, i.e., products already

familiar to the viewer. Interactive product placement (IPP) in contrast is useful in building

brands, because it makes any placed product interactively identifiable and easy to buy.

2.15 Product placement strategy formation

While product placement is a growing industry, the instances of brand-modified products are

increasing. Brand-modified products are those altered for legal purposes, or lack of desired

affiliation to the program or movie by the product corporation.(Linnet, 2004). Legally, program

producers are obligated to manipulate products if they do not have permission to use products.

At times, the product corporations are concerned about being identified or associated with

sensitive issues, messages, or presumed agendas in the movies or television programming.

Considering the history and dimensions of product placement, it can be argued that though

product placement is a booming industry, its success is dependent on viewers‘ individually

conceived feelings regarding products and/or services.

2.16 Efficacy of product placement: Brand recognition and recall

Because of the increase in product placement, there are many studies that have examined the

attitudes towards product placement, the experiences and interpretations of brands post-product

placement, the effects of product placement, and memory of product placement. However, while

product placement is a popular trend, there are occasions when branded products are altered in

movies and little, if any, research has been done on the effects, perceptions, or reactions toward

brand-modified products. The brand modifications are made for various reasons, including

branded product‘s lack of desired affiliation with the message of the media and/or casting a

product in defamatory light.

The results of a survey of 963 unaided recalls and aided recognition of brand-/products are

reported in this study.

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2.17 Factors affecting recognition and recall of product placement

Research also shows that more men are likely to research a brand and look for a brand that

they have seen in a movie than women, which means that brands would have to supplement

brand placement with special marketing and communication activities directed specifically

toward their female audiences. While men are more receptive to brand placement and likely to

purchase brands if they are shown in use, shown in familiar situations and placed in a positive

light, women are motivated if brands are shown in use, they are new brands and brand

placements are supplemented by news about the brand in other media. Given these facts

brands that are geared toward women have to adopt a very different placement strategy than

those brands marketed to men. Differences are indicated among viewers of different age

groups. Location and fashion brands are the top two placements across all age groups. In

addition, viewers in the age group 36+ years may open to car placements, those that are young

and fall in the age group 21-25 years may open to technology placement and those in the age

group 26-30 years may open to food and beverage placement. For marketers trying to sell high-

end car brands in-film placement is a good strategy even though car placement overall has very

few takers. Also this age group (36+ years) is more likely than other age groups to talk about

the placements with friends, research about the brand and look for the brand, which makes car

placement seem even more effective. Similarly, studies show that technology brand placements

are more popular with students and mid professionals, both of whom adopt and adapt to new

technologies more readily or use technology as a status symbol. Hence, marketers promoting

technology brands need to promote them to these two audience groups while being mindful of

the type of movies that they enjoy, the category of placements that they are receptive to and the

type of character that they can believe in. Mid-level professionals look for technology products

to enhance their status and lifestyle; hence, showing the brand in a positive light by highlighting

its status and value indicators would make the brand more appealing to this group. On the other

hand a younger group looks for the newest and the hottest technology trend; hence, placing a

brand that is new and trendy and showing-off its features would make the brand more appealing

to this group.

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2.18 Important out come from literature review for this study

Some of the contributions made by the various authors in the literature on media,

communication, entertainment, advertising and product placement and their relevance to this

study are listed in the following pages…

36

Table No. III Literature Review

S. No. Year Title Author Contents Relevance

1 2001 Product Placement

integrated marketing

communication

strategy

Riku

Kaijansinkko

How you can be clever enough to take

the image and value of multimillion

dollar entertainment production and

wrap them around lower products

To correlate Product placement

with IMC and define role of it.

2 2002 Conversions and the

potential banned on

interactive product

placement in

Germany

Cristian Jansen Economic impact of German advertising

regulation . Critical review of relevant

regulation

To critically define product

placement and viewers right to

entertainment from ethical point of

view.

3 2003 An explorative study

of testing the

effectiveness of

product placement

compared to 30sec.

advertisement

Kristin Blonde

and Ireae roozen

Comparing the effectiveness of product

placement with the effectiveness of

30sec.Adverisement

To analyze the parameters for

comparing product placement with

traditional advertisement and their

effectiveness in brand recall and

recognition.

4 2005 Content analysis of

product placement

of African American

oriented

programming on

united paramount

Claudial R

Cluophat

Contents analysis of product placement

of African American consumer

To determine Cross culture effect

on product placement acceptance.

37

network

5 2006 Product placement

or poor

entertainment

Kristin E Riccard Based on a subjective judicial

determination of what constitute a

commercial used and an expressive

used

Ethical and legal consideration in

product placement .

6 2006 Restricting the

making of junk food

to children by

product placement

and character selling

Angela J

Cambell

How legislation would contribute to the

reduction of childhood obesity

Effect of product placement on

viewers especially on children.

7 2008 product placement

beyond media

Keelith C will,

Niclas Liinanki

To analyze how the available theories

on product placement can be applied to

situation other than media

To correlate various work done in

the field of media and

entertainment.

8 2008 Effect of advertising

and product

placement on

television audience

Kellith C Willbur Random coefficient logic model of

viewing demand for TV program

including product placement and

advertising

Characteristics of TV viewers and

the role and importance of product

placement as a media strategy.

9 2008 The proliferation of

product placement

as a mean of

advertising

communication

Marry P

Saladino

Examines the growth of rebirth of

product placement and various models

of product placement and explains why

it is ethically problematic in regard to

protecting consumers

To analyze the historical

development of product placement.

38

10 2009 The science behind

scientific learning

product placement

recommendation

Oakland CA It comprises reading intervention

software product that are proven to

build the cognitive , linguistic and

literacy foundation for becoming a

skilled leader

To recognize various technology

that works for product placement

strategy.

11 2009 Product placement

and effect of

persuasion

knowledge

Stephen Fitch Effect of persuasion knowledge and

cognitive buyers’ attitude towards a

brand embedded in a movie

To analyze attitude of viewers

towards product placement.

12 2009 Virtual product

placement , examine

the role of

involvement and

presence in second

life

P Arisa

Mahyare, Jubdy

Drinnme,

Kerriann

Effect of individual involvement with

second life on their experience with

product placement

To define virtual product

placement.

13 2010 The influence of

product placement

prominence of

consumer attitude

and intention

Ben Kozary,

Stacey Baxter

Developed a theoretical framework

explaining the impact of “Subtle and

prominent” product placement with

respect to brand awareness and

attitude of consumer

Proposed model to analyze the

attitude and intension of viewers.

14 2010 Acceptance of

product placement

of unethical products

Jasper Van

Ravestijn

Influence of variance , Jerne, modality

and paid or branded product placement

on the acceptance of product

placement on unethical product

Different attitude of viewers

towards product placement of

unethical products and ethically

charged product.

39

15 Dec.

2003

Audience

characteristics and

product placement

effects

Scott Jane And

Craig-Lees

Margaret

Examines recall and its relationship with

placement quality, product

category/brand familiarity and recall

Also examines the relationship

between product category/brand

familiarity and program involvement in

the context of PPL.

the relevance and importance of

audience characteristics such as

product category / brand familiarity,

emotional and cognitive

involvement and star liking on

recall is necessary for effective

product placement management

16 1997 Consumers

perception of ethics

and acceptability of

product placement in

movies

Pola B. Gupta

and S Stephen

J. Gould

Assesses attitude and feeling towards

productplacement.

Acceptability of product placement

among viewers of ethically charged

product.

17 Product placement

effectiveness:

revisited and

renewed

Williams

Kaylene

Petrosky Alfred

Hernandez

Edward

Page Robert

Product placement effectiveness, Ethics

have been discussed with different

angles.

to examine product placement in

terms of definition, use, purposes

of product placement, specific

media vehicles, variables that

impact the effectiveness of product

placement, the downside of using

product placement, and the

ethics of product placement.

18 April,

2009

Product placement

and the effects of

Stephen Fitch A controlled laboratory experiment

reveals that when viewers watch the

This study examines the effect of

persuasion knowledge and

40

Persuasion

knowledge

movie in a natural setting, viewers with

persuasion knowledge exhibit lower

attitude toward

the placed brand than viewers without

persuasion knowledge. However, such

backlash brand damaging effects are

absent, if not reversed, when viewers

watch the movie in a cognitively busy

setting.

cognitive busyness on attitude

toward a brand embedded in a

popular movie. Product placement

is playing an increasingly

important role in marketing strategy

as conventional techniques have

been rendered ineffective by their

own ubiquity.

19 April

9,

2010

“Enhanced” FCC

Regulation

Of Product

Placement Would

Breach Free Speech

Rights

Lewczak

Joseph And

Digiovanni Anne

The protectionist concern with the

consumer harm that product placement

allegedly causes is

entrenched in an old media perspective

and the notion that deception occurs if

the separation between programming

content and commercial advertising is

not abundantly clear.

the creativity and quality of

entertainment programming may

depend on First Amendment

protection of the product placement

economic model.

20 A Model Of The

Antecedents Of

Brand Attitudes In

Product

Placements: An

Empirical Evaluation

Patwardhan

Hemant and

Siva K.

Balasubramania

n,

their integrative effects on viewer

attitudes to the brand have not been

studied from an empirical

perspective. This paper integrates key

constructs from these categories in a

unified model, examines their relative

strengths

Results validate the role of

meaning transfer in placements.

Key findings reveal the central

position of attitude to product

placement as well as the existence

of skepticism.

Implications for marketers and

41

using a second order confirmatory

factor analysis modeling strategy.

public policy practitioners are

discussed. The paper concludes by

acknowledging some limitations

and observing some interesting

research directions.

21 Assessing The

Value Of Product

Placement

From The

Consumer’s

Perspective

Daugherty Terry

Gangadharbatla

Harsha

Kim Yeo Jung

Logan Kelty

the purpose of this research is to

specifically measure the perceived

value product placement holds in

consumers’ minds and understand how

this impacts general attitudes toward

this tactic.

As a program of study, the

exploration of product placement

and the understanding of how

consumers value this

strategy must continue. The

confirmation of the relationship

between product placement and

consumer perceptions of value,

informativeness and irritation are

important discoveries as they

represent key antecedents of

perceived value.

22 Dece

mber

15,

2002

Convergence And

The Potential Ban

On

Interactive Product

Placement In

Germany

Christian Jansen This paper addresses the economic

impact of German advertising

regulations.

The digital convergence of media

provides a starting point for the

analysis. This

convergence makes technically feasible

product placement is generally

banned in Germany, relevant

regulations are critically reviewed.

Additionally, a simple model is

developed that allows for a welfare

economic approach to the analysis

of an interactive product placement

42

“interactive product placement” (IPP),

the integration of interactively

purchasable products in television

programs and

movies for the purpose of advertising.

ban.

24 May,

2011)

Do Marketing Media

Have Life

Cycles? The Case

Of Product

Placement In Movies

Karniouchina

Ekaterina and

Uslay Can and

Erenburg

Grigori,

This article examines the economic

worth of product placement in movies

over a time span of 40 years (1968–

2007). The authors find an inverted U-

shaped relationship between the year of

the movie release and the

returns associated with product

placements. In addition, a similar

inverted U-shaped relationship

characterizes the economic worth of tie-

in campaigns associated with product

placements.

The results reinforce the notion

that marketers find it increasingly

difficult to get their message across

using traditional media and

underscore the need for the

marketing industry to reinvent itself

when new tactics lose their luster.

The authors conclude with a

discussion of additional empirical

regularities.

25 2006 Audience Response

To Product

Placement

Balasubramania

n Shiva and

Karrh James

and Hemant

Patwardhan

This study comprehensively reviews

literature to develop an interactive

conceptual model.

Hierarchy of effect model based on

cognition affect and conation.

It provides extensive research

agenda of conceptual and

empirical issues.

43

26 2008 The Proliferation Of

Product Placement

As A Means Of

Advertising

Communication

Saladino Mary

P.

This paper examines the growth and

rebirth of product placement, a

technique being practiced in the

communication process of marketing. It

examines various models of product

placement and present some reasons

why it is

ethically problematic in regard to

protecting the consumer.

The purpose of advertising is to

communicate a manufacturer’s or

brand’s message to the consumer

base.

This message includes relaying the

attributes and benefits of the

product and its value to the

consumer via words, symbols,

pictures and sometimes price.

27 June

25,

2008

Effects Of

Advertising And

Product Placement

On Television

Audiences

Wilbur Kenneth

C., Goeree

Michelle S., And

Ridder Geert

The study estimates a random

coefficients logit model of viewing

demand for television programs,

wherein time given to traditional

advertising and product placement

plays a role akin to the “price” of

consuming a program. Data include

audience, advertising, and program

characteristics from more than 10,000

network-hours of prime-time broadcast

television from 2004 to 2007. Research

finds that the median effect of a 10%

rise in traditional advertising time is a

15% reduction in audience size.

Results imply that networks should

give price discounts to those

advertisers whose ads are most

likely to retain viewers’ interest

throughout the commercial break.

Creative strategy and product

category factors are important

determinants of viewer response to

traditional advertising. When we

control for program episode quality,

we find that product placement

time decreases viewer utility.

44

28 2002 Product placement

Effectiveness ;

Cross Cultural

Analysis

Asriel Ciska To develop a proper model moderating

factors to measurement product

placement across cultures.

Modality and culture are the only

significant predictor in implicate

memory measurement.

29 2004 Product Placements

In Movies: An

Australian

Consumer

Perspective On

Their Ethicality And

Acceptability

Brennan Stacey

, Rosenberger

Philip J. And

Hementera

Veronica

This paper replicates prior research and

investigates the attitudes and

perceptions of Australian

moviegoers in respect to the

acceptability of product placement and

audience attitudes towards the

placement of ethically-charged

products, such as alcohol, guns and

cigarettes.

The findings indicate that product,

gender and movie frequency

viewing have an impact on

product-placement acceptability.

Australian consumers find

ethically-charged products to be

less acceptable than neutral

products. Gender comparisons

revealed that males are more

accepting of both ethically-charged

and neutral placements.

Comparisons to the previous

American, Austrian and French

findings showed a similar pattern of

individual influences on product-

placement perceptions

30 2008 Product Placement

In The United

States:

A Revolution In

Lee Sandra Regulation of product placements is

effectively left to the FCC.

The United States lawmakers have

been largely ignoring the changes

that these new advertising

strategies have brought on public

45

Need Of Regulation programming. These changes bear

significant consequences for

consumers and producers alike.

Not only does the average viewer

have the right to know when he is

being subjected to an

advertisement.

31 2003 Product Placement

As Communication

Tools

Berglund Niklas

and Spets Erik

Product placement is inexpensive in

comparison with traditional

advertisement.

To understand the role of product

placement in public relation.