Influence of Product Placements

in Films on consumer behaviour

Presented by: Syeda Suman Khalid
Introduction
• What is Product Placement?
• What is consumer behaviour?

Research Question
What is the effect of product placement in films on
consumer behavior?
 Literature Review
Variable References Major Findings
• Consumer Behavior (Karolin and Kopečková, • Consumer Behavior is
2013) the study of how
(Law and Braun, 2000) individual customers,
(Petrol and Prado, 2014) groups or
(Hang, 2014) organizations select,
buy, use, and dispose
ideas, goods, and
services to satisfy their
needs and wants.
• Brand Awareness (Toomey and Francis, 2013) • The consumer's ability
(Law and Braun, 2000) to recognize or recall a
(Boeing, Urdan and Gentry, brand is central to
2013) purchasing decision-
(Sheth and Parvatiyar, making. Purchasing
1995) cannot proceed unless
(Hang, 2014) a consumer is first
aware of a product
category and a brand
within that category.
 Literature Review
Variable References Major Findings

Brand Modality (Gupta and Lord, 1998) Brand modality helps in

(Karrh, 1998) insinuating responses or
(Ajzen and Fishbein, 1980) reactions from audience in
(Patel and Chauhan, 2013) movies and other modes
 Literature Review
Variable References Major Findings
Placement Centrality (Russell and Stern, 2006) Close-up of the product or
(Gupta and Lord, 1998) logo, type of display,
(David, 1991) camera view, brand-
(Law and Braun, 2000) character interaction,
(Boeing, Urdan and Gentry, primacy vs. recency,
2013) number of mentions
(Lawrence, 1989) and/or modality of
presentation – add to
placement centrality.
Placement Length (Lee, Sung and Gregorio, Placement length comes
2011) under the umbrella of
(Gillespie, Joireman and placement’s composition
Muehling, 2012) and characteristics.
(Sharma and Nayak, 2015)
(Boeing, Urdan and Gentry,
2013)
Theoretical Framework

BRAND AWARENESS

BBRAND MODALITY
CONSUMER BEHAVIOUR

PLACEMENT
CENTRALITY

PPLACEMENT LENGHT
 Questionnaire

Consumer buying behavior

Strongly Agree Neutral Disagree Strongly
disagree disagree
1 I get positively influenced by
product placement when my
favorite celebrity is associated
with it
2 I frequently buy brands and
products that are placed in films
and TV shows

3 When you notice a brand in a

film, I am interested in buying it
4 My affection for a film or an actor
influences my purchase decision
 Questionnaire

Brand awareness
6 The presence of branded
products in movies and TV make
it more realistic
7 I believe brand awareness helps
in movie recall

8 I notice brands or products in

movies which are known
9 I have discovered new products
through product placement
 Brand modality
11 I don’t think product placement
is appropriate with use of alcohol
cigarettes and guns
12 I prefer product placement if it is
visible
13 I have no problem if the product
placement is only mentioned
through audio
14 I do not like if the character refers
to the brand name and the
simultaneously the product logo
is being shown
15 I pay attention to the visual
exposition of brands
16 The way a product is in a movie
seen can affect my feelings
towards a product
Placement centrality
17
18 I prefer a movie character using a
product without the brand being
focused upon
19 I prefer when product placement is part of the story
line

20 I do not have a problem when a brand is too noticeable

in a film
21 The centrality of product placement in films distracts me
from the plot

22 I like when for instance an actor is wearing ray ban

glasses( in top gun) without it being mentioned or
focused upon

Product length
23 I believe it is easier to recall a brand or product when it
is repeatedly shown in a film or TV show

24 The duration of product placement in a film positively

effects my opinion towards the brand or product

26 I think a few seconds of on screen time of products or

brands does not leave an impression
Instrument Description
Variable Creators Year No. of items

Consumer Behavior Morton 2002 4

and

Friedma

Brand awareness Gupta 1997 4

and

Gould

Brand modality Russell 2002 6

Placement centrality Ferraro 5

and 2000

Avery

Placement length Argan et 2007 3

al
Results and Discussion section
 Demographics
Demographics Categories Percentage

Gender Female 54

Male 46

Age Below 18 33

18 - 25 44

26 - 35 10

36 - 45 8

Above 45 5

Household Income Less than 100000 37

Between 100000 and 200000 36

Between 200000 and 300000 16

More than 300000 11

Cronbach Alpha (Overall)

Dependent variable Independent variables No. of items Cronbach Alpha

Consumer Buying Brand awareness 26 0.924

Behavior Brand modality

Placement centrality

Placement length
 Individual Cronbach Alpha

Variables No. of items Cronbach Alpha

Brand awareness 4 0.885

Brand modality 6 0.786

Placement centrality 6 0.820

Placement length 3 0.636

0.7 – 0.95 (Schmitt, 1996 & Pullant 2013)

Confirmatory Factor Analysis-Table
Variable Factor Loading AVE Construct reliability

Consumer 0.729,0.793,0.803,0.712 0.578 0.845

buying behavior

Brand modality 0.760,0.685,0.716,0.658,0.4 0.447 0.799

95

Placement 0.487 0.825

centrality 0.685,0.597,0.781,0.737,0.6

74

Placement 0.595,0.630,0.591 0.367 0.634

length

Brand 0.852,0.890,0.874,0.636 0.672 0.89

awareness
 Benchmarks
• Factor Loadings:
• 0.4 (Stevens, 1992)
• Convergent Validity:
• 0.3 (Holmes-Smith et al., 2006)
• Construct Reliability:
• 0.7 (Hair et. Al, 1998)
Model fitness-table
Index Default model

CMIN/DF 3.879

AGFI 0.709

GFI 0.774

NFI 0.728

TLI 0.742

CFI 0.780
 Benchmarks
• CMIN/DF: (1-3)
• GFI (> 0.7)
• AGFI (>0.8)
• TLI (>0.9)
• CFI (>0.10)
• NFI (>0.11)
 Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .708a .502 .494 .56755
a. Predictors: (Constant), avgpc, avgba, avgbm

ANOVAa

Sum of Mean

Model Squares Df Square F Sig.

1 Regression 67.201 4 16800 55.048 .000b

Residual 59.513 195 0.305

Total 126.714 199

 Regression model
• Consumer buying behavior = -.392 + 0.206
brand awareness + 0.203 brand modality
+0.203 placement centrality+ 0.211
placement length.
HYPOTHESIS TESTING-P values

Model Unstandardized Unstandardized Standardized t Sig.

Beta Std. Error Beta

Constant -.392 .262 -1.497 .136

Avgba .326 .073 .206 4.477 .000

Avgbm .242 .080 .203 .3.013 .003

Avgpc .238 .077 .203 3.092 .002

Avgpl .244 .071 .211 3.445 .001

• H1: There is a significant relationship
between brand awareness and consumer
buying behavior.
• H2: There is a significant relationship
between brand modality and consumer
buying behavior.
• H3: There is a significant relationship
between placement centrality and consumer
buying behavior.
• H4: There is significant relationship between
placement length and consumer buying
behavior.
 Discussion
• Brand awareness has an effect on consumer
behavior as people need to be aware of the
product before buying a product(Friedman and
Friedman,1979).
• Brand modality effects consumer behavior as it
has a greater impact overall on buying behavior
(Till and shimp,1998)
• Placement centrality impacts consumer behavior
as it grabs more consumer attention and stays in
memory(Ohanian,1990)
• Placement length effects consumer behavior
as longer shown products are considered
more feasible for display.
 Managerial implication
• In modern times where promotions and
advertisements are placed everywhere we can
conclude that their presence in films have a
great effect on consumer behavior.
• The increase in the popularity of movies has
made it more attractive for products to be
advertised in movies.
 Bibliography
Bandura, A. (1986). Fearful expectations and avoidant actions as coeffects of perceived self-

inefficacy.

Bashford, A., & Hooker, C. (Eds.). (2001). Contagion: Historical and cultural studies (p. 39).

London: Routledge.

Bellman, E. (2007). As Economy Grows, India Goes for Designer Goods. Wall Street Journal.

Cashmore, E. (2002). Beckham. Polity Press.

Davis, J. J. (1994). Consumer response to corporate environmental advertising. Journal of

Consumer Marketing, 11(2), 25-37.

Deshpandé, R., & Stayman, D. M. (1994). A tale of two cities: Distinctiveness theory and

advertising effectiveness. Journal of Marketing Research, 57-64.

Deutsch, M., & Gerard, H. B. (1955). A study of normative and informational social influences

upon individual judgment. The journal of abnormal and social psychology, 51(3), 629.

Elling, A., & Knoppers, A. (2005). Sport, gender and ethnicity: Practises of symbolic

inclusion/exclusion. Journal of youth and adolescence, 34(3), 257-268.

Erdem, T., & Swait, J. (2004). Brand credibility, brand consideration, and choice. Journal of

consumer research, 31(1), 191-198.

Erdogan, B. Z., Baker, M. J., & Tagg, S. (2001). Selecting celebrity endorsers: The practitioner's

perspective. Journal of advertising research, 41(3), 39-48.

Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to

theory and research.

 Bibliography
Fombrun, C. J., & Rindova, V. (1996). Who’s tops and who decides? The social construction of

corporate reputations. New York University, Stern School of Business, Working Paper, 5-

13

Friedman, H. H., & Friedman, L. (1979). Endorser effectiveness by product type. Journal of

advertising research.

Friedman, H. H., Termini, S., & Washington, R. (1976). The effectiveness of advertisements

utilizing four types of endorsers. Journal of advertising, 5(3), 22-24.

Friedman, T. L. (2005). The world is flat: A brief history of the twenty-first century. Macmillan.

Gardner, M. P., & Shuman, P. J. (1986). Sponsorship: An important component of the

promotions mix. Journal of advertising, 16(1), 11-17.

Hofstede, G. (1984). Culture's consequences: International differences in work-related

values (Vol. 5). sage.

Johansson, J. K. (1994). The sense of “nonsense”: Japanese TV advertising. Journal of

Advertising, 23(1), 17-26.

Kahle, L. R., & Homer, P. M. (1985). Physical attractiveness of the celebrity endorser: A social

adaptation perspective. Journal of consumer research, 11(4), 954-961.

Kamins, M. A. (1990). An investigation into the “match-up” hypothesis in celebrity advertising:

When beauty may be only skin deep. Journal of advertising, 19(1), 4-13.

Kamins, M. A., & Assael, H. (1987). Two-sided versus one-sided appeals: A cognitive

perspective on argumentation, source derogation, and the effect of disconfirming trial on

belief change. Journal of marketing Research, 29-39.