measuring the effect of product placement strategy … · product placement on the three dependent...

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PAKISTAN BUSINESS REVIEW OCT 2016 774 Research MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY ON ATTITUDINALASPECTS Abstract Conventional advertisements due to its over exposure are losing their effectiveness; consequently product placement strategy is becoming a popular marketing tool. The aim of this paper is to ascertain the influence of predictors variable “product placement” on dependent variables (“brand recall, purchase intention and brand loyalty”. This study has a sample of 300 respondents who were selected via Mall intercept method. The data was evaluated through a multiple steps procedure and the overall model tested through SEM. The model was able to successfully explain who consumer’s reacts on product placement strategy. The results were consistent with the earlier literature, and all the three hypotheses failed to be rejected. This study revealed that the strongest effect of product placement was on brand loyalty. Purchase intention and brand recall also significantly affect product placements. Keywords: Product Placement, Brandy Loyalty, Brand Recall, Purchase Intention. JEL Classification: M 310 Amber Raza 1 & Tariq Jalees 2 1-Department of Marketing, Institute of Business Management, Institute of Business Management, Karachi, Pakistan. 2-Department of Marketing, College of Management Sciences, Karachi Institute of Economics and Technology, Karachi, Pakistan

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Page 1: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

774

Measuring the Effect of Product Research

MEASURING THE EFFECT OFPRODUCT PLACEMENT STRATEGY

ON ATTITUDINAL ASPECTS

Abstract

Conventional advertisements due to its over exposure arelosing their effectiveness consequently product placement strategyis becoming a popular marketing tool The aim of this paper is toascertain the influence of predictors variable ldquoproduct placementrdquoon dependent variables (ldquobrand recall purchase intention and brandloyaltyrdquo This study has a sample of 300 respondents who were selectedvia Mall intercept method The data was evaluated through a multiplesteps procedure and the overall model tested through SEM The modelwas able to successfully explain who consumerrsquos reacts on productplacement strategy The results were consistent with the earlierliterature and all the three hypotheses failed to be rejected Thisstudy revealed that the strongest effect of product placement was onbrand loyalty Purchase intention and brand recall also significantlyaffect product placements

Keywords Product Placement Brandy Loyalty Brand RecallPurchase IntentionJEL Classification M 310

Amber Raza1 amp Tariq Jalees2

1-Department of Marketing Institute of Business Management Institute ofBusiness Management Karachi Pakistan 2-Department of Marketing College of Management Sciences Karachi

Institute of Economics and Technology Karachi Pakistan

PAKISTAN BUSINESS REVIEW OCT 2016

Research

775

Measuring the Effect of Product

Introduction

Traditional advertisement is losing its efficacy due to thechoices that the consumer has of switching channels duringcommercial breaks (Akyol amp Okan 2014 Srivastava 2015) Productplacement is a strategy that the marketers are utilizing to break throughthe clutter of information and target consumers effectively Two thirdsof the advertising budget is spent on product placement globally(Meyer Song Ha Lee amp Dawes 2016) Whenever a brand isstrategically placed in movies and other mediums it is called brandplacement Researchers have used the terms product placement andbrand placement interchangeably (Akyol amp Okan 2014 Yang amp Bergh2016)

Most of the earlier studies have measured the effectivenessof product placement in different media (TV Movies virtual games)(Akyol amp Okan 2014 Wennekers Vandeberg Zoon amp van Reijmersdal2016) Product placement has also been studied in audio and visualcontext as well (Khalbous Vianelli Domanski Dianoux amp Maazoul2013 Lahav amp Zimand-Sheiner 2016) But a few studies haveadequately measured the effects of product placement on attitudinalbehavior (Krishen amp Sirgy 2016 Kumar amp Balbanis 2016 Liang Hsiaoamp Cheng 2015) Thus this study will ascertain the effect of predictorproduct placement on the three dependent variables recall intentionto purchase and loyalty to the brand

Literature Review

Product Placement

Product placement is not a new phenomenon it dates backto 1890s A documented example is of Lumiere Brotherrsquos film in whichthe producer used the brand placement strategy for a known brandsunlight soap (Kumar amp Balbanis 2016) Early placements of productsin different mediums was usually done haphazardly but over a period

PAKISTAN BUSINESS REVIEW OCT 2016

Research

776

Measuring the Effect of Product

of time this strategy of product placement became subtle and naturallooking (Meyer et al 2016) A good example of subtle placementcould be traced to an old movie ldquo ETrdquo in which Reesesrsquos candy(Hershey candies) was shown subtly and naturally consequently itssales increased significantly In view of its success product placementapproach became extensively popular in other mediums such asmovies games music and videos to name a few (Rovella Geringeramp Sanchez 2015 Uribe 2016)

The strategy of placing the product in noncommercialmediums is called product placement These mediums can be programson television movies music videos and video games (Krishen ampSirgy 2016 Narang 2015) The subtle placement of the products orbrands in the main story line of the script of a program is such that theproduct blends with the main setting of the program (ZerhouniBegravegue Duke amp Flaudias 2016) This placement is done in such a waythat the consumers associate the product with the characters of theprogram (Wang amp Wise 2016)

Product placement is a strategy that practitioners have beenutilizing since the late 1800s however theorists recognized the potentialin the 1980s (Rovella et al 2015 Yee Chan 2016) Placement strategywas used by the film and television producers to reduce overheadcosts of productions (Liang et al 2015) In the 1930s Proctor andGamble placed their soap powders in radio programs and at the sametime tabacco was portrayed in the movies as the right attitude for themain lead characters (Chan Petrovici Lowe Cadogan amp Ford 2016)Product placement received a lot of negative publicity where activistswere of the opinion that placement increased health issues andchallenged value system hence the strategy of placement was left tillthen the 1960s (Balakrishnan Shuaib Dousin amp Permarupan 2012Chan et al 2016)

Currently product placement does not mean just having aproduct placed in the movie and television show When a logo is

PAKISTAN BUSINESS REVIEW OCT 2016

Research

777

Measuring the Effect of Product

visible throughout the television show that too is considered to beproduct placement (Marchand Hennig-Thurau amp Best 2015) Productplacement thus is being used extensively for increasing the salesStudies found that the target audiences for subtle placement andblatant placement are quite different (Akyol amp Okan 2014)

Conceptual Framework

The developed conceptual framework comprised of predictorproduct placement and the three affected variables recall purchaseintention and loyalty( Refer to Figure 1) The literature supports forthe derived hypotheses are discussed in the following sections

Figure 1 Derived conceptual model

Linkage bw Product placement and brand recall

There is sufficient empirical evidences that supportsplacement strategy significantly impacts the consumerrsquos brand recall(Kim amp Eastin 2015) Numerous researches throughout the worldhave proven the influences of placement and brand recall (Kim ampEastin 2015 Narang 2015) An experiment was conducted to establisha link between brand placement and brand recall individuals were

PAKISTAN BUSINESS REVIEW OCT 2016

Research

778

Measuring the Effect of Product

shown a feature film and even after a considerable time 38respondents were able to recall the brand (Kim amp Eastin 2015) Arecall of a brand as a result of placement depends on how the brandappeared in the film A prominently displayed brand results in higherrecall as compared to a subtle placement (Boerman Van Reijmersdalamp Neijens 2015) Numerous researchers were able to validate thatlink between recall and placement a consensus between the studieswas that no additional cues are required for spontaneous recall of thebrand (Liang et al 2015) Similarly the association between the brandand the lead character in a film also helped increase the brand recallsignificantly (Chan Lowe amp Petrovici 2015 Patel amp Patel 2015)Researchers also found a link between the personality of theconsumers and the kind of placement which was most effective forexample some consumers preferred subtle placement whereas somepreferred prominent placement (Noguti amp Russell 2015) The level ofinvolvement with the products also impacted the recall (Pantoja Rossiamp Borges 2015) The following hypothesis has been developed basedon the literature review which states that

H1 Product placement has positive effects on brand recall

Linkage between Brand Placement and Purchase Intention

Research links awareness of a brand with purchase intentionhence studies have been able to establish a relationship withplacement strategy with purchase intentions (Chan et al 2016) Adocumented increase in sales and popularity of Ray Ban sunglasseswere witnessed when consumers saw the actor of the movie ldquoRiskyBusinessrdquo wear the brand (Shaouf Luuml amp Li 2016)

The efficacy of placement and its link with purchaseintention is gauged by the increase in sales of the product placed inany medium Researchers have conducted experiments and found

PAKISTAN BUSINESS REVIEW OCT 2016

Research

779

Measuring the Effect of Product

that whenever a product or products are strategically placed in themovie the purchase intention increases among the consumers a recentexample is Waynersquos World (Gonzalez-Brambila Jenkins amp Lloret 2016)A classic example which resulted in a 65 increase in sales remainsthe Hersheyrsquos brand Reese which was placed in the movie ExtraTerrestrial The candy played a pivotal role in the script of the movie(Gonzalez-Brambila et al 2016)

James Bond movie are another example where products areplaced effectively The manufacturers of BMW were so convincedthat they promoted their new brand Z3 through the film Golden Eye(Marchand et al 2015) Placement in movies tends to increase purchaseintention of products as the awareness of the product increaseswhich triggers recall (Ott Vafeiadis Kumble amp Waddell 2016)

Traditional advertising is not yielding the kind of recall thatthe strategists would like Hence with the established link betweenplacement and the eventual increase in purchase intention is makingstrategists prefer product placements as the main strategy to promoteproductsbrands (David 2016) The hypothesis derived from the abovediscussions is

H2 ProductBrand placement positively influences purchaseintention

Linkage bw Brand Placement and Brand Loyalty

Placement of products helps change a consumerrsquos attitudeand form loyalties with the product (Balakrishnan et al 2012 Uribe2016) The presence of the celebrity and the association of the productwith the celebrity helps in building brand loyalty (Jain 2015)

Experimental research found that the consumers tend toperceive the celebrity using the product as if the product is thecelebrityrsquos own choice This is far more effective than traditional

PAKISTAN BUSINESS REVIEW OCT 2016

Research

780

Measuring the Effect of Product

advertising (Krishen amp Sirgy 2016) On the other hand productplacement in games specifically virtual games helps the consumers toplace brands of their choice in the virtual scenario (Kim amp Eastin2015)

Virtual games have been able to create a higher loyalty amongconsumers by letting them create and place personalized logos ontheir virtual space such as blogs or website This is an example ofreverse product placement (Balakrishnan et al 2012 Jin amp Phua2015) In view of the existing literature it can be hypothesized that

H3 Productbrand placement positively influences brand loyalty

Methodology

The developed model has one predictor product placementthat positively affect brand recall brand loyalty and purchaseintention

Procedure

Questionnaire was administered in the malls located at theaffluence area This data collection method is convenient for targetingmiddle and higher income groups which were the target audience forthis study Adopted questionnaire was pretested and after removingquestions against social norms were finalized

Sample

Three hundred and fifteen subjects were intercepted in themall and only three hundred responded Minimum sample size basedon anticipated effect size of 010 desired statistical power of 090number of 4 latent variables and 16 observed variable comes out to221 (Sooper 2016) Since normality of data is important in SEM

PAKISTAN BUSINESS REVIEW OCT 2016

Research

781

Measuring the Effect of Product

therefore a higher sample size of above 300 was administered in thisstudy (Kline 2015) About 40 responded were male and the rest60 were females About 30 responded were single and the rest70 were married Twenty percent respondents were students andthe rest 80 were employed or were entrepreneurs About 30respondents were at least graduate 40 respondents had at leastmatric level of education and the rest 30 percent had primary level ofeducation

Scale and Measure

All the adopted questions were first converted to seven point Likertscale

Product Placement Scale

Incorporation of brandsproducts into Televisions moviesand video games for promotion of the productsbrands is refer asproduct placement (Williams Petrosky Hernandez amp Page 2011)Reelialities of this measure in earlier studies was as high as 78 and aslow as 74(Chan et al 2015 Chan et al 2016)

Brand Recall Scale

Consumer ability to correctly recall refers to brand recall(Grazer amp Kessling 2011) For this construct five items were adoptedfrom the measures developed Balakrishnan etal (2012) The reliabilityof this measure in earlier studies is as high as 68 and as low as 65(Chan et al 2015 Patel amp Patel 2015)

Purchase Intention Scale

The probability of consumer buying a brand or product isknown as purchase intention (David 2016) The five items for thismeasure were adopted from the study of Balakrishnan etal (2012)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 2: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

775

Measuring the Effect of Product

Introduction

Traditional advertisement is losing its efficacy due to thechoices that the consumer has of switching channels duringcommercial breaks (Akyol amp Okan 2014 Srivastava 2015) Productplacement is a strategy that the marketers are utilizing to break throughthe clutter of information and target consumers effectively Two thirdsof the advertising budget is spent on product placement globally(Meyer Song Ha Lee amp Dawes 2016) Whenever a brand isstrategically placed in movies and other mediums it is called brandplacement Researchers have used the terms product placement andbrand placement interchangeably (Akyol amp Okan 2014 Yang amp Bergh2016)

Most of the earlier studies have measured the effectivenessof product placement in different media (TV Movies virtual games)(Akyol amp Okan 2014 Wennekers Vandeberg Zoon amp van Reijmersdal2016) Product placement has also been studied in audio and visualcontext as well (Khalbous Vianelli Domanski Dianoux amp Maazoul2013 Lahav amp Zimand-Sheiner 2016) But a few studies haveadequately measured the effects of product placement on attitudinalbehavior (Krishen amp Sirgy 2016 Kumar amp Balbanis 2016 Liang Hsiaoamp Cheng 2015) Thus this study will ascertain the effect of predictorproduct placement on the three dependent variables recall intentionto purchase and loyalty to the brand

Literature Review

Product Placement

Product placement is not a new phenomenon it dates backto 1890s A documented example is of Lumiere Brotherrsquos film in whichthe producer used the brand placement strategy for a known brandsunlight soap (Kumar amp Balbanis 2016) Early placements of productsin different mediums was usually done haphazardly but over a period

PAKISTAN BUSINESS REVIEW OCT 2016

Research

776

Measuring the Effect of Product

of time this strategy of product placement became subtle and naturallooking (Meyer et al 2016) A good example of subtle placementcould be traced to an old movie ldquo ETrdquo in which Reesesrsquos candy(Hershey candies) was shown subtly and naturally consequently itssales increased significantly In view of its success product placementapproach became extensively popular in other mediums such asmovies games music and videos to name a few (Rovella Geringeramp Sanchez 2015 Uribe 2016)

The strategy of placing the product in noncommercialmediums is called product placement These mediums can be programson television movies music videos and video games (Krishen ampSirgy 2016 Narang 2015) The subtle placement of the products orbrands in the main story line of the script of a program is such that theproduct blends with the main setting of the program (ZerhouniBegravegue Duke amp Flaudias 2016) This placement is done in such a waythat the consumers associate the product with the characters of theprogram (Wang amp Wise 2016)

Product placement is a strategy that practitioners have beenutilizing since the late 1800s however theorists recognized the potentialin the 1980s (Rovella et al 2015 Yee Chan 2016) Placement strategywas used by the film and television producers to reduce overheadcosts of productions (Liang et al 2015) In the 1930s Proctor andGamble placed their soap powders in radio programs and at the sametime tabacco was portrayed in the movies as the right attitude for themain lead characters (Chan Petrovici Lowe Cadogan amp Ford 2016)Product placement received a lot of negative publicity where activistswere of the opinion that placement increased health issues andchallenged value system hence the strategy of placement was left tillthen the 1960s (Balakrishnan Shuaib Dousin amp Permarupan 2012Chan et al 2016)

Currently product placement does not mean just having aproduct placed in the movie and television show When a logo is

PAKISTAN BUSINESS REVIEW OCT 2016

Research

777

Measuring the Effect of Product

visible throughout the television show that too is considered to beproduct placement (Marchand Hennig-Thurau amp Best 2015) Productplacement thus is being used extensively for increasing the salesStudies found that the target audiences for subtle placement andblatant placement are quite different (Akyol amp Okan 2014)

Conceptual Framework

The developed conceptual framework comprised of predictorproduct placement and the three affected variables recall purchaseintention and loyalty( Refer to Figure 1) The literature supports forthe derived hypotheses are discussed in the following sections

Figure 1 Derived conceptual model

Linkage bw Product placement and brand recall

There is sufficient empirical evidences that supportsplacement strategy significantly impacts the consumerrsquos brand recall(Kim amp Eastin 2015) Numerous researches throughout the worldhave proven the influences of placement and brand recall (Kim ampEastin 2015 Narang 2015) An experiment was conducted to establisha link between brand placement and brand recall individuals were

PAKISTAN BUSINESS REVIEW OCT 2016

Research

778

Measuring the Effect of Product

shown a feature film and even after a considerable time 38respondents were able to recall the brand (Kim amp Eastin 2015) Arecall of a brand as a result of placement depends on how the brandappeared in the film A prominently displayed brand results in higherrecall as compared to a subtle placement (Boerman Van Reijmersdalamp Neijens 2015) Numerous researchers were able to validate thatlink between recall and placement a consensus between the studieswas that no additional cues are required for spontaneous recall of thebrand (Liang et al 2015) Similarly the association between the brandand the lead character in a film also helped increase the brand recallsignificantly (Chan Lowe amp Petrovici 2015 Patel amp Patel 2015)Researchers also found a link between the personality of theconsumers and the kind of placement which was most effective forexample some consumers preferred subtle placement whereas somepreferred prominent placement (Noguti amp Russell 2015) The level ofinvolvement with the products also impacted the recall (Pantoja Rossiamp Borges 2015) The following hypothesis has been developed basedon the literature review which states that

H1 Product placement has positive effects on brand recall

Linkage between Brand Placement and Purchase Intention

Research links awareness of a brand with purchase intentionhence studies have been able to establish a relationship withplacement strategy with purchase intentions (Chan et al 2016) Adocumented increase in sales and popularity of Ray Ban sunglasseswere witnessed when consumers saw the actor of the movie ldquoRiskyBusinessrdquo wear the brand (Shaouf Luuml amp Li 2016)

The efficacy of placement and its link with purchaseintention is gauged by the increase in sales of the product placed inany medium Researchers have conducted experiments and found

PAKISTAN BUSINESS REVIEW OCT 2016

Research

779

Measuring the Effect of Product

that whenever a product or products are strategically placed in themovie the purchase intention increases among the consumers a recentexample is Waynersquos World (Gonzalez-Brambila Jenkins amp Lloret 2016)A classic example which resulted in a 65 increase in sales remainsthe Hersheyrsquos brand Reese which was placed in the movie ExtraTerrestrial The candy played a pivotal role in the script of the movie(Gonzalez-Brambila et al 2016)

James Bond movie are another example where products areplaced effectively The manufacturers of BMW were so convincedthat they promoted their new brand Z3 through the film Golden Eye(Marchand et al 2015) Placement in movies tends to increase purchaseintention of products as the awareness of the product increaseswhich triggers recall (Ott Vafeiadis Kumble amp Waddell 2016)

Traditional advertising is not yielding the kind of recall thatthe strategists would like Hence with the established link betweenplacement and the eventual increase in purchase intention is makingstrategists prefer product placements as the main strategy to promoteproductsbrands (David 2016) The hypothesis derived from the abovediscussions is

H2 ProductBrand placement positively influences purchaseintention

Linkage bw Brand Placement and Brand Loyalty

Placement of products helps change a consumerrsquos attitudeand form loyalties with the product (Balakrishnan et al 2012 Uribe2016) The presence of the celebrity and the association of the productwith the celebrity helps in building brand loyalty (Jain 2015)

Experimental research found that the consumers tend toperceive the celebrity using the product as if the product is thecelebrityrsquos own choice This is far more effective than traditional

PAKISTAN BUSINESS REVIEW OCT 2016

Research

780

Measuring the Effect of Product

advertising (Krishen amp Sirgy 2016) On the other hand productplacement in games specifically virtual games helps the consumers toplace brands of their choice in the virtual scenario (Kim amp Eastin2015)

Virtual games have been able to create a higher loyalty amongconsumers by letting them create and place personalized logos ontheir virtual space such as blogs or website This is an example ofreverse product placement (Balakrishnan et al 2012 Jin amp Phua2015) In view of the existing literature it can be hypothesized that

H3 Productbrand placement positively influences brand loyalty

Methodology

The developed model has one predictor product placementthat positively affect brand recall brand loyalty and purchaseintention

Procedure

Questionnaire was administered in the malls located at theaffluence area This data collection method is convenient for targetingmiddle and higher income groups which were the target audience forthis study Adopted questionnaire was pretested and after removingquestions against social norms were finalized

Sample

Three hundred and fifteen subjects were intercepted in themall and only three hundred responded Minimum sample size basedon anticipated effect size of 010 desired statistical power of 090number of 4 latent variables and 16 observed variable comes out to221 (Sooper 2016) Since normality of data is important in SEM

PAKISTAN BUSINESS REVIEW OCT 2016

Research

781

Measuring the Effect of Product

therefore a higher sample size of above 300 was administered in thisstudy (Kline 2015) About 40 responded were male and the rest60 were females About 30 responded were single and the rest70 were married Twenty percent respondents were students andthe rest 80 were employed or were entrepreneurs About 30respondents were at least graduate 40 respondents had at leastmatric level of education and the rest 30 percent had primary level ofeducation

Scale and Measure

All the adopted questions were first converted to seven point Likertscale

Product Placement Scale

Incorporation of brandsproducts into Televisions moviesand video games for promotion of the productsbrands is refer asproduct placement (Williams Petrosky Hernandez amp Page 2011)Reelialities of this measure in earlier studies was as high as 78 and aslow as 74(Chan et al 2015 Chan et al 2016)

Brand Recall Scale

Consumer ability to correctly recall refers to brand recall(Grazer amp Kessling 2011) For this construct five items were adoptedfrom the measures developed Balakrishnan etal (2012) The reliabilityof this measure in earlier studies is as high as 68 and as low as 65(Chan et al 2015 Patel amp Patel 2015)

Purchase Intention Scale

The probability of consumer buying a brand or product isknown as purchase intention (David 2016) The five items for thismeasure were adopted from the study of Balakrishnan etal (2012)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 3: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

776

Measuring the Effect of Product

of time this strategy of product placement became subtle and naturallooking (Meyer et al 2016) A good example of subtle placementcould be traced to an old movie ldquo ETrdquo in which Reesesrsquos candy(Hershey candies) was shown subtly and naturally consequently itssales increased significantly In view of its success product placementapproach became extensively popular in other mediums such asmovies games music and videos to name a few (Rovella Geringeramp Sanchez 2015 Uribe 2016)

The strategy of placing the product in noncommercialmediums is called product placement These mediums can be programson television movies music videos and video games (Krishen ampSirgy 2016 Narang 2015) The subtle placement of the products orbrands in the main story line of the script of a program is such that theproduct blends with the main setting of the program (ZerhouniBegravegue Duke amp Flaudias 2016) This placement is done in such a waythat the consumers associate the product with the characters of theprogram (Wang amp Wise 2016)

Product placement is a strategy that practitioners have beenutilizing since the late 1800s however theorists recognized the potentialin the 1980s (Rovella et al 2015 Yee Chan 2016) Placement strategywas used by the film and television producers to reduce overheadcosts of productions (Liang et al 2015) In the 1930s Proctor andGamble placed their soap powders in radio programs and at the sametime tabacco was portrayed in the movies as the right attitude for themain lead characters (Chan Petrovici Lowe Cadogan amp Ford 2016)Product placement received a lot of negative publicity where activistswere of the opinion that placement increased health issues andchallenged value system hence the strategy of placement was left tillthen the 1960s (Balakrishnan Shuaib Dousin amp Permarupan 2012Chan et al 2016)

Currently product placement does not mean just having aproduct placed in the movie and television show When a logo is

PAKISTAN BUSINESS REVIEW OCT 2016

Research

777

Measuring the Effect of Product

visible throughout the television show that too is considered to beproduct placement (Marchand Hennig-Thurau amp Best 2015) Productplacement thus is being used extensively for increasing the salesStudies found that the target audiences for subtle placement andblatant placement are quite different (Akyol amp Okan 2014)

Conceptual Framework

The developed conceptual framework comprised of predictorproduct placement and the three affected variables recall purchaseintention and loyalty( Refer to Figure 1) The literature supports forthe derived hypotheses are discussed in the following sections

Figure 1 Derived conceptual model

Linkage bw Product placement and brand recall

There is sufficient empirical evidences that supportsplacement strategy significantly impacts the consumerrsquos brand recall(Kim amp Eastin 2015) Numerous researches throughout the worldhave proven the influences of placement and brand recall (Kim ampEastin 2015 Narang 2015) An experiment was conducted to establisha link between brand placement and brand recall individuals were

PAKISTAN BUSINESS REVIEW OCT 2016

Research

778

Measuring the Effect of Product

shown a feature film and even after a considerable time 38respondents were able to recall the brand (Kim amp Eastin 2015) Arecall of a brand as a result of placement depends on how the brandappeared in the film A prominently displayed brand results in higherrecall as compared to a subtle placement (Boerman Van Reijmersdalamp Neijens 2015) Numerous researchers were able to validate thatlink between recall and placement a consensus between the studieswas that no additional cues are required for spontaneous recall of thebrand (Liang et al 2015) Similarly the association between the brandand the lead character in a film also helped increase the brand recallsignificantly (Chan Lowe amp Petrovici 2015 Patel amp Patel 2015)Researchers also found a link between the personality of theconsumers and the kind of placement which was most effective forexample some consumers preferred subtle placement whereas somepreferred prominent placement (Noguti amp Russell 2015) The level ofinvolvement with the products also impacted the recall (Pantoja Rossiamp Borges 2015) The following hypothesis has been developed basedon the literature review which states that

H1 Product placement has positive effects on brand recall

Linkage between Brand Placement and Purchase Intention

Research links awareness of a brand with purchase intentionhence studies have been able to establish a relationship withplacement strategy with purchase intentions (Chan et al 2016) Adocumented increase in sales and popularity of Ray Ban sunglasseswere witnessed when consumers saw the actor of the movie ldquoRiskyBusinessrdquo wear the brand (Shaouf Luuml amp Li 2016)

The efficacy of placement and its link with purchaseintention is gauged by the increase in sales of the product placed inany medium Researchers have conducted experiments and found

PAKISTAN BUSINESS REVIEW OCT 2016

Research

779

Measuring the Effect of Product

that whenever a product or products are strategically placed in themovie the purchase intention increases among the consumers a recentexample is Waynersquos World (Gonzalez-Brambila Jenkins amp Lloret 2016)A classic example which resulted in a 65 increase in sales remainsthe Hersheyrsquos brand Reese which was placed in the movie ExtraTerrestrial The candy played a pivotal role in the script of the movie(Gonzalez-Brambila et al 2016)

James Bond movie are another example where products areplaced effectively The manufacturers of BMW were so convincedthat they promoted their new brand Z3 through the film Golden Eye(Marchand et al 2015) Placement in movies tends to increase purchaseintention of products as the awareness of the product increaseswhich triggers recall (Ott Vafeiadis Kumble amp Waddell 2016)

Traditional advertising is not yielding the kind of recall thatthe strategists would like Hence with the established link betweenplacement and the eventual increase in purchase intention is makingstrategists prefer product placements as the main strategy to promoteproductsbrands (David 2016) The hypothesis derived from the abovediscussions is

H2 ProductBrand placement positively influences purchaseintention

Linkage bw Brand Placement and Brand Loyalty

Placement of products helps change a consumerrsquos attitudeand form loyalties with the product (Balakrishnan et al 2012 Uribe2016) The presence of the celebrity and the association of the productwith the celebrity helps in building brand loyalty (Jain 2015)

Experimental research found that the consumers tend toperceive the celebrity using the product as if the product is thecelebrityrsquos own choice This is far more effective than traditional

PAKISTAN BUSINESS REVIEW OCT 2016

Research

780

Measuring the Effect of Product

advertising (Krishen amp Sirgy 2016) On the other hand productplacement in games specifically virtual games helps the consumers toplace brands of their choice in the virtual scenario (Kim amp Eastin2015)

Virtual games have been able to create a higher loyalty amongconsumers by letting them create and place personalized logos ontheir virtual space such as blogs or website This is an example ofreverse product placement (Balakrishnan et al 2012 Jin amp Phua2015) In view of the existing literature it can be hypothesized that

H3 Productbrand placement positively influences brand loyalty

Methodology

The developed model has one predictor product placementthat positively affect brand recall brand loyalty and purchaseintention

Procedure

Questionnaire was administered in the malls located at theaffluence area This data collection method is convenient for targetingmiddle and higher income groups which were the target audience forthis study Adopted questionnaire was pretested and after removingquestions against social norms were finalized

Sample

Three hundred and fifteen subjects were intercepted in themall and only three hundred responded Minimum sample size basedon anticipated effect size of 010 desired statistical power of 090number of 4 latent variables and 16 observed variable comes out to221 (Sooper 2016) Since normality of data is important in SEM

PAKISTAN BUSINESS REVIEW OCT 2016

Research

781

Measuring the Effect of Product

therefore a higher sample size of above 300 was administered in thisstudy (Kline 2015) About 40 responded were male and the rest60 were females About 30 responded were single and the rest70 were married Twenty percent respondents were students andthe rest 80 were employed or were entrepreneurs About 30respondents were at least graduate 40 respondents had at leastmatric level of education and the rest 30 percent had primary level ofeducation

Scale and Measure

All the adopted questions were first converted to seven point Likertscale

Product Placement Scale

Incorporation of brandsproducts into Televisions moviesand video games for promotion of the productsbrands is refer asproduct placement (Williams Petrosky Hernandez amp Page 2011)Reelialities of this measure in earlier studies was as high as 78 and aslow as 74(Chan et al 2015 Chan et al 2016)

Brand Recall Scale

Consumer ability to correctly recall refers to brand recall(Grazer amp Kessling 2011) For this construct five items were adoptedfrom the measures developed Balakrishnan etal (2012) The reliabilityof this measure in earlier studies is as high as 68 and as low as 65(Chan et al 2015 Patel amp Patel 2015)

Purchase Intention Scale

The probability of consumer buying a brand or product isknown as purchase intention (David 2016) The five items for thismeasure were adopted from the study of Balakrishnan etal (2012)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 4: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

777

Measuring the Effect of Product

visible throughout the television show that too is considered to beproduct placement (Marchand Hennig-Thurau amp Best 2015) Productplacement thus is being used extensively for increasing the salesStudies found that the target audiences for subtle placement andblatant placement are quite different (Akyol amp Okan 2014)

Conceptual Framework

The developed conceptual framework comprised of predictorproduct placement and the three affected variables recall purchaseintention and loyalty( Refer to Figure 1) The literature supports forthe derived hypotheses are discussed in the following sections

Figure 1 Derived conceptual model

Linkage bw Product placement and brand recall

There is sufficient empirical evidences that supportsplacement strategy significantly impacts the consumerrsquos brand recall(Kim amp Eastin 2015) Numerous researches throughout the worldhave proven the influences of placement and brand recall (Kim ampEastin 2015 Narang 2015) An experiment was conducted to establisha link between brand placement and brand recall individuals were

PAKISTAN BUSINESS REVIEW OCT 2016

Research

778

Measuring the Effect of Product

shown a feature film and even after a considerable time 38respondents were able to recall the brand (Kim amp Eastin 2015) Arecall of a brand as a result of placement depends on how the brandappeared in the film A prominently displayed brand results in higherrecall as compared to a subtle placement (Boerman Van Reijmersdalamp Neijens 2015) Numerous researchers were able to validate thatlink between recall and placement a consensus between the studieswas that no additional cues are required for spontaneous recall of thebrand (Liang et al 2015) Similarly the association between the brandand the lead character in a film also helped increase the brand recallsignificantly (Chan Lowe amp Petrovici 2015 Patel amp Patel 2015)Researchers also found a link between the personality of theconsumers and the kind of placement which was most effective forexample some consumers preferred subtle placement whereas somepreferred prominent placement (Noguti amp Russell 2015) The level ofinvolvement with the products also impacted the recall (Pantoja Rossiamp Borges 2015) The following hypothesis has been developed basedon the literature review which states that

H1 Product placement has positive effects on brand recall

Linkage between Brand Placement and Purchase Intention

Research links awareness of a brand with purchase intentionhence studies have been able to establish a relationship withplacement strategy with purchase intentions (Chan et al 2016) Adocumented increase in sales and popularity of Ray Ban sunglasseswere witnessed when consumers saw the actor of the movie ldquoRiskyBusinessrdquo wear the brand (Shaouf Luuml amp Li 2016)

The efficacy of placement and its link with purchaseintention is gauged by the increase in sales of the product placed inany medium Researchers have conducted experiments and found

PAKISTAN BUSINESS REVIEW OCT 2016

Research

779

Measuring the Effect of Product

that whenever a product or products are strategically placed in themovie the purchase intention increases among the consumers a recentexample is Waynersquos World (Gonzalez-Brambila Jenkins amp Lloret 2016)A classic example which resulted in a 65 increase in sales remainsthe Hersheyrsquos brand Reese which was placed in the movie ExtraTerrestrial The candy played a pivotal role in the script of the movie(Gonzalez-Brambila et al 2016)

James Bond movie are another example where products areplaced effectively The manufacturers of BMW were so convincedthat they promoted their new brand Z3 through the film Golden Eye(Marchand et al 2015) Placement in movies tends to increase purchaseintention of products as the awareness of the product increaseswhich triggers recall (Ott Vafeiadis Kumble amp Waddell 2016)

Traditional advertising is not yielding the kind of recall thatthe strategists would like Hence with the established link betweenplacement and the eventual increase in purchase intention is makingstrategists prefer product placements as the main strategy to promoteproductsbrands (David 2016) The hypothesis derived from the abovediscussions is

H2 ProductBrand placement positively influences purchaseintention

Linkage bw Brand Placement and Brand Loyalty

Placement of products helps change a consumerrsquos attitudeand form loyalties with the product (Balakrishnan et al 2012 Uribe2016) The presence of the celebrity and the association of the productwith the celebrity helps in building brand loyalty (Jain 2015)

Experimental research found that the consumers tend toperceive the celebrity using the product as if the product is thecelebrityrsquos own choice This is far more effective than traditional

PAKISTAN BUSINESS REVIEW OCT 2016

Research

780

Measuring the Effect of Product

advertising (Krishen amp Sirgy 2016) On the other hand productplacement in games specifically virtual games helps the consumers toplace brands of their choice in the virtual scenario (Kim amp Eastin2015)

Virtual games have been able to create a higher loyalty amongconsumers by letting them create and place personalized logos ontheir virtual space such as blogs or website This is an example ofreverse product placement (Balakrishnan et al 2012 Jin amp Phua2015) In view of the existing literature it can be hypothesized that

H3 Productbrand placement positively influences brand loyalty

Methodology

The developed model has one predictor product placementthat positively affect brand recall brand loyalty and purchaseintention

Procedure

Questionnaire was administered in the malls located at theaffluence area This data collection method is convenient for targetingmiddle and higher income groups which were the target audience forthis study Adopted questionnaire was pretested and after removingquestions against social norms were finalized

Sample

Three hundred and fifteen subjects were intercepted in themall and only three hundred responded Minimum sample size basedon anticipated effect size of 010 desired statistical power of 090number of 4 latent variables and 16 observed variable comes out to221 (Sooper 2016) Since normality of data is important in SEM

PAKISTAN BUSINESS REVIEW OCT 2016

Research

781

Measuring the Effect of Product

therefore a higher sample size of above 300 was administered in thisstudy (Kline 2015) About 40 responded were male and the rest60 were females About 30 responded were single and the rest70 were married Twenty percent respondents were students andthe rest 80 were employed or were entrepreneurs About 30respondents were at least graduate 40 respondents had at leastmatric level of education and the rest 30 percent had primary level ofeducation

Scale and Measure

All the adopted questions were first converted to seven point Likertscale

Product Placement Scale

Incorporation of brandsproducts into Televisions moviesand video games for promotion of the productsbrands is refer asproduct placement (Williams Petrosky Hernandez amp Page 2011)Reelialities of this measure in earlier studies was as high as 78 and aslow as 74(Chan et al 2015 Chan et al 2016)

Brand Recall Scale

Consumer ability to correctly recall refers to brand recall(Grazer amp Kessling 2011) For this construct five items were adoptedfrom the measures developed Balakrishnan etal (2012) The reliabilityof this measure in earlier studies is as high as 68 and as low as 65(Chan et al 2015 Patel amp Patel 2015)

Purchase Intention Scale

The probability of consumer buying a brand or product isknown as purchase intention (David 2016) The five items for thismeasure were adopted from the study of Balakrishnan etal (2012)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 5: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

778

Measuring the Effect of Product

shown a feature film and even after a considerable time 38respondents were able to recall the brand (Kim amp Eastin 2015) Arecall of a brand as a result of placement depends on how the brandappeared in the film A prominently displayed brand results in higherrecall as compared to a subtle placement (Boerman Van Reijmersdalamp Neijens 2015) Numerous researchers were able to validate thatlink between recall and placement a consensus between the studieswas that no additional cues are required for spontaneous recall of thebrand (Liang et al 2015) Similarly the association between the brandand the lead character in a film also helped increase the brand recallsignificantly (Chan Lowe amp Petrovici 2015 Patel amp Patel 2015)Researchers also found a link between the personality of theconsumers and the kind of placement which was most effective forexample some consumers preferred subtle placement whereas somepreferred prominent placement (Noguti amp Russell 2015) The level ofinvolvement with the products also impacted the recall (Pantoja Rossiamp Borges 2015) The following hypothesis has been developed basedon the literature review which states that

H1 Product placement has positive effects on brand recall

Linkage between Brand Placement and Purchase Intention

Research links awareness of a brand with purchase intentionhence studies have been able to establish a relationship withplacement strategy with purchase intentions (Chan et al 2016) Adocumented increase in sales and popularity of Ray Ban sunglasseswere witnessed when consumers saw the actor of the movie ldquoRiskyBusinessrdquo wear the brand (Shaouf Luuml amp Li 2016)

The efficacy of placement and its link with purchaseintention is gauged by the increase in sales of the product placed inany medium Researchers have conducted experiments and found

PAKISTAN BUSINESS REVIEW OCT 2016

Research

779

Measuring the Effect of Product

that whenever a product or products are strategically placed in themovie the purchase intention increases among the consumers a recentexample is Waynersquos World (Gonzalez-Brambila Jenkins amp Lloret 2016)A classic example which resulted in a 65 increase in sales remainsthe Hersheyrsquos brand Reese which was placed in the movie ExtraTerrestrial The candy played a pivotal role in the script of the movie(Gonzalez-Brambila et al 2016)

James Bond movie are another example where products areplaced effectively The manufacturers of BMW were so convincedthat they promoted their new brand Z3 through the film Golden Eye(Marchand et al 2015) Placement in movies tends to increase purchaseintention of products as the awareness of the product increaseswhich triggers recall (Ott Vafeiadis Kumble amp Waddell 2016)

Traditional advertising is not yielding the kind of recall thatthe strategists would like Hence with the established link betweenplacement and the eventual increase in purchase intention is makingstrategists prefer product placements as the main strategy to promoteproductsbrands (David 2016) The hypothesis derived from the abovediscussions is

H2 ProductBrand placement positively influences purchaseintention

Linkage bw Brand Placement and Brand Loyalty

Placement of products helps change a consumerrsquos attitudeand form loyalties with the product (Balakrishnan et al 2012 Uribe2016) The presence of the celebrity and the association of the productwith the celebrity helps in building brand loyalty (Jain 2015)

Experimental research found that the consumers tend toperceive the celebrity using the product as if the product is thecelebrityrsquos own choice This is far more effective than traditional

PAKISTAN BUSINESS REVIEW OCT 2016

Research

780

Measuring the Effect of Product

advertising (Krishen amp Sirgy 2016) On the other hand productplacement in games specifically virtual games helps the consumers toplace brands of their choice in the virtual scenario (Kim amp Eastin2015)

Virtual games have been able to create a higher loyalty amongconsumers by letting them create and place personalized logos ontheir virtual space such as blogs or website This is an example ofreverse product placement (Balakrishnan et al 2012 Jin amp Phua2015) In view of the existing literature it can be hypothesized that

H3 Productbrand placement positively influences brand loyalty

Methodology

The developed model has one predictor product placementthat positively affect brand recall brand loyalty and purchaseintention

Procedure

Questionnaire was administered in the malls located at theaffluence area This data collection method is convenient for targetingmiddle and higher income groups which were the target audience forthis study Adopted questionnaire was pretested and after removingquestions against social norms were finalized

Sample

Three hundred and fifteen subjects were intercepted in themall and only three hundred responded Minimum sample size basedon anticipated effect size of 010 desired statistical power of 090number of 4 latent variables and 16 observed variable comes out to221 (Sooper 2016) Since normality of data is important in SEM

PAKISTAN BUSINESS REVIEW OCT 2016

Research

781

Measuring the Effect of Product

therefore a higher sample size of above 300 was administered in thisstudy (Kline 2015) About 40 responded were male and the rest60 were females About 30 responded were single and the rest70 were married Twenty percent respondents were students andthe rest 80 were employed or were entrepreneurs About 30respondents were at least graduate 40 respondents had at leastmatric level of education and the rest 30 percent had primary level ofeducation

Scale and Measure

All the adopted questions were first converted to seven point Likertscale

Product Placement Scale

Incorporation of brandsproducts into Televisions moviesand video games for promotion of the productsbrands is refer asproduct placement (Williams Petrosky Hernandez amp Page 2011)Reelialities of this measure in earlier studies was as high as 78 and aslow as 74(Chan et al 2015 Chan et al 2016)

Brand Recall Scale

Consumer ability to correctly recall refers to brand recall(Grazer amp Kessling 2011) For this construct five items were adoptedfrom the measures developed Balakrishnan etal (2012) The reliabilityof this measure in earlier studies is as high as 68 and as low as 65(Chan et al 2015 Patel amp Patel 2015)

Purchase Intention Scale

The probability of consumer buying a brand or product isknown as purchase intention (David 2016) The five items for thismeasure were adopted from the study of Balakrishnan etal (2012)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 6: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

779

Measuring the Effect of Product

that whenever a product or products are strategically placed in themovie the purchase intention increases among the consumers a recentexample is Waynersquos World (Gonzalez-Brambila Jenkins amp Lloret 2016)A classic example which resulted in a 65 increase in sales remainsthe Hersheyrsquos brand Reese which was placed in the movie ExtraTerrestrial The candy played a pivotal role in the script of the movie(Gonzalez-Brambila et al 2016)

James Bond movie are another example where products areplaced effectively The manufacturers of BMW were so convincedthat they promoted their new brand Z3 through the film Golden Eye(Marchand et al 2015) Placement in movies tends to increase purchaseintention of products as the awareness of the product increaseswhich triggers recall (Ott Vafeiadis Kumble amp Waddell 2016)

Traditional advertising is not yielding the kind of recall thatthe strategists would like Hence with the established link betweenplacement and the eventual increase in purchase intention is makingstrategists prefer product placements as the main strategy to promoteproductsbrands (David 2016) The hypothesis derived from the abovediscussions is

H2 ProductBrand placement positively influences purchaseintention

Linkage bw Brand Placement and Brand Loyalty

Placement of products helps change a consumerrsquos attitudeand form loyalties with the product (Balakrishnan et al 2012 Uribe2016) The presence of the celebrity and the association of the productwith the celebrity helps in building brand loyalty (Jain 2015)

Experimental research found that the consumers tend toperceive the celebrity using the product as if the product is thecelebrityrsquos own choice This is far more effective than traditional

PAKISTAN BUSINESS REVIEW OCT 2016

Research

780

Measuring the Effect of Product

advertising (Krishen amp Sirgy 2016) On the other hand productplacement in games specifically virtual games helps the consumers toplace brands of their choice in the virtual scenario (Kim amp Eastin2015)

Virtual games have been able to create a higher loyalty amongconsumers by letting them create and place personalized logos ontheir virtual space such as blogs or website This is an example ofreverse product placement (Balakrishnan et al 2012 Jin amp Phua2015) In view of the existing literature it can be hypothesized that

H3 Productbrand placement positively influences brand loyalty

Methodology

The developed model has one predictor product placementthat positively affect brand recall brand loyalty and purchaseintention

Procedure

Questionnaire was administered in the malls located at theaffluence area This data collection method is convenient for targetingmiddle and higher income groups which were the target audience forthis study Adopted questionnaire was pretested and after removingquestions against social norms were finalized

Sample

Three hundred and fifteen subjects were intercepted in themall and only three hundred responded Minimum sample size basedon anticipated effect size of 010 desired statistical power of 090number of 4 latent variables and 16 observed variable comes out to221 (Sooper 2016) Since normality of data is important in SEM

PAKISTAN BUSINESS REVIEW OCT 2016

Research

781

Measuring the Effect of Product

therefore a higher sample size of above 300 was administered in thisstudy (Kline 2015) About 40 responded were male and the rest60 were females About 30 responded were single and the rest70 were married Twenty percent respondents were students andthe rest 80 were employed or were entrepreneurs About 30respondents were at least graduate 40 respondents had at leastmatric level of education and the rest 30 percent had primary level ofeducation

Scale and Measure

All the adopted questions were first converted to seven point Likertscale

Product Placement Scale

Incorporation of brandsproducts into Televisions moviesand video games for promotion of the productsbrands is refer asproduct placement (Williams Petrosky Hernandez amp Page 2011)Reelialities of this measure in earlier studies was as high as 78 and aslow as 74(Chan et al 2015 Chan et al 2016)

Brand Recall Scale

Consumer ability to correctly recall refers to brand recall(Grazer amp Kessling 2011) For this construct five items were adoptedfrom the measures developed Balakrishnan etal (2012) The reliabilityof this measure in earlier studies is as high as 68 and as low as 65(Chan et al 2015 Patel amp Patel 2015)

Purchase Intention Scale

The probability of consumer buying a brand or product isknown as purchase intention (David 2016) The five items for thismeasure were adopted from the study of Balakrishnan etal (2012)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 7: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

780

Measuring the Effect of Product

advertising (Krishen amp Sirgy 2016) On the other hand productplacement in games specifically virtual games helps the consumers toplace brands of their choice in the virtual scenario (Kim amp Eastin2015)

Virtual games have been able to create a higher loyalty amongconsumers by letting them create and place personalized logos ontheir virtual space such as blogs or website This is an example ofreverse product placement (Balakrishnan et al 2012 Jin amp Phua2015) In view of the existing literature it can be hypothesized that

H3 Productbrand placement positively influences brand loyalty

Methodology

The developed model has one predictor product placementthat positively affect brand recall brand loyalty and purchaseintention

Procedure

Questionnaire was administered in the malls located at theaffluence area This data collection method is convenient for targetingmiddle and higher income groups which were the target audience forthis study Adopted questionnaire was pretested and after removingquestions against social norms were finalized

Sample

Three hundred and fifteen subjects were intercepted in themall and only three hundred responded Minimum sample size basedon anticipated effect size of 010 desired statistical power of 090number of 4 latent variables and 16 observed variable comes out to221 (Sooper 2016) Since normality of data is important in SEM

PAKISTAN BUSINESS REVIEW OCT 2016

Research

781

Measuring the Effect of Product

therefore a higher sample size of above 300 was administered in thisstudy (Kline 2015) About 40 responded were male and the rest60 were females About 30 responded were single and the rest70 were married Twenty percent respondents were students andthe rest 80 were employed or were entrepreneurs About 30respondents were at least graduate 40 respondents had at leastmatric level of education and the rest 30 percent had primary level ofeducation

Scale and Measure

All the adopted questions were first converted to seven point Likertscale

Product Placement Scale

Incorporation of brandsproducts into Televisions moviesand video games for promotion of the productsbrands is refer asproduct placement (Williams Petrosky Hernandez amp Page 2011)Reelialities of this measure in earlier studies was as high as 78 and aslow as 74(Chan et al 2015 Chan et al 2016)

Brand Recall Scale

Consumer ability to correctly recall refers to brand recall(Grazer amp Kessling 2011) For this construct five items were adoptedfrom the measures developed Balakrishnan etal (2012) The reliabilityof this measure in earlier studies is as high as 68 and as low as 65(Chan et al 2015 Patel amp Patel 2015)

Purchase Intention Scale

The probability of consumer buying a brand or product isknown as purchase intention (David 2016) The five items for thismeasure were adopted from the study of Balakrishnan etal (2012)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 8: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

781

Measuring the Effect of Product

therefore a higher sample size of above 300 was administered in thisstudy (Kline 2015) About 40 responded were male and the rest60 were females About 30 responded were single and the rest70 were married Twenty percent respondents were students andthe rest 80 were employed or were entrepreneurs About 30respondents were at least graduate 40 respondents had at leastmatric level of education and the rest 30 percent had primary level ofeducation

Scale and Measure

All the adopted questions were first converted to seven point Likertscale

Product Placement Scale

Incorporation of brandsproducts into Televisions moviesand video games for promotion of the productsbrands is refer asproduct placement (Williams Petrosky Hernandez amp Page 2011)Reelialities of this measure in earlier studies was as high as 78 and aslow as 74(Chan et al 2015 Chan et al 2016)

Brand Recall Scale

Consumer ability to correctly recall refers to brand recall(Grazer amp Kessling 2011) For this construct five items were adoptedfrom the measures developed Balakrishnan etal (2012) The reliabilityof this measure in earlier studies is as high as 68 and as low as 65(Chan et al 2015 Patel amp Patel 2015)

Purchase Intention Scale

The probability of consumer buying a brand or product isknown as purchase intention (David 2016) The five items for thismeasure were adopted from the study of Balakrishnan etal (2012)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 9: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

782

Measuring the Effect of Product

Reliability in earlier studies for this constructs ranged between 87 to 90((Ott et al 2016)

Brand Loyalty Scale

Long term purchase affiliation is refer as brand loyalty (DawesMeyer-Waarden amp Driesener 2015)

This measure has been adopted from the scale developed byBalakrishnan etal (2012) The reliability of this construct in previsoustudies was as high as 80 and as low as 85 (Akyol amp Okan 2014 Pappuamp Quester 2016)

Data Analysis

After preliminary analysis including normality validity andreliability the developed model was tested through SEM in two StagesInitially CFA for each construct was tested followed by CFA of thedeveloped model In all seven indices were reported two belonging toabsolute category three belongling to relative category and anothertwo of parsimonious category

Table1Reported Fit indices

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 10: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

783

Measuring the Effect of Product

Results

Preliminary Analysis

Some of the pre-requisites foresting the model through SEMare normality reliably and validity Results related to Univariatenormality and reliability are shown in in Table 2

Table-2

Descriptive Analysis

Table 2 above shows product placement (Mean =091 and SD=94)has the highest reliability (α= 091) On the other hand brandloyalty(Mean= 361 SD= 081) has the lowest reliability (α=80)Cronbachrsquos alpha for all the constructs are at least 070 demonstratingacceptable level of internal consistency(J Hair Jr Black BabinAnderson amp Tatham 2010)

Convergent Validity

As all the indices related to absolute relative andparsimonious categories exceeding the recommended criteriaAdditionally factor loading of all the indicator variables are at least050 therefore it is safe to assume that of fit indices were meeting therequirement of convergent validity (Refer to Figure 2) (Bryman ampBell 2015)

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 11: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

784

Measuring the Effect of Product

Discriminant Validity

Table 4 shows that under root of the variance explained of all theconstructs is is greater than square of each pair of correlation Thisconfirms the constructs full the discriminant validity requirement (J FHair Jr Wolfinbarger Money Samouel amp Page 2015)

Table 3Discriminant Validity

Confirmatory Factor Analysis

As suggested by Kline (2015) initially confirmatory factoranalysis (CFA) for each construct was carried (refer to Table 4)followed by CFA for over all model ( Table 5)

Table4

Confirmatory Factor Analysis

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 12: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

785

Measuring the Effect of Product

Factor loading for each observed variable is at least 040 andstandardized residual are below plusmn258 and fit indices are close to theprescribed criteria confirming the fitness of each construct used inthe study (Kline 2015)

Hypothesized Model

The hypothesized model run through AMOS confirms it fitted verywell (Refer to figure 2)

Absolute indices are within the limit χ2 = 8765 DF = 41 p= 0001 lt 05) χ2df= 24 lt 5 All the relativeindices are also within the prescribed criteria CFI = 94 gt 90 NFI = 95gt 90 IFI=98 PNFI =71 gt50 PCFI = 072 gt 050

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 13: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

786

Measuring the Effect of Product

SEM Regression Weight

Table 5Standardized Regression Weight

Discussion and Conclusion

The developed model and construct developed in West havebeen successfully extended on the present set of data increasingtheir generalizability All the hypotheses were substantiated (Refer toTable 5)

The proposition brand placement influences brand recall failed to berejected (Refer to Table 5) Thus the market practitioner appreciatesmay augment products placement strategy in addition to traditionalones for increasing brand recall (Balakrishnan et al 2012 Brennan2015) Studies also found that consumer who saw brand placement ofa brand their retention of that brand was longer This was the opinionof about 38 respondents (Balakrishnan et al 2012 Liang et al2015)

The proposition product placement influences purchase intentionwas accepted (Refer to Table 5) Studies have validated that consumerswatching brand placed in movies become highly motivated to purchasethat brand (Noguti amp Russell 2015) In this context the sales ofHershey increased 65 after the release of the movie Extra Terrestrialin which the actress Elliot was making friend by gifting the candies toAliens(Noguti amp Russell 2015) Others while validating this

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 14: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

787

Measuring the Effect of Product

relationship observed that adequately brand placement strategyinfluences consumerrsquos implicit memory which increases the purchaseintention (Balasubramanian Karrh amp Patwardhan 2006)

The proposition on the influent of product placement on brand

loyalty was also accepted ( Refer to Table 5) The earlier literature andstudies are akin to these results (Liang et al 2015) Others on theeffect of this relationship found that consumers while watchingcelebratory consuming a brand change their priority towards thebrand placed in the movie (Liang et al 2015) In case of virtual gamesbrands also act as reverse product placement which allows consumersto transform virtual scenario into real life scenario (Meyer et al 2016)

Limitation and Future Research

The scope of this study could be extended from high strata tolow strata A comparative study between ethnicity and democraticfactors could bring further insight on the issue Product placementstrategy varies from one media to other These types of studies havebeen under taken but not in Pakistan This could be an avenue toexplore

These aspects could also be incorporated in future researchIt was a generalized study individuals opinion may vary from oneproduct category to other product category Future studies couldcompare the effects of high and low involvement product separatelyThis study has been conducted without the use of a stimulus and isonly measuring the impact of placement on recall intention to purchaseand loyalty Additionally the scope of the study is limited to measurethe impact of product placement on brand recall purchase intentionwithout any particular stimuli Future studies could consider aspectssuch as brandrsquos product life cycle core strategies the brand followsand brandrsquos persona

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 15: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

788

Measuring the Effect of Product

References

Akyol G Ouml amp Okan E Y (2014) Effectiveness of Product PlacementAn Experimental Study in Turkey Canadian Social Science10(1) 56-63

Balakrishnan B K Shuaib S M Dousin O amp Permarupan Y (2012)The Impact Of Brand Placement and Brand Recall in MoviesEmpirical Evidence from Malaysia IJMMR 39-52

Balasubramanian S K Karrh J A amp Patwardhan H (2006) Audienceresponse to product placements An integrative frameworkand future research agenda Journal of Advertising 35(3) 115-141

Boerman S C Van Reijmersdal E A amp Neijens P C (2015) Usingeye tracking to understand the effects of brand placementdisclosure types in television programs Journal of Advertising44(3) 196-207

Brennan I (2015) Brand Placement in Novels and Competitor RecallThe Robutness of the Part-List Cuesing Effect Academy ofMarketing Studies Journal 19(3) 63-79

Bryman A amp Bell E (2015) Business research methods OxfordUniversity Press USA

Chan F F Y Lowe B amp Petrovici D (2015) Young adultsrsquoperceptions of product placement in films An exploratorycomparison between the United Kingdom and Hong KongJournal of Marketing Communications 1-18

Chan F F Y Petrovici D Lowe B Cadogan J amp Ford J (2016)Antecedents of product placement effectiveness acrosscultures International Marketing Review 33(1)

David M E (2016) The Role of Attachment Style in ShapingConsumer Preferences for Products Shown in Advertisementsthat Depict Consensus Claims Journal of Advertising 1-17

Dawes J Meyer-Waarden L amp Driesener C (2015) Has brandloyalty declined A longitudinal analysis of repeat purchasebehavior in the UK and the USA Journal of Business Research68(2) 425-432

Gonzalez-Brambila C Jenkins M amp Lloret A (2016) Challenges forscholarly business research in Latin America Journal ofBusiness Research 69(2) 383-387

Grazer W F amp Kessling G (2011) The effect of print advertisingrsquosuse of sexual themes on brand recall and purchase intention A

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 16: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

789

Measuring the Effect of Product

product specific investigation of male responses Journal ofApplied Business Research (JABR) 11(3) 47-57

Hair Jr J Black W Babin B Anderson R amp Tatham R (2010)Multivariate data analysis New Jersy Pearson Education

Hair Jr J F Wolfinbarger M Money A H Samouel P amp Page MJ (2015) Essentials of business research methods UnitedKingdom Routledge

Jain D (2015) The effectivness of Product Placment in MoviesInternational Journal of Trade amp Global Business Perspectives3(1) 732-749

Jin S V amp Phua J (2015) The moderating effect of computer usersrsquoautotelic need for touch on brand trust perceived brandexcitement and brand placement awareness in haptic gamesand in-game advertising (IGA) Computers in Human Behavior43 58-67

Khalbous S Vianelli D Domanski T Dianoux C amp Maazoul M(2013) Attitudes toward Product Placement A Cross-CulturalAnalysis in Tunisia France Italy and Poland InternationalJournal of Marketing Studies 5(2) p138

Kim E amp Eastin M S (2015) External Brand Placement The Effectson Game Playersrsquo Processing of an In-Game Brand Journal ofPromotion Management 21(3) 391-411

Kline R B (2015) Principles and practice of structural equationmodeling Guilford publications

Krishen A S amp Sirgy M J (2016) Identifying With the Brand Placedin Music Videos Makes Me Like the Brand Journal of CurrentIssues amp Research in Advertising 37(1) 45-58

Kumar A amp Balbanis G (2016) Evaluating the Role of PositiveEmotions and Character-Brand Interaction on Implicit Attitudesfor Brand Placement Effectiveness Letrsquos Get Engaged Crossingthe Threshold of Marketingrsquos Engagement Era (pp 693-698)Springer

Lahav T amp Zimand-Sheiner D (2016) Public relations and the practiceof paid content Practical theoretical propositions and ethicalimplications Public Relations Review

Liang A R-D Hsiao T-Y amp Cheng C-H (2015) The Effects ofProduct Placement and Television Drama Types on theConsumer Responses of College Students Asia Pacific Journalof Tourism Research 20(11) 1212-1233

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 17: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

790

Measuring the Effect of Product

Marchand A Hennig-Thurau T amp Best S (2015) When JamesBond shows off his Omega does product placement affect itsmedia host European Journal of Marketing 49(910) 1666-1685

Meyer J Song R Ha K Lee N amp Dawes J (2016) The Effect ofProduct Placements on the Evaluation of Movies EuropeanJournal of Marketing 50(34)

Narang T (2015) The effectiveness of product brand placement infilms as a marketing communication tool a study to investigaterealism recognition recall awareness credibility and specificbehavior of target audience

Noguti V amp Russell C A (2015) The Moderating Role of SocialNorms on the Effects of Product Placement in Television FictionA Field Study in Brazil Journal of Current Issues amp Researchin Advertising 36(1) 20-34

Ott H K Vafeiadis M Kumble S amp Waddell T F (2016) Effect ofMessage Interactivity on Product Attitudes and PurchaseIntentions Journal of Promotion Management 22(1) 89-106

Pantoja F Rossi P amp Borges A (2015) How Product-PlotIntegration and Cognitive Load Affect Brand Attitude AReplication Journal of Advertising 1-7

Pappu R amp Quester P (2016) Brand Innovativeness Effects onPerceived Quality Satisfaction and Loyalty Looking ForwardLooking Back Drawing on the Past to Shape the Future ofMarketing (pp 763-763) Springer

Patel C R amp Patel P V (2015) Brand Recall for Product Placement inHindi Movies Global Journal of Management And BusinessResearch 15(7)

Rovella M Geringer S D amp Sanchez R (2015) Viewer Perceptionof Product Placement in Comedic Movies American Journal ofManagement 15(1) 36-43

Shaouf A Luuml K amp Li X (2016) The effect of web advertisingvisual design on online purchase intention An examinationacross gender Computers in Human Behavior 60 622-634

Sooper D (2016) A-priori Sample Size Calculator for StructuralEquation Models Retrieved April 05 2016 from httpwwwdanielsopercomstatcalccalculatoraspxid=89

Srivastava R K (2015) Product placement by global brands as analternative strategy is it worth in emerging market Journal ofStrategic Marketing 23(2) 141-156

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428

Page 18: MEASURING THE EFFECT OF PRODUCT PLACEMENT STRATEGY … · product placement on the three dependent variables: recall, intention to purchase and loyalty to the brand. Literature Review

PAKISTAN BUSINESS REVIEW OCT 2016

Research

791

Measuring the Effect of Product

Uribe R (2016) Separate and joint effects of advertising and placementJournal of Business Research 69(2) 459-465

Wang Z amp Wise K (2016) Emotional Arousal Shifts the Effect of AdPlacement on Ad Recognition Media Psychology 1-26

Wennekers A M Vandeberg L Zoon K amp van Reijmersdal E A(2016) Distinguishing Implicit from Explicit Brand Attitudes inBrand Placement Research Advances in Advertising Research(Vol VI) (pp 253-267) Springer

Williams K Petrosky A Hernandez E amp Page R (2011) Productplacement effectiveness revisited and renewed Journal ofmanagement and marketing research 7(2) 1-24

Yang F amp Bergh B V (2016) Should Destination Marketers AvoidDark Movies in the Marketing Plans Thriving in a New WorldEconomy (pp 258-261) Springer

Yee Chan F F (2016) An Exploratory Content Analysis of ProductPlacement in Top Grossing Films Journal of PromotionManagement 22(1) 107-121

Zerhouni O Begravegue L Duke A A amp Flaudias V (2016) Dynamicexposure to alcohol advertising in a sports context influencesimplicit attitudes Alcoholism Clinical and ExperimentalResearch 40(2) 422-428