Consumer Response to Product Placement Strategies: A Study with Reference to Punjab

Abstract

Consumers have started avoiding overt advertising messages, making it essential to find alternative ways to reach consumers and advertise effectively. The practice of product placement has been gaining momentum in recent years due to some of its advantages over overt advertising strategies, yet marketers do not have adequate knowledge about its effectiveness. There is a need to better understand the effectiveness of product placements, given the huge amounts of money spent on this advertising strategy. Responding to this need, the present study captured consumers‟ perceptions and responses toward product placements. The study proposed and tested a research model to examine the factors influencing consumers‟ perceptions and responses toward product placements in movies. Existing theories/frameworks, such as the consumer socialization framework, persuasion knowledge model (PKM) and self- congruity theory, were used to guide this examination. Purchase intention, a predictor of consumer behavior, was used as the key dependent variable to evaluate product placement effectiveness. The study attempted to fill a research gap by treating CPI and placement prominence as distinct execution factors and by examining the effect of the interaction between these execution factors. The study also investigated the previously unexplored relationship between product acceptability and purchase intentions. Since there is a dearth of research on placement effectiveness in the context of Asian emerging markets, the present study was conducted in India where there is a rising trend of placing branded products in movies. Participants (N= 600) were shown research stimuli and asked to fill out a structured questionnaire. T-test, multiple regression, analysis of covariance (ANCOVA), analysis of variance (ANOVA) and structural equation modeling (SEM) were used to analyze the responses. The results of this survey-based study suggested that consumers have positive attitudes toward the practice of placement in movies. The results revealed that socialization factors and brand consciousness influence consumers‟ attitudes toward the practice of product placement, which in turn positively impact their behavioral intentions. The results indicated that the acceptability of products placed in media content varies based on gender and media consumption. The study is among the first to confirm a positive association between product acceptability and purchase intentions. The results demonstrated that product placement execution and individual-difference v

factors significantly impact consumers‟ brand attitudes, which in turn positively impact their purchase intentions. Based on the findings, the study provides implications and future research directions. The study offers implications for policymakers, academicians, marketing professionals and content producers. The study‟s findings can create exciting research and theory development opportunities for academicians. Based on the findings, marketing professionals and content producers can make decisions and develop robust product placement strategies. The use of product placements can help marketers break through the clutter of advertising messages and reach target audiences. Product placements can be leveraged by marketers to enhance consumers‟ relationships with brands and favorably influence consumers‟ affective and behavioral responses. As the practice of placing branded products in entertainment content is gaining popularity, policymakers need to constantly monitor this practice. To regulate product placements in media content, policymakers can modify the existing policies governing this practice in India. They can also formulate new policies governing this practice in India