Analytical Essay on Product Placement in YouTube and TV Arrangement

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Executive Summary

Product Placement is a method of publicizing utilized by organizations to advance their items unpretentiously fundamentally through appearances in different motion pictures, TV, and YouTube web arrangement, and so forth item positions are normally started by an understanding between the media organization and the item maker.

Purchaser estimations fill in as a device to know ‘how advertising is getting along’ according to the clients. This kind of instrument would allow persistent checking of the fundamental open view of and the fulfillment with the promoting foundation.

The exploration planned to examine the effect of item position of purchaser slants dependent on different precursors. Research show is set up so as to the investigation these predecessors. It was distinguished that buyer slants are influenced by two fundamental components for example Frame of mind of buyers towards item arrangement and success of item position. Different qualities which influence the frame of mind of purchaser towards item situation are the creation data given and social picture in the psyches of the shopper. It is likewise influenced because of the libertine shopping knowledge and how great the item is for the economy.

Adding to this, the adequacy of item position is subject to the current nature of the item to the purchaser and how well the item is coordinated in the storyline of the TV or YouTube arrangement. It is additionally impacted by the Skepticism of watchers towards the item and furthermore the unmistakable quality of the item in a specific show. Every one of the elements influences the notions of the customers prompting their buy choices.

This purchaser estimation was additionally broke down to comprehend the brand review, brand frame of mind, brand decision, brand notability. These are the outcomes of customer assessments because of item situation and there further lead to mark dedication or brand exchanging disposition of buyers.

An overview was finished with the target to comprehend consider feelings on item situations through YouTube and TV arrangement and which sort of item position is making more effect, YouTube or TV arrangement. It likewise engaged to know whether such item arrangement results into purchasing of the item and to sort the customers into Brand Loyalty and Brand Switching because of effect of item positions

Target audience was recognized was the young and therefore, the example comprised of people between the age gathering of 16 to 50. A sum of 201 reactions were gathered for further information investigation. Utilizing different factual and specialized investigation instruments, the outcomes found were that – Product position is observed to be to some degree diverting which thusly influences their buy conduct. Additionally, YouTube arrangement is found to greater affect the customers’ psyche when contrasted with TV arrangement. It was likewise discovered that Brand review is high and the item is additionally crashed into the mindfulness set of the client and the buy conduct isn’t so very affected. In this manner, Product situation doesn’t viably drive the item or administration into the choice arrangement of clients.

Chapter 1. Introduction

Technological advancement today has empowered customers to skip commercials on TV and advertisers are very much aware of the way that their image or items won’t viably achieve the shoppers utilizing conventional promoting devices. Hence, so as to catch the consumer’s’ eye promoters currently adjust their items or brands through a compelling route known as Product Placement.

Product Placement:

Product position is a system of publicizing utilized by organizations to advance their products unobtrusively for the most part through appearances in different motion pictures, TV, and YouTube web arrangement, and so on product situations are typically started by an understanding between the media organization and the product maker. This is a non-customary method of publicizing in which the monetary advantages are generally delighted in by the media organization. The organization needs to pay an expense so as to have their products shown, utilized or highlighted in a film or show.

For instance:

  • Coca-Cola could pay an offered expense to have the title character drinking a Coke, rather than a Pepsi refreshment, or
  • Toyota may pay to have one of the characters drive their most up to date car.

There are different meanings of product situation or brand position in scholarly and exchange distributions. Brand situation is characterized as ‘the incorporation of brands in films or TV content’ (Ferraro and Avery, 2000). Different definitions are bound to be constrained as far as the reason for product situation, for example, ‘the deliberate consolidation of a brand into an amusement vehicle’ (Russell and Belch, 2005, p.74). In this definition, it is shown that numerous shows show the brand and products intentionally to the watchers.

In basic terms, product position incorporates a promoter or an organization which delivers some substance with the perspective on selling its products. In that capacity, product or brand situation keeps on being a vital practice inside publicizing and coordinated showcasing correspondences in which promoters push their way into substance unmistakably more forcefully than any other time in recent memory (The Economist, 2005). Product situation holds more hazard than customary promoting. It has now turned into a typical practice to put the brands into different media like TV, PC diversions, web journals, films, and so forth.

Product position has turned into an in all respects generally utilized practice for promoting in the United States. Media outlets creates extensive measure of cash by putting different products or their brands into prevailing press stages. As indicated by Williams, Petrosky, Hernandez and Page (2011), $1.5 Billion dollars were spent towards product situation in 2005, $2.9 Billion out of 2007, and $3.7 Billion of every 2008. Today, ‘75% of U.S. prime-time organize demonstrates use product positions’ (p. 4). This number is required to increment because of the way that ‘41% of U.S. homes are required to have and utilize computerized video recorders that can skirt through plugs’ (p. 4).

Along these lines, it has turned out to be extremely hard to impart the promoting message to the buyers.

So as to be seen, marks currently need to get broadcast appointment inside substance—making product situation a progressively powerful approach to achieve an objective market in the present TV seeing society.

Purchaser Sentiments

The estimation of general purchaser disposition and opinions has been important to scholastics and business analysts for a long time. Purchaser assumptions fill in as an instrument to know ‘how promoting is getting along’ according to the clients. This sort of instrument would allow nonstop checking of the essential open view of and the fulfillment with the showcasing foundation. In perspective on obvious long-standing open antagonistic vibe towards showcasing practice and promoting organizations (Barksdale and Perreault 1980; Miller 1974; Packard 1957), it would appear to be attractive to give such a data administration to those in the field of a few related reasons.

Chapter 2. Literature Review

It is obvious to most analysts that product situation is blasting to a great extent over recent years and in this manner, it has now turned into its very own industry. There are an ever-increasing number of inquires about showing up in the subject of product situations since the investigation is moderately new.

This survey will cover past writing that will comprehend the buyer slants related with product arrangements explicitly through YouTube and TV arrangement. It will likewise characterize the effect of product situation on purchaser conduct which will prompt either mark unwaveringness or brand exchanging and in conclusion, decode a connection between product position and extreme buy choice.

The Impact of product Placement of Consumer Sentiments will be recognized dependent on different forerunners. The usage will influence the buyer frame of mind towards brand prompting brand unwaveringness or brand exchanging.

Goal of Study

  1. To comprehend customer estimations on product situations through YouTube and TV arrangement
  2. To comprehend which sort of product position is making more efYouTubeu Tube or TV arrangement
  3. Does such product arrangement results into purchasing of the product?
  4. To order the customers into Brand Loyalty and Brand Switching because of effect of product arrangements

Chapter 3. Methodology

Target audience was identified was the youth and thus, the sample consisted of individuals between the age group of 16 to 50. Researchers personally met half of the sample population and the rest of the responses were collected online. Researchers requested them to participate in the study with their consent. In addition, they were assured of complete confidentiality of their responses.

The research design used were descriptive and exploratory. The data was collected using Survey method and convenience sampling technique. Total 275 survey forms were circulated amongst the target audience. Later, all incomplete forms were discarded and a total of 201 usable responses were taken for further data analysis.

Research Model

The Impact of product Placement of Consumer Sentiments has been identified based on various antecedents, which in turn will help us identify the consumer behaviour on their brand loyalty and brand switching. The further implementation would be done in the subsequent research papers. The following model shows the research ideology.

We have to study consumer sentiments based on the below attributes. The antecedents of Consumer Sentiments are:

  1. 1. Attitude towards product placements
  • a. Product Information

Much of the discussion by economists and the advocacy justification of advertising rest on its role as a provider of information (Norris 1984). Market efficiencies is basically filling the gap between consumers’ needs, wants, and the offerings by the producers. Advertising through modern digital medium like YouTube etc. subconsciously makes the customer aware of the brand which eventually affects the buying decision.

  • b. Social Image

Advertising through product placement provides imaginary lifestyle and its communication goals specify brand image or personality, prestige, social reaction to purchase and their uses. Consumers are ready to pay high prices for branded items. Recent research addresses the role that advertising plays in creating product meaning (Friedmann and Zimmer 1988; Tharp and Scott 1990) and self-image (Richins 1991).

  • c. Hedonic:

Many advertisements offer an experience of pleasure, fun, and satisfaction to the customers which lead to recollection. Hedonic shopping is driven by our desire for fun, entertainment, and contentedness. Advertisements through product placement allow more space for hedonic experience since the customers are already connected with the story-line of the YouTube or TV series.

  • d. Good for Economy:

Experts claim that advertising increases the rate at which new goods and technologies are accepted in the market. It also stimulates full employment and a healthy competition amongst producers. This leads to customers’ benefits and an effective use of national resources which raises the average standard of living in the economy.

  1. 2. Effectiveness of product placements
  • a. Familiarity of the product:

A robust phenomenon called the Von Restorff effect (Wallace 1965), or the isolation effect (Huang, Scale, and McIntyre 1976), may influence the recall of product placement (Balasubramanian 1994). Unfamiliar stimuli are inconsonant with prior expectations of the customers. Thus they attract larger attention and produce higher cognitive outcomes (Eg. recall) than familiar stimuli. The study by Nelsen (2002) found evidence that brands that have less familiar to participants demonstrated recall superiority.

  • b. Product Integration:

Product integration is nothing but judgement of fit, i.e. how well the product is incorporated into main storyline of the script. The importance of fit in placement context is acknowledged by both movie viewer (DeLorme and Reid 1999) and placement practitioners (Karrh 1995; Karrh, McKee, and Pardun 2003). This term needs careful definition, however, to avoid to overlap with perceived relatedness of cues to product category (Sengupta, Goodstein, and Boninger 1997).

  • c. Skeptism towards products:

Skeptism towards products is the customer’s doubt as to the truth of something, whether the product or services shown are true. Skeptism towards advertising increases when audiences acquire a more refined knowledge of advertisers’ tactics and persuasive intent (Boush, Friested, and Rose 1994).

  • d. Product Prominence:

Product prominence is the amount of exposure a product receives in a given scene of throughout the span of a program. It has an interactive impact. In the effort to enhance the effectiveness of product placement, there is an old paradox known to marketers: ‘If you notice it, it’s bad. But if you don’t notice, it’s worthless’ (Ephron, 2003).

Once we study and understand Consumer sentiments, then we will study the below factors:

  • Brand Recall:

Product placements can have a significant effect on recall (Panda, 2004). For example, memory improves when visual/auditory modality and plot connection are congruent (Russell, 2002). Pokrywczynski (2005) has found that viewers can correctly recognize and recall placed brands in movies, using aided recall measures and free recall measures. Brands can effectively enhance robust relationships with customers (Tsimonis & Dimitriadis, 2014). Brand awareness described as the recognition or memory of a brand (Huang & Sarig ollü, 2012).

  • Brand Attitude:

A customer’s Brand Attitude is made up of two components: The strength of positive or negative association that a customer experiences with regard to a particular brand and the conviction that the positive or negative association is accurate. In other words, how much does the customer like/dislike a brand, and how convinced is the customer that this perception about the brand is correct.

  • Brand Choice:

Brand preference is strongly linked to Brand Choice that can influence the consumer decision making and activate brand purchase. ‘Brand Preferences can be defined as the subjective, conscious and behavioral tendencies which influence consumer’s predisposition toward a brand’.

  • Brand Salience:

Hong, Wang, and de los Santos, (2008) found that product placement upholds brand salience or the order in which brands come to mind. They note that to build brand salience, product placement strategies should focus on how a product can explicitly convey the product’s superiority, durability, performance, and specification. It is the degree to which your brand is thought about or noticed when a customer is in a buying situation. Strong brands have high Brand Salience and weak brands have little or none. More negative context programming can be used for achieving higher brand salience, also not excessively interfering the plot.

Then from the above attributes we will study and get to know whether such product placements through you tube and TV series impact on being Brand Loyal and/or Switchers. We will understand the consumer behavior and also the impact on buying due to this.

Chapter 4. Data Analysis

ANOVA:

Since we are measuring difference in response variable w.r.t single factor we call this technique as one way ANOVA or Single Factor ANOVA.

To determine whether there is a significant difference between different attributes with respect to different genders. (Male/Female)

  • Ho: The Importance of attributes is same for all gender
  • H1: There exists a significance difference on attributes for all gender
  1. Ho: µ1= µ2
  2. H1: µ1≠ µ2

Factors

  1. Critical Value
  2. p-value

Conclusion

  1. The want to buy the product
  • 619
  • 432

Accept Ho – There is no significant difference in these factors w.r.t. gender of the audience

  1. Relevance to the program
  • 464
  • 496
  1. Subconscious influence
  • 1.501
  • 222
  1. More realistic
  • 2.153
  • 144
  1. Feeling of compulsion
  • .111
  • .739
  1. Adverts in disguise
  • .579
  • .448
  1. Synchronization with storyline
  • 1.378
  • .242
  1. Easy brand recognition
  • .352
  • .554
  1. Effective advertising tool
  • .000
  • .994
  1. Sufficient information is shown
  • .048
  • .827
  1. Quality as expected
  • .798
  • .373
  1. Customer satisfaction with purchase
  • .020
  • .887
  1. Annoying
  • .039
  • .844
  1. Intended to deceive rather than to inform
  • .163
  • .687
  1. More familiarity
  • .266
  • .607
  1. Brand recall at time of purchase
  • 1.249
  • .265
  1. Purchase behavior reflects personality
  • 1.000
  • .318
  1. Purchase to impress others
  • .245
  • .621
  1. Influence of others on buying pattern
  • .440
  • .508
  1. Beneficial competition
  • .074
  • .786
  1. Helps nation’s economy
  • .331
  • .566
  1. Experience of pleasure for brand recall
  • .145
  • .704
  1. Entertainment/amusement
  • 1.888
  • .171

4.1 To determine whether there is a significance difference on importance of attributes with respect to different age groups. (Young Adults/Middle Aged/Old Adults)

  • Ho: The Importance of attributes is same for all age group
  • H1: There exists a significance difference on attributes for all age group
  1. Ho: µ1= µ2= µ3
  2. H1: µ1≠ µ2 ≠ µ

Factors

  • Critical Value
  • p-value

Conclusion

  1. The want to buy the product
  • .413
  • .662

Accept Ho – There is no significant difference in these factors w.r.t. age of the audience

  1. Relevance to the program
  • 3.449
  • .034

Reject Ho – There is significant difference in the relevance of the program w.r.t. age of the audience

  1. Subconscious influence
  • .651
  • .523

Accept Ho – There is no significant difference in these factors w.r.t. age of the audience

  1. More realistic
  • 1.426
  • .243
  1. Feeling of compulsion
  • 1.058
  • .349
  1. Adverts in disguise
  • 1.106
  • .333
  1. Synchronisation with storyline
  • .752
  • .473
  1. Easy brand recognition
  • .399
  • .672
  1. Effective advertising tool
  • 1.202
  • .303
  1. Sufficient information is shown
  • 3.016
  • .051
  1. Quality as expected
  • 1.364
  • .258
  1. Customer satisfaction with purchase
  • 1.663
  • .192
  1. Annoying
  • .569
  • .567
  1. Intended to deceive rather than to inform consumers
  • 2.835
  • .061
  1. More familiarity
  • 4.037
  • .019

Reject Ho – There is significant difference in the familiarity w.r.t. age of the audience

  1. Brand recall at time of purchase
  • .221
  • .802

Accept Ho – There is no significant difference in these factors w.r.t. age of the audience

  1. Purchase behavior reflects personality
  • 1.295
  • .276
  1. Purchase to impress others
  • .664
  • .516
  1. Influence of others on buying pattern
  • .043
  • .958
  1. Beneficial competition
  • .145
  • .865
  1. Helps nation’s economy
  • 1.133
  • .324
  1. Experience of pleasure for brand recall
  • .943
  • .391
  1. Entertainment/amusement
  • .169
  • .845

4.2 Factor Analysis:

Rotated Component Matrix

Component

  1. The want to buy the product
  • .731
  1. Relevance to the program
  • .569
  1. Subconscious influence
  • .705
  1. More realistic
  • .583
  1. Feeling of compulsion
  • .619
  1. Adverts in disguise
  • .497
  1. Synchronisation with storyline
  • .485
  1. Easy brand recognition
  • .686
  1. Effective advertising tool
  • .634
  1. Sufficient information is shown
  • .667
  1. Quality as expected
  • .676
  1. Customer satisfaction with purchase
  • .734
  1. Annoying
  • .844
  1. Intended to deceive rather than to inform consumers
  • .819
  1. More familiarity
  • .767
  1. Brand recall at time of purchase
  • .740
  1. Purchase behavior reflects personality
  • .516
  1. Purchase to impress others
  • .807
  1. Influence of others on buying pattern
  • .705
  1. Beneficial competition
  • .542
  1. Helps nation’s economy
  • .429
  1. Experience of pleasure for brand recall
  • .478
  1. Entertainment/amusement
  • .460

4.3 Grouping:

Factors

Groups

Relevance to the program

Product Association

Adverts in disguise

Easy brand recognition

Effective advertising tool

More familiarity

Brand recall at time of purchase

Purchase behavior reflects personality

Beneficial competition

Helps nation’s economy

The want to buy the product

Synchronized and Realistic Experience

Subconscious influence

More realistic

Feeling of compulsion

Synchronisation with storyline

Experience of pleasure for brand recall

Entertainment/amusement

Purchase to impress others

Purchase Influence

Influence of others on buying pattern

Sufficient information is shown

Product Information

Quality as expected

Customer satisfaction with purchase

Annoying

Negative Experience

Intended to deceive rather than to inform consumers

Chapter 5. Discussion and Summary of Results

Using statistical analysis, it was found that approximately 65% of sample find product placement to be somewhat distracting which in turn affects their purchase behavior. Thus, we can also see that 60% of the respondents were of the opinion that product placement does not directly influence their purchase decisions. Moreover, 55% of the respondents may or may not have the product or service in their consideration set depending upon other external factors. Around 50% of sample have never tried any product or service due to direct influence of product placement. Out of the rest who have tried the product, 86% of sample were of the opinion that the features of the product or service are similar to that as shown in movies or YouTube series via product placement.

Also, only 16.4% of the sample were influenced to buy a product or service based on the product placement in YouTube or TV series. Approximately 61% of the sample recognize the brand name after seeing through product placement. Thus, brand recall is high and the product is also driven into the awareness set of the customer. But since the purchase behavior is not so highly influenced, Product placement doesn’t effectively drive the product or service into the decision set of customers.

Using technical analysis, it was found that most of the parameter are positively co-related with each other. Also, the data collected is adequate for the research (KMO=0.88 which is greater than 0.5). It was also seen that the variables are correlated to each other (p=0.00 which is less than 0.5).

Using ANOVA, we found that there is no significant difference in the perception of factors with respect to gender and there is significant difference in familiarity of products and relevance of program with respect to different age groups. All other factors have no significant difference in perception.

Using factor analysis, we use 0.4 as our limiting factor to suppress the small coefficients. So, after suppressing we get that there are five groups:

  • Group 1: Product Association
  • Group 2: Synchronized and Realistic Experience
  • Group 3: Purchase Influence
  • Group 4: Product Information
  • Group 5: Negative Experience

The above are the major factors that influence the buying behavior of viewers.

Around 50% of the respondents feel that both YouTube and tv series create impact and more prominent, with majority of them rating YouTube the most effect form of product placement.

Chapter 6. Conclusions

Product Placement was found to be somewhat distracting to the consumers. This in turn would affect their purchase decisions and influence their buying behavior. Now a days, YouTube is more prominent with the youth due to its effectiveness and prominence. Thus, product placement through YouTube series is found to have a greater impact on the consumers mind as compared to the TV series.

It was also found that the consumers could remember the product viewed through product placement in YouTube and TV series. Thus, it can be inferred that brand recall is high and the product is also driven into the awareness set of the consumer. Consumers are found to be well aware and known about the products and their features. But somehow this did not effectively trigger into purchase of the product or service.

Since the purchase decision is not highly influenced, it is inferred that Product Placement does not drive the product or service into the decision set of the consumers.

As seen, brand recall is high amongst consumers. Also, there is a strong brand attitude both positive and negative where the prominence of former is large. Moreover, consumers’ sentiment also influences the brand choice by them which in turn leads to higher brand salience for the customers.

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