CHAPTER 1

INTRODUCTION

1.1

Introduction

This chapter discuss about background of the study, problem statement, purpose and objective of the study, significant and also limitation of the study. The definition concept of product placement is also discussed.

2

1.2

Background of the study
According to PQ Media (2007) the practice of placing branded products within

films for commercial purposes has developed into a distinct marketing tactic and has truly gone global. This situation happens due to product placement is cost-effective compared to other types advertising and it allows marketers to avoid clutter. Placing product in film is not new, it has becoming established in North America in the 1980s, on television program but began to receive serious attention in the UK in the late
1990s.(Chris Fill,2004).One of the example is the increase in sales of Reese’s Pieces chocolate after an on-screen in E.T on 1980s (Karh,1998).

Generally product placement is about placing brands in films or TV show. Chris
Fill (2004), defined product placement as the inclusion of products and services in films for deliberate promotional exposure, in return for an agreed financial sum. It is a cheap way to obtain some brand exposure in a mainstream without paying for airtime like any other promotion. Placing a product in film can overcome the irritation factor associated with advertisements screened in cinemas. There are varieties of product can be place including drinks, foods, sports equipment and even holiday destinations.

Product placement can create a positive image to the firm (Jim Blythe, 2006), by positioning a product in a very good way in the film it will deliver the positive image to the audience. For instance in Tomorrow Never Dies, James Bond drove a BMW to suit with cool, suave James Bond image, this ways make the viewer associates the product with the movie star therefore they will assumes that the product must be a good one.

Product placement in films indeed is good for the company, who operates internationally, a successful movie usually will be screened in most countries around the

3

world, and will attract the premium audience hence more people will look at the product and increase the promotion of the product

However, product placement in films has some drawbacks, sometimes when the product is wrongly placed or wrong time, the product will be unnoticed. Chris Fill
(2004) stated that, major disadvantage of product placement is inability to provide explanation, detail, or indeed any substantive information about the product.

Even though, product placement has become particularly common and commercial practice, the research in this field is still limited. Previous studies has been done to indicate the acceptability of product placement is conducted in Italy, Australia and America (Alessandro M.Peluso, Permario & Chiara 2010; Stacy,Philip & Veronica
2004; Gupta & Gould 1997).So far no research has been done in Malaysia.

1.3

Problem statement

Recent report from PQ Media is said that on 2006 practice of product placement is increasing by $3.36 billion and it is expected to reach $4.38 on 2007 which is driven from Europe and Asia. This shows that practice of product placement is spread globally.
The fast development of product placement in worldwide may have an impact to the consumer in Malaysia.

4

This study is carried to investigate the acceptability of Malaysian consumer towards product placement:
1.

How does the acceptability of product placement vary by individual differences? 2.

Does the frequency of movie consumption have the effect to the acceptability? 3.

1.4

Does the product category have the impact to the acceptability?

Purpose of the study
Purpose of this study is to identify the acceptability of consumer in Malaysia towards

product placement in movies.

1.5

Objective of the study
To achieve the purpose the objectives of this study are:

1.

To determine the acceptability of product placement by looking at the individual differences such as gender and age.

2.

To determine the acceptability by looking at the consumer movie-viewing frequency. 5

3.

To determine the acceptability by looking at the product category. Example product category; controversial product: beer and gun , neutral product : camera and soft drink

1.6

Scope of the study

This study is focus on people in Kuala Lumpur. Their age is between 18 and 55 years old were randomly selected. To assess the information respondents from different company, education background, status is chosen. Data were collected by questionnaires. 1.7

Important of the study
In practical aspect, this study will help both international and local marketers to

get clear understanding about product placement acceptability. Marketers can plan and apply correct marketing tools to capture the audience.
From academic aspect, this study can be compared with other related research from other market segment

6

CHAPTER 2

LITERATURE REVIEW

2.1

Introduction

This chapter defines the concept and the study of acceptability towards products placement. It will describe generally about advertising and the definition about product placement. The factors that influence consumer acceptability in term of individual differences, frequency of movie consumption and product category will also be described and discuss in this chapter. Furthermore, previous research regarding this topic will be review.

7

2.2

Definition of advertising

Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods and services by an identified sponsor (Kotler, 2010). Advertising is used to persuade, inform or remind consumer. It also helps build customer relationship by communicating customer value. Before a message can be delivered by advertising several steps should be taken.

Firstly, set the advertising objectives. The objectives should be based on past decisions about the target market, positioning and the marketing mix. Secondly, set the advertising budget, the budget will be differ, depends on the stage in the product life cycle, or market share of the company.

Lastly, develop the advertising strategy. This step, consist of two elements, create the advertising message and selecting advertising media. To create the advertising message, message strategy and execution style should be well planned in order to capture the target’s market attention and interest. After that, marketers should select the advertising media. Kotler (2010) defined advertising media as a vehicle through which advertising messages are delivered to their intended audience. Examples of advertising media (Chris Fill, 1997) are, print media (newspapers and magazines), electronic media
(television and radio), and alternative media (product placement).

8

2.3

Definition of product placement

According to Oxford dictionary product placement is a practice in which manufacturers of goods or providers of a service gain exposure for their products by paying for them to be featured in films and television programs.

Business

dictionary

by companies to

defines,

subtly

it’s

as

an advertising technique used

promote products

or

services ,usually

through appearances in film, television, or other media. It’s often initiated through an agreement between a product manufacturer and the media company in which the media company receives economic benefit. A company will often pay a fee to have their product used, displayed, or significantly featured in a movie or show. Namely, CocaCola could pay a given fee to have the title character drinking a Coke, instead of a Pepsi beverage, or Toyota might pay to have one of the characters drive their newest automobile. Through

product

placement,

companies

hope

that

moviegoers

will take note of the products used by the characters, and therefore think more strongly about using the products themselves.

Chris Fill (2004) suggested product placement as the inclusion of product or services in films for promotional exposure purposes. Firms will contribute the cost of producing the film and in exchange of allowing their products to be placed in certain

9

considerable area or timeline in the movie. This is one vital way how marketers promote their product to those who hates watch or listen to the television and radio advertising.

Product placement also being practice in Malaysia, from the recent report by
Nielsen Advertising Information Services (January 2011), Malaysia advertising increase
16% percent in 2010 to close the year at RM 7.7 billion and this growth was broad-based across all media: In-Store (+43%), Internet (+29%),Terrestrial TV (+18%), Newspapers
(+14%), Radio (+13%), Magazines (+9%), Outdoor (+7%), and Cinema (+6%). This proves that even though it is a small percent but product placement is been practice in
Malaysia.

2.4

Acceptability towards product placement

Studies have found that acceptability of consumer refers to the general satisfaction of the audience with the contents of the film, which includes the practice of placing products during the film for the contents of the film (DeLorme & Reid 1999;
Gupta & Gould 1997; Nebenzhal & Secunda 1993; Pardun & Mckee 1996).It follows that, the acceptability of the consumer towards product placement influence by several factors such as individual differences such as of gender or age, movie viewing frequency and product category placed in the movie.

10

Recent evidence suggest that attention must be paid on particular aspects that can influence consumers’ attitudes toward product placement namely, the category of product included in the movie, the gender of the consumer, the frequency of film viewed
(De Gregorio and Sung, 2010; Gupta and Gould, 1997; Gupta et al, 2000; Mc Kechnie and Zhou, 2003).

2.4.1 Individual differences

Marketers inserted difference products in certain timeline or area in movies because they understand that different people have different taste and preferences.
Thereby, the acceptability of people towards product placement will also vary in certain ways. As an example in gender, male will accept product such as gadget, but cannot stand with the placement of healthy diet products in the movies.

11

Several attempts have been made to understand the acceptance of difference gender towards product placement. Study by Alessandro et al , 2010 confirmed that there are difference acceptance of the various products based on gender, product such as sunglasses, video cameras, stereo systems, mobiles phones, computers and cars are more accepted by male, in the other hand product such as healthy products, soft drinks, sweets and snacks and lingerie are more accepted by females.

Same study carried by Stacey Brennan, Philip J. Rosenberger III and Veronica
Hementera, 2004 listing 13 different products placed in the movies and gender acceptability were further explored. As a result, researcher found that there are significant gender differences in product such as cigarettes, alcohol, fatty foods, race cars, guns, snacks, stereo equipment and cars.

Age differences also contribute to the acceptance of product placement. To illustrate, teenagers will accept the placement of product such as carbonated drinks and junk food compare to the old people.

Previous study reported as for age differences, individual in a younger group
(ages 19-35) showed higher acceptability mean scores than people in the older group.
(Yongjun Sung, Federico de Gregorio,Jong-Hyouk Jung 2009).

12

Other studies that analyzed baby boomers acceptance towards product placement in movies reported that there are favorable general attitude of acceptance among baby boomers. 30% percent of the respondents agreed the statement that “I care, about product placement”, while the rest prefer product placement through traditional media.
(Nicole M.Schmoll, John Hafer,Micheal Hilt and Hugh Reilly, 2006).

2.4.2 Movie viewing frequency

Frequency of movies watched will also influence the acceptability of consumer.
Gupta and Gould (1997) have hypothesized that consumers who more frequently watched movies would be more likely to find product placements acceptable than consumers who watch them less frequently.

Looking at study carried out by Alessandro et al , 2010 proven that those who more frequently watch movies accept more readily placement.

13

Support by research done by Nicole M.Schmoll, John Hafer,Micheal Hilt and
Hugh Reilly, 2006 says that subjects who more frequently consumed movies also more approving product placement in movies.

However research by Stacey Brennan, Philip J. Rosenberger III and Veronica
Hementera, 2004 there is no significant effect movie-viewing with the acceptability in general, but they found that heavy consumer were more accepting of ethically charged product placement compare to the low one.

Frequent consumer will not only appreciate product placement but they also think that product placement brings the realism to the movie. As suggested by DLR van der Wadlt; LS Du Toit and R Redelinghuys (2007) branded product placement in film will enhance realism and product recognition by consumers.

2.4.3 Product category placed in the movies

Categories of product placed in movies may bring some controversial issues.
There are some products such as condom, beer; tobacco and gun are prohibited for advertising in television and radio however it is broadcast in movies.

14

Ethically charged products are products, which especially arouse ethical concern and differences across consumers regarding their marketing and consumption. Based on this it has been determined that alcoholic beverages, tobacco and weapons are labelled as ethically charged products (Gupta & Gould, 1997:38).

Some consumers cannot accept placement of ethically charged product, they found that it is unethical because it will give negative impact to the movies as well as to their children. (Chong Ho Yu, 2006) .

Previous study stated that respondent with at least one child indicated greater acceptance for neutral product such as automobiles and cameras compare to controversial product. In contrast, the no children group of respondent shows more acceptability for gun and alcohol products. (Yongjun Sung, Federico de Gregorio,JongHyouk Jung 2009).

In addition, result from studies carried by Stacey Brennan, Philip J. Rosenberger
III and Veronica Hementera, 2004 suggests that respondents deemed neutral product placement to be more acceptable than controversial product placement.

15

CHATPTER 3

RESEARCH METHODOLOGY

3.1

Introduction

This section discusses the methodology of the research. It will describe the research design, data collection method, research location, population and sample of the respondent, research instrument and how the data will be analyze.

16

1.8

Research design

Research design is a blueprint that specifies the procedures necessary to obtain information needed to structure or solve the marketing problem (Malhotra, 2009).Hence this research wants to determine the acceptability of consumer in Malaysia towards product placement in movies; to achieve the objective of this study we use descriptive research. Research design for this study is showed below:

INDIVIDUAL
ACCEPTABILITY

DIFFERENCES

TOWARDS
PRODUCT PLACEMENT

MOVIE VIEWING
FREQUENCY
PRODUCT
CATEGORY

17

Based on the illustration, it is explained that product placement acceptability will be influenced by three factors, individual differences, movie-viewing frequency and product category. Thus, the data will be collected by questionnaire.

3.3

Data Collection Method

Generally, there are two sources of data collection, first primary data, data originated by the researcher for the specific purpose of addressing problems, and secondly secondary data, data collected for some purposes other than problem at hand
(Malhotra, 2009). This study is using both primary data and secondary data.

Primary data in this study is data that collected from the respondent through questionnaires. The data is regarding the acceptance of consumer towards product placement. Secondary data used in this study including theories, models, facts, reviews, statistical reports, thoughts and opinions from previous research regarding the acceptance towards product placement.

18

3.4

Population and sampling

Population of this study is movie-goers in Kuala Lumpur. According to statistical report provided by FINAS (2011), number of moviegoers in Kuala Lumpur is 1.275 million. Out of this population 384 samples is chosen based on table Krejcie and Morgan
(1970) method. The table is as followed:

19

As an example, if the population size is 5000, the sample size will be 1176, with.
Due to the big number of population, researcher is unable to analyze the data; as a result, researcher used nonprobability sampling. Nonprobablity sampling is sampling techniques that do not use chance selection procedures, but that instead rely on the researcher’s personal judgment (Malhotra, 2009).

Questionnaire is distributed to movie-goers in Kuala Lumpur, the respondent is randomly chosen based on the personal judgment of researcher.

3.5

Research instrument

This research utilized both the quantitative and qualitative research methodology.
The instrument used to collect the data was questionnaire. A set of questionnaire designed to meet the objective of the study. Questionnaire is divided into two sections.

20

3.5.1

Section A:

This section is about respondent background. It is including respondent’s age and gender. From the respondent background we can see whether the individual differences will vary the acceptability of respondent towards product placement.

3.5.2

Section B:

This section will be look at the other two factors that influence acceptability towards product placement, which are the respondent’s movie viewing frequency and the product category.

Firstly, it began with a precise definition of product placement followed by question regarding the frequency of movies viewed monthly. Listed of statements in a close-end format aimed to asses respondents’ acceptance toward product placement is also included, each statements was followed by a 5-point Likert – type scale, with 1=
“Strongly agree” and 5= “Strongly disagree”. Respondents will be asked, to answer about the following themes: product placement in general, realism of movies using product placement, placement of controversial product in movies.

Five -point Likert type scale, with 1= “Very acceptable” and 5= “Very unacceptable” of questionnaires is given to explored the respondents’ acceptability with the thirteen product usually featured in the movies (Gupta & Gould’s 1997). The thirteen

21

products are guns, cigarettes, and alcohol (controversial/ethically charged product), cameras, cars, fatty foods, healthy consumer product, race-cars, snacks, soft drinks, stereo equipment, sun glasses and surfing equipment (neutral products)

3.6 Data Analysis

Data collected from the respondent will be analyzed by using SPSS software. Results will be presented through frequency counts and other descriptive statistic.

3.6.1

Descriptive Analysis

Descriptive analysis is focused on collecting, summarizing, presenting and analyzing a set of data (Mark L. Berenson, David M. Levine, Timothy C. Krehbiel,
2009). It also provides statistical measures such as the mean, median and standard deviation to describe different characteristic of the data.

22

In this research, mean and standard deviation are used to determine the acceptability of respondents towards product placement. Mean is used to determine the average respondent who accept product placement with the factors influence. If the standard deviation is more than 1.00, the data is dispersed.
As a conclusion, mean is the degree of acceptance from respondent which is 3.2.
Range will be used to get the degree of acceptance according to the mean. The maximum level of acceptance is 5 and minimum level is 1. Range is found based on the different between maximum level and minimum level and divide by 5 (degree of acceptance). Five level of acceptance is Very Non-Acceptable, Non- Acceptable,
Natural, Acceptable, Very Acceptable.

23

CHAPTER IV

FINDINGS AND DISCUSSION

4.1

Introduction

This chapter will elaborate on the various statistical tests and the interpretation of the results analysis, using the SPSS.16.0 questionnaires have been distributed but only
284 responses been returned.

24

4.2

Reliability analysis

Before the actual data collection period, a pilot study was conducted to assess the validity of the research instrument. A total of 20 respondents were involved in the pilot study. Cronbach’s Alpha used to determine whether the questionnaire is reliable or not.
The result show is as in Table 1. The result shows that twenty seven items measure
0.848, the closer the reliability coefficient gets to 1.0, the better.

Table 1: Reliability statistic

Cronbach's Alpha Based on
Standardized Items

Cronbach's Alpha
.848

4.3

N of Items

.890

Frequency Distribution

From the frequency distribution below, shows that 24.6% of the respondent is male while 74.6% of the respondent is female. This shows that female tends to watch movies higher than male.

27

25

Table 2: Gender of the respondent
Gender

Frequency

male

Percent

Cumulative Percent

70

24.6

24.8

female

212

74.6

100.0

Total

282

99.3

Most of the respondents in Table 3 watch movies only 0-2 times per month, makes the highest rank 52.8% and the lowest is 6.8% of 6-8 times per month, this is because the majority of the respondents in KL (Kuala Lumpur) is working people, they busy with their working life and only watch movies during weekend.

Table 3: Watch movies per month.
Times Per Month

Frequency

Percent

Cumulative Percent

150

52.8

54.3

2-4

68

23.9

79.0

4-6

32

11.3

90.6

6-8

4

1.4

92.0

22

7.7

100.0

276

97.2

0-2

8+
Total

26

About 65.5% of the respondent age 19 – 25 years old, this may indicate that majority of the respondent is who watch movies is among teenagers.

Table 4: Age of respondent
Age

Below 19
19-25
26-10
31 and above
Total

4.4

Frequency

Percent

Cumulative
Percent

10

3.5

3.5

186

65.5

69.0

74

26.1

95.1

14

4.9

100.0

284

100.0

Descriptive Analysis

Descriptive analysis such as maximum, minimum, means, standard deviations and variance were obtained for the interval-scaled independent and dependent variables.
Table 5 shows the descriptive statistics. Acceptance of consumer toward ethical product was measured on a 5 point scale. From the results, it indicates that the mean of Gun is
2.52, meanwhile for Cigarettes is 2.19 and Alcohol is 1.88. Mean column stated that
Alcohol product stated lower than the average. This means that Alcohol is the most unacceptable ethically charged product in movies.

27

Table 5: Ethically Charged Product
N

Mean

Std. Deviation

Guns

282

2.52

1.321

Cigarettes

282

2.19

1.228

278

1.88

1.153

Alcohol

Table 6 shows the descriptive statistics. Acceptance of consumer towards neutral product was measured on a 5 point scale. From the results, it indicates that the highest mean of Neutral products is Cars is 4.04, follow by Healthy consumer products 3.98,
Cameras 3.81, Sunglasses 3.76, Stereo equipment 3.63, Surfing equipment 3.55 , Soft drinks 3.40, Race cars 3.37, Snacks 3.31,Fatty foods 2.98,. Mean column stated that
Fatty foods product is the lowest. This means that Fatty food is the most unacceptable neutral products in movies.

28

Table 6 : Neutral Product
Product
Mean

Std. Deviation

Cameras

3.81

1.033

Cars

4.04

1.036

Fatty foods

2.98

1.186

Healthy consumer products

3.98

1.009

Race cars

3.37

1.275

Snacks

3.31

1.088

Soft drinks

3.40

1.096

Stereo equipment

3.63

.997

Sunglasses

3.76

.979

Surfing equipment

3.55

1.018

Table 7 below, shows the product acceptance based on genders. Overall, the results below showed that males were more accepting of all thirteen products, with mean of acceptability 45.0370, while female 41.6505. For ethically charged product, male indicate greater acceptability (Mean=8.0313), compared to females (Mean=6.0755).For neutral product acceptability of male is still higher (Mean = 36.5172) compare to females
(Mean = 35.5922). This shows that there are different in acceptance of product based on gender. 29

Table 7: Product acceptance based on gender.
Gender of respondent

Product Acceptance

All Product Acceptance

Mean

Std.
Deviation
7.93598

8.0313

3.15207

36.5172

6.33908

41.6505

8.70851

6.0755

3.03127

35.5922

MALE

Product Acceptance
(Ethically Charged)

45.0370

7.04056

Product Acceptance
(Neutral Product)
All Product Acceptance

FEMALE

Product Acceptance
(Ethically Charged)
Product Acceptance
(Neutral Product)

Table 8 shows the different acceptance based on frequency of respondent watching movies per month. Overall, the results below showed that respondent who watches movies more than 8 times per month were more accepting ethically charged product, with mean of acceptability 8.8182, while respondent who watch movies 4-6 times per month were more accepting neutral product with mean of 39.8462. This indicates that there are different in acceptance of product based on frequency of respondent watching movies per month.

30

Table 8: Product acceptance based on frequency watch movies per month.
Watch movies

Prodcut Acceptance
Mean

Std. Deviation

Per month

8+

7.31754

Product Acceptance
(Ethically Charged)

6.4242

3.18680

35.9655

5.49630

Product Acceptance
(Ethically Charged)

7.6667

2.91646

39.8462

7.20940

Product Acceptance
(Ethically Charged)

8.0000

1.15470

Product Acceptance
(Natural Product)

6-8

34.6712

Product Acceptance
(Natural Product)

4-6

3.14476

Product Acceptance
(Natural Product)

2-4

5.9595

Product Acceptance
(Natural Product)

0-2

Product Acceptance
(Ethically Charged)

35.0000

5.77350

Product Acceptance
(Ethically Charged)

8.8182

2.98626

Product Acceptance
(Natural Product)

36.9091

6.28611

31

Table 9 below shows different acceptance based on age of respondent. Overall, the results below showed respondent age below 19 years old were more accepting of all thirteen products, with mean of acceptability 44.4000, and also indicate greater acceptability in neutral product with mean of 38.0000,while respondent age between 19
– 25 years old were more accepting ethically charged product with mean of 6.8333 compare to other range of age. This indicates that there are different in acceptance of product based on age of respondent

32

Table 9: Product acceptance based on age of respondent age of respondent

Product Acceptance
Mean

Below 19

All Product Acceptance

Std.
Deviation

44.4000

3.37310

6.4000

2.27058

Product Acceptance (Natural
Product)

38.0000

1.49071

All Product Acceptance

43.1744

8.07160

6.8333

3.05718

Product Acceptance (Natural
Product)

36.3636

6.49955

All Product Acceptance

41.0000

9.49185

6.1081

3.63984

Product Acceptance (Natural
Product)

34.8438

7.26859

All Product Acceptance

37.0000

11.70141

5.5714

2.20887

31.4286

10.07445

Product Acceptance
(Ethically Charged)

19-25

Product Acceptance
(Ethically Charged)

26-30

Product Acceptance
(Ethically Charged)

31 and above

Product Acceptance
(Ethically Charged)
Product Acceptance (Natural
Product)

33

4.5

Regression Analysis

Multi Regressions was done to analyse the results of regressing in four independent variables against product placement acceptance can be seen below.

Four Independent variables were: watch movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT (liking or not liking product placement), RESTRICT (restriction of product placement), ATTV
(Attitudes toward television advertising in general).

Three dependent variables were: PRODUCT ACCEPTANCE, which was the total number of all 13 products for product placement, PRODUCT ACCEPTANCE
(ETHICALLY CHARGED), which was the total number of the ethically charged products for product placement, and PRODUCT ACCEPTANCE (NEUTRAL
PRODUCT), which was the total number of the neutral products for product placement.

The coefficient of multiple determination in Table 10 is 0.246, therefore, about
24.6% of the variation in product acceptance is explained watch movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT
(liking or not liking product placement), RESTRICT (restriction of product placement),
ATTV (Attitudes toward television advertising in general).

34

Table 10 : Model Summaryb
Model
1

R
.496a

R Square

Adjusted R Square

.246

Std. Error of the Estimate

.226

6.97271

a. Predictors: (Constant), watch movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT (liking or not liking product placement), RESTRICT (restriction of product placement),
ATTV (Attitudes toward television advertising in general)
b. Dependent Variable: Product Acceptance (All Product)

The coefficient of multiple determination in Table 11 is 0.195, therefore, about
19.5% of the variation in Product Acceptance (Ethically Charged) is explained watch movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT (liking or not liking product placement), RESTRICT (restriction of product placement), ATTV (Attitudes toward television advertising in general).

Table 11 : Model Summaryb
Model
1

R
.442a

R Square
.195

Adjusted R Square

Std. Error of the Estimate

.175

2.82116

a. Predictors: (Constant), watch movies per month, PR (Product placement adding to the movies' realism), gender of respondent, ATT (liking or not liking product placement), RESTRICT (restriction of product placement), ATTV (Attitudes toward television advertising in general)
b. Dependent Variable: Product Acceptance (Ethically Charged)

The coefficient of multiple determination in Table 12 is 0.197, therefore, about
19.7% of the variation in Product Acceptance (Neutral Product)is explained watch

35

movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT (liking or not liking product placement), RESTRICT (restriction of product placement), ATTV (Attitudes toward television advertising in general).

Table 12 : Model Summaryb
Model
1

R
.444a

R Square

Adjusted R Square

.197

.175

Std. Error of the Estimate
5.67126

a. Predictors: (Constant), watch movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT (liking or not liking product placement), RESTRICT (restriction of product placement),
ATTV (Attitudes toward television advertising in general)
b. Dependent Variable: Product Acceptance (Neutral Product)

36

CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1

Introduction

This study identifies the factors that may have an impact to the product placement

acceptability of movie-goers in Malaysia. Primary data were collected by randomly distributing questionnaires to 384 respondents in Kuala Lumpur. As mentioned earlier in the introduction, the objective of this study is to determine the acceptability of product placement by looking at the (1) individual differences such as gender and age, (2) consumer movie-viewing frequency and (3) product category. Example product category; controversial product: beer and gun, neutral product: camera and soft drink.

37

5.2

Conclusion
The following conclusions can be drawn based on the findings of the study. To

begin with, this study has shown that males were more accepting all products featured in movies compares to females. The finding is consistent with the study done by
Alessandro et al (2010) and Stacey Brennan, Philip J. Rosenberger III and Veronica
Hementera, (2004).

In term of age differences younger respondent are more accepted product placement compare to older respondent. This finding consistent with the previous study done by Yongjun Sung, Federico de Gregorio,Jong-Hyouk Jung (2009) in certain aspect.
Their study report that for age differences, individual in a younger group (ages 19-35) showed higher acceptability mean scores than people in the older group. However in this study found that respondent age below 19 show higher mean acceptability compare to other age group.

The placement of products in movies tends to be more accepted by consumers that are more often watch television. This finding is in line with the previous research done by Stacey Brennan, Philip J. Rosenberger III and Veronica Hementera, (2004) on certain aspect and similarly with the study done by Nicole M.Schmoll, John
Hafer,Micheal Hilt and Hugh Reilly, (2006) and Alessandro et al, (2010) indicated that subjects who more frequently consumed movies also more approving product placement in movies.. This difference happens probably because of the numbers of exposure that the consumer get makes them get ‘used’ and feel familiar with the product.

Lastly, this study also proved that ethically charged products placed in a movie seem to be less accepted than neutral product it similar with the study carried out by

38

Stacey Brennan, Philip J. Rosenberger III and Veronica Hementera,(2004), Chong Ho
Yu, (2006) and Yongjun Sung, Federico de Gregorio,Jong-Hyouk Jung (2009).

Overall, the findings indicated that individual differences, movie-viewing frequency and product category have an impact on product placement acceptability.

5.3

Recommendations

Based on the findings and conclusions of the study, here are several recommendations to be considered:

1.

Marketers should focus on every potential differences among consumer (such as gender and age) when designing the marketing program, as the results might not always meet expectations.

2.

It is necessary to cautiously place ethical charged product in movies, because a wrong positioning could generate concern.

39

Since this study had only focused on individual differences, movie-viewing frequency and product type, future research could be extended to include wider demographic base or other state in Malaysia. Furthermore, future research could also consider evaluating other products, as well as how acceptance to the current 13 products changes over time

.
Lastly, product placement as promotional tools has many advantages. However, marketers or film makers must consider the acceptance of the movie viewers before placing products that may be deemed unacceptable.

40

REFERENCE

Berenson, M.L., Levine, D.M., & Krehbiel, T.L. (2009). Basic business statistic: concepts and application (11th ed.).Malaysia: Pearson Prentice Hall.

Blythes, J. (2006).Essential of marketing communications. (3rd ed). United States:
Pearson Prentice Hill.

Brennan, S., Rosenberger, P.J., Hementara, V. (2004). Product placement in movies : an
Australian consumer perspective on their ethically and acceptability. Marketing
Bulletin.15 (2),1-16.

Fill C., (1997). Marketing communication: frameworks, theories, and application.
Europe: Prentice Hall.

Fill, C. (2004). Marketing communication: contexts, strategies and applications.
Europe: Pearson Prentice Hill.

Fill, C. (2006). Simply marketing communication. Europe: Pearson Prentice Hill.

41

Global Paid Product Placement to Grow 30% in 2007.(n.d.). Retrieved January 30, 2011, from http://www.imnewswatch.com/2007/03/23/global-paid-product-placement-togrow-30-in-2007-pq-media/

Guido, G., Peluso, A.M. , Tedeschi P., et al. (2010). Acceptance of product placement in
Italy: effects of personality and product/ consumer interaction. International Journal
Marketing Studies, 2(2), 34-47.

Gupta PB & Gould SJ (1997). Consumer perception on the ethics and acceptability of product placements in movies; product category and individual differences. Journal of
Current Issues and Research In Advertising, 19 (1), 37-48.

Industri : Penontonan Pawagam.(March 9, 2011). Bilangan Penontonan Mengikut
Negeri (RM / Juta) : 2004 - 2011 (Januari). Retrieved March 31, 2011 from http://www.finas.gov.my/index.php?mod=industry&sub=penonton&p=negeri Kotler, P and Armstrong, G. (2010). Principles of marketing.(13rd ed). United States:
Pearson Prentice Hall.

Kristina, K. (2007) Product Placement Rising in Europe and Asia, Retrieved February
19, 2011, from http://www.bizreport.com/2007/03/product_placement_rising_in_europe_and_asia.html 42

Malaysia's Advertising Market Registers Buoyant 16% Growth in 2010, (January 27,
2011). Retrieved March 27, 2011 from http: www.nielsen.com/news/20110127.shtml
Naresh K. Malhotra. (2009). Basis marketing research: A decision – making approach
(3rd ed.). United States : Pearson Prentice Hall.

Norazman Abdul Majid, Masdinah Alayah Md. Yusoff, Tina Abdullah, et al. (2007).
Academic report writing: from research to presentation. (2nd ed). Malaysia: Pearson
Prentice Hill.

Schmoll, N. M., Hater, J., Hilt, M., et al (2006). Baby boomers attitudes towards product placements. Journal Of Current Issues And Research In Advertising, 28(2),33-52.

Waldt, D.V.D., Toit, L.D. and Redelinghoys. (2007). Does branded product placement in film enhance realism product recognition by consumers. African Journal of Business
Management, 019-025.

Yongjun, S., Gregorio, F. O., and Jong-Hyouk Jong. (2009).Non-student consumer attitudes toward product placement: implications for public policy and advertiser.
International Journal Advertising, 28(2), 257-285.

43

Appendix A
Reliability Analysis
Table 1: Reliability statistic

Cronbach's Alpha Based on
Standardized Items

Cronbach's Alpha
.848

.890

N of Items
27

44

Appendix B
Frequency Distribution
Table 2: Gender of the respondent
Gender

Frequency male Percent

Valid Percent

Cumulative
Percent

Missing
Total

24.6

24.8

24.8

female

212

74.6

75.2

100.0

Total

Valid

70

282

99.3

100.0

2

.7

284

100.0

9

45

Table 3: Watch movies per month.
Times Per Month

Frequency

Percent

Valid Percent Cumulative Percent

0-2

150

52.8

54.3

54.3

2-4

68

23.9

24.6

79.0

4-6

32

11.3

11.6

90.6

6-8

4

1.4

1.4

92.0

8+

22

7.7

8.0

100.0

276

97.2

100.0

8

2.8

284

100.0

Valid

Total
Missing

9

Total

Table 4: Age of respondent
Age
Below 19

Frequency

Percent

Valid Percent

Cumulative
Percent

3.5

3.5

3.5

19-25
Valid

10
186

65.5

65.5

69.0

26-10

74

26.1

26.1

95.1

31 and above

14

4.9

4.9

100.0

284

100.0

100.0

Total

46

Appendix C
Descriptive Analysis
Table 5: Ethically Charged Product
N

Minimum Maximum

Mean

Std. Deviation

Guns

282

1

5

2.52

1.321

Cigarettes

282

1

5

2.19

1.228

Alcohol

278

1

5

1.88

1.153

Valid N (listwise)

278

Table 6 : Neutral Product
N

Minimum Maximum

Mean

Std.
Deviation

Cameras

282

1

5

3.81

1.033

Cars

282

1

5

4.04

1.036

Fatty foods

278

1

5

2.98

1.186

Healthy consumer products

282

1

5

3.98

1.009

Race cars

280

1

5

3.37

1.275

Snacks

282

1

5

3.31

1.088

Soft drinks

276

1

5

3.40

1.096

Stereo equipment

280

1

5

3.63

.997

Sunglasses

280

1

5

3.76

.979

Surfing equipment

280

1

5

3.55

1.018

Valid N (listwise)

264

47

Table 7: Product acceptance based on gender.

Gender of respondent male N

Minimum Maximum

Mean

Std.
Deviation

All Product Acceptance

54

34.00

65.00

45.0370

7.93598

Product Acceptance
(Ethically Charged)

64

3.00

15.00

8.0313

3.15207

58

25.00

50.00

36.5172

6.33908

206

13.00

65.00

41.6505

8.70851

212

3.00

15.00

6.0755

3.03127

206

10.00

50.00

35.5922

7.04056

Product Acceptance
(Neutral Product)
Valid N (listwise) female All Product Acceptance
Product Acceptance
(Ethically Charged)

54

Product Acceptance
(Neutral Product)
Valid N (listwise)

206

48

Table 8: Product acceptance based on frequency watch movies per month.
Watch movies
N

Minimum Maximum

Mean

Std. Deviation

Per month
0-2

Product Acceptance (Ethically
Charged)
Product Acceptance (Natural
Product)
Valid N (listwise)

2-4

Product Acceptance (Ethically
Charged)
Product Acceptance (Natural
Product)
Valid N (listwise)

4-6

Product Acceptance (Ethically
Charged)
Product Acceptance (Natural
Product)
Valid N (listwise)

6-8

Product Acceptance (Ethically
Charged)
Product Acceptance (Natural
Product)
Valid N (listwise)

8+

Product Acceptance (Ethically
Charged)

148

3.00

146

10.00

15.00

5.9595

3.14476

50.00 34.6712

7.31754

13.00

6.4242

3.18680

45.00 35.9655

5.49630

12.00

7.6667

2.91646

50.00 39.8462

7.20940

144

66

3.00

58

26.00

56

30

3.00

26

26.00

26

4

7.00

4

30.00

9.00

8.0000

1.15470

40.00 35.0000

5.77350

15.00

2.98626

4

22

3.00

8.8182

49

Product Acceptance (Natural

22

Product)
Valid N (listwise)

28.00

50.00 36.9091

6.28611

22

Table 9: Product acceptance based on age of respondent. age of respondent
Below

All Product Acceptance

N

Minimum

Maximum

Mean

Std. Deviation

10

39.00

48.00

44.4000

3.37310

10

3.00

9.00

6.4000

2.27058

10

36.00

40.00

38.0000

1.49071

172

13.00

65.00

43.1744

8.07160

180

3.00

15.00

6.8333

3.05718

176

10.00

50.00

36.3636

6.49955

64

13.00

65.00

41.0000

9.49185

74

3.00

15.00

6.1081

3.63984

64

10.00

50.00

34.8438

7.26859

19
Product Acceptance (Ethically
Charged)
Product Acceptance (Natural
Product)
Valid N (listwise)
19-25

All Product Acceptance
Product Acceptance (Ethically
Charged)
Product Acceptance (Natural
Product)
Valid N (listwise)

26-30

All Product Acceptance
Product Acceptance (Ethically
Charged)
Product Acceptance (Natural
Product)

10

172

50

Valid N (listwise)
31 and

64

All Product Acceptance

14

17.00

53.00

37.0000

11.70141

14

3.00

9.00

5.5714

2.20887

14

14.00

46.00

31.4286

10.07445

above
Product Acceptance (Ethically
Charged)
Product Acceptance (Natural
Product)
Valid N (listwise)

14

51

Appendix D
Regression Analysis
Table 10 : Model Summaryb
Model
1

R
.496a

R Square

Adjusted R Square

.246

.226

Std. Error of the Estimate
6.97271

a. Predictors: (Constant), watch movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT (liking or not liking product placement), RESTRICT (restriction of product placement),
ATTV (Attitudes toward television advertising in general)
b. Dependent Variable: Product Acceptance (All Product)

Table 11 : Model Summaryb
Model
1

R
.442a

R Square

Adjusted R Square

.195

.175

Std. Error of the Estimate
2.82116

a. Predictors: (Constant), watch movies per month, PR (Product placement adding to the movies' realism), gender of respondent, ATT (liking or not liking product placement), RESTRICT (restriction of product placement), ATTV (Attitudes toward television advertising in general)
b. Dependent Variable: Product Acceptance (Ethically Charged)

Table 12 : Model Summaryb
Model
1

R
.444a

R Square

Adjusted R Square

.197

.175

Std. Error of the Estimate
5.67126

a. Predictors: (Constant), watch movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT (liking or not liking product placement), RESTRICT (restriction of product placement),
ATTV (Attitudes toward television advertising in general)

52

Table 12 : Model Summaryb
Model
1

R
.444a

R Square

Adjusted R Square

.197

.175

Std. Error of the Estimate
5.67126

a. Predictors: (Constant), watch movies per month, gender of respondent, PR (Product placement adding to the movies' realism), ATT (liking or not liking product placement), RESTRICT (restriction of product placement),
ATTV (Attitudes toward television advertising in general)
b. Dependent Variable: Product Acceptance (Neutral Product)

53

Appendix E
QUESTIONNAIRE

Kuala Lumpur International Campus
School of Professional and Continuing Education, Universiti Teknologi Malaysia, Jalan Semarak,
854100 Kuala Lumpur. Malaysia.

FACULTY OF MANAGEMENT AND HUMAN RESOURCE DEVELOPMENT
CONSUMER ACCEPTANCE TOWARDS PRODUCT PLACEMENT
I am a student from SPACEUTM, Kuala Lumpur doing study about the Consumer
Acceptance towards Product Placement. The goal of this study is to identify the acceptability of consumer in Malaysia towards product placement in movies.
I appreciate if you would take about 5 minutes to respond to this enclosed questionnaire.
Your responses together with others will be combined and used for statistical summaries only. Only a small sample of population will receive the questionnaire, so your participation is vital to the study. The answers you provide will be kept confidential to the extent permitted by law. However, your participation is extremely valued.
Prepared By:
IRNA FARIZAH BINTI RAMLE
BACHELOR OF MANAGEMENT (MARKETING)
SX086056HFD04

54

Section A

1. Gender

2. Age
Below 19

19-25

26-30

31 and above

Section B

3. How many films do you typically watch a month?
0-2

2-4

4-6

6-8

8+

4. Name 3 films you have watched.

5. Did you notice any branded products in these films? If yes, please specify the products.

55

6. What is your general attitude to product placement within films?
1

2

3

4

5

Strongly

Dislike

Neither like nor dislike

Like

Strongly Like

dislike

56

Please tick one box for each of the statements below, on a scale from 1 to 5, 5 is strongly agree. 1 is strongly disagree.

7. Do you think product placement should be used within films?
Strongly
Disagree

Disagree

1

Neither agree nor disagree Agree

3

4

2

Strongly
Agree
5

8. Product placement should be used if its suits the context or story of the film.
Strongly
Disagree

1

Disagree

2

Neither agree nor disagree Agree

3

4

Strongly
Agree
5

9. I wouldn't like to see brand name products in movies if they are placed for advertising purposes. Strongly
Disagree

1

Disagree

2

Neither agree nor disagree Agree

3

4

5

Neither agree nor disagree Agree

Strongly

3

4

Strongly
Agree

10. I would prefer to watch movies without product placement
Strongly
Disagree

1

Disagree

2

Agree
5

57

11. I don't mind if brand names appear in movies.
Strongly
Disagree

1

Disagree

2

Neither agree nor disagree Agree

3

4

Strongly
Agree
5

12. The placement of brand name tobacco and alcohol products should be banned from movies types which children are more likely to be watching
Strongly
Disagree

1

Disagree

2

Neither agree nor disagree Agree

3

4

Strongly
Agree
5

13. Brand name tobacco and alcohol products should only be placed in movies which children are less likely to be watching.
Strongly
Disagree

1

Disagree

2

Neither agree nor disagree Agree

3

4

Strongly
Agree
5

14. The use of brand name alcohol and tobacco products should be banned from all movies.
Strongly
Disagree

1

Disagree

2

Neither agree nor disagree Agree

3

4

Strongly
Agree
5

58

15. The presence of brand name products in movies makes them more realistic.
Strongly
Disagree

1

Disagree

2

Neither agree nor disagree Agree

3

4

Strongly
Agree
5

16. Product placements in movies might make me want to use the product if it is associated with an actor I like
Strongly
Disagree

1

Disagree

2

Neither agree nor disagree Agree

3

4

Strongly
Agree
5

59
17. Please tick one box for each of the products below, on a scale from 1 to 5, 5 is very acceptable. 1 is very unacceptable

Very
Unacceptable

Unacceptable

Neither
Very
Acceptable acceptable Acceptable nor unacceptable

1

Guns

1

2

3

4

5

2

Cigarettes

1

2

3

4

5

3

Alcohol

1

2

3

4

5

4

Cameras

1

2

3

4

5

5

Cars

1

2

3

4

5

6

Fatty Foods

1

2

3

4

5

7

Healthy
Consumer
Product

1

2

3

4

5

8

Race Cars

1

2

3

4

5

9

Snacks

1

2

3

4

5

10

Soft Drink

1

2

3

4

5

11

Stereo
Equipment

1

2

3

4

5

12

Sun Glasses

1

2

3

4

5

13

Surfing
Equipment

1

2

3

4

5

Thank You For Your Cooperation

1