Product Placement and the role of modality The effects on explicit memory, implicit memory and implicit behavior

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“If you notice, it’s bad. But if you don’t notice, it’s worthless”

(Ephron, 2003)

Date: 12 February 2012

Author: Michel Boer

Studentnumber: s1477633

Adress: Nieuwstad 46-2

Mobile number: 06-53605960

Email: micjes77@hotmail.com

University: RijksUniversiteit Groningen Department: Business Administration Specialization: Marketing Management Qualification: Master Thesis

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Management summary

A report from PQ Media called product placement “one of the fastest rising stars of the new media order”. The growth is fueled by driving brand marketers to seek alternatives for commercial breaks. Since several years product placement is also visible in Dutch television shows. When watching product placements there are a lot of differences visible. Sometimes the product placement is prominent, sometimes subtle. Sometimes it is an audiovisual product placement, sometimes it is visual-only. The differences between the product placements were an interesting starting point of this study. This study focuses on the differences of modality. It distinguishes audiovisual product placement and visual-only product placement.

Hence, the following problem statement is formulated:

“ What is the influence of modality on the effect of product placements in terms of explicit and implicit memory measures in televisions shows and what is the effect on implicit choice behavior.”

The expectation of this study is that audiovisual product placements affects explicit memory more than visual-only product placement. The theory behind this expectation is the dual-coding theory. The visual-only product placement is encoded as a visual-only cue. The audiovisual product placement is encoded as a visual and as an audial cue. So, the chance of retrieving the audiovisual product placement is higher than retrieving the visual-only product placement.

It is also expected that product placement affects implicit memory. A lot of studies examined the influence of product placement on explicit memory. And only a small number of studies examined the role of implicit memory in product placement. Implicit memory measures can detect effects of product placement which were not detectable with explicit memory measures.

This study also expected that product placement positively affects implicit choice behavior. The choice behavior is called implicit because the participants do not make a deliberate attempt to search their memory for previously encoded information. This is also the case in many purchase decisions. So, implicit memory retrieval may be dominant in choosing a brand.

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shows. After watching the television show, the participants had to complete a questionnaire

measuring familiarity of the television shows they watched. Next the participants were asked to fill in the word-fragment completion test. The word-fragment completion list was the implicit memory measure. Later on the participants had to fill in a recognition list. The participants had to indicate whether they remember seeing a product from the television show they watched. The participants had to fill in “yes” when they saw the product in the television show, and “no” when they did not see product in the television show. The recognition list was used to measure the explicit memory. At the end, as the participants left the classroom, the participants were asked to choose one of the

products which were arranged at a table.

The results of this study indicated that product placement positively affects explicit memory. Furthermore it indicated that product placement affects implicit choice behavior. However, no support was found that an audiovisual product placement affects explicit memory more than a visual product placement. Furthermore, no support was found that product placement affects implicit memory. Finally, no support was found that product placement affects the performance on the implicit test more than on than the performance on the explicit test.

Derived from this study some important conclusions can be made. The main conclusion is that there is no difference between audiovisual and visual-only product placements on explicit memory.

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Preface

This master thesis was written to accomplish my master Business Administration, specialization Marketing Management. With this master thesis I finished my second master. Last year I finished the master Lerarenopleiding.

Last years I saw more and more products and brands in television shows and movies. The most famous one is FedEx in the movie Cast Away. And of course, the very irritating Yakult bottles in Baantjer. However, last year in the beginning of a Dutch television show I saw the letters PP. At that moment, I heard for the first time of product placement. Last year, I started the master

Lerarenopleiding. And I followed some courses what relates to memory. For me a very interesting topic. So, when I decided to write my master thesis, the combination of product placement and memory was clear for me. During this thesis I developed a passion for implicit memory.

By writing the last words of my master thesis it feels great that my graduation comes close. I am proud that I finished this master thesis. I have written this master thesis during a difficult year with very sad moments in my private life. Furthermore, next to this thesis I work as teacher Economics in Arnhem.

I would like to thank some persons in special. First of all I want to thank my first supervisor Karel-Jan Alsem for the great support during the master thesis writing process. In addition, I want to thank second supervisor Bob Fennis for the valuable feedback.

Last but not least, I would like to thank my girlfriend Lianne Meijerink for the great support!

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1 Introduction

This chapter contains an introduction of the thesis. First, some background information will be given. Second, an introduction of product placement is provided. Next, the purpose of research is given, which is followed by the problem statement and research questions of the thesis. And finally, the structure of the report is given.

1.1 Background

Advertising is a form of communication to persuade an audience to buy a product or service. Advertising messages are usually spread via various media, for example television, radio, internet and magazines. In 2010, spending on advertising was estimated at more than $500 billion worldwide (PQ Media, 2007). Television is an important medium for advertising. However, because of growing resistance to traditional broadcast advertising, firms are increasingly turning to alternative ways to reach customers (Wiles and Danielova, 2009). Furthermore, with the introduction of digital television consumers can fast-forward through recorded programs. Moreover, they can also easily skip

commercials. So it is important for marketers to find new ways to promote their products. Due to media fragmentation, the introduction of digital television and declining advertising efficacy, product placement is becoming an effective way to reach consumers.

1.2 Introduction product placement

BMW and James Bond, FedEx and Tom Hanks/Cast Away, LG phones in The Office. These are just a few examples of famous product placement in

movies and television shows (see figure 1). Even in the Netherlands there are a lot of examples of product placement; Yakult and Baantjer, Pringles and Goede Tijden, Slechte Tijden (Good times, bad times).

Figure 1: An example of product placement

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media programming (Balasubramanian, 1994). The word purposeful means that the products are integrated in the television show or movie (van Reijmersdal, et al., 2009). In other words, the products are not accidently visible in the show or movie. Product placement in popular mass-media shows brands being used in their natural setting (Williams et al, 2011). However, according to Karrh (1998), the definition of product placement must have two elements. First, product placement could be implemented in various media, like video games, movies, television shows, music videos and novels. The second element is that product placements are not unintended or unpaid (Karrh, 1998)

Product placement was named formally in 1980 (Williams et al, 2011). However, product placement is not new at all. Product placement first appeared in Lumiere films in Europe in 1896 (Newell et al, 2006). Lever Brothers, the precursor of Unilever, secured the placement of their branded soaps in some of the earliest films made. From 1930 till 1980, the brand owner lends advertising support to promoting the movie (Hudson and Hudson, 2006). However, this kind of arrangements changed in 1980. In 1980, there were founded several product placement agencies. They negotiated between suppliers and movie makers. However, since 1982, product placement has become an important element of consumer marketing programs. In that

year, the candy Reese’s Pieces featured in the film E.T., the Extra-Terrestrial (see figure 2). The Hershey Company saw a 65% rise in sales following the film’s release (Hudson and Hudson 2006). From this point product placement became common in movies. In

Figure 2: Reese’s Pieces

the movie Cast Away, starring Tom Hanks, the logo or company name of FedEx was nearly shown in every scene (Kim, 2004). Another movie where product placement plays an important role is

Minority Report. This movie contained more than 15 brands, like Pepsi, Guinness and Lexus. All these companies paid a total of $25 million for the product placement (Kim, 2004)

Product placement is not only common in movies, television shows are also an important medium for product placement. Product placement first appeared in soaps. The soaps were sponsored by

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According to the research company PQ Media, the global market for product placement were valued at more than $3 billion in 2006 rising to $5.6 billion in 2010. The United States is the largest and fastest growing product placement market. However, the transition from traditional advertising to product placement is moving slower in Europe. This is because Europe has stricter rules governing the use of product placement (PQ Media, 2006). In 2005, the European Commission has set out proposals explicitly defining product placement for the first time. These rules will only allow explicitly identified product placement. Once these new rules will approved, product placement can be expected to grow even more in Europe.

1.3 Purpose of research

The increase in product placement in both television and movies has been noted in the academic literature (Homer, 2004). However, a substantial part of the effects of product placement is still unknown. Studies of the efficacy of product placement in movies and television shows tend to be mixed (Homer, 2004). However, most of the earlier studies have found that product placement is positively related to brand attitudes, brand recall and brand recognition (Gupta and Lord, 1998; Karrh et al. 2001). Product placement can be used to accomplish a lot of effects. However, there are a lot of factors that influence the reactions of the audience to product placement. Van Reijmersdal, et al., 2009) found that most studies focused on attitudes and beliefs about product placement. They also found different characteristics that influence audience reactions to product placement. However, the study of van Reijmersdal, et al. (2009) also shows that a substantial part of the effects of product placement is still unknown. The authors suggest to study the effects of mixtures in television shows. Because audiovisual cues are very important in gaining attention. Prior research showed mixed results between audio, visual and audio-visual cues.

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Purpose of this thesis is to study the effect of product placement on explicit and implicit memory in television shows. First, this thesis focuses on the role of modality. Russell (2002) identified modality as an important factor of product placement.

Second, this thesis explores the influence of product placement using both explicit and implicit measures of memory. As mentioned before, only a few studies demonstrated that product

placements in television shows influence implicit memory and implicit choice behavior (Yang, 2006; Law and Braun-LaTour, 2006). So, more research of implicit memory and implicit choice behavior is needed to confirm the present study’s findings (Yang, 2006). Finally, product-choice behavior will be measured.

1.4 Problem Statement & Research questions

Based on the previous paragraph, the following problem statement is formulated:

“ What is the effect of visual-only and audiovisual product placements in television shows on participants’ explicit and implicit memory and what is the effect on implicit choice behavior.”

In order to provide an answer to the problem statement, the following research questions are formulated:

- What is the influence of modality (audiovisual/visual) on brand recognition? - What is the effect of product placements on implicit memory?

- What is the influence of modality (audiovisual/visual) on implicit memory - What is the effect of product placement on implicit choice behavior?

1.5 Structure of Report

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2. Literature Review

This chapter contains the literature review. First, advantages and disadvantages of product placement will be given. Next, factors that influence the effect of product placement will be discussed. This will be followed by how the effect of product placement can be measured. Next, ethics of product placement will be given. Finally, a conceptual model and hypotheses will be given.

2.1 Advantages and disadvantages of product placement

Why is product placement used? Of course, because it is assumed to be effective. But the effectiveness will be discussed later on. However, product placement has another number of advantages compared with traditional advertising.

A very important advantage of product placement is the great cost effectiveness. Product placement is a cost-effective method for reaching target customers. The cost of product placement is relatively lower than the costs of traditional advertising, because the captive level of viewers is high. This is because people cannot zap or zip past product placement exposure. Zipping and zapping means that the audience can change the program, shift the program, and slow down or fast-forward the program to avoid advertising (Williams et al., 2011). With the introduction of TiVo and DVRs, zipping and zapping becomes a serious concern among advertisers. For this reason, it is very important for advertisers to put their products in a position where it is less likely to zip or zap (Avery & Ferraro, 2000).

Second, product placement in movies has a longer life than traditional advertisement (Karrh, 2003). Product placement has many changes to be exposed to the audience. For example, the James Bond movie GoldenEye in 1995 was the focus of a BMW campaign. But in 2010, the movie is still on television. Furthermore, people will buy the DVD for years. So, the product placement life is extended even further.

Third, advertisers can target very specified audience. Because advertisers understood well which people watch which kind of movies (Yang et al., 2007)

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Product placement also has some disadvantages. First, product placement is different to control. A bad presentation of the brand is a potential shortcoming of product placement (Terry, 2001). In addition, most brands are portrayed for less than five seconds (Williams et al., 2011)

Second, it is difficult to measure actual sales from product placement. There is research about the positive effects of product placement. However, research about the increase of sales from product placement is very limited.

Many earlier research studied the effectiveness of product placement. The practice of product placement is positively related to brand attitudes, brand recall and brand recognition (Gupta and Lord, 1998; Karrh et al, 2001).

2.2 The effectiveness of product placement

There are a lot of factors that influence the effectiveness of product placement . In the next section there will be given an overview of the most important factors that influence the effectiveness of product placement. In order to give a complete overview, van Reijmersdal et al. (2009) distinguish three main themes. These themes are placement characteristics, medium and audience

characteristics

2.2.1 Placement characteristics

Placement type

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D’Astous and Séguin (1998) made another classification of product placement types. They classified product placement in three main types: implicit, integrated-explicit and non-integrated-explicit product placement. Implicit product placement means that that the brand or product is present within the program without being formally expressed. This means that the product placement has a passive role. For example, the participants in a quiz wear clothes from the same shop. In contrary, explicit product placement means that the brand or product is formally expressed within the program. So, the product placement plays an active role. Integrated-explicit means that the product placement is integrated into the script. Non-integrated explicit means that the product placement plays an active role but is not integrated into the script. D’Astous and Séguin (1998) suggest that explicit product placement is more obtrusive than implicit product placement. However, they found that obtrusiveness may not be a significant mediator of customer evaluations to product placement.

Placement modality

Russell (2002) categorized placement along three dimensions: visual, auditory and plot connection. The visual dimension refers to the appearance of the product, the brand name or the logo in a television show. The audial dimension refers to the brand mentioned in a dialogue (Russell, 2002). And the plot connection dimension refers to how the brand is integrated in the plot of the story. Gupta and Lord (1998) stated that an audio mention of a brand lead to a better brand recall than a visual mention. In addition, Balasubramanian (2006) stated that a visual-plus-audial mention of the brand leads to a significantly higher recall performance than a visual only product placement. Russell (2002) posits that a plot connection placement influence brand memory more than a stand-alone placement. A plot connection placement consists both visual and verbal components. In conclusion, a combination of visual and verbal components is very important in gaining attention. So, it would be useful to do more research on the effects of visual-verbal product placements in television shows. Russell (2002) also suggests that memory of the placement is likely to be higher if there is a connection with the product and the plot.

Placement familiarity

Unfamiliar brands or products attract greater attention than familiar brands or products (Balasubramanian et al., 2006). A key reason for this phenomenon is that unfamiliar brands are incongruent with prior expectations. In other words, unfamiliar brands attract greater attention than familiar and that results in a superior brand recall. However, research on familiarity of brands in television shows is limited.

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2.2.2 Audience and medium characteristics

Medium characteristics

Prior research has shown that the medium in which brands are placed plays an important role in processing and effect (van Reijmersdal et al., 2009). Television product placements are the dominant choice of marketers. Television product placements accounting for more than 71% of global spending on product placements in 2006 (Williams et al., 2011). However, it is expected that product

placement in games will be more and more important. Only in the U.S., advertisement spending on product placement in games is likely to reach $1 billion by 2010. Magazines and movies are other main types of media for product placement.

Audience characteristics

An important factor is attention. The amount of attention that the audience dedicates to product placement is important. Van Reijmersdal et al., (2009) distinguish two things. On one hand, there is explicit processing. This occurs when informed attention is paid to the brand. On the other hand, implicit processing occurs when low level of attention is paid to the brand. That is, retrieval of implicit processing occurs automatically (Balasubramanian, 2006) . One of the processes behind this effect is “mere exposure”. The mere exposure effects means that people develops a preference for a brand because they are familiar with them. To create familiarity with the brand, repeated exposure to brand placement can be enough (van Reijmersdal, Smit and Neijens, 2009). Furthermore, people like familiar brands and this can result in positive brand attitudes. In conclusion, product placement can result in a positive brand attitude even without remembering the placement of the brand. There are also demographic and cross cultural differences in consumer responses to product placement (Hudson and Hudson, 2004). Several studies found that people aged between 15 and 34 have an higher tolerance for product placement than other age groups (Hall, 2004). Furthermore, the age group 15-34 is more likely to notice the product placement than other age groups. And,

European movie watchers are more likely to notice product placement than Americans (Hall, 2004)

2.2.3 Dual-coding theory

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(Russell, 2002). These different product placement modes require different processing codes (Russell, 1998). This theory is called the dual-coding theory. The dual-coding theory was first

advanced by Allan Paivio. Allan Paivio discovered difference in coding processes for image stimuli and verbal stimuli (Russell, 1998). He stated that the dual-coding theory involves two distinct subsystems, where one system is specialized for the processing of visual information and one system specialized for the processing of verbal information. This means that visual and verbal information are processed differently and among different channels. Moreover, this finding also means that visual and verbal information involves different memory codes ( Russell, 1998).

The dual-coding theory has clear implications for product placement. Paivio (1991) states that memory increases directly with the number of alternative memory codes. Visual and verbal product placements require different processing codes. Furthermore, varying combinations of each

processing codes varying results in recall and recognition. This leads to the conclusion that product placement with both visual and a verbal element provides an opportunity for dual coding. And this results in more means for creation of memory effects (Law and Braun, 2000).

2.3 Explicit and implicit memory

The measures most commonly used to measure product placement effects are recall and

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2.3.1 Explicit and implicit memory: A theoretical overview

Schacter (1987) classified memory into two dimensions: consciousness and intent. Explicit memories described the kinds of remembering that are consciousness. This means that the person is aware of remembering prior events and that the person wants to retrieve them. In contrast, implicit memories is remembering that occurs in the absence of consciousness intent or awareness. This means that the person is unaware of retrieving prior events and their retrieval is without intent. The two standard measures of explicit memory are recognition and recall (Yang et al., 2006). Recognition and recall measure different aspects of explicit memory. The content of implicit memory is the process where a specific experience can influence the perception and interpretation of subsequent experiences without recall of the prior experience (Yang et al., 2006).

A major issue concerns the most appropriate way of characterizing implicit and explicit memory (Law and Braun-LaTour, 2004). The question is whether implicit and explicit memory depends on a single underlying system or on a multiple underlying system. Before the 1970s most studies stated that there was only one memory system in our brains (Schacter and Ochsner, 1993). After the 1970s more and more studies found evidence that there are two memory systems in our brains (Jacoby and Dallas, 1981). The discussion between systems and process remains contentious (Law and Braun-LaTour, 2004). However, most studies are in agreement that implicit and explicit memory does not respond in the same way. Many studies suggested the disassociation between implicit and explicit memory (Yang et al., 2006; Schacter, 1987). There are also some studies that stated that there was no relationship between implicit and explicit memory for brands placed in movies (Yang et al., 2006). So, most of the studies stated that explicit memory and implicit memory are uncorrelated. This is called stochastic independence (Shapiro and Krishnan, 2001).

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2.3.2 Priming

Priming is the implicit memory effect in which exposure to items seen earlier influences the performance on new items. A lot of research on priming illustrates the distinction between explicit and implicit memory. One of the key findings is the differential impact of manipulations of processing depth on measures of explicit and implicit memory. A general rule is that audience will identify products or brands better if the products or brands were previously seen (Law and Braun La-Tour, 2006). However, there is a difference between explicit and implicit memory. A study of Jacoby (1983) showed that the performance on the explicit memory test was best when the participants had to generate the target word instead of only seen it. This sounds reasonable, only the opposite was true for implicit memory. The implicit memory performance was best when the participants only saw the target words and worst when the participants generated the words. Law and Braun La-Tour (2006) distinguish three different types of priming effects: perceptual, conceptual and emotional priming.

Perceptual priming

Perceptual priming is based on the modality or surface attributes of the prime. The match between the early and later prime is important. The testing measurement needs to be as close as possible to the product placement. This means that visual product placements are best tested with a measure showing a visual aspect of the product. And auditory product placements are best tested with a measure where the audience hears the product name.

Conceptual priming

In contrary to perceptual priming, conceptual priming is based on the meaning of the items and is enhanced by semantic tasks. The meaning of words activates an existing belief, and therefore it influences the behavior of the audience.

Emotional priming

As applied to the product placement area, in emotional priming, the prime has an emotional

meaning. Several studies found that even a brief emotional context exposure affect how the product is perceived (Law and Braun-LaTour, 2006).

2.3.3 The importance of implicit memory

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measuring product placement effects (Shapiro and Krishnan, 2001). First of all, purchase decisions could be influenced by conscious as well as unconscious processes. And explicit memory measures can only measure advertising effects that are accessible to conscious retrieval (Yang et al., 2006). Park and Hastad (1994) found that consumers just spend five seconds on most brand choices in retail stores. Even if consumers actively search in their memory for prior product placements or other ad information, the information may not be accessible (Shapiro and Krishnan, 2001). In this case, the product placement effect is not measurable with explicit memory measures. Implicit memory measures can measure the effect of the exposure of a product placement, even when the details of the product placement were not remembered by the audience (Yang et al., 2006). So, there are some studies that support the use of implicit memory measures to reveal product placement effects that are not measurable with an explicit memory measure (Yang et al., 2006; Shapiro and Krishnan, 2001). Janiszewski (1993) found positive effects of exposure on brand evaluations, even when the people did not remember the brands. In the same vein, Law and Braun-LaTour (2000) suggest that product placements may have primed the brands, which influenced later judgments. Furthermore, Yang et al. (2004) found that product placements increased the implicit memory of people for the placed brands. Another characteristic of implicit memory is very important. Several psychologists suggest that implicit memory survives longer than explicit memory (Yang et al. 2007; Shapiro & Krishnan, 2001).

2.4 Ethics of product placement

Although the ethics of product placement is beyond the scope of this thesis, this thesis will discuss the ethics of product placement because it is a very important part of product placement.

Some studies question the ethics of product placement. Many consumers consider product placement as excessive commercialization of the media (Williams et al., 2011). The consumer does not watch television shows to see the product placement. As such, it is important that the product placement is weaved into the plot (Balasubramanian et al., 2006; van Reijmersdal, et al., 2009). When the audience realizes that the product placement was placed there, it may counter argue the placed messages (Williams et al., 2011).

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children’s shows. Television offers a lot of possibilities for kids and toy product placement. And even young kids are swayed by product placements (Hudson et al. 2007)

In conclusion, some consumers criticized product placement as a commercialization of the media or have a concern for ethically controversial products. However, most consumers generally are accepting product placement and considering product placement as less obtrusive than traditional advertising

2.5 Hypotheses and conceptual model

Based on the findings of the literature study, the following framework is presented:

H3 H1 H3

H H2

H4

Based on the above literature, the main research question is concerned with the effects of the modality of the product placement on explicit and implicit memory. The current research

investigates explicit and implicit memory for brands placed in television shows. Prior research on the effect of product placement on brand memory in television shows has yielded mixed results (Yang et al., 2006; Babin and Carder 1996). Some the studies found a large improvement in memory for some brands and a small improvement in memory for other brands. Most product placement in television shows are visual or audiovisual. With visual product placement the visual cues are encoded as mental codes. However, audiovisual product placements are encoded in two ways. The audio cues are encoded as verbal codes and the visual codes are encoded as mental codes (Law and Braun, 2000). The theory behind this is the dual coding theory. So, the change of retrieving the audiovisual product placement is higher than retrieving the visual-only product placement. Thus,

Product placement

visual/only audio/visual

Explicit memory

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H1: Audiovisual product placement lead to better explicit memory (recall and recognition) than visual-only product placement.

As mentioned before, most studies have used explicit measures to measure the effectiveness of product placement. However, product placement effects may also occur through non-conscious processes (Yang, 2007). It is possible that the audience did not recall or recognize the brands, but that the brand still influences familiarity with and preference for the brand (Law and Braun-LaTour; Russell, 1998). So, implicit memory measures are also very important, because they can detect product placement effects that were not detectable with explicit memory measures (Shapiro and Krishnan, 2001; Yang et al., 2007).

Specifically:

H2: Implicit memory measures for products that appeared in the television shows will be higher than for products that not appeared in the television shows

Factors that affect performance on implicit memory tests are often quite different from those that affect performance on explicit memory tests (Roediger, 1990). This indicates that these two types of tests measuring different processes. This general approach to understanding dissociations between these two tests has been called transfer-appropriate processing.

Explicit tests draw on the encoded meaning of concepts. This means that these tests depend heavily on the meaning of the concepts that are being remembered. Generating a word involves more attention to meaning than simply reading it. So, generating produced greater explicit recognition. On the other hand, most implicit tests rely heavily on the match between perceptual operations

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H3: Product placement affects the performance on the implicit memory test more than on the explicit memory test.

Only recently the topic of unconscious memory processes has been studied. This is also the case for the role of unconscious memory processes in influencing consumer decision making (Law and Braun-LaTour, 2000). Explicit and implicit memory measures are different forms of memory. And this is also the case for explicit and implicit behavior. However, previous studies reported most of the time only explicit measures of attitude and purchase intention (Yang et al., 2007). Only a small amount of studies tested implicit attitude and choice behavior. Some of these studies suggest that attitudes can be primed without explicit memory of previous exposure to the brand (Olson and Fazio, 2001). Furthermore, Duke and Carlson (1993) found that purchase decisions are influenced by both explicit and implicit memory. However, the influence of implicit memory was specifically present at the time of purchase (Duke and Carlson, 1993). In conclusion, in many purchase decisions, consumers do not make a deliberate attempt to search their memory for previously encoded information (Shapiro and Krishnan, 2001). So, implicit memory retrieval may be dominant in choosing a brand. Fazio et al. (1989) provides a methodology for looking at implicit choice within the context of product

placements. The research question for this methodology was: “Does exposure to product placements influence implicit behavior?” The participants may not report behavior change explicitly after

watching the television show. However, Fazio et al. (1989) stated that the participants’ choice behavior may be influenced implicitly. So,

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3. Research design

3.1 Experimental design

Independent variable

The independent variable is product placement. Product placement was presented to the participants in two ways: audio-visual and visual-only. In this study a total of 4 audio-visual and a total of 4 visual-only product placements were shown to the participants. All the product placements were shown in Dutch television shows.

Experimental design

This study used a between-subjects experimental design with two levels of product placement: visual-only and audio-visual. The subjects were randomly assigned to one of the two conditions in the experiment

3.2 Participants

A total of 56 participants participated in this study. All were students from het Hondsrugcollege Emmen. The participants were between 12 and 15 years old. The participants were randomly assigned to the audio-visual or visual-only product placement condition.

3.3 Settings & stimuli

The study was held in a classroom of the Hondsrugcollege Emmen. The product placements were shown in parts of different television shows. The television shows were shown at a digibord. The parts of the television shows were edited to approximately ten minutes. The classroom provided a neutral surrounding with no distractions for the participants.

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Brand Modality Television show

Parool Audiovisual Baantjer

Grolsch Audiovisual Over de kook

Bison Audiovisual Eigen huis en tuin

Old Amsterdam Audiovisual Topchef

Haribo Visual GTST

Samsung Visual GTST

Yakult Visual Baantjer

Praxis Visual Eigen huis en tuin

Table 1: product placements in Dutch television shows

The products were portrayed visually in all television shows. In the television show with audio-visual product placements the brand names was also mentioned. All the product placements were shown relatively short (all less than ten seconds). The following products are chosen for the audio-visual modality: Parool (Dutch newspaper), Grolsch (beer), Bison (glue) and Old Amsterdam (cheese). The following products are chosen for the visual modality: Haribo (candy), Samsung (telephone), Yakult (dairy drink) and Praxis (D.I.Y. shop). Both groups have two food/drink products and two other products. Screenshots of the product placements are shown in figure 3 and figure 4.

Figure 3: Screenshots of visual product placements

Figure 4: Screenshots of the audiovisual product placements.

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programs, every day on television. The participants are familiar with the television programs. The other group ( visual ) has two products from the Dutch soap Goede tijden, Slechte tijden (Good times, bad times).. To know for sure that the participants were familiar with the brands en the television programs they had to fill in a questionnaire before the experiment. All the participants were familiar with all the brands and with the television programs.

Exposure time for each product varied from 2 seconds to 5 seconds. It is ensured that the attention for each program is equal.

3.4 Measuring the dependent variable

Implicit memory tool

Implicit memory was measured using a word-fragment completion test. One word-fragment completion list was made for each condition. A list of 14 words with blanks was presented to the participants. Four words were the target product names and the remaining ten words were foils. The same foils were used in both lists. The foils were also on the same place in the list. The reason for this is to cancel out any possible advantages for one of the groups. To ensure that implicit memory is being measured rather than explicit memory, the participants were told that it was a word game. So, participants were not told that the list is an implicit memory test for the products they have exposed to.

Explicit memory tool

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show, but the product was not present in the television show, it was considered a false alarm. To measure participants sensitive scores (A’), a signal detection analysis is needed. Signal detection analysis is used to measuring the way we make decisions under conditions of uncertainty (Green and Swets, 1966). Furthermore, with signal detection analysis it is possible to control participants guessing. With the A’ score it is possible to detect how accurately participants can recognize ‘old’ items from ‘new’ items. The ‘old’ items were the products presented in the television show and the ‘new’ items were products not presented in the television show. A’ is calculated as follows:

A’ = ½ + {[(y-x)(1+y-x)/{4y(1-x)]}, where x is the proportion of false alarms and y is the proportion of hits (Grier, 1971). In table 2 a summary of the signal detection analysis is given.

Respond “absent” Respond “present

Product present Miss Hit

Product absent Correct rejection False alarm

Table 2: summary of the signal detection analysis

First, participants were given instructions about what they have to do. The participants were told the study was about Dutch television shows. After the instructions, participants had to watch the television shows. The whole duration of the television shows was about ten minutes.

3.5 Procedure of the study

After watching the television show, the participants had to complete a questionnaire measuring demographic information and familiarity of the television shows they watched. Next, the

participants were asked to fill in the word-fragment completion list. This test was present as a word game study. After the word-fragment completion task, the participants had to fill in a second questionnaire measuring enjoyment of the television shows. The second questionnaire was given as a distraction test. This task took approximately five minutes.

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3.6 Plan of Analysis

All hypotheses were analyzed with statistical tests. All tests were analyzed using a confidence interval of 95%. Hypothesis 1 was analyzed using the one-way ANOVA test. With the one-way ANOVA test differences between two or more groups can be statistically examined (Malhotra, 2004). The explicit memory measure was used as the dependent variable. According to hypothesis 1, this study

expected to find a difference between the audiovisual and the visual-only group on the explicit memory measure. Hypothesis 2 was also analyzed using the one-way ANOVA test. The implicit memory measure was used as the dependent variable. According to hypothesis 2, this study expected that product placement positively affects product placements.

Hypothesis 3 was analyzed to comparing hypothesis 1 and hypothesis 2. This study expected to find that product placement leads to better implicit memory than explicit memory.

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4. Results

This chapter contains the results of the experiment. First, an analysis of the sample is given. Furthermore, descriptive results of the data are given. And finally, the results of the hypotheses are given.

4.1 Analysis of sample

After the recognition task the participants had to fill in a questionnaire. The questionnaire contained a question about if they knew what the goal of the experiment was. None of the participants knew on forehand what the goal of the experiment was ( See appendix 2, table 1) In conclusion, the results were not influenced by knowing the goal of the experiment on forehand. The questionnaire also contained a question about at what moment the participants knew what the real goal of the experiment was ( See appendix 2, table 2) Only three participants (5,4%) knew after the word completion task what the goal of the experiment was. More than a quarter (28,6%) stated that they knew what the goal of the experiment was after the recognition task. The majority of the participants (64,3%) did not know the goal of the experiment after watching the movies and doing all the tasks.

Before processing the data of the word completion test and the recognition task it had to be checked for missing values. Both the word completion test and the recognition task had no missing values. All the participants were able to fill in the questionnaires. So, also the questionnaires had no missing values.

4.2 Descriptive Data

Table 3 shows some data of the total sample. A total of 56 participants watched the movies and filled out the questionnaire. The participants were between 12 and 15 years old. With an average age of 13,6. 32 participants were female and 24 were male (See appendix 2, table 3).

Average age 13,6

Male 24 43%

Female 32 57%

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The participants were randomly assigned to the two different groups (visual / audio-visual). Table 4 shows some descriptive data of the two different groups.

The average age of the visual group is 13,4 and the average age of the audio-visual group is 13,8. In both groups there are slightly more woman than male participants. Both groups consist of 28 participants.

Visual Audio-visual

Age 13,4 13,8

Woman 15 17

Male 13 11

Table 4: descriptive data of the total sample

All participants are familiar with the television programs. Table 5 en table 6 shows the results of the question “Do you watch the following television programs”? The participants had to choose between the following answers: never, sometimes, often and always. Table 7 shows the mean of the program (1= never, 4 = always.)

Never Sometimes Often Always

Baantjer 10,7% 35,7% 46,4% 7,1%

Over de kook 14,3% 46,4% 35,7% 3,6%

Eigen huis en tuin 42,9% 42,9% 14,3% 0%

Topchef 14,3% 42,9% 35,7% 7,1%

Table 5: Do you watch the following television programs? (audiovisual)

Never Sometimes Often Always

Gtst 21,4% 28,6% 35,7% 14,3%

Baantjer 17,9% 21,4% 50% 10,7%

Eigen huis en tuin 64,3% 28,6% 3,6% 3,6%

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Audiovisual

Baantjer 2,50

Over de kook 2,29 Eigen huis en tuin 1,71

Topchef 2,36

Visual

Gtst 2,43

Baantjer 2,54

Eigen huis en tuin 1,46

Table 7: (1=never, 4=always)

In both groups Baantjer is the most watched television program. And in both groups, Eigen Huis en Tuin is least watched.

There are also some differences between male and female. The females (13.5) are slightly older than the males (13.7) (See appendix 2, table 4) The participants are also asked to rate the likeness of the television shows. The participants had to rate the television on a 4-points scale (0=dislike, 4=like). The results of the audiovisual group are shown in Figure 5. And the results of the visual group are shown in Figure 6.

Figure 5: The likeness of the television shows (audiovisual group)

Figure 6: The likeness of the television shows (visual group)

0 0,5 1 1,5 2 2,5 3 Baantjer Over de kook Eigen huis en tuin Topchef Man Vrouw 0 0,5 1 1,5 2 2,5 3

Gtst Baantjer Eigen huis en tuin

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Here are also some differences between male and female. The most favorite television show of the male participants is Baantjer. And the most favorite television show of the female participants is Gtst. There is also an agreement between the males and females. They both like Eigen huis en tuin the less.

4.3 Hypotheses

Explicit memory

To test H1, the correct response for product placement recognition was calculated. If the participant said “yes” for a product that actually appeared in a television show, this response was considered a hit. In addition, when the participants indicated that they saw a product in the television show that did not appear in the television show it is considered as a false alarm. However, a signal detection analysis was conducted to control for any bias they might have exhibited in how they responded to the recognition measures (Yang, 2006). So, A’, was calculated for each group (visual and audiovisual). An A’ score of .50 indicates chance performance. First, the A’ scores of both groups were compared to .50 to determine whether recognition was above chance level. The A’ scores were tested using a one-sample t test. The t-test result for the audiovisual group was statistically significant, t (27) = 6,483, p =0,000. So, the recognition of products in the audiovisual group was above change. The t-test result for the visual group was also statistically significant, t (27) = 4,239, p = 0,000. This indicates that the recognition of products in the visual group also was above change.

The score of the audiovisual and the visual-only group are shown in table 8.

Product placement Explicit memory score (A’)

Audiovisual 0,61

Visual-only 0,59

Table 8: Score of the explicit memory test

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Implicit memory: word-fragment test

First, the average performance of the word-fragment test was analyzed. The audiovisual group completed 35,20% of the total word fragments. These participants completed 40,18% of the target product word fragments and 33,21% of the other word fragments. So, these participants scored better on the products they saw in the television shows. The visual group completed 34,44% of the total word fragments. These participants completed 45,54% of the target product word fragments and 30% of the other word fragments. So, also these participants scored better on the products they saw in the television shows. The results of the target word fragment are compared with the result of the other word fragments by an one sample t-test. The result of the t-test of the audiovisual group is t (27) = 1,325, p = 0,196. So, the difference is non-significant. The result of the t-test of the visual group is t (27) = 2,844, p = 0,008. So, the difference is significant. The number of relevant target words between the two groups was also analyzed (See appendix 2). This was done with an ANOVA test. The result of this test was t(1) = 0,032, p= 0,489.

Before examining the implicit memory performance of the audiovisual group further, the proportion of the 4 target product placements correctly completed by each participants was analyzed. The completion rate of the participants who saw the products are compared to the completion rate of the same products but now of the participants who saw other product placements (the visual group). In this experiment, the visual group is the control group. The results are shown in figure 7.

Figure 7: Performance Word-Fragment Test Audiovisual product placement

The participants who saw the products (the audiovisual group) has a completion rate of 40,52% and the participants who saw other products (the visual group) has a completion rate of 33,04% (See also appendix 2, table 11). Nevertheless, this result is insignificant. The completion rates were analyzed by one-way ANOVA, with F (54) = 1,378, p = 0,246. However, it is important to do an additional test. Because it is possible that one group is simply better in making word fragment test. So the

completion rates of the six control brands are also examined. The results are shown in figure 8. The blue line is the completion score of the target brands and the red line is the completion score of

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control brands. The completion rate of the control brands was slightly higher in the control group in comparison with the audiovisual group (27,97% and 25,54%). The differences of the completion scores of target brands and the control brands were analyzed by one-way ANOVA, with F (54) = 2,297, p = 0,135.

Figure 8: Performance Word-Fragment Test Audiovisual product placement

Implicit memory performance for the product placements in the visual group was analyzed in the same way. The results of comparison of the two groups’ (audiovisual / visual) performance on the visual product placements are shown in Figure 9. In this experiment the audiovisual group was used as the control group.

Figure 9: Performance Word-Fragment Test Visual product placement

The participants who saw the products (the visual group) have a completion rate of 45,54% and the participants who saw other products (the audiovisual group) have a completion rate of 44,64%. So, the group who saw the products had an higher completion rate. However, also this result is insignificant with F (54) = 0,015, p = 0,903. Furthermore, completion rates of the control group and the visual group are corrected with the completion rates of the control brands. These results are also shown in figure 9. The blue line is the completion rate of the target brands and the red line is the

0 10 20 30 40 50 Audiovisual Control Performance Word-Fragment Test

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completion rate of the control brands. These results were analyzed by an one-way ANOVA, with F (54) = 0,028, p = 0,868. So, this result is also insignificant.

However, the differences between the two p-values is remarkable. The p-value of the audiovisual group is 0,135 and the p-value of the visual group is 0,868. So, both values are not significant, but the differences are quite large. The p-value of the visual group is quite more non-significant than the audiovisual group. The audiovisual group scored quite better on the implicit memory test.

Comparison implicit memory and explicit memory

Hypotheses 3 stated that product placement affects the performance on the implicit test more than on the explicit memory test. It is difficult to compare the results of the implicit test with the results of explicit test. Because the scores of both test are quite different. It is possible to state that the score of the implicit test is higher than the score of explicit test. However, an higher score does not automatically mean a better score. For that reason another measurement is taken. First, there is examined how product placement affects the performance on the implicit test. The audiovisual group completed 40,18% of the target word fragments and 33,21% of the control word fragments. The visual group completed 45,54% of the target word fragments and 30% of the control word fragments. On average, all the participants completed 42,86% of the target word fragments and 31,61% of the control word fragments (See table 9)

Visual Audio-visual Total Target words 45,54% 40,18% 42,86%

Control words 30% 33,21% 31,61%

Table 9: Completion rate implicit memory test

To conclude, the participants scored 35,59% higher on the target word fragments than on the control word fragments.

Secondly there is examined how product placement affects the performance on the explicit test. See table 10 for the scores of the explicit memory test.

Visual Audio-visual Average

Hit rate 66,96% 75,89% 71,41%

False alarm rate 29,08% 34,18% 31,63%

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The average hit rate of the audiovisual group was 75,89% and the average hit rate of the visual group was 66,96%. So, on average the hit rate was 71,41%. The hit rate of both groups is compared to the false alarm rates of both groups. The average false alarm rate of the audiovisual group was 34,18% and the average false alarm rate of the visual group was 29,08%. So, the average false alarm rate was 31,63%. To conclude, the score of the explicit test was 39,78%.

Hypothesis 3 stated that the score of the implicit memory test is higher than the score of the explicit test. So, hypothesis 3 can be rejected because the score of the explicit test is higher than the score of the implicit test.

Another option to compare two different measures is to standardize them. The most common transformation procedure is standardization. To standardize, the mean score was subtracted from each score and divided by the standard deviation (Malhotra, 2004). The mean of the explicit test was 0,6001 and the standard deviation was 0,10151. The mean of the implicit test was 0,1607 (score target brands minus control brands) and the standard deviation was 0,29662. The results of the standardization are shown in table 11.

Mean Standard deviation Standardized score Explicit 0,6001 0,10151 1,059

Implicit 0,1607 0,29662 0,006

Table 11: Standardized scores

Table 11 also shows that the score of the explicit test is higher than the score of the implicit test. So, also with the standardized scores hypothesis 3 is rejected.

Implicit behavior

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Figure 10: Results of the choice behavior test

The control group has chosen Haribo 10 times and the visual group has chosen Haribo 16 times. So, there is a difference. The difference is tested by an chi-square test. The results of the control group were chosen as the expected variables. The difference is tested by an chi-square test, with X2 = 5,6 and df =1. This results is p < 0,05. So the difference is significant.

Additional analysis

It is also interesting to do some additional analysis. Because there are some important differences between the male and the female participants. Figure 11 shows these differences.

Figure 11: Explicit memory scores (A’)

The female participants of the audiovisual group has an higher explicit rate (A’ = 0,62) than the male participants (A’ = 0,60). However, the male participants of the visual group has an higher explicit rate (A’ = 0,62) than the female participants. On average the male participants has an higher explicit rate (A’ = 0,61) than the female participants (A’ = 0,59). A two-way ANOVA between subjects was used to test the influence of gender on the explicit rate. The explicit rate was used as dependent variable and the groups (audiovisual and visual) and gender was used as fixed factor. The main effect of gender on the explicit rate was not significant, with F (1,52) = 0,195, p = 0,661. To test the different scores of the male participants and the female participants in the different groups (See figure 11), the

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To conclude, the differences between the male and female participants of the explicit rates are not significant different in the audiovisual group than in the visual group (appendix 2, table 10) .

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5. Conclusions and recommendations

This chapter contains conclusions and recommendations of the study. First, a general discussion of the study and of the results is presented. Next, managerial implications and limitations of the study will be given. This will be followed with directions for future research. And finally the end conclusion will be given.

5.1 General discussion

This study examined the effect of product placement on explicit and implicit memory. Furthermore, this study examined the influence of modality of the product placement on the explicit and implicit memory. This study showed that product placement affects explicit and implicit memory. This study also showed that the modality of the product placement had no influence on the effects on explicit and implicit memory. Also it showed that product placement influenced choice behavior.

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Hypothesis 2 stated that product placement positively affects implicit memory. In this study there is no support found that product placement positively affects implicit memory. The findings of hypothesis 2 contradicted with the findings of Law and Braun (2000). They founded that product placements influenced implicit measures of memory. However, Law and Braun (2000) used another implicit memory measure. They found that participants were more likely to choose the items that had appeared in a television show than the control items which did not appear in the specific episode. The findings of hypothesis 2 also contradicted with the findings of Yang (2006). This study stated that product placement positively affects implicit memory. Yang (2006) also used the word fragment test to measure implicit memory. However, there are some important differences between the study of Yang (2006) and this study. First, Yang (2006) examined the effects of product placement in video games instead of television shows. Secondly, and perhaps a more important difference, Yang (2006) used another implicit memory measure than this study. Yang (2006) compared the proportion of the target brand names correctly completed by the participants who saw the brands with the participants. This way to measure implicit memory has an important disadvantage. Because it is possible that one group is simply better in solving word fragments. In this study the score on the target brands is corrected with the scores on the control brands. Different ways to measure implicit memory can lead to different conclusions. This study is one of the first studies that examined audiovisual and visual-only product placements and the effect on implicit memory.

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measured in an implicit way. The participants also had to take their decision within a few seconds, because they left the room while choosing a product. The contrary is that this study did not find implicit memory effects, while the hypothesis that product placement affects choice behavior is supported. So, probably there were implicit memory effects, but this study did not detect these effects. Maybe other implicit memory tests could detect these effects. That is an interesting case for future research. Percy (2006) has serious doubts about the influence of product placement on brand decision-making. Percy (2006) stated that product placement only have some little influence on brand choice when the product placement had some links with non-declarative (or implicit) emotional measures. So, it could be worth full to examine the role of emotion in this study. This study measured the effectiveness of product placement on implicit and explicit memory. However, implicit and explicit memory is not an capable measure of the effectiveness of an advertising campaign (Fennis & Stroebe, 2010). The attitude change achieved by an advertising campaign is a better measure. Because the aim of most advertising campaigns is to change the attitude towards the product in order to increase the probability that consumers will buy the product (Fennis & Stroebe, 2010).

5.2 Managerial implications

The results of this study leads to a number of managerial implications. Practitioners of product placements do not have to take into consideration whether they use audiovisual or visual-only product placements. This study showed that there is no difference in audiovisual and visual-only product placements on explicit and implicit memory. Several studies stated that modality had an effect on memory (Russell, 2002; Law and Braun-LaTour, 2004). However, these studies integrate product centrality and product modality. This study showed that only take modality into

consideration is not enough. In this study all product placement were in line with the plot and this study found no effects. Practitioners of product placement may try to get the product placement visually appear in the background, without any plot connection (Russell, 2002).

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5.3 Limitations and future research

One limitation of the study is that the participants saw different television shows. It was not possible to get a television show where the same product placement was visual in one show and audiovisual in another. This study had tested the familiarity of the television shows. There were no differences between the two groups. However, the results could be confounded by other uncontrolled factors. For example, brand liking, familiarity with the brand and liking of the actors.

Another limitation is that all the participants were between 12 and 15 years old. It is possible that older people have a better memory to remember products they saw before. Moreover, adults are perhaps better in solving word fragments than children. Doing the same tests with older people will perhaps have different results. Another limitation of this study is that the participants saw small parts of the television shows. The participants get more involved when they watched the whole television show instead of a small part. And involvement plays an important role to measure effects of implicit and explicit memory.

More research is needed to confirm and expand the present study’s findings. Future studies should consider several factors related to the modality of product placement. First, the combination of product centrality and product modality should be analyzed. Russell (2002) stated that product centrality and modality should be integrated. However, little research is done in this way. Secondly, more research should be done on the difference between double-mode (audiovisual) product placement and single-mode product placement. The dual-coding theory (Paivio, 1991) stated that double-mode product placement leads to better memory effects than single-mode product placement. However, most research is done between audial and visual product placement.

Furthermore, more research is needed in the way to measure the implicit memory. This study used a word-fragment test to examine the implicit memory. Besides word-fragment tests, other implicit memory measures should be tested in the future.

Moreover, different brands and fragments should be analyzed in the future. Considerations in choosing brands and fragments affected each of the memory measures (Duke and Carlson, 1994). Different brands and fragments may influence experimental outcomes. Low frequency brands raised recognition. Because people better remember distinctive brands. Furthermore, easier word

fragments leads to a better implicit memory.

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product placement in television shows as well as the consequences of these product placements for choice behavior.

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