In an environment where it has become increasingly difficult to reach and attract consumer attention, marketers have begun to explore alternative forms of marketing communication. Consequently this leads to significant market opportunity for product placement as an alternative to the traditional marketing forms. In January 2011, a new legislation in Denmark allowed product placement in domestic movie productions. Due to the relatively unknown effects of the marketing tool, it is necessary to explore product placement used in a Danish case. Through an online survey and interviews conducted among experts within the industry, there has been a desire to analyse the impact and the potential effects of product placement on consumer behaviour and companies respectively. This thesis takes its approach in a fully integrated product placement in a Danish movie called “Alle for én”. Through the consumer survey, it is shown that consumers are following the peripheral route in the ELM-model when they are processing a product placement stimulus. By following the peripheral route, consumers are low involved and in general low motivated to adopt the product placement message. Hence consumer behaviour is controlled by the cognitive reaction activated by the placed product rather than what the message is trying to tell. In our case, when consumers are following the peripheral route, no change of attitude takes place when they are exposed to a placed product. Our research has shown a change in the consumers’ behaviour only and not in their beliefs and emotions. This indicates that product placement does not have any impacts on consumer attitudes toward the product. Furthermore, Heiders Balance Theory is used to address the research issue of how endorser’s relation to a placed product and consumers’ relation to the endorser affect their attitude toward the product. However, the survey conducted indicates that an endorser does not change the attitude of a consumer when exposed to a product. The effectiveness of product placement as a marketing tool can be analyzed by using the communication model AIDA. Our findings have shown that product placement is boosting brand awareness, encouraging prospective purchasers and in some cases leading to increasing sales. However, it should be mentioned that this marketing tool can not “stand alone”, but needs to be part of a holistic marketing communication strategy in order to achieve the total marketing benefits.
|Educations||MSc in Economics and Marketing, (Graduate Programme) Final Thesis|
|Number of pages||217|