AN EXPLORATORY STUDY THE IMPACTS OF PRODUCT PLACEMENT IN VIETNAM MOVIES ON VIETNAMESE STUDENT’S ATTITUDE

VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS AN EXPLORATORY STUDY THE IMPACTS OF PRODUCT PLACEMENT IN VIETNAM MOVIES ON VIETNAMESE STUDENT’S ATTITUDE “In Partial Fulfillment of the Requirements of the Degree of BACHELOR OF ARTS in BUSINESS ADMINISTRATION” By HOANG LAN ANH Supervised by DR: Charles Leonard Wilson Ho Chi Minh City, Viet Nam AN EXPLORATORY STUDY THE IMPACT OF PRODUCT PLACEMENT IN VIETNAM MOVIES ON VIET NAMESE YOUNG ADULT’S ATTITUDE APPROVED BY Advisor APPROVED BY: Committee, _ _ DR Charles Leonard Wilson Chair _ Secretary _ Member PROPOSAL COMMITTE ACKNOWLEDGEMENTS I would like to express my appreciation for many people First of all, my primary thanks must go to DR Charles Leonard Wilson From the first time I came to you, as a timid undergraduate student with the research idea, you have offered tremendous support, and gave me some useful websites which helped me a lot to thesis better Especially, in the final stage my advisor takes time to review my thesis and give me some recommendations to help me to correct my thesis the last time Hence, from the bottom of my heart, I really want to say “Thank you very much” for all the things you’ve helped me within three months of doing thesis Secondly, I also want to thank all the Professionals and Lectures at School Business of Administration in International University during four years for teaching and training me The knowledge and skills that I’ve leant in University helped me a lot when doing the thesis For my friends, I want to send the big thank to all my friends for helping and giving me a lot of encouragements and sharing when I felt disappointed and disheartened Last but not least, to my parents, my beloved sisters who always besides me and supported me a lot during the time I went to university Without them, I cannot go to the last step of my university life Words cannot express my gratitude to my family for being there to care and share every happy moment as well as tired; worried during the time I did my thesis Ho Chi Minh City, May, 2013 Hoang Lan Anh TABLE OF CONTENTS 2.1Qualitative method 31 2.2Quantitative method 32 LIST OF TABLE Table 2.1 Definitions of Product Placement 21 Table 2.2 Hierarchy of Effect Model 29 Table 4.1 Descriptive Statistics of Visual product placement 41 Table 4.2 Descriptive Statistics of Auditory product placement 42 Table 4.3 Descriptive Statistics of Plot connection 43 Table 4.4 Descriptive Statistics of Prominence product placement 44 Table 4.5 Descriptive Statistics of Subtle product placement 45 Table 4.6 Descriptive Statistics of Attitude 46 Table 4.7 Reliability Statistics of Visual product placement 47 Table 4.8 Item-Total Statistics of Visual product placement 47 Table 4.9 Reliability Statistics of Auditory product placement 48 Table 4.10 Item-Total Statistics of Auditory product placement 48 Table 4.11 Reliability Statistics of Plot connection 48 Table 4.12 Item-Total Statistics of Plot connection 49 Table 4.13 Reliability statistics of Prominence product placement 49 Table 4.14 Item-Total Statistics of Prominence product placement 50 Table 4.15 Reliability Statistics of Prominence product placement 50 Table 4.16 Item-Total Statistics of Prominence product placement 51 Table 4.17 Reliability Statistics of Subtle product placement 51 Table 4.18 Item-Total Statistics of Subtle product placement 52 Table 4.19 Reliability Statistics of Attitude 52 Table 4.20 Item-Total Statistics of Attitude 53 Table 4.21 KMO& Barlett’s Test for Independent variables 54 Table 4.22 Factor analysis result for Independent variables Rotated Component Matrix 54 Table 4.23 KMO& Barlett’s Test for Dependent variable 57 Table 4.24 Factor analysis result for Dependent variables Rotated Component Matrix 57 Table 4.25 Correlations testing results 58 Table 4.26 Model summary 59 Table 4.27 ANOVA 60 Table 4.28 Coefficients 60 Table 4.29 Hypotheses Testing Results 62 Table 5.1 Components Results 64 LIST OF FIGURES Figure 1.1 Structure of the research 16 Figure 2.1 Three dimensions of product placement 20 Figure 2.3 Research framework 30 Figure 4.1 Percentage of gender of respondents 37 Figure 4.2 Percentage of age of respondents 38 Figure 4.3 Percentage of education of respondents 39 Figure 4.4 Percentage of respondent’s income per month 40 ABSTRACT This research aims to investigate the impact of product placement in Vietnam movies on Vietnamese young adult’s attitude Hence, with the important findings from research, the study will provide some results as well as recommendations in order to enhance the effectiveness of product placement in Vietnam movies The research has been conducted from February 2013 to May 2013 with the sample size of 200 respondents in Ho Chi Minh City Using literature review and attribute of product placement, this study creates the model which suitable for the purpose of research with five types of product placement has impact on Vietnamese young adult’s attitude Then with the answered from questionnaires, data were analyzed with the SPSS software to come up with two dimensions of product placement has strongly positive impact on Vietnamese young adult’s attitude and product placement in Vietnam movies has most effective in cognition of attitude The recommendations from the research will help the marketers and filmmakers improve the imagines of product placement in Vietnam movies better and better In addition, they can enhance the effectiveness of this type in Vietnam movies to attract more and more audiences CHAP I: INTRODUCTION Background of advertising and history of product placement 1.1 Advertising The role and importance of advertising in the world today is needless to say as it has expanded and become an integral part of almost every business The enormous cost commercial enterprises spend on advertising to achieve their business goals is a good indication of the magnitude of modern advertising Moreover, advertising is one of the main elements in marketing management that lead to the success of businesses It plays an important role in increasing brand awareness as well as perception that are relevant to stimulate toward potential customers, general public and end users For the reason above, it is evident that many marketers are trying to discover, improve and utilize this tool as much as possible Nowadays, with the rapid development of society, the demand for entertainment of people has increased dramatically and in order to attract people to buy products or use services, advertisers have to create and employ a lot of methods as well as means to make sure that consumers are aware of what they are being offered The American Marketing Association (AMA) has adopted a possible definition of “advertising” which describes it as “the placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/ or persuade members of a particular target market or audience about their products, services, organizations, or ideas.” Besides, advertising can also be considered as any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor (George E.Belch& Michael A.Belch: 16) As advertising is paid for, it is a legitimate commercial transaction It is non-personal, which means that advertising messages are directed at a mass audience and not specifically at any individual The role of advertising is delivering messages from producers to actual and potential customers The function of advertising’s communication element is transmitting different types of market information to match buyers and sellers in the marketplace (Wills.2004:14) Lamb, Hair, and McDaniel(2004:294-295) mentioned that most of companies today generally recognized and understood the persuasive power of advertising and invested a large amount of money in it to maintain brand awareness, market share, competitive advantages, consumers’ confidence, goodwill and other benefits Thus, advertising is believed to have an enormous impact on consumers’ beliefs, habits, as well as their behaviors and reactions in process of purchasing products Following the above, it can be seen clearly that advertising has big impacts on marketplace and therefore companies should turn their focus onto investing in this field to gain advantage as well as achieve their targets in selling products and services, improve their position and popularity in the market as their products becomes more well-recognized among consumers However, in order for marketing to work, it must be an effective tool to convey information from marketers to customers The channels of communication, which are used to transmit messages to target markets, are ordinarily called advertising media (Lamb, Hair, and McDaniel.2004: 504) Wells, Burnett, and Moriarty (2003) divided advertising media into two distinct groups: Print media: newspapers, magazines, outdoor advertising (posters, billboards,…) , transit advertising and directories; and Broadcast and interactive online media: television, radio and the Internet Because of the variety of those advertising media as well as their limitations, the key responsibility belongs to marketers as they are eventually the ones who have to determine which tools of advertising media are suitable for the company, bring the best result and meet the demand of the company As a customer today, you are exposed to thousands of diverse brands or products on any days of week by just walking on the street or wandering around your town The fact is that not all of these exposures are advertisements but common items that you are either use or see Nevertheless, Kotler et al.(2005) refers that in a day a normal person might be exposed to more than 1500 ads on average It is really hard to estimate how many advertisements one man can recognize per day as most of ads passed by were ignored by people and it is also easy to shift your concentration from some of the advertisement commercials that you are facing Especially with the rapid development of advertising, social and traditional commercials have lost trustworthiness and level of satisfaction from audiences Marketing and commercials that used to be before on TV now have changed a lot Moreover, the development of technology has altered the advertising industry On the other hand, technology is arguably a primary factor of the innovative advertising techniques and advancements in today's world The use of technology has allowed advertising to enter into every single aspect of consumers’ lives and enable the capability to target the key audiences more quickly and efficiently It creates opportunities for better advertising but also challenges For example, with remote control, audiences now can easily change the channel if there is an advertisement during break time which means marketers will miss their target audience if they not a solution to overcome the problem Many new ways of advertising 10 connections between themselves and the products or services As a result, • desire for the product will be created more effectively In today’s competitive business world, people are usually overloaded with information from advertisements which sometimes makes them feel uncomfortable Therefore, providing too much information to audience by mean of product placement can be very counterproductive It is recommended that advertisers should be careful and prudent when choosing what information to convey to audience It has to be sufficient so that the viewers can find a reason and desire to purchase the product, but on other hand, it must not be too much as it would just annoy them Subtle Product Placement The second factor that has strong impact on Vietnamese young adult’s attitude is Subtle Product Placement It means product placement will appear in a discreet way, and it is hard to notice; for example: when the actor wearing Chanel bags without mentioned or being focused Although, Subtle product placement has positive impact on audiences, it should be considered with some of the following suggestions: • Because it is hard to notice, sometimes audiences can not realize the products or brands unless it is a famous brand or popular product So it will take time, effort and money for both advertisers and film makers Hence, the advertiser should consider carefully this type as it can receive the support from audiences but it cannot bring the expect result as well as benefit for company • Sometimes, product placement is less noticeable compared to common advertisements so audiences may not be aware of placement So the mission of advertisers and film makers must find the way to make product placements appear clearly but not obtrusive • This type of product placement can sometimes be used very effective for advertising a service rather than a product As service is normally a process which is not as visible as a particular product, it would be easier to present and promote a service in a gentle • way without even mentioning it Big companies with reputation normally benefit more from Subtle product placement than small ones as this type of product placement tends to create good effect on brand 63 awareness and loyalty in the long term Small companies which want to boost sales and profit in a short run can find it very expensive without much effectiveness Auditory product placement and Plot connection Auditory product placement and Plot connection are the second and the third type of product placement which have neutral opinion from respondents Auditory product placement means that products are mentioned by actor or in actor’s dialogue Here are some suggestions on how to better utilise this type: • Because it appears in the dialogue of actor so if it is repeated too much, it will make audiences feel uncomfortable and they think that they are just watching commercial movies So film makers should know how to make Auditory product placement appear appropriately, sufficiently and not too absurdly • Normally, people can understand as well as absorb more information from seeing pictures, videos than listening to a conversation This is a challenge that auditory product placement has to overcome in order to be more effectives in the opinion of audience Advertisers should make sure that all the words being said are carefully written and the message is concise, persuasive and influential Product becomes part of the plot, taking a major place in the story line or building the personal of a character is the type of Plot connection Like Auditory product placement, Plot connection receives normally neutral opinion from respondents I think that this type of product placement has great potential if we can mitigate some of its shortcomings Some recommendations are: • Because it appears in the story line, it must match with content of the movies Filmmaker should not let audiences lose track of stream of the movies and upset to viewers because of product placement • The focus should always be on the plot of the movies as people pay money to see a good movie, not to see product placement Therefore, filmmakers have to make sure that the original plot of the movie does not change just because they want to incorporate some advertisements in it Product placement has to be done with care, and appears gently as a natural part of the story so that the original attraction of the movie is preserved It will ensure audience get satisfaction from watching the movie and good impression on the products that have been advertised in it 64 Prominence product placement This type of product placement has negative impact on Vietnamese young adult’s attitude Because product appears in the foreground of a scene and it is very noticeable in movies or sometimes the brand or product is being mentioned clearly, it may lead to the obvious absurdity of the advertising products in the movies This type of product placement has somehow proved to be unsuccessful so far in Vietnam especially to younger audience Nevertheless, it is worth finding ways to improve as it still has great prospect and many foreign movies have achieved great success with it Here are some possible suggestions for those who are interested in prominence product placement: • As can be seen, Negative abusiveness of product placement makes audiences feel angry a lot and increases the refusal of buying or using product In the worst cases, brand or product will be deleted from customer’s mind and they will switch to another brand or product that has same function So if marketers and film makers want to develop this type, they should learn a lot from foreign film industry where we have seen many successful product placements such as James Bond using Audi for driving, • Sony Vaio for working Product placement should not bring the fret for customers Prominence product placement in movies means the product will be seen, or heard about clearly and possibly repeatedly It runs the risk of annoying audience and push them away from the products but also give them the most exposure to the product Therefore, if the placement is designed in such a sophisticated way that make its appearance so natural and realistic, this type of product placement will certainly be extremely effective But that said, the challenge filmmakers and advertisers confronting using this type of placement are enormous and they might prefer safer options LIMITATIONS AND SUGGESTIONS FOR FUTHER RESEARCH The research has achieved the purpose that is to find out the answer for research questions Besides, it contains several limitations which are mentioned below: Firstly, limited time and money is one of the main disadvantages The research was conducted only in Ho Chi Minh City so the result may be suitable only for audiences in Ho Chi Minh City especially young adults in Ho Chi Minh City In addition, the sample consists 65 of only 200 respondents which are very small compared to the whole population in Ho Chi Minh City Thus, the result of analysis may be not highly meaningful in general As a result, the standardization would be enhanced if the research was conducted in wider scope That is a first suggestion for further research Secondly, the analysis method in this research is too popular and a lot of people have used it So the further research should take advantage of other tools or advanced analyzing tools to get better and professional results Thirdly, in this research, some technological terms are not totally accurate Moreover, the research only examines impacts of five types of product placements on Vietnamese young adult’s attitude The further research should be consider and measure more than five types of product placement in order to have more accurate and get higher reliability Last but not least, product placement is the not the new type in Vietnam film industry However, 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information will be kept unrevealed to be used for research purpose only I am hopeful that you have time to answer the following questions All of your answers will be very valuable for the study Part I: Personal Details Gender a Male b Female Age a 13-18 b 19-25 c 26-30 d Over 30 Education level a Student b University student c Postgraduate d Others Income per month a Below millions VND b 2-6 millions VND c 6-12 millions VND d Over 12 million VND Part II Question details Do you know product placement? a Yes b No( stop the interview) Visual product placement (VIS) Please show your agreement on the scale from 1- strongly disagree to 5- strongly agree Items 72 I have no problem with product placements that is visual (VIS1) I like when for example you can see a brand of a mobile phone they are using (VIS2) Vivid pictures of visual product placement make me feel interested when seeing it in movies Visual product placement not make audiences feel annoyed when appearing of product I not mind when brands are being seen often (VIS5) Auditory product placement (AUD) Please show your agreement on the scale from 1- strongly disagree to 5- strongly agree Items I have no problem with product placements that is heard or mentioned (AUD1) I like when character refers to a brand name (AUD2) I not mind when brands name are being heard or mentioned (AUD3) 3.Plot connection (PLO) Please show your agreement on the scale from 1- strongly disagree to 5- strongly agree Items I have no problems with product placements that are involved in the story (PLO1) The products or brands are being placed into the movies should match the story (PLO2) I buy products/brands that I see movie stars using or holding in movies (PLO3) I not like when a brand has a big part of a movie (PLO4) 73 Prominent product placement (PRO) Please show your agreement on the scale from 1- strongly disagree to 5- strongly agree Items I don’t have any problem when a brand is very noticeable in movies (PRO1) Movies should not give too much importance to a particular brand (ex: showing the same brand very frequently in a movie) (PRO2) I don’t mind when the focus in a screen is at a brand name or product (PRO3) Product placements that are obvious are attracting me from the story (PRO4) Prominence product placement affected to my movie’s habitation(PRO5) Subtle product placement (SUB) Please show your agreement on the scale from 1- strongly disagree to 5- strongly agree Items I think it is more acceptable when product placement is hard to notice (SUB1) I like when for instance an actor is wearing is using Channel bag without it ever being focused on or mentioned (SUB2) Product placement in movies is more misleading compare to regular advertisements due to that the viewers are not aware of the placements (SUB3) Please give your opinion on the following comments about your attitude after seeing product placement in movies by rating them on the scale from to 5: strongly disagree to strongly agree Items 74 Cognitive factors Product advertisements in movies make me remember the brands better Emotional factors I like the products after seeing them on movies Action factors I will buy the products after watching the movie 75 ... statistics or the demographics of sample in this study: 35 Frequency Percent Valid Percent Cumulative Percent 91 45. 5 45. 5 45. 5 Valid Female 109 54 .5 54 .5 100.0 Total 100.0 100.0 Mal 200 Figure 4.1 Percentage... Percent Cumulative Percent Below millions VND 127 63 .5 63 .5 63 .5 2-6 millions VND 51 25. 5 25. 5 89.0 12 6.0 6.0 95. 0 Over 12 million VND 10 5. 0 5. 0 100.0 Total 200 100.0 100.0 Valid 6-12 millions... Correlation Deleted Item Deleted if Item 48 Deleted Prominent product 6.74 1 .58 0 388 637 6.71 1. 453 494 57 1 6.67 1. 259 51 4 55 3 6.63 1 .53 1 403 629 placement (PRO1) Prominent product placement (PRO2) Prominent