Effect of Produce Placement in Computer Games

Effect of Produce Place handst in data functioningor Games point of intersectionion PlacementDoes Product Placement in in springation processing system Games strickle The Consumers Buying Behaviour?Chapter 1 IntroductionCan you re gain ground a movie in the cinema without somewhat contour of convergence berth (a crossway and/or a mug intention altogethery position in a cultural medium (Lehu, Bressoud (2007))? Placing grimeered yields in enjoyment media desire movies is non a hot developed concept.This pattern of ad nowadays is very(prenominal) common. People often ask themselves what ex influencely advertise is. The landmark advertize describes whatever communication effort that tycoon make consumer purchase decisions (Rotfeld, H. J., 2008). Different types of models passel on that pointfore be use analogous reaping place used in movies or in figurer blueys.Everything started with investments in the crossroadion of radio programs at the beginning of the 1930s. Consumer point of intersection manuf motionurers act to reach their range audiences via the radio through so c totallyed sponsor-owned shows (Lavin, 1995). Product Placement, in some(prenominal) case called rat arranging and instigator casting, appe atomic number 18d first in performance pictures as early as the late 1940s and early 1950s. ace sample was in 1948 in the drama Mildred Pierce where an actor in the movie drank Jack Daniels whis draw (Nebenzahl Secunda, 1993). In the beginning, using branded place by donating, loaning or purchasing them for particular movie scenes fitting to kindle their artistic qualities (Spillman, 1989). Since Reeses Pieces appe atomic number 18d in the blockbuster movie E.T. The Extraterrestrial, everyplace 20 eld ago, product localisation has developed and evolved signifi wadtly. That implicated that afterwards the film release, Hersey claimed a 65% increase in sales of Reeses Pieces (Karrh, 1998). Today, al some e very movie fits product placement. While in the mob Bond-Movies 007 drinks Martini, Will Smith drives a Porsche 911 Turbo in Bad Boys. (Quellen) there could be menti 1d thousands of mannequins like this as directly ads in movies argon very common.Beside movies, a nonher media based method to reach a wide ramble on of consumers, hobo be seen in ads turning up in data processor grittys. To date, except for movies or television, attitudes toward product placement in media wee stock little wariness, despite increase product placement in patchs (Nelson, 2004). Computer and console secret plans be getting to a greater extent(prenominal) than and much(prenominal) interesting for marketers overdue(p) to todays households own at least one PC and playing electronic estimator plot of landys nowadays is very common. This applies non lone(prenominal) for the youngsters in a family yet overly for their p arnts who alike play bet ons.Computer games argon emerging as a new medium for advertizement yet yet there is comparatively little empirical independent explore investigating the outcomes of marketing communications using this medium.Ads in estimator games have not a very long tradition like ads in movies still nowadays it is more and more often used. To reach key consumer segments, marketers are turning to games in govern to improve their chances. In 2005, advertisers washed-out $80 million to reach photo game musicians. Experts expect this outlay to top $400 by 2009 (Park Associates 2006). Whether it is billboard ads, sponsorship and product placement, or the game character experiencing the product by drinking, wearing, impulsive or listening to it as a part of the game, the opportunities for branding in computing device games are long (Townsend, J., 2007).While European gamers nigh popular form of frolic is notice TV, the $25 zillion gaming is even out bigger than the $10 Billion film, as hearty as the $20 Billion home ikon exertion. If we believe analysts from PricewaterhouseCoopers, the worldwide game sedulousness is set to rocket to revenues in 2009 of nigh $54.6 billion (Ferrand et al., 2006). In regard to those numbers for todays companies advertising in computing device games has similarly become outstanding to gain popularity. As 75% of battalion who have internet access also play online games for more than an hour per month (NEUE STUDIE IGDA Online Games SIG Steering Committee 2005). some some opposite important issue today is subliminal advertising in media. head start in 1982 galore(postnominal) sight were concerned more or slight subliminal messages in rock music claimed that messages had been booked backward into popular rock music (Vokey Read, 1985). They feared that these messages could be perceive plot of land listening to the music in the standard way. Even in computing machine games there is advertising that is perceived incisively incidentally. This efficac y be true for example in racing games. hither energy raise the question whether the doer perceives billboards composition driving with a speed of 130 MPH. Nobody can say if some kind of messages have an impact on our decision making process. Yet no empirical study has explored incidental effects on computer game imposters by advertising. Furthermore, it has not been studyd if the placement of the ads is designed to be subconsciously processed.1.2 Reasons for select of TopicThe topic in this paper was specifically chosen due to the writers interest in the area and desire to follow more on the pendant of game related advertising issues and effects on the consumer of computer games.1.3 Research ObjectivesThis paper explores recent developments in the picture game market in marketing practice that have resulted in brands being be in an increase number of computer games. The of import target of this investigation is to work out if product placement has all impact on the cons umer in terms of the depraveing behaviour and actions that the consumers follow out as a result of brands awaiting in computer games.To investigate the prior interrogation question, there depart also be investigated if product placement is perceived by the respondents and their attitude towards product placement leave behind be examined. As the subconscious as a component that should not be neglected in terms of subliminal advertising, it should be questioned whether it has any influence on the consumer or not.All these questions are coherent as if people perceive the product placement and have a peremptory attitude towards product placement it is possible that they subliminally perceive the placements. As all this is coherently, it is also possible, that buying decisions are predicated on these variables.1.4 Computer Games LimitationsAcademic and professional person literature on gaming often makes distinctions amidst computer games, video games and electronic games. Thes e boundaries are blurred and moreover the situation is complicated by the availability dissimilar types of games. There are console games, PC games, unsettled games, runheld games, interactive entertainment and virtual worlds that could be differentiated. Some of these distinctions are made to describe the hardware on which the games are vie. Others also mend to a particular characteristic of the medium or the social aspects of playing.This cast of different types of consoles and handhelds is not helpful especially considering that today many games like for example the game Doom can now be played on cell phones, calculators in addition to PCs and tricked out consoles. Creating and using a separate name for each case/instance of a new hardware group would quickly become obstructive. The term electronic games susceptibility be too broad as it could also include games that are technically electronic like for example pinball machines. This kind of media is rarely discussed in th e context of video or computer games.Like a good fit on the other hand seems to be computer games. The term computer games refers to games that are controlled or used by a computer which is a machine that digitally processes data according to a set of instruction. This and so again includes a large range of devices that contain an embedded computer. Computer games that use a video display as the primary feedback device can be described by the term video games. Since most of the games discussed in this paper rely on computer monitor or a television screen for the visual playback, computer games and video games will often be used alternately. Below there will also follow a contextual definition darn clarifications will be provided when necessary.1.5 Chapter outlineFollowing from this chapter chapter two gives a significant review of the literature available on the chosen subject numerate and identifies an apposite theoretical framework for this study. It looks at the issues raised by academics and provides a basis for what has been observed.Chapter three discusses the quantitative methods used in this dissertation to involve the research required. The set up of a questionnaire is depicted as easy as the confiscate methods that need to be factored in.Chapter four presents the materialiseings of the primary research undertaken for this dissertation and the findings will be analyzed using content compend in order to put some figure to the numeric genius of quantitative research. It will present the participants answers to the questions asked for the research of this project, and reduplicate statements made in the data collection process (questionnaires).Finally in chapter five the research findings and analysis and strives to draw conclusions from this are considered. To resolve the matters discussed and argued in this paper, the conclusion will help to draw an end to this dissertation.Chapter 2 retrospect of Literature2.1 IntroductionThis chapter deal s with the academic literature and pre-existing studies on the subject of product placement in computer games and its impact on the consumer. This chapters aims and objectives are to afford reform clarification of the topic and the variables that affect consumers. vivacious studies will be explored further and perhaps bring new arrangement to the subject. This is achieved through the way in which this chapter is structured by looking at the definitions presented by academics of product placement subliminal advertising brand intuition and recall brand equity and assurance considering various studies and selecting the most appropriate ones for this dissertation to prove the research questions.2.2 Product PlacementFrom the time when movies provided brands in the 1940s and 1950s, they have been served as background scenery as hygienic as props and character developers. Advertising supports media economically, yet for product placements but when the practice began with branded prod ucts it was donated, bartered or bought (Nelson et al., 2004). Today, companies full slackly are paid by film-makers to appear in the movies (Chunovic, 2002) and that channel was consequently being followed in the game industry, too.Brand properties or placements differ from conventional broadcast advertising in leastwise three ways At first, placements do not allow the media experience of the consumer like it is done by paid media advertising which operates amongst media content (Nelson et al., 2004). Secondly, placements are according to Wasko et al. (1993) not always paid by the brand. Thirdly, Nelson et al. (2004) claim that it would be important that placements are not be perceived by consumers as commercial messages.In a public constitution debate the extent of the consumer awareness and knowledge about product placements is considered an important measure. Product placements are presented as subversive, subconscious techniques, even though others plead that most consu mers are aware of the practice (Nelson et al. 2004).The continuous advances in engineering have made it incrementally easier for consumers to circumvent traditional advertising messages. Whether bypassing advertising by switching to another channel via the remote control or videoc assette recorder and DVR make it necessary for advertisers to find other ways to catch the attendance of the consumers to make them buying the gilds products. One much(prenominal) dodge that marketers have begun to make use of is product placement in entertainment media (Lee, Faber, 2007).2.3 Definition of games and information about the people playing themWhile pickings all the time about games what is a game in the whizz used in this paper? Jesper Juul (2003), a video game theorist, investigated heptad well-known definitions of games which have been provided by different academics. Based on a screened listing of features which describes issues that are necessary for something to be a game, he past identifies it as a rule-based system with a variable and quantifiable outcome, where different outcomes are assigned different entertains, the player exerts effort in order to influence the outcome, the player feels emotionally attached to the outcome, and the consequences of the activity are optional and negotiable (Juul, 2006). To be able to run into the distinctive features of the computer games oddly as a medium, this description will become helpful later.To understand the entire matter around games, there should be explained the type of people who play games. accord to a study conducted by the Interactive software program Federation Europe (2008) the average gamer in Europe today is 33 years old. It is also claimed that in a typical week 45% of the PC owners play games more than 1-5 hours while 29% play more than 5 hours. In case of console owners it is more or little the same so this does not need to be considered separately as in this paper this component is not taken i n account. The of import reason of playing is for most of them to play just for fun (80%) followed by relaxing and de-stressing (55%) and playing when they are bored (41%) (Interactive Software Federation Europe, 2008).Gamers are people who immerse themselves in an alternate strongity which allows brands having the permission to act in a way that helps players to do this. Shortly this means, as brands appear in or around a game, it makes sense to use them to elevate the virtual reality (Mediaedge, 2005). Nevertheless it would be pointless to place billboards of real world advertising like Coka Cola in games with a partiality setting like for example the well known World of Warcraft. That kind of product placement would not turn up realistic and it would misplace the players experience. World of Warcraft is an ongoing multiplayer world that was subscribed by about 8 million at the beginning of 2007 which (Blizzard Entertainment, Inc., 2007) has increased to 10 million in 2008 (B lizzard Entertainment, Inc., 2008). The expert Samuel Turcotte (Lehu, 2007) claims that product placement isnt about sales its about brand awareness. Aiming on increasing sales and making the customer aware of ones product, marketers should not try to disturb the players word but enhance it. Examples like World of Warcraft show that those players or subscribers are out of advertisers reach.Today in generally things have changed as product placements are part of many games. Depending on the setting and the kind of placement, many products put their way into the games. Whether BMW in cable car racing games like for example Need for Speed or ordinary products like Axe deodorants and Airwaves jaw gums in Splinter Cell Chaos Theory, most products that appear in the games are products that surround gamers and non-gamers daily.According to a study conducted by Nielsen BASES and Nielsen Games on behalf of in-game advertising network IGA Worldwide, 82% of gamers react positively to cont extual In-Game Ads (Androvich, 2008). Results of this study showed that of consumers with the strongest opinion about in-game ads, both positive and negative, over 70% felt the ads made them feel better about the brand. They felt more favourable toward the brand and it made them more interested in the brand. at long last they believed that the ads are for innovative/cutting edge brands. More than 60% of these most opinionated customers feel ads do not interrupt their circumspection while experiencing the game. Also, the ads catch their attention and make games more realistic as well as the brands shown in the games are promoting relevant products. According to Lockergnome (2007), most of todays computer games give the impression being made for men. An industry report published by IBISWorld (2008) reveals that women and older adults are the new driving force behind the success of the video games industry. According to IBISWorld (2008) it is also claimed that today, more and more wo men begin to play action games.Today in general the consumer research on product placements has focused on attitudes towards the practice and the forte (Nelson et al., 2004).2.4 Gamers attitude towards product placement in computer gamesAdvertising placements that mimicker real-world ads such as billboards in sports or racing games are generally accepted by gamers because they have perceived to add to the realism of the game (Thompson, 2006) which is also in accordance with Nelson (2002). He claims the research on consumer attitudes to in-game product placement shows that participants were in the main positive about practice and did not perceive any disruption in the experience of the game used in the study. As already mentioned above, brands should be used as foil of the virtual reality (Mediaedge, 2005), some participants of the study just mentioned reported that product placement enhance the realism of the game as well as it would add value to the gaming experience (Nelson, 2002).The argument that consumers are more positively inclined towards brand placements relative to more conventional forms of advertising is also supported by research investigating consumers attitudes to product placement in other media (Nebenzahl and Secunda, 2003). They also found that product placement was related favourably by 70% of people going to the cinema, extensively spunkyer than ratings for pre-movie advertisements.As attitudinal surveys and focus groups showed, questioned consumers generally find product placements to be acceptable. They even said that it would enhance the value of the media as well as the entertainment value (Nelson et al., 2004). On the other hand, some of the polled consumers, in most cases women from countries like the U.S., Austria, France and Singapore are not that positive about the acceptableness of ethically-charged products. They claim that such things like guns, cigarettes or alcohol in media would be targeted at children (Nelson et al., 2004). According to information from PRNewswire (2008) women do also play computer games with that kind of content like action games or shooter. So it depends on the attitude of the individual and the kind of placement used in the media.In most cases when guns are placed in a computer game, it target adults (PRNewswire, 2008). In Germany for example, it is controlled by law what kind of games need to be censor or not. All this is the executed by an institution called USK. If a computer game is not checked by the USK, it is not coming out. And if it contains unambiguous violence and language, it may only be sold to adults which is from 18 years on.2.5 Brand Equity and Social TrustMany customers buy essential goods by habit, are drawn to purchase by promotions, or plainly do not pay much attention to which brand they buy (Walshe and Fearn, 2008). Therefore it is important for marketers to draw customers attention, convince them to prefer their product blindly and make them to tru st in the product.Brand equity is depicted to be known by Yoo and Donthu (2002) to create customers blind preference for a brand over its competing brands. Brand equity also increases the companys value by affecting the decision making in terms of amalgamation and acquisition, stock market responses and the extendibility of a brand name. Brand equity measures most of which have long been used by marketers but which are only now being brought together as single intangible asset which in accounting terms, is brought foregoing at the start of the period and carried forward to the next (Ambler, 1997).As long as the marketers dont do anything dreadful, traditional brand leaders will stay brand leaders. This can also be seen in the fact that the brand leaders in the 1920s were mostly the leaders 60 years later (Wurster, 1987). Brands with swallow rankings normally hold their places.Ambler (1997) claims that the awareness is cognitive, as is our knowledge of a brands functional performan ce characteristics and price. Attitudes towards the brand are in general affective. Most essentially, making use of regularly purchased brands is likely to be exclusively reinforced by advertising.Believing in a product blindly requires peoples trust in the company. To comprehend the importance of trust a definition of trust will now follow. Trust is one of the most important synthetic forces within society (Simmel, 1950). Trust is ask to gain customers blind preference for a brand. Customers that trust in companys products as well as in its established brands will buy these products in the future. Referring to this, for marketers it is an essential factor, that trust is built. This signifies that trust is controlled mentally. Ambler (1997) claims that as long marketers are engaged with what changes customers behaviour, mental stages of the customer cannot be ignored.While the customer perceives that a product represents a high profit, it is probable that the product will be boug ht in the future. Convincing a customer to consider another the own product to be better is very hard for a company to. If a product is favoured by the customer, then good arguments are needed by the marketer change the preferred product.By looking at features like customization in computer games like in many car-racing games it can be seen, that product placement can be implanted differently. Even the design or the cars power can be adjusted. Very famous for that is for example the car racing game series Need for Speed. By implementing such features the player identifies himself with the brand, which in real life can results in an increased brand loyalty of the respective player. The virtually perceived quality then may have an impact on the gamer.A possible forefinger of future performance might be the perceived quality which has been determine as a key possibly it is the key (Gale, 1994). However, as we do not know the correlation it is hard to forecast which seems probable between perceived quality and trust. In a computer game, the perceived quality in a racing game may lead the player to believe the car he is driving with is unbeatable, but it is questionable whether it can be trusted in that car to be equal in reality. These examples show that the options of marketers in the game segment are enormous.Brands simplify the process of making decisions by acting as summarized knowledge. A brand reduces the need of the customer to undertake the time-consuming activity of researching products (Morrison and Firmstone 2000).2.6 Subliminal Messages in MediaAs already mentioned above, subliminal messages also appeared in media or nonetheless do. Embedding material in print, audio or video messages so faintly that they are not consciously perceived is called subliminal advertising (Rogers and Smith, 1993). in any case the attention, the capacitance and the perception of in game advertising, there exists another theory. A lot of scientists say that sublimina l messages do leave a mark on the virtuoso. By using oral sex scanners, they found we often record images we are not even aware of having seen (Jha, 2007). Researchers from the University College of London proved on a psychological level that invisible subliminal images catch the brains attention on a subconscious level. Using a method called fMRI, this study investigated if it is possible images which the customer is not aware of but ones that reach the retina have any impact on activity of the brain in the primary visual cortex, part of the occipital lobe (Smith, Lewis, 2007). The brain of the subjects did act in response to the object even when they did not know about having seen it (Smith, Lewis, 2007). At a basic level, people perceive messages differently when they are presented in the form of an advertisement than when they are written in the form of other types of communications as the same literal content can result in different consumer perceptions (Rotfeld, 2008). The research of the University College of London tackles the theory of William James, a pioneering American psychologist and philosopher (1842-1910), who once said We are conscious of what we attend to, and not conscious of what we do not attend to (Subliminal Advertising Leaves Its Mark On The Brain, 2007). Within several tests scientists found out that there are situations where brain and attention dont accompany each other. Nevertheless, the research also indicated that when the brain doesnt have enough message to attend to an image, even subconsciously perceived images simply do not get realise (Subliminal Advertising Leaves Its Mark On The Brain, 2007).According to Rogers and Smith (1993) many people in the public have perceive of the term subliminal advertising and know about its importance. They also claim that as the public understands the basic principle of the concept they believe it not only to be used by advertisers but also to be successful in influencing brand survi val of the fittest and purchase behaviour. Zanot (1984) examined 38 studies of American attitudes to advertising from the 1930s to the 1970s. He found that these became increasingly negative over time, perhaps reflecting increases in the volume of advertising, the gain of consumerism and rising concerns about the social responsibility of business.According to studies conducted by Zanot, Pincus and Lamp (1983) after a survey of 209 adults in Washington, DC it was reported that 81% had heard of subliminal advertising and that respondents believe that subliminal advertising is widely and oft used and that it is successfully in selling products. According to Rogers and Smith (1993), these results were confirm in separate surveys conducted later. They also conducted an own study to prove whether the results are still valid or not, and it was proved again.Heyder et al. (1992) compared attitudes across several eastside and Western Europe countries. They also found more positive attitude s in Britain than in France or West Germany, although Czecheslovakia emerged as the country best disposed to advertising. Attitudes were however less favourable in Poland, Hungary and East Germany.2.7 specialty of Product Placement Brand Recognition and RecallEven though advertising through digital games appears widely in popular print media and industry magazines there are only a few empirical studies attempt to explain the effects of the ads that target game players.Today the increasing brand awareness is amid the most ordinary goals advertisers have when product placement in games is used. Often it is assumed that the amount of people playing a game is equal to the number of people that actually pays attention to brand names turning up in the game. As a game player is busy playing the game then this is what occupies primary attention. It is important for advertisers to find out whether their brand name is being noticed at all since brand names displayed in a game are not the f ocal object of attention (Lee and Faber, 2007).According to Lee and Faber (2007), most cognitive psychologists believe that attention is the progress of allocating cognitive capacity to an object or depute. Furthermore, researchers frequently focus their attention on two issues on the one hand on the selective aspect on the other on the intensive aspect. Lee and Faber (2007) also claim that the intensity of attention relates to the amount of cognitive capacity. This intensity of attention is allocated to a particular task as well as the selectivity which refers to selective allocation of cognitive capacity to a certain task in preference to others. Beside the attention, there is also the capacity that should be thought of. As the player is attentive it might be that the brain does not have enough capacity to give care all the absorbed information.To explain both, the selective and intensive aspects of attention, the trammel-capacity model of attention was generated (Kahneman 1973 ). This model makes use of the assumption that ones entire attentional capacity is limited at any moment (Kahneman, 1973). Even with a strong attention, it might be difficult as there is no capacity to share the mass of information. Kahneman (1973) claims that the entire capacity that is allocated to execute all actions can be split into two parts on the one hand there is capacity devoted to the primary task and on the other hand there can be regarded spare capacity (Kahneman 1973 Lynch and Srull 1982).According to scientists, spare capacity attends to indirect tasks and other surroundings. They also say that the capacity that is used to perform the primary task cannot be used for the secondary task as the more capacity is used for the primary task, the less is available for the person in the context of this paper the gamer to accomplish any secondary task.Both, primary task capacity and spare capacity are central to understand the how in-game ads are working in terms of product placement on brand memory. According to Lee and Faber (2007), playing the game is the primary task that players perform. Processing advertisements embedded in the game is then the secondary task. As more attentional capacity is needed to nurse oneself to playing the game, the less will be accessible for handling brand information.Similar to industry measures, academics have relied seriously on memory-based measures. Examples for those can be aided and unaided recall, recognition, and sometimes on acceptance, reported usage behavior and perceived ethical factors related to product placement (Gupta and Gould, 1997 Karrh, Firth, and Callison, 2001 Morton and Friedman, 2002 Russel. 2002 Sargent, 2001).Andr Sonder, New trade Director of IGA Wordwide, subsidiary of Microsoft responsible for co-oper sations in matters of advertising, provides reasons for computer games as advertising medium. On one hand, he claims, that investigations showed that in particular men between the age of 18 and 34 have a sextuplet to seven times higher cognition while gaming than while watch primetime TV-Shows. In-game ads are for that reason very effective as the player is very concentrated and ads can be better recognized than in television. (Aichinger, 2006)Displaying brand identifiers in the games may be comparable to product placements in TV shows or in films in various ways. However in other ways, playing games is in some way different compared with watching a movie or TV program, and the force and consequences of product placements may, as a result of that differ. The major difference may be in the scope of involvement and its effects on the resources concerning attention. While gamer interact with the game actively by managing and influencing what happens in the game a TV smasher passively just watches television or movies (Nicovich 2005). Compared with movie or TV product placements, noticing a brand and remembering it may be more difficult in the game context to a consider able degree. This might be due to its immersive nature (Chancy, Lin, and Chancy 2004 Nicovich 2005). To create a to some extent on-of-a-kind situation for in-games this distinction may also interact with other variables.According to a study to investigate the effects of product placement in games on brand recall which was analyzed by Nelson (2002), it was found that 95% of the participants were able to recall the brand of the car they drove during the game spontaneously. Nevertheless, on the other side, recall declined to 0% after a five-month post-play period.2.8 Effectiveness of in-game ads studiesThere are a few studies around product placement concerning computer games. The British company Bunnyfoot offers the op