Product placement in video games. An analysis of the impact of product placement in video games on customers purchasing decision

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PRODUCT PLACEMENT IN VIDEO GAMES An analysis of the impact of product placement in video games on customers purchasing decision Chernikova Angelina MA in Marketing and Advertising Supervised by: Murilo Branco

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Table of contents

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Introduction

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The research is relevant because its topic corresponds to the current situation in marketing, and people who play games that include product placement are participants in the conducted survey. The players were asked specific questions regarding product placement in selected games for analysis.

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Literature Review

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Product placement has been used in video games since the 1980s (Lehu 2009) Product placement has been used in video games since the 1980s (Lehu 2009)

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Games can be created specifically for the sake of advertising a brand or product (so- called advergames).

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Product placement in video games can be present at the visual or verbal level.

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Example of effective advertising in video games-the presidential campaign of Barack Obama

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The most primitive type of product placement in a computer game

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The second level of quality of advertising integration is illustrative integration

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In the present study we aim to understand the effectiveness of product placement and, considering the literature review carried out, we designed the following model consisting of 6 variables:

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Conceptual model and hypotheses

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Hypotheses

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Methodology

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Research epistemology used in this paper is both positivist and interpretivist. Research epistemology used in this paper is both positivist and interpretivist. A quantitative descriptive study is used in the paper. The survey method was used in this study to collect data. To participate in the survey video games users were attracted. The Google file was shared on forums, groups on social media and directly by email and messengers. The period of collecting the answers for the survey was from 11 of May to 14 of May.

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Demographic characteristics of the sample

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Results

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The present study utilized a Partial Least Square-Structural Equation Modelling (PLS-SEM) approach to test the conceptual framework.

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Descriptive, Cronbach’s Alpha, CR, rho_A and AVE scores

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Discriminant validity-HTMT ratio scores

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Hypothesis test

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Discussion

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Summary of results

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Conformation of research hypotheses H1: The product placement perception has a positive impact on Brand Recognition. -Product placement is, in any case, the repetition of the brand name, which contributes to the brand’s memorability, helps to recognize it. H2: The product placement has a positive impact on virtual reality. -Respondents agreed that advertising makes the virtual reality of the game more realistic. H3: Brand Recognition has a positive impact on Brand Familiarity. -Brand recognition by players indicates that the brand is well known to the audience. Researchers also proved that Brand Familiarity is a result of brand’s influence on audience in any ways – to have a clear brand image in mind, the audience must recognize the brand first.

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Conformation of research hypotheses H4: Quality of Virtual Reality has a positive impact on Brand Familiarity. -The quality of Virtual Reality is high in games chosen for analysis. Product placement in games is well recognizable. H5: Brand Freedom of Emotional Response. -Many brands advertised in games caused an emotional response in respondents. Most often, the emotions were positive. H6: Emotional Response has a positive impact on Purchasing Intention. -The connection between the emotional response to the appearance of brands in the game and the desire to buy the products of these brands was found in the survey results

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The correlation between current research and other researches in the field Mau et al. (2008) assume that in-game product placement strengthens the positive image of well-known brands in the gamers’ minds. This assumption was confirmed in the current study, where the attitude of the players to the brands, most of which are well known to a wide audience, was considered. Researchers of product placement point out that this type of advertising is almost never annoying to the audience, except when advertising is too intrusive. The study showed that although respondents understand that they see advertising in the game, they do not change their attitude towards brands for the worse and are ready to purchase goods of advertised brands.

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The correlation between current research and other researches in the field Glass (2007) considers product placement in computer games as a powerful marketing tool that shapes the gaming user experience (for example, creating real-life situations of interaction with the brand is one of the methods of product placement). The results of the survey proved that product placement in games becomes a part of gaming experience – and it is usually a pleasant part that disturb gamers neither visually nor semantically. Thus, our research doesn’t deviate from major researches in this field.

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Conclusion

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The research questions were the following: In which cases product placement in video games is effective (leads to a goal)? What influences the effectiveness of this advertising technology? When purchasing decisions are made by consumers?

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-Product placement is effective in cases when brands that are well known to the audience are advertised unobtrusively. -The effectiveness of the quality of the game itself is affected by the quality of product placement. -The effectiveness of advertising in the game is influenced by how truly this advertisement is integrated into the virtual reality of the game and can impact the players emotional response -The effectiveness of the use of such advertising, which is most similar to advertising in life, has been confirmed, also in this study.

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-The attitude of players to such advertising affects the effectiveness of product placement in video games. Advertising should not interfere with the gameplay -The effectiveness of advertising depends on which brand is advertised. -Product placement enhances the positive impressions of the advertised brand, enhancing recognition and familiarity. The framework in this study explains that it is possible that in case of a need for specific products, survey participants make a choice in favor of the advertised brands.

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The survey method was used in this study to collect data. The survey method was used in this study to collect data. To participate in the survey video games users were attracted. Survey participants are gamers who spend their time on thematic websites and forms – in other words, they are a part of video gamers community. 465 people took part in the survey. Only video game lovers participated in the survey.

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Respondents are generally positive about product placement. Advertising in the game enhances its realism and does not distract from the gameplay. Respondents are generally positive about product placement. Advertising in the game enhances its realism and does not distract from the gameplay. Advertised brands are mostly of interest and cause positive feelings. Most respondents are adults who are able to make purchases, including expensive brands, and have a fairly high level of education.

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Advertised brands should entertain the audience by mimicking artistic content and at the same time standing out. Brand advertising must be present in the virtual reality of games, just as it presents in real life, advertising integration must be authentic.