Current Business Research Project Paper
Using the University Library a peer-reviewed article that reports original research on product placement in films was located in the Business Source Complete database using the key words, research studies in marketing. The business research examined the placement of 126 products in films during 2012 to determine the relationship between the success of a film and the success of product sales featured in the film. The business problem under investigation is the profitability of product placement as a marketing strategy.
This business research addresses the gap in the literature that determines if the product placement has a positive impact on the manufacturers’ profits. This research addresses the economic worth of product placement in films. The data collection method used in the research project was an event study. The researchers investigated the worth of product placements in films through an event study. “Event studies are commonly used to assess the returns to a marketing action because it is extremely difficult to control for all the other concomitant factors that influence firm revenue and profits (Wiles & Danielova, 2009).
The researchers examined the most successful movies in 2002. “Cross-sectional analysis of the returns offers new insight into how product, film, and execution factors influence the placement's worth. The authors find that placement abnormal returns are enhanced by tie-in advertising and brand equity but are inhibited by audience absorption, critical acclaim, and violent film content” (Wiles & Danielova, 2009). The researchers concluded that product placement in a successful film is associated with positive movements in firm stock prices. This research provided the first empirical evidence to support the economic value of product placement in films.
Wiles, M., & Danielova, A. (2009). The Worth of Product Placement in Successful Films: An Event Study...