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THE EFFECT OF PRODUCT PLACEMENT IN MOVIES AND CELEBRITY ENDORSEMENT ON

CONSUMER PURCHASE INTENTION OF SAMSUNG SMARTPHONE IN MANADO

PENGARUH PENEMPATAN PRODUK DALAM FILM DAN SELEBRITI PENDUKUNG PADA NIAT BELI
KONSUMEN TERHADAP SMARTPHONE SAMSUNG DI MANADO

by:
Ridsa Septiyan Tangkuman1
David P.E. Saerang2
1,2,3
International Business Administration,
Faculty of Economics and Business,
Sam Ratulangi University, Manado, Indonesia

e-mail: [email protected]
[email protected]

Abstract: Information and communication technology has made great strides in recent years which also had an effect on
advertising such as product placement and celebrity endorsement. Smartphone is one of products that is often to be found on
advertising media. This study aims to analyze the effects of product placement in movies and celebrity on consumer purchase
with Samsung smartphone as its case study. This is a causal type of research which uses primary data obtained from
questionnaires and uses ordinal regression analysis. The population observed is people in Manado who have purchased
Samsung smartphone products with 110 respondents as the sample size. The result of this study shows that product placement
and celebrity endorsement have significant effects on consumer purchase intention. To increase consumer purchase intention,
the recommendations for Smartphone Company are to maintain exposure, high profile/star liking, product familiarity, and
movie involvement on product placement in movies as well as consistently show physical attractiveness, celebrity
congruence, trustworthiness, and expertise on celebrity endorsement which motivate purchases.
Keywords: consumer purchase intention, advertising, product placement, celebrity endorsement

Abstrak: Teknologi informasi dan komunikasi telah membuat langkah besar dalam beberapa tahun terakhir yang juga
memiliki efek pada iklan seperti penempatan produk dan selebriti pendukung. Smartphone merupakan salah satu produk
yang sering ditemukan pada media iklan. Penelitian ini bertujuan untuk menganalisis efek dari penempatan produk dalam
film dan selebriti pada niat beli konsumen dengan Samsung smartphone sebagai studi kasusnya. Ini adalah jenis penelitian
kasual yang menggunakan data primer yang diperoleh dari kuesioner dan menggunakan analisis regresi ordinal. Populasi
yang diamati adalah orang di Manado yang telah membeli produk smartphone Samsung dengan 110 responden sebagai
sampel. Hasil penelitian ini menunjukkan bahwa penempatan produk dan selebriti pendukung memiliki efek signifikan pada
niat beli konsumen. Untuk meningkatkan niat beli konsumen, rekomendasi untuk perusahaan smartphone adalah untuk
mempertahankan eksposur, tinggi profil / karakter di film, kepopuleran produk, dan keterlibatan film di penempatan produk
dalam film serta secara konsisten menunjukkan daya tarik fisik, keselarasan selebriti, kepercayaan, dan keahlian pada
selebriti dukungan yang memotivasi pembelian.

Kata kunci: niat beli konsumen, iklan, penempatan produk, selebriti pendukung

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INTRODUCTION

Research Background

Information and communication technology development has a pretty big role toward consumer behavior.
Information and communication technology development has upgraded people needs and wants, new and
innovative product has changed people reason, attitude and motivation to consider to buy products. Smartphone
is one of evidence of communication technology advancement. Smartphone in Indonesia is expeditiously
developing so as to smartphone market.

Lots of smartphone products entered Indonesia market and smartphone market now is in the battle field.
Indonesian captured as target of broadening sales, pursuing strong potential customers, increasing loyalty and
other profitability. Samsung smartphone is one of the smartphone leading products that carry the prospect and
development of smartphone products and market in Indonesia. Samsung smartphone advertising is the most
repetitive and easy one to be found. A mass media used to promote and put their product on advertising so that it
will affect consumer brand awareness of Samsung smartphone. Samsung has a strong and potent capability on
advertising. Product placement and celebrity endorsement are a form of advertising techniques in order to
introduce product and increase brand awareness of its product. Product placement is essential to put recognition
of a brand or product to customer mind, which will affect consideration to customer’s purchase intention.

Samsung has a lot of product placement in movies such as In Zoolander 2 with Samsung Galaxy S6,
House of Card with Samsung Galaxy S6 edge, Pretty Girls with Samsung Galaxy S6 edge, and the most popular
one in avengers: Age of Ultron movie 2015. In the context of celebrity endorsement, Consumers of the product
are much effect by celebrity when they believe that endorser has actual attachment with product rather than
materialistic gain. There are some celebrities whom Samsung has a partnership with and some of them are David
Beckham, world famous boxer Manny Pacquaio, and Ellen Degeneres. Smartphone is one of most identical gadget
in Manado that involved consumer willingness to purchase a product. People behavior in Manado is pliable toward
trend that makes people in Manado are more predisposed to popularity that influence esteem. Product placement
in movies and celebrity endorsement used to impart good product Image and in order to increase consumer
purchase intention.

Thus, explanation above conducts researcher to analyze the effect of product placement in movies and
celebrity endorsement on consumer purchase intention of Samsung smartphone in Manado.

Research Objectives

The aims of this research are:

1. To analyze the significant simultaneous effect of product placement in movies and celebrity endorsement on
consumer purchase intention of Samsung smartphone in Manado.
2. To analyze the significant partial effect of product placement in movies on consumer purchase intention of
Samsung smartphone in Manado.
3. To analyze the significant partial effect of celebrity endorsement on consumer purchase intention of Samsung
smartphone in Manado.

THEORETICAL FRAMEWORK

Marketing

Marketing is a social and managerial process by which individuals and groups obtain what they need and
want through creating and exchanging value with other (Kotler and Armstrong, 2001). Burns and Bush (2006)
defined marketing as an organization function, not a group of persons or separate entity within the firm. The

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purpose of doing marketing is to gain sales which that is a result of implementing effective and efficient marketing
strategies.

Advertising

Role of advertisement is to carry message to the far distances. It is also use to target the scatter mass
audience. The role of advertising on sales volume is very important. It is proved to be very essential tool in
enhancing the sales of brand. Advertisement is directly linked with the sales of the products (Abiodun, 2011).

Purchase Intention

Purchase intention is a kind of decision making that studies the reason to buy a particular brand by
consumer (Shah et al., 2012). Kotler (2003) proposes that individual attitudes and unpredictable situations will
influence purchase intention.

Product Placement

Product placement, and more specific, brand placement, is the compensated inclusion of a branded
product or brand identifiers, through audio and/or visual means
with- in mass media programming (films and broadcast pro- grammes) for promotional purposes (Badin and
Carder, 1996; D’Astous and Chartier, 2000; Morton and Fried- man, 2002).

Celebrity Endorsement
Celebrity endorser is an individual who is known by the public for his or her achievements in areas other
than that of the product class endorsed" (Friedman and Friedman, 1979).

Previous Research

A previous study by Eunseon and Jong-Hyuok (2013) confirmed that there is relationship between
product placement attitude and purchase intention. The previous study stated about the relationship of watching
Tv shows, product placement attitudes and purchase intention. Phugazhenthi and Sudharani Ravindran (2013)
stated that that there is an impact of celebrities in advertisements on consumer purchase intention. This previous
research cited that celebrity has a potential of being noticed and liked by the viewers.

Conceptual Framework

Product Placement

H2 Consumer
Purchase
Intention
H3
Celebrity
Endorsement

H1

Figure 1. Conceptual Framework

Data Processed (2016)

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Research Hypotheses

The hypotheses of this research are:

H0 : Product placement in movies and celebrity endorsement have no simultaneously significant effect on
Customer Purchase Intention of Samsung smartphone.
H1 : Product placement in movies and celebrity endorsement have a simultaneously significant effect on
Customer Purchase Intention of Samsung smartphone.
H2 : Product placement in movies has a partially significant effect on consumer purchase intention of
Samsung smartphone.
H3 : Celebrity endorsement has a partially significant effect on Consumer Purchase Intention of Samsung
Smartphone.

RESEARCH METHOD

This research is a causal type of research where it will investigate the effect of product placement in
movies and celebrity endorsement on consumer purchase intention. According to Hair et al. (2007:160), causal
research tests whether or not one event causes another. This research will be conducted in Manado and will be
started from July until September 2016. The population in the research is the users of Samsung smartphone in
Manado. The sample in this research is consisting of 110 respondents. we procure information needed for research
compliance from questionnaires. The questionnaires are distributed to respondents so they can respond directly
on the questionnaires.

There were two sections in the questionnaires that should be filled by respondents. The first section asked
about respondents identities and the second section asked about things that related with the variables. The survey
was created using suitable questions modified from related research and individual questions formed by the
researcher. The survey will be comprised of several questions, which are related to the participant’s perception
regarding product placement in movies and celebrity endorsement. The survey will be used to investigate
respondents’ attitudes and motivation toward product placement and celebrity endorsement which influencing
consumer purchase intention. Likert scale was used to determine if the respondent agreed or disagreed in a
statement.

This research is using ordinal regression analysis because as a predictive analysis, ordinal regression
describes data and explains the relationship between one dependent variable and two or more independent
variables. in ordinal regression analysis, the dependent variable is ordinal (statistically it is polytomous ordinal)
and the independent variables are ordinal or continuous-level (ratio or interval) like variables in this research.

The formula of ordinal regression model is shown as follows:

E(y) = 𝑒 β0 + β1 X1 + β2 X2
1 + 𝑒 β0 + β1 X1 + β2 X2

Description:
y = Consumer Purchase Intention
𝛽0 = Intercept
𝛽1 , 𝛽2 = The Ordinal Coefficient of Each Variable
X1 = Product Placement
X2 = Celebrity Endorsement
e = Error Standard or Error Term

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RESULT AND DISCUSSION

This research uses reliable questionnaire which are distributed to 110 respondents as the source of primary
data. The characteristics of 110 respondents are classified based on gender, age, education, occupation, income,
using smartphone experience, respondents’ watching experience of product placement in movies and celebrity
endorsement.

The total sample of this research is 110 respondents. The results of the questionnaires are:

1. The number of female respondents (54%) is more than male respondents (46%). The 54% of female
respondents determines 59 female respondents and 46% of male respondents determines 51 male respondents.
It can be used as an indication that women use Samsung smartphone more than men and women have more
experience watch and found product placement in movies and celebrity endorsement than men.
2. The largest number of sampled respondents is 66% comes from age 25 - 34 years (73 respondents) then
followed by age 35-44 years with 26% (28 respondents) and above 44 years with 8% (9 respondents). This
result shows that 25 – 34 group of age dominated the respondents of this research.
3. The largest number of sampled respondents’ education level is Bachelor with 76% (84 respondents) then
followed by senior high school with 18% (20 respondents), master with 4% (4 respondents), junior high
school with 1% (1 respondent), 3 year diploma with 1% (1 respondent).
4. In term of respondents’ occupation, the result of questionnaires shows that most respondents are private
employee with 44% (48 respondents), followed by entrepreneurs with 24% (27 respondents), government
employee with 13% (14 respondents), teacher with 16% (18 respondents) and housewife with 3% (with 3
respondents).
5. The largest number of sampled respondents (61%) with 67 respondents have income around 3.000.000 –
4.500.000 IDR then followed by 28% of respondents (31 respondents) have income above 4.500.000 IDR
and 11% of respondents ( 12 respondents) have income around 1.500.000 – 3.000.000 IDR.
6. Largest number of sampled respondents have already been using Samsung smartphone for about 1 – 4 years
54% (59 respondents), followed by above 4 years with 38% (42 respondents) and under 1 year with 8% (9
respondents).
7. In term of respondents’ watching experience of product placement in movies and celebrity endorsement, the
result of the questionnaires is that the largest number of sampled respondents 55% (60 respondents)
sometimes watch product placement in movies and celebrity endorsement ,followed by often with 26% (29
respondents), seldom with 14% ( 16 respondents) and always with 5% ( 5 respondents).

Validity and Reliability Test

The value of Cronbach’s Alpha of 10 items used in this research is 0.875. The data is considered as
reliable since the value of Cronbach’s Alpha is above the minimum value which is 0.6. The value of MSA of all
10 items used in this research are above 0.5. Therefore, the data is considered as valid and it can be used for further
tests and analyses.

Ordinal Regression Analysis

This section provides the result of Ordinal Regression Analysis. SPSS 22.00 Software was used to find out
the result of Ordinal Regression.

Model Fitting Information

Table 1. Model Fitting Information
Model -2 Log Chi- Square Df Sig.
Likelihood
Intercept Only 347.262
Final 241.360 105.902 20 .000
Link function: Logit.
Source: SPSS Ouput (2016)

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There is intercept only 347.262 is the expected mean value of Y (dependent variable) when all X
(Independent variables) = 0. Final is the value when X (independent variables) are put and computed which in
this case the value of final is 248.867. Chi-Square provides those predictors’ regression coefficients in the model
which don’t equal to 0 (zero). The Chi-square is 98.395 with significant of actual level 5% (sig 0.000).

Goodness of Fit
Table 2. Goodness of Fit

Chi-Square Df Sig.
Pearson 550.214 634 .993
Deviance 241.360 634 .000
SPSS Output (2016)

Goodness of fit will determine whether the model is good fit or not. Based on Table 4.5, There are two
statistics which are Pearson and Deviance, they both have their own value of Chi-Square. Pearson 500.214 with
Sig 0.933 and Deviance 241.360 with Sig 1.000, those value indicate that the model is good fit because significant
value of both pearson and and deviance are greater than 0.05.

Pseudo R-Square
Table 3. Pseudo R-Square
Cox and Snell .618
Nagelkerke .646
McFadden .305
SPSS Output (2016)

There are McFadden, Nagelkerke, and Cox and Snell Analysis measures meant to simulate the R-Squared
analysis. Table 4.6 Shows that amongst those Pseudo R-Square, Nagelkerke Pseudo R-Square is the biggest with
0.646. It informs that product placement and celebrity endorsement (independent variables) are able to explain
consumer purchase intention dependent variable as much as 64.6% while the rest 35.4% is explained by other
factors not discussed in this research.

Parameter Estimates

Parameter Estimates discusses and provides particularly the relationship between explanatory variables
and the outcome. Wald value of every independent variable and its significance. X1 ( Product Place ment ) has
Wald value 15.452 and estimate value 0.646 with sig. 0.000 (<0.05) and X2 ( Celebrity Endorsement ) has Wald
value 13.685 and estimate value 0.483 with sig. 0.000 (<0.05). it pinpoints that all independent variables ( Product
Placement and Celebrity Endorsement ) have a significant effect on Consumer Purchase Intention of Samsung
smartphone.
The formula of ordinal regression model for this research is shown as follows:

E(y) = 𝑒 347.262 + 0.646 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑃𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡 +0.483 𝐶𝑒𝑙𝑒𝑏𝑟𝑖𝑡𝑦 𝐸𝑛𝑑𝑜𝑟𝑠𝑒𝑚𝑒𝑛𝑡

1 + 𝑒 347.262 + 0.646 𝑃𝑟𝑜𝑑𝑢𝑐𝑡 𝑃𝑙𝑎𝑐𝑒𝑚𝑒𝑛𝑡 +0.483 𝐶𝑒𝑙𝑒𝑏𝑟𝑖𝑡𝑦 𝐸𝑛𝑑𝑜𝑟𝑠𝑒𝑚𝑒𝑛𝑡

y = Consumer Purchase Intention

Interpretation

1. Product Placement (X1) has a significant effect on Consumer Purchase Intention (Y). The result of Product
Placement are Estimate Value 0.646, Wald Value 15.452 and Significance 0.000 (<0.05). These data results
show the estimated coefficient for Product Placement is 0.646 and use the exponent to find OR with Product

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Placement as the base: exp (0.646) = 1.907. Odd Ratio of Product Placement by diving the exponent of 0.646
to 1 is 0.254. The odds of Product Placement of achieving higher level are 74.6 % (1-25.4%).
2. Celebrity Endorsement (X1) has a significant effect on Consumer Purchase Intention (Y). The result of
Celebrity Endorsement are Estimate Value 0.483, Wald Value 13.685 and Significance 0.000 (<0.05). These
data results show the estimated coefficient for Celebrity Endorsement is 0.483 and use the exponent to find
OR with Celebrity Endorsement as the base: exp (0.483) = 1.620. Odd Ratio of Celebrity Endorsement by
dividing the exponent of 0.483 to 1 is 0.617. The odds of Celebrity endorsement of achieving higher level are
38.3 % (1-61.7%).

Test of Parallel Lines

Table 4. Test of Parallel Lines

Model -2 Log
Likelihood Chi-Square Df Sig.
Null Hypotheses 241.360
General 215.178 26.182 100 1.000
The null hypotheses states that the location parameters (slope coefficients)
are the same across categories.
a. Link function: Logit
SPSS Output (2016)

The test of parallel lines is used to test the assumption that every category has same parameter or
relationship with independent variable where the logit is equal with all logit equations. The data supports that this
study is good fit model because the Sig. is 1.000 which it is >0.05 with Chi-Square 26.182.

Discussion

Conducting a research on consumer purchase intention is highly interesting among the researchers. By
studying consumer purchase intention and its causal factors, it is expected that company can develop a sustainable
relationship with customers which in particular can increase sales of Samsung smartphone.

This study has been conducted to analyze the effect of product placement in movies and celebrity
endorsement on consumer purchase intention of Samsung smartphone in Manado.

Product Placement on Consumer Purchase Intention

The result of the ordinal regression analysis shows that there is a significant effect of product placement
on consumer purchase intention of Samsung smartphone in Manado. In this research, it is represented by
exposure, high profile/star liking, product familiarity, and movie involvement.

This finding shows that product placement in movies has affected purchase intention of consumer.
Exposure, high profile star/ star liking, product familiarity, and movie involvement. Product placement
influence motivation and attitude of consumer and effect on consumer purchase intention. Result of this research
provides a conclusion that through product placement in movies Manadonese will get motivated and creating
attitude of willingness or intention of Manadonese to purchase and buy Samsung smartphone.

Celebrity Endorsement on Consumer Purchase Intention

The result of the ordinal regression analysis shows that there is a significant effect of celebrity
endorsement on consumer purchase intention of Samsung smartphone in Manado. In this research, it is represented
by physical attractiveness, celebrity congruence, trustworthiness, and expertise. Based on the result of the
questionnaire, the respondents who live in Manado mostly agree that physical attractiveness, celebrity
congruence, trustworthiness, and expertise affect consumer purchase intention of Samsung smartphone.

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This study shows that celebrity endorsement has a significant effect on people in Manado intention to
purchase Samsung smartphone. Those physical attractiveness factor, celebrity congruence, high trustworthiness,
and expertise will help company to achieve the improvement, development, sustainability and it is helpful to
increase consumer purchase intention.

CONCLUSION AND RECOMMENDATION

Conclusion

Three conclusions can be formulated:

1. Product placement and celebrity endorsement simultaneously influence consumer purchase intention. The
increasing of these two variables will simultaneously increase the consumer purchase intention.
2. Product placement partially affects consumer purchase intention positively.
3. Celebrity endorsement partially affects consumer purchase intention positively.

Recommendation

The recommendations for Smartphone companies that can be concluded from the overall result in this
research are listed as follow:

1. It is essential to maintain product placement in movies in order to meet customer interest on smartphone
products. A proper exposure, consistent high profile star/ star liking, good product familiarity, and great movie
involvement increase consumer purchase intention of Samsung smartphone and encourage repeat purchases.
2. Focusing more on celebrity endorsement by enhancing physical attractiveness of celebrity endorser,
improving celebrity congruence, trustworthiness, and expertise because those can bring positive and
significant effect on consumer purchase intention.

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