Posts tagged marketing
CU study: Covert product placements in TV shows works Well, du…
Sep 23rd
Consumers who watch television sitcoms and see product placements through covert marketing have better memories of the products and better attitudes toward the brands, according to three joint studies led by the University of Colorado Boulder.
“Frankly, we were a bit surprised at the power of covert marketing across a variety of studies,” said Margaret C. Campbell, professor of marketing at CU-Boulder’s Leeds School of Business and lead author of the article appearing online this month in the Journal of Consumer Psychology. “Even though most U.S. consumers know that marketers pay to surreptitiously get their brands in front of consumers, consumers are still influenced by covert marketing efforts.”
However, the studies also found that the disclosure of paid product placements in a sitcom decreased the influential effects, especially when the disclosure occurred after the consumer was exposed to the marketing.
In one of the studies, people watched a sitcom including a few seconds of exposure to a breakfast cereal. Later, when asked to list the first cereals that came to mind, people who had seen a brand name cereal during the sitcom were more than three times as likely to include that cereal in their top three, as compared with those who had seen a fictitious cereal. They also reported a much higher preference for the brand.
However, if prior to watching the show people saw a disclosure that sponsored product placements were included, they were not more likely to list the brand in their top three, although they still reported a higher liking for the brand.
If people saw a disclosure after the show that sponsored product placements were included, they also were not more likely to list the brand in their top three. But they did not report more favorable attitudes toward the brand, compared with a time when they had not been exposed to the product placement.
“Disclosures after the placement appear to alert people to the impact that covert marketing efforts can have, in which case they are less likely to be influenced,” Campbell said.
There have been calls to require disclosure of covert marketing in the U.S. to be consistent with other requirements for disclosure of sponsorship. Other countries, such as the Netherlands, home country of study co-author Peeter Verlegh of the University of Amsterdam, already require some disclosure.
Gina Mohr of Colorado State University also is a co-author.
“In the U.S. there has been some reluctance to incorporate disclosures for fear that it may interfere with creative content,” said Mohr. “This research suggests that product placement disclosures need not occur at the time of product placement to be effective.”
According to the authors, the findings provide support for the idea that requiring disclosure after exposure to covert marketing would offer consumers information to help them choose how to navigate the marketplace.
“Consumers should get to know when they are being exposed to commercial persuasion so they can decide how they want to respond,” said Campbell.
To view the study visit http://www.sciencedirect.com/science/article/pii/S1057740812001337. For more information on CU-Boulder’s Leeds School of Business visit http://leeds.colorado.edu.
-CU-
[includeme src=”http://c1n.tv/boulder/media/bouldersponsors.html” frameborder=”0″ width=”670″ height=”300″]
CU business school endowed with $2.25 million chair to promote global enterprise
Apr 3rd
Advancing global enterprise at the university level by a billionaire seems to make excellent sense.
A better understanding of the core drivers that help great leaders innovate — and avoid failure — is key to advancing global enterprise. The Leeds School of Business at the University of Colorado Boulder is now better equipped to advance this understanding, thanks to a new $2.25 million gift from the Thomas Stix Guggenheim family to establish an endowed faculty chair aimed at educating new generations of entrepreneurs on the core drivers of successful business design and innovation.
This prestigious faculty post was made possible by Thomas Stix Guggenheim and his wife Pedie, of Cincinnati and Snowmass Village, Colo., and his four children, each of whom also attended CU-Boulder.
The new chair will enhance business education at the Leeds School by offering a broader exploration of the factors that allow some firms to succeed while others fail.
The chair also advances key Leeds priorities, as it will help aspiring innovators develop the critical thinking skills that result in creative solutions to diverse and complex challenges. “Our business experience has demonstrated there is as much, if not more, to learn from business failures as from successes,” Guggenheim said. “One main aspect of our endowed chair is to case-study this belief.”
David Ikenberry, dean of the Leeds School, said the creation of the Thomas Stix Guggenheim Family Endowed Chair in Business Design and Innovation is emblematic of the school’s mission. “We have embarked on an innovation agenda that will enable graduates to evolve in a rapidly changing business climate and ensure their ability to drive value,” he said. “We are fortunate and grateful for the family’s generous support as we pursue this great challenge.”
The concept of business design is an emerging area of business education — exploring the interaction of factors such as strategy, product or service design, and entrepreneurial leadership to solve complex problems and drive economic innovation and successful business creation.
With Leeds and CU’s long-standing reputation for entrepreneurship education along with Boulder’s identity as one of the nation’s most entrepreneurial and creative cities, the new chair is a logical fit for Colorado and its economy.
The Thomas Stix Guggenheim Family Endowed Chair in Business Design and Innovation is a tribute to the successful career and outstanding leadership of the chair’s namesake. After graduating from CU-Boulder in 1950 with a degree in marketing, Guggenheim went on to lead two successful hosiery (sock) businesses.
“It’s exciting to see CU-Boulder graduates giving back to the university in such an important way so future generations of students can succeed in their entrepreneurial endeavors,” said Chancellor Philip DiStefano.
A longtime donor to CU-Boulder, Guggenheim has supported the Center for Education on Social Responsibility, which integrates ethics education across the Leeds School curriculum to develop values-driven leaders, and a popular freshman-level course titled “Profiles in American Enterprise,” which invited top executives to discuss relevant business issues.
An endowed chair gift provides a reliable and perpetual stream of funding for a senior faculty position. It is a public indicator of a program’s prestige and it helps universities recruit and retain top talent.
A global search will launch immediately to identify a candidate to serve as the first Guggenheim Family Endowed Chair. The goal is to fill the tenured post, to be housed within the school’s Division of Management, for the start of the fall semester in 2014.
The gift is one of more than 275,000 gifts made to date during Creating Futures, a $1.5 billion fundraising campaign to enhance CU education, research, outreach and health programs benefiting citizens throughout Colorado and beyond. Visit http://www.cufund.org for more information.
–CU Press Release–
[includeme src=”http://c1n.tv/boulder/media/bouldersponsors.html” frameborder=”0″ width=”670″ height=”300″]
CU Business Review: Colorado’s becoming “beverage”-can capital
Oct 15th
Consumer demand is making aluminum cans more relevant than ever, according to a report from the University of Colorado Boulder’s Leeds School of Business.
More than 92 billion aluminum beverage cans were sold in the U.S. in 2011 reflecting a decline in annual sales — particularly among standard 12-ounce cans — since the industry’s peak five years prior.
But a number of Colorado companies, including Ball Corp., are well positioned to tap new markets in the evolving industry. Ball employs more than 3,000 workers statewide, and packaging accounts for 90 percent of the company’s sales.
“Beverage industry employment is growing faster than manufacturing employment and total employment in the state and is outperforming beverage manufacturing employment nationally,” said Richard Wobbekind, editor of the quarterly Colorado Business Review.
According to the latest edition of the review, published by the Business Research Division of the Leeds School of Business, the U.S. beverage can market remains quite healthy with a unit share of just over 40 percent.
Experts attribute the sales decline of 12-ounce cans to weak economic growth, which has consumers “trading down” to less expensive products, among other factors.
By contrast, demand for specialty can sizes grew at a robust rate of approximately 15 percent last year. From the 5.5-ounce mini-can to the 32-ounce jumbo can, brand owners are leveraging the unique sizes and shapes of the beverage cans to drive differentiation in the market.
One well-known specialty package from Ball is the Alumi-Tek bottle, or aluminum pint. Brewers have enjoyed great success with the bottles, which offer re-closable caps. Craft beers and wines have increasingly found their way into aluminum cans. Even water sold in cans has grown more than 30 percent since 2008.
“The current decrease in the U.S. beverage can market is more a sign of progress than one of decline as the industry shifts away from reliance on just the 12-ounce can,” says Jim Peterson, vice president of marketing and corporate affairs for Ball Corp. “Ball is expanding into new products and capabilities to meet demand.”
Peterson cites more than $175 million in investment across the U.S., including $60 million in Colorado for a new specialty can line in the company’s Golden, Colo., facility and a nearly $5 million expansion of its package research and development operations in Westminster, Colo.
Colorado beverage makers also benefit from state laws that support self-distribution, allowing young brands and small producers to go to market. New Belgium Brewing of Fort Collins, Colo., America’s third-largest craft brewery, started selling beer out of the back of a station wagon.
The Business Research Division of CU-Boulder’s Leeds School of Business conducts Colorado-focused economic and marketing studies, collaborating with faculty researchers, government entities, business leaders, nonprofit organizations and students. For more information visit http://leeds.colorado.edu/brd#coloradobusinessreview.
