The influence of sport sponsoring on the
image and the awareness of the sponsor.
Master Thesis
Arnoud A. van den Akker
January 2009
University of Groningen
Faculty of Economics and Business
The influence of sport sponsoring on the image and the
awareness of the sponsor.
Master Thesis
Arnoud A. van den Akker Student number: 1226150
E-mail: a.a.van.den.akker@student.rug.nl Telephone number: +31 (0)6 10552249
Zuiderkerkstraat 2a
9712PZ Groningen
Faculty of Economics and Business Department of Marketing
University of Groningen
January 2009
Company researched: ABN AMRO
Event Researched: Volvo Ocean Race
Supervisors
Summary
The use of sponsoring as a marketing instrument is on the rise. The past decade saw an explosive growth in sponsorship spending and a growing number of organisations that used sponsorship as part of their marketing campaign. With the growth in sponsorship spending, a deeper insight into elements that might have an influence on the success of the sponsoring is required as many sponsorship campaigns were unsuccessful. Literature on the subject is incomplete as it does not provide a clear picture of the variables that have an influence on the success of the sponsorship campaign. This is the case for sponsoring in general and sponsoring of sporting events. As most sport sponsorship campaigns aim to improve the awareness and image of the sponsor, this thesis will focuses on variables influencing the awareness and image of a sponsoring firm of a sports event.
Through a literature study a number of variables were identified that might have an influence on the success of the sponsoring campaign. The most frequent mentioned variable that is thought to have an influence is the perceived fit between the sponsor and the sponsee in the mind of the consumer. If the consumer perceives the fit to be a good one than he is thought to be more likely to have a positive image and be better aware of the sponsor compared to those that do not consider the fit to be a good one. The literature also frequently mentioned the involvement of the consumer with sports in general, the sport central to the sponsored event and the event itself. It could be argued that a higher involvement with these three subjects could also lead to a higher awareness of the sponsor and image perception of the sponsor as the sponsor is aiding a subject that is important to the consumer. Some consumers have close ties to their region of origin. An event held in this region could possibly count on increased interest from these consumers. This increased interest would lead to more knowledge of the event and its sponsors.
Those that follow the event through the different forms of media, have a bigger chance to be exposed to the messages of the sponsor than those that do not follow the event. It is therefore well possible that those that follow the event are more likely to be better aware and have a better image perception of the sponsor.
Some consider watching sports a male dominated activity. Research has shown that males do watch more sports but have a different motive for watching sports than females. As the two genders differ, it is feasible that they might also differ in the image perception and their awareness of the sponsors of the sponsored sports event.
The last two elements that are thought to have an influence on the image and awareness of the sponsor are time and the fact that the consumer uses products of the sponsor. Consumers that use the products of the sponsor might be more receptive of the sponsorship message than those that do not use the products of the sponsor as there is already a connection between the sponsor and the consumer. Time might have an influence as the longer an event lasts, the greater the chance will be that a consumer is (repeatedly) exposed to the sponsorship messages.
tested though a survey with over 4000 respondents. The respondents were asked to answer a number of questions on the Volvo Ocean Race and one of the sponsors of this sailing event; ABN ANMRO. The Volvo Ocean Race is the largest sailing event in the world and ABN AMRO is one of the largest banks in The Netherlands. ABN AMRO participated in the Volvo Ocean Race and considered it to be a suitable platform to enhance the brand recognition, a platform for marketing activities and the means to contribute to the corporate identity. As such this case is well suited for the research central in this thesis.
By using a binary logistic regression the different variables were researched. The research showed that sponsoring does have an influence on the spontaneous awareness but not on the aided awareness of the sponsor. The research also showed that consumers of the sponsor had a higher chance of mentioning the sponsor unaided than those that were not a consumer of the sponsor. Further research should be conducted whether a fan of the event and somebody with an origin within the vicinity of the event also scores higher than those that are not fans of the event and do not have their origin in the vicinity of the event. The results left room for doubt with these two variables, doubt that did not exist in the remaining variables as these were found not to have an influence on the awareness of the sponsor.
By using a linear regression model the variables were researched whether they were predictors of a higher image perception. The research showed that consumers considered a fit between the sponsor and sponsee to be important. Those that considered the fit to be a good one, perceived the sponsor in a more positive fashion. Consumers of the sponsor also gave higher scores on image than non-consumers. A surprising result was obtained after researching the group of consumers that followed the event through the internet. Those that followed the event through the internet had a lower image perception of the sponsor than those that did not follow the event through the internet. None of the other variables were found to have an effect on the image perception.
Most studies research fewer variables than the amount of variables researched in this thesis. These researches usually focus on one or just a few variables. As these researches only focus on one variable they neglect other possible variables of influence. These variables are not included in the research and their (possible) influence is attributed to the researched variable. Therefore the conclusions of these researches might be biased or incomplete. Though they were partly correct to do so as there were only a few variables found that were of significance. However, most of these studies did not incorporate the fact that the respondents in their survey were consumers of the sponsor. Consumers of the sponsor scored higher on both the awareness and image of the sponsor. Not many studies used this variable during their research. As such their results might be incomplete or even suspect.
Key Words
Sport sponsoring; Awareness; Image
Preface
The final component for most students, of a Master study, is writing a Thesis. This also proved to be true for me. The result of this final component lies in front of the current reader and holds the title: “The influence of sport sponsoring on the image and the awareness of the sponsor”. This Master Thesis was written in order to graduate at the University of Groningen. The focus of the study became clear during the initial stages of the writing process. As the data presented proved to be different than expected, the direction of the thesis was forced to change as well. For me this was a good development as the resulting subject of the thesis was more in line with my personal interests.
I would like to thank everybody that aided me in writing my thesis. Both family and friends have supported me during the writing process and granted their insights and opinions on the Thesis subject. Besides my friends and family there are a few people I would like to thank personally.
Dr. K.J. Alsem of the department of marketing at the University of Groningen. It was Dr. Alsem that suggested the chosen subject. It was also thanks to his contacts that I was able to gain the raw data necessary for this thesis. He also provided me with useful input and feedback during the different stages of writing.
Dr. J.E. Wieringa of the department of marketing at the University of Groningen. Dr. Wieringa aided me in the statistical part of the Thesis. Furthermore he provided much feedback and suggestions on the structure of the Thesis.
S. Schuurman, Marketing manager at ABN AMRO. Mister Schuurman provided me with data and background information on ABN AMRO and their sponsorship of the VOLVO Ocean Race.
Groningen, January 2009
Summary... 3 Preface... 5 1 Introduction ... 8 1.1 Managerial relevance... 8 1.2 Academic Relevance ... 9 1.3 Problem statement ... 11
1.4 Thesis structure overview... 11
2 Sponsoring theory... 12
2.1 Sponsoring definitions ... 12
2.1.1 Sponsoring compared to advertising ... 12
2.2 Trends that influenced sponsorship ... 15
2.3 Elements of Sponsoring ... 17
2.4 Goals of sponsoring... 19
2.4.1 Brand equity... 19
2.4.2 Awareness ... 20
2.4.3 Image... 21
3 Proposed variables influencing the image and awareness ... 23
3.1 Exposure ... 23
3.2 Fit between the sponsor and the sponsee ... 24
3.3 Variables influencing customer involvement... 27
3.3.1 Being a Fan ... 27
3.3.2 Region of origin ... 31
3.3.3 Gender... 32
3.4 Customer of the Sponsor ... 34
3.5 Time effects... 35 3.6 Conceptual model... 37 4 Research... 39 4.1 The case... 39 4.2 The survey... 40 4.3 Methodology ... 41 4.3.1 Statistical methods ... 42 4.4 Variables ... 43 4.4.1 Dependent variables... 43 4.4.2 Independent variables ... 44
5 Results and conclusions ... 47
6.1 Implications for researchers ... 56
6.2 Implications for managers... 57
7 Discussion and Criticism... 60
7.1 Criticism... 60
7.2 Discussion... 60
Referential ... 62
1 Introduction
With great sporting events such as the Olympic games, Wimbledon, the Tour de France and the European soccer Championship, the summer of 2008 was a great time for any sports fan. Millions watched their heroes standing proudly in their sports uniforms depicting names of their sponsors. Teams competed in Stadia full of billboards and using products of companies that wish to be associated with the event. Before the event, after the event and even during the event spectators are exposed to messages by such companies as Coca Cola, McDonalds, Adidas, Philips, Rolex, Visa and IBM. These companies are willing to pay millions of Dollars to be attached to the sports spectacle. The amount of money, such companies are willing to spend on sports sponsoring is growing each year (Crompton, 2004).
1.1 Managerial relevance
In 1980, a total of 900 companies spent 300 million US Dollars worldwide on sponsoring special events. By 1986 the number of companies rose steadily, spending up to $1 Billion (Sandler & Shani 1989). Another example of this rise in organisational sponsorship spending can be seen at the Olympic Games. To find sponsors for the 4 yearly event the International Olympic Committee (IOC) established The Olympic Program (TOP) which is run by the IOC, not the hosting Olympic organizing committee. Theirs was the task to raise sponsorship money and they gathered $95 million during the 1988 Olympics in Seoul, $175 million in Barcelona in 1992, $350 million in 1996 and $550 million in 2000 with the games in Sydney (Crompton, 2004). Besides the TOP sponsorship, the hosting organizing committee also attracts sponsors that wish to associate themselves with the Olympic Games. The Sydney Organizing Committee acquired $492 million in this fashion, bringing the total amount of money generated through sponsorship for that event alone, over $1 billion (Crompton, 2004). Compared to the $4.18 million generated at Montreal in 1976 it gives a clear impression of the rise in importance of sports sponsorship. In 1999, organisations worldwide spent $19.2 billion sponsoring sports, arts, entertainment, good causes and events. Estimations on the amount spent on sponsoring in 2007, range around $26 billion (IEG).
The growth of sponsorship has not just been prominent money wise, but also in terms of being a legitimate element of a company’s promotional mix (Javalgi et al., 1994; Lee, Sandler & Shani, 1997). Today, sponsorship takes on a more strategic role in the organisational marketing strategy. As it has the ability to create a potentially sustainable competitive advantage (Amis et al., 1999; Fahy, Farrelly & Quester, 2004). Sponsorships of events have contributed greatly to realising marketing aims, especially in increased brand awareness (Cornwell et al., 2006). As a result the traditional media have been losing ground in favour of sponsoring as they are considered to have become expensive and increasingly cluttered. Now the number of companies participating in some form of sponsorship has been rising each year (Coppetti, 2004) as these organizations seek new ways to reach audiences and enhance their image (Javalgi et al., 1994; Crompton 2004). A research by Lokerman, Ruts and Sijbesma (2000) has also shown a rise in sponsorship expenditures in The Netherlands. Sponsorship is now viewed by some as a cost-effective alternative compared to other forms of marketing strategies (Lee, Sandler & Shani, 1997). This has however diminished a little during recent years as sponsoring costs rose for many large events (Crompton, 2004).
Another reason for the increase in the use of sponsorship is of sponsorships ability to reach unprecedented audiences in terms of target diversity and target quantity (Lardinoit & Derbaix, 2001). No matter the age of the consumer, both old and young are fans of sports and can be reached through sponsoring (Wann, 2002). It also provides sponsors with an exclusive way of promoting themselves, something that is not present in other forms of communication (Amis et al., 1999). For brands such as Gillette, Shell, Coca-Cola, and Vodafone, sports sponsorship has been crucial in their marketing campaigns and provided these very different brands with the means of reaching a global audience (Akaoui, 2007). Especially with a rise in the number of leisure events, the opportunity and the awareness for corporate event sponsorship is at an all time high (Gwinner, 1997). Sponsorship is the fastest growing form of all methods of promotion (Jagre, Watson & Watson 2001). According to the International Event Group (IEG) sponsorship is the world’s fastest-growing form of marketing. The change in organisational opinions on sponsorship has also attributed to the rise in its use.
1.2 Academic Relevance
essential role in the success of the sponsoring activity. Their role and influence is too often underestimated. Fundamentally, there needs to be a strong understanding between the sponsor and the sponsee. Elements such as a psychological fit in the minds of the spectators are crucial in order to achieve target customers and use sponsorship to its full potential (Fahy, Farrelly & Quester, 2004). More research is needed to state with complete certainty that a fit in the minds of the consumer has a substantial influence on the awareness and image of the sponsor in the minds of the consumer.
Another factor of great importance is the sports spectator who is subjected to the sponsoring messages. Research done by Grohs, Wagner and Vsetecka (2004) has shown that involvement with an event has a positive influence on the brand awareness of the sponsor. They do not look at other characteristics of the consumer and the reasons behind his involvement with the event. Even though sport spectating is a popular form of spending one’s leisure time (Kwon & Trail, 2001), little research has been aimed at the fans of the sports that watch the sponsored event. This is an interesting fact as more people than ever consider themselves to be a sports fan (Laverie & Arnett 2000). Only recently scholars have been paying any attention to sport fans in their researches (Kwon & Trail, 2001). This has led Tobar (2006) to state that more research is needed on the subject of sport fandom and sporting events. One of the elements in this study is to find out if the involvement of the spectator with the event is indeed influential in the success of the sponsor. Additionally some demographic variables might also indicate the impact of the sponsoring on the spectator.
Only a handful of empirical studies have looked at the effect of sponsorship on the consumer. Most of these studies measure the impact of the sponsorship effort on the recall and recognition of sponsors (Lee, Sandler & Shani, 1997) as these are some of the reasons companies sponsor events (Crompton, 2004; Grohs, Wagner & Vsetecka, 2004; Meenaghan 1983; Meenaghan, 2001B). These studies did not always agree with one another. Where one study found an influencing variable, another found that variable to have little or no effect. Some researches showed an increased level on recognition and recall while others show only a marginal link (Lee, Sandler & Shani, (1997). It is clear that more research is needed on this subject from a scientific point of view, which is exactly what this research aims to do.
During the early years of sponsoring the main objective of companies involved in sport sponsoring was media coverage. This is no longer valid as mere exposure is not enough to predict behaviour toward the brand (Grohs, Wagner & Vsetecka, 2004). Today sponsor awareness (Cornwell, Roy & Steinard, 2001; Grohs, Wagner & Vsetecka, 2004; Shanklin & Kuzma, 1992) and image transfer (Grohs, Wagner & Vsetecka, 2004; Shanklin & Kuzma, 1992) obtained from the sponsored event are regarded as the main reasons for engaging in sport sponsoring. As such this research will be focussing on these two elements of brand equity.
information. If factors influencing sponsoring are better understood, organisations will be able to use this information to gain better results with their (possible) sponsoring programs if the variables are relevant to the sponsor or the sponsored event.
1.3 Problem statement
In order to fulfil certain goals of sport sponsoring, a better understanding about elements that influence these goals is required. Once these elements are known they might be used to a greater advantage by a sponsoring organisation. The main focus of this thesis will therefore be “to gain insight in the elements that influence the image perception and the awareness of the sponsor after a sponsored sporting event”.
To gain this insight a number of possible elements will be identified through a literature study. A number of elements will be submitted that are thought to have influence on the image perception of the sponsor, the awareness of the sponsor or on both. These elements and the proposed influence they will have will later be mentioned in the form of hypotheses.
1.4 Thesis structure overview
2 Sponsoring theory
Sponsoring has become such a common element in society that almost everybody has an idea what sponsoring entails. Even though literature on sponsoring is clear on what constitutes as sponsoring, many people are not. To clarify matters, this chapter will show that sponsoring is clearly distinct from the most common marketing instrument; advertising. This will be followed by an overview of the various definitions of sponsoring that have been influential in the literature and the definition that is used in this thesis.
This chapter will also discuss some trends in society that have had a great impact on sponsoring. Knowledge of these trends provide a deeper understanding of how sponsoring has become an important marketing tool. This will be followed by a number of elements that are central to sponsoring. These give an impression on the “working” of sponsoring and the impact for the sponsor and sponsee. This is done to give a better understanding of sponsoring as a marketing instrument and the make it clear that sponsoring creates a link between the sponsor and sponsee. This link is one of the goals of sponsoring. To create a link in the mind of the consumer. The created link in itself is not the goal in itself but will result in a number of possible goals of which awareness and image are the most dominant in sponsoring. These two goals are central in this thesis and a description of both will conclude this chapter.
2.1 Sponsoring definitions
As sponsoring is a distinct form of marketing it is important to realise how it is different from various other activities an organisation can partake in. First it will be discussed how sponsoring differs from advertising as many people think of advertising when discussing marketing activities. This will be followed by various other activities related or seemingly similar to sponsoring. Followed by various definitions of sponsoring by different researchers.
2.1.1 Sponsoring compared to advertising
Sponsors will position themselves as making the event possible for the consumer instead of focusing on their own products directly. In this sense, sponsorship is less seen by consumers as a form of promotion but rather as providing a service (McDonald, 1991). This indirect way of reaching the consumer is different than “normal” commercials. The intention for the consumer to purchase the products of the sponsor is hidden compared to an advertisement where the purchase intention is direct and clearly visible. If a positive attitude towards a sponsor is created, this will result in several positive consumer reactions. Consumers will be more inclined to act favourably towards the brand, pay more attention to the brand and will be more willing to include the sponsors’ product during product purchase. Research suggest that these positive attitudes also result in an increased purchase intention of the sponsoring brand (Speed & Thompson 2000) thus increasing the revenue of the sponsor.
In this way sponsorships help people enjoy and organise these events. Consumers are aware of this fact and see the factor benefit to society as a significant difference between sponsorships and advertising (Meenaghan, 2001B). It should be noted that social causes and benefits to the environment generate the biggest return in goodwill followed by sports and the arts (Meenaghan, 2001B). Though sports generate less goodwill than social and environmental causes, it is still capable of generating substantial goodwill. This goodwill is likely to be created with consumers that have some form of connection to the sponsored activity. As sponsoring, compared to advertising, is supporting a cause with which many consumers have an emotional bond (Meenaghan, 2001B). The aid given by sponsors to valued causes creates a “halo of goodwill” around the sponsor, which is driven by elements such as perception of benefit, the subtlety of the message of the sponsor, and the disguised commercial intent of the communication (Meenaghan, 2001B). This way the consumer does not feel that he is directly targeted by an organisation and be more receptive to the sponsors’ name, this is visually represented in Figure 1.
Figure 1. Differences in defence mechanism
The resulting lowered defence mechanism enables the sponsor to bring the message home with less opposition. Targets such as increase of the awareness of a company or product name, to build loyalty with a specific target audience and to change or strengthen consumer perceptions of the brand or company are met with less resistance, making sponsorships an ideal method to realise these goals. This is also possible with advertising but would be met with a heightened defence mechanism by the consumer. The ability to reach the consumer through sponsorship is therefore much different than with advertising.
2.1.2 Sponsoring compared to other activities
As there are a number of rights that are acquired by the sponsor, sponsorship differs from various forms of corporate giving and charitable donations and must not be confused with these seemingly similar activities. The motives for the involvement also differ between these activities and sponsoring. With corporate giving, an organisation might even be prepared to support their cause anonymously. This way they will not gain anything but the knowledge the organisation has given aid (Meenagahan, 1983). Unlike sponsoring, corporate giving has no strategic or tactical aim, whereas that is not the case with sponsoring. So sponsoring differs distinctly from corporate giving.
Another aspect that is closely related to sponsorship in the mind of some people is endorsement. Endorsement specifies the situation where an organisation, club or individual is paid a fee to use specified products (Meenaghan 1983). According to Dean (1999) endorsement can be seen as a part of sponsorship. Like sponsorship endorsement is capable of increased overall attitude toward the endorsed product (Crimmins and Horn 1996). Sponsorship however is a much broader concept of which endorsement can be a part.
Patronage differs from sponsoring as well. Patronage is the support, encouragement, privilege and often financial aid that an organization bestows on a person or organization. It is an act of generosity on the part of an organization or a private person with regard to a public institution, with no attendant expectation of profit or benefits received in exchange (Klincewicz, 1998). Though patronage does offer advantages for an organization in the form of tax reductions and some positive goodwill derived from their involvement, the primary aim of patronage is to aid the subject that is receiving money and not the organization. Patronage differs from sponsoring in this fashion. Also patronage does not involve an exchange of rights. In short, patronage cannot be considered sponsorship and is something entirely different (IEG, 2008; Javalgi, et al. 1994).
2.1.3 Definitions
The idea that patronage, endorsement and charitable donations are related to sponsoring however is still present in the minds of many people (Meenaghan, 1983) and organisations can use this to their advantage. Earlier attempts to define sponsorship have failed to come to any conclusive definition as many organisations had different ideas of what they considered to be sponsorship. Furthermore, several names where used to define the same principle, namely sponsoring. This did not make matters clearer as some used lifestyle marketing, events marketing and sports marketing without distinguishing between them (Meenaghan,, 2001B). This has led Meenaghan (1983) to form a new definition: The provision of assistance either financial or in kind to an activity by a commercial organization for the purpose of achieving commercial objectives. This definition has been used for a long time but it negates the fact that non-commercial organisations and individuals also use sponsoring.
sponsoring involves a formal agreement subject to local or international law. Copetti (2004) stated that sponsors have an increasing influence on shaping events they sponsor. This is not very surprising as the sponsor is depending in part on a third party (the sponsee) for their marketing success. This has led many sponsors to help shape events and change them to better suit their needs. An example of the sponsor influencing the event is the ABN AMRO sponsoring the Volvo Ocean Race. The ABN AMRO is an international bank with its headquarters located in the Netherlands. As part of their sponsoring the event, they requested that one of the harbours used during the races was located in their home country. Such influence should be carefully governed so both parties will know what is allowed and what is forbidden. Copetti (2004) came with the following definition of sponsoring that incorporated the legal aspects. This definition can be used for all types of sponsoring and is used in this thesis as it is a very clear definition:
A contractual relationship between two (or more) parties (sponsor and sponsee; both may be individuals or organizations) based on an exchange of goods (mostly money, in-kind contributions or services) against the right of association with the sponsee, to attain specific commercial goals (e.g., marketing communication, improving customer relationships) With this definition it is important to define sponsor and sponsee. The IEG (2008) defines sponsee as a property available for sponsorship. This can be an organisation or an individual but also a sport, a sporting team, or player (Nicholls, Roslow and Dublish, 1999). The sponsor is the entity that pays a property for the right to promote itself and its products or services in association with the property (IEG, 2008). As this thesis focuses on sport sponsoring, the sport element should be present in the definition used. This has led to a small addition to the definition to create a definition of sport sponsoring:
A contractual relationship between the sponsor and sponsee, where the sponsee has a sporting element connected to their primary functions, based on an exchange of goods, against the right of association with the sponsee, to attain specific commercial goals.
2.2 Trends that influenced sponsorship
Until the last decade of the previous century, most organisations viewed sponsorship as an obligation to the community. It was regarded to be somewhere between a public relation opportunity and a charitable donation (Gwinner, 1997). It was not viewed as a worthy alternative for other forms of advertisement and was treated accordingly. This was however to change.
This was not the only time that changes in governmental policy aided in the rise of sponsorship. In 2003 the Dutch government declared that they would reserve less money for various subsidies for the near future. Especially organisations with a cultural and sporting background were effected by this change of policy. This posed problems for many institutions that relied on government funding for continued existence. With this loss of income these institutions saw their funding, and with that the offered quality of their products and services drop as they where no longer able to maintain their level of previously offered quality. These organisations became desperate for additional funding. This funding was found in the form of sponsorships offered by both large and small corporations, making sponsorship funds a crucial or even vital part of their income (McDonald, 1991). The Netherlands was not the only country that faced a slow but steady withdrawal of the governments funding for sports and cultural activities. This trend has been noticeable in other countries as well (Coppetti, 2004). In these countries many organisations are also forced to seek funding elsewhere and sponsoring poses a logical source of income.
The withdrawal of the public sector combined with increasing costs, has made it all the more critical for event organizers to obtain outside funding in order to continue to exist (Gwinner, 1997). So the continuing growth in sponsorship expenditures can be attributed to both the rise in demand for sponsoring and the amount (supply) of organisations willing to sponsor (Meenaghan,1983). Today between 20 and 40 percent of all income of sports federations in The Netherlands is derived from sponsors (Lokerman, Ruts & Sijbesma 2000).
With sponsorship coming to age, more and more organisations try to benefit from an opportunity to be associated with an event even when they are not officially connected to that event (Meenaghan, 1994) thus without paying large fees, gaining association with the event (Meenaghan, 1998B). This is known as parasitic or ambush marketing. Basically by ambush marketing, the consumer is deliberately misled in believing that the ambush marketer is somehow associated with the event (Payne, 1998; Wheeldon, 2007). The reasons for organisations to use ambush marketing techniques are obvious. Sponsorships cost a lot of money. By trying to make people believe their organisation is linked to the event they can benefit from this without spending large amounts of money. As ambush marketing makes it difficult for the consumer to differentiate between an official sponsor and a fictitious sponsor, ambush marketing is very useful if one of the official sponsors is a direct competitor (Meenaghan, 1998B). Not only will this enhance the ambush marketer’s brand, but also diminish the effect of the competitors sponsoring campaign.
Even though the practise of ambush marketing is growing and some companies have used it to their advantage (Fahy, Farrelly & Quester, 2004), it seems that, being an official partner is still considered to be a great advantage. Research by Akaoui (2007) has shown that on average official sponsors do generate more brand experience than non-sponsors during the World Cup. With more and more effort spent on combating ambush marketing, it seems that sponsoring will have fewer problems with ambush tactics, enabling sponsors to profit from their investment as it was intended. Today sport sponsoring has become a widely accepted practice to such a degree that a commercial sport without some form of sponsoring has become extremely rare. Sponsoring has become of such importance that professional sports would no longer be possible in its current form.
2.3 Elements of Sponsoring
Much sport sponsoring evolves around depicting the sponsors’ symbols, logo’s and images on the sponsored property on the sporting field itself (Lardinoit & Derbaix, 2001). Aaker (1991) stated that a brand represents a set of associations that differentiate offerings within the marketplace. Associations include the brands name and logo, but also its values, causes and the organisations specific attributes that aid the consumer in making a selection among alternatives. It is therefore logical to show these to reach the consumer. Besides exposure to the symbols, logo’s and images of the company, sponsorship gives organisations opportunities for promotional activities such as selling, advertising and publicity (Nicholls, Roslow & Dublish 1999). These opportunities are vital to utilise as they will aid in making the sponsoring a success (Fahy, Farrelly & Quester, 2004; Meenaghan 1998). The use of sponsorship is a common strategy by many fast moving consumer goods firms (Woodside et al., 2007). During the European soccer championships, one cannot fail to notice the multitude of sponsors that are associated with the event in one way or another. These visual stimuli are usually limited to the brand name and occasionally to a few key words summarizing the brand's positioning platform (Pham & Vanhuele, 1997). These sponsorship stimuli on the field do not interrupt the sponsored event or the televised relay of that event. The focus is therefore always on the sports activity itself. This contributes to the low-involvement nature of this kind of message (Lardinoit & Derbaix, 2001). This makes sponsoring an indirect and subtle way of reaching the consumer (Meenaghan, 2001B).
spent on supplementing marketing activities is not surprising. If a sponsor fails to supplement the sponsorship with additional marketing activities, it risks the opportunity to gain goodwill (McDonald, 1991) and the image transfer between the sponsor and the sponsored activity (Meenaghan & Shipley, 1999). If the consumer only sees the sponsor buying space on jerseys and billboards as they might do in magazines, than the consumer will not perceive the sponsor as anything more than supplying funds and the marketing campaign will most likely have failed. It is therefore up to an organisation to show how they aid the sponsee. The additional marketing will bind the organisation in the mind of the consumer to the sponsored activity. This will also lessen the dangers of ambush marketing (McDonald, 1991).
Many elements of sponsoring are also present in “normal” marketing campaign, so what makes sponsoring any different? Sponsoring serves as a direct tie between an organisation and a sporting event (Sandler & Shani, 1989). An event will evoke many emotions with the consumer, emotions that can be transferred to the sponsoring organisation. The organisation will not have to create an artificial idea in the mind of the consumer but copy the existing one of a chosen event.
Many events are icons which are recognised by a target audience, whether it is the Olympics or the local football club. These sponsored parties already have certain associations connected to them. Sponsorship can ensure that some of the associated meanings will rub-off on the sponsor (Fahy, Farrelly & Quester, 2004). Sponsoring works as two parties exchange resources and the resources are thought to be equal for both parties (Crompton, 2004). A sponsor offers money, products, knowledge, media exposure or in-kind services that are desired by the sponsee (Crompton, 2004). In return there are a number of rights owned by the sponsee, which can be given to a sponsor. The most important ones are the following (Lokerman, Ruts & Sijbesma 2000):
Right to use the name Sales rights
Media rights Hospitality rights Promotion rights
Right to use a logo or face Exclusivity rights
Right to be mentioned in communication messages
2.4 Goals of sponsoring
A frequently used method of describing the objectives of sponsoring is the categorisation made by Meenaghan (1983) Meenaghan stated that there are seven main objectives of sponsoring that will give an organisation cause to partake in sponsoring activities:
Increasing awareness/recognition Changing or enhancing the brand image Guest hospitality
Sales promotion Raising staff morale
Demonstrating product features/innovations Personal objectives
This method of looking at sponsorship gives a clear view of the broad range of possible goals of a sponsorship program. However, this classification is also very rigid. Several of these objectives frequently overlap and sponsoring usually achieves several of these objectives instead of just one. It can also be argued that corporate governance, product trials (Crompton, 2004) and prestige could be added. This list of objectives is just an indication of the possibilities and features the more common ones. As such this thesis will not focus on all these possible objectives of sponsoring nor will they be discussed.
On average the main influence of sponsorship lies with the first two objectives described by Meenaghan: 1) increasing the awareness and/or recognition of a brand or company and 2) changing, forming and enhancing attitudes towards organisations or brands (Meenaghan 1983). This conclusion was supported by Javalgi et al. (1994) whose research has highlighted the importance of these two goals in effective sponsorship programmes. Elements of these objectives can also be achieved by other methods of advertising, others however can not. This highlights the differences between sponsoring and advertisements even further. Therefore it is logical to gain insight in the ability of sponsoring to affect the image and awareness of the sponsor.
2.4.1 Brand equity
Research by Blackston (2000) shows that a brand is different from a product and that the difference is something in which a consumer has invested. As such the consumer has something to gain or to lose from changes in the brand equity. Keller (1993) agrees that brand equity has value both for the consumer and the organisation that uses the brand. Yoon and Donthu (2001) state that brand equity captures the added value for consumers of a brand. They make it clear that the value of a brand is not the same for all consumers. Just as not all products appeal to all consumers, not all events will matter to everybody.
The most well known way of categorising of the different elements of brand equity is described by Keller (1993) and later also by Aaker (1995). Keller has made a distinction of four elements that together make up brand equity. Important to note that the first two elements of this categorisation are the same as two of the objectives of (sport) sponsoring given by Meenaghan (1983). As brand equity has been subject of much research in the past decade and it entails these two objectives of sponsoring it is only logical that brand equity is discussed in this thesis. Another reason for researching brand equity is found by Akaoui (2007). Akaoui stated that brands see live events as opportunities to connect with (possible) consumers and build brand equity and sales. Showing the importance of discussing brand equity in relation to sponsoring. The four elements identified by Keller (1993) and Aaker (1995) are:
Brand awareness Brand image Brand loyalty Brand quality
As only two of the found elements of brand equity are in line with the objectives of sponsoring defined by Meenaghan (1983), this thesis will only focus on the first two elements of brand equity.
2.4.2 Awareness
Surveys conducted recently in Canada, Germany and the United Kingdom, showed that organisations use sponsorship primarily to increase the brand awareness and boost the corporate image (Grohs, Wagner & Vsetecka, 2004). These results were supported by Shanklin and Kuzma (1992), as their research showed that many of the Fortune 100 organisations used sponsoring to increase awareness of brands and enhance corporate image. Most research concerning brand equity and sport sponsoring has mainly been focussed on building awareness (Gwinner & Eaton 1999). Thus highlighting the importance of awareness for the sponsor.
Awareness can be seen as a useful measure for effectiveness to indicate success in creating a link between the sponsor and the sponsored activity. This is crucial if there is to be an image transfer and subsequent sales. Awareness roughly translates to the amount of people that remembers the sponsoring organisation after the event (Grohs, Wagner & Vsetecka, 2004). It deals with the salience of the brand in the mind of the consumer.
recollect the sponsor involved. One method of finding out if the consumer has been reached on a subliminal level, is the use of aided recollection. In order to gain insight on the changes in brand awareness after an event both brand recollection and brand recall should be measured (Cornwell et al., 2006). Keller (1993) has stated that brand awareness can be divided in two forms. Namely: brand recall and brand recognition. Brand recall deals with the ability of the consumer to retrieve a brand from memory when faced with a product category. According to Keller (1993) brand recognition shows the ability of the consumer to confirm prior exposure to a brand when confronted with the brand. Cornwell et al. (2006) have also done some research on sponsoring and brand awareness. They point out that brand awareness in sponsoring is usually measured by both recall and recognition of sponsor-event pairings. By making this distinction between the two forms of awareness, it connects perfectly with on of the two reasons an organisation sponsors an event: Increasing awareness and recognition (Meenaghan, 1983).
2.4.3 Image
The value of brand image is tied to perceptions held by consumers of the brand (Keller 2000). So in order to strengthen the image, the perceptions could be strengthened or altered to a more desirable state. One method of strengthening an image is to share an image with an event. This is similar to sharing the image of a celebrity that is hired to endorse a product during promotion campaigns (Javalgi et al., 1994). By sponsoring an event, an event’s image will become associated with the sponsors name and image (Gwinner, 1997). Another possibility is that an image will be transferred from an event to the sponsor (Gwinner and Eaton, 1999; Gwinner 1997; Javalgi et al. 1994; Meenaghan 2001). Making sponsorship well suited to achieve certain objectives concerning image (Gwinner and Eaton, 1999; Gwinner, 1997; Javalgi et al., 1994; Meenaghan 2001). Gwinner further states that improving or strengthening brand image is one of the main reasons for organisations to sponsor an event. It is also important to note that sponsorship can be used to influence both the brand image as well as the corporate image (Javalgi et al., 1994)
Many organisations that hope to benefit from using sponsorship as a marketing tool, expect the image of the sponsored property to enhance, repair or even define their own image. Javalgi et al. (1994) have done research on sponsorship and image and they conclude that the corporate image can enhance through sponsorship. The outcome however is not a given, corporate sponsorship might result in a diminished or even negative image for the sponsor if consumers hold prior negative perceptions. Research showed that this “rub-off” effect does occur (Fahy, Farrelly & Quester, 2004), making the choice of sponsored activity extra important. If an activity is chosen to be sponsored and it has an image contrary to one’s own, this might not result in the desired effect.
Basically the transfer of image happens if consumers have pre-existing associations regarding the sponsored property linked with the sponsoring entity (Gwinner & Eaton 1999). In this fashion, associations such as youthful, elitist, extreme, relaxing, sophistication, strength, honesty and quality are transferred in the mindset of consumers that are exposed to the sponsored property (Gwinner, 1997). This does not have to be limited to one association. Most events will evoke multiple and frequently different associations in the mind of different consumers. The transferred event image can be seen as a group of image associations. This event image reflects the meaning of the event to the individual consumer (Gwinner, 1997).
The link a sponsorship program creates between the sponsor and sponsee does not have to be immediately obvious to the consumer. The link can also be unsubstantial and even lack a logical link between the products offered by the sponsor and sponsee. To make this kind of link evident in the mind of consumers, additional marketing efforts will be required (Cornwell et al., 2006).
Other factors can also influence the corporate image. If a company is facing bad publicity simultaneously with sponsoring an event, this will have an influence on the effect of the sponsoring campaign. An example of this is Credit Lyonnais and their sponsoring of the Tour de France. Their sponsoring had resulted in the leader (and thus the best cyclist) of the Tour to wear the house colours of Credit Lyonnais. Unfortunately this apparent strategic fit with the sponsor (Credit Lyonnais wanted to tell the world they were the best) was not enough to get the public to forget the stories of mismanagement that plagued the bank. The loss of trust in the bank resulting from these stories tainted their image and even sponsoring the high profile Tour de France could not bring a change to this image (Fahy, Farrelly & Quester, 2004). Even though sponsorship can change image perceptions in the mind of the consumer, it is not a miracle worker that can do the impossible.
Bennet (1999) found in his studies that sponsoring also had another result. It created perceptions of wide spread use of the sponsoring brand. And thus it increased indirectly the desirability of the products of the sponsor. This was found to be an additional change in the image besides the transfer of the sponsee’s image.
3 Proposed variables influencing the image and awareness
This chapter will discuss a number of variables that might predict a change of the image and awareness of the sponsor after sponsoring an event. If an opinion or the awareness of a consumer is to change through sponsoring, exposure to the sponsoring is necessary. If a consumer is not exposed to the sponsoring campaign, that consumer will not be affected by its message. Exposure to the sponsoring campaign is therefore vital if a sponsoring campaign is to change the image or awareness of the sponsor. This chapter will start by explaining what is meant by exposure.
This will be followed by a number of predicting variables, starting with a perceived fit between the sponsor and the sponsee. Many researchers state that a strong similarity between a brand and sponsored event in the mind of the consumer will have a positive influence on the image transfer. As this is the most common predictable variable in (sport) sponsoring literature, this variable will be the first to be discussed.
Followed by a number of variables concerning the involvement a consumer might have with an activity related to the sponsored event. As this thesis focuses on sport-sponsoring these variables are of great importance. Many consumers have strong emotions concerning certain sports, sports in general, sport clubs and certain locations. A higher involvement with such related activities might make a consumer more receptive to the sponsoring message. The gender of the consumer might also be of significance and will be discussed in this chapter.
Another element that might be of great importance is whether the consumer already purchases the products of the sponsor. These consumers have a reasonably favourable perception of the sponsor as they find the products of such a quality that they have purchased them. These consumers might be more receptive to the sponsoring message. So whether a consumer is a regular customer of the sponsor is another proposed predicting variable.
The last proposed variable is “Time”. The longer an event lasts, the more opportunities there are for a consumer to be reached by the sponsoring messages. This increased the chances a consumer is confronted by the sponsoring message and the number of times a consume might come in contact with the sponsoring firm.
The variables lead to a number of hypothesis that will conclude this chapter together with a conceptual model regarding the proposed variables and their influence on the image and awareness of the sponsor.
3.1 Exposure
television, radio, magazines, internet and posters. This exposure can also come in the form of word of mouth and through posters of the event. Being present at the event itself where the sponsor is actively promoting itself and participating in the race is also a method in which a consumer can be exposed to the sponsor.
The exposure results in realisation that the sponsor, is a sponsor of the event in the mind of the consumer. The realisation that a link exists between the sponsor and the event is important if there is to be a benefit for the sponsoring company. So during this thesis, exposure in the context of the conceptual model, will mean exposure to the messages of the sponsor which have resulted in awareness that the sponsor is sponsoring the event.
This provides a certainty that those that know that the sponsor in partaking in the event, have been exposed to the sponsor in one way or another with a degree of success as the message has been remembered. This provides a distinction between those that have been reached successfully and those that have either not been reached or been reached inadequately. This also provides an opportunity to compare the difference between these two groups.
In the following paragraphs a number of variables will be discussed that might have an influence on the image and the awareness of the sponsor through exposure to the sponsored event. Figure 2. gives a visual representation of this proposed influence:
Figure 2. The hypothesized influence of variables on the image and awareness of the sponsor
3.2 Fit between the sponsor and the sponsee
Why would organisations such as Hertz, IBM and HSBC sponsor a tennis Grand Slam like Wimbledon? A car rental service, an IT-company and a bank seem to have little in common at face value with the traditional rich All England Tennis Championships. Most people would quickly detect the relationship between Wimbledon and tennis products producing sponsor Slazenger as this link seems logical to many people. But many brands fit Wimbledon in a less obvious fashion. The watch making company Rolex is also a sponsor of Wimbledon. In order to make the fit more obvious for consumers they focus on mentioning that they provide the time keeping at the matches. A mainstream belief on sponsoring says that there should be a fit between the sponsor and the sponsored event. The long term relationship between a sponsor and a sponsee is especially effective when the values of the event connect with those of the target audience of the sponsor (Bee & Kahle, 2006). A number of researchers have shown that a perceived fit in the eyes of the consumer, between the images of the sponsoring brand and
Exposure Image /
Awareness
the event, facilitates an image transfer between the two entities (Speed & Thompson, 2000). If a sponsorship is perceived to be fitting in the eyes of the consumer, they will have a more positive attitude towards it (Quester &Farrelly, 1998). This in turn will positively influence their behavioural response towards the organisation (Keller, 1993). Therefore a fit between a sponsor and the sponsee seems to be of great importance.
A fit embodies an idea of transferability of expertise or synergies in activities (Rumelt, 1974), this could be a similarity in markets, technologies and products. An example of this would be a sports shoe producer sponsoring an athletic oriented event. The fit can also be less substantial in that it is complementary in skills and activities (Porter, 1987) or completely intangible (Aaker & Keller, 1990). Simons and Becker-Olson (2006) uses the following explanation of fit in his studies; Fit between a firm and a sponsored cause is high when the two are perceived to be congruent in the eyes of the consumer. That congruently can be derived from brand concepts, products, attributes, mission, technologies, markets or any other key association. If the fit is not directly apparent it is up to the marketer through the use of additional promotional measures to make this fit clear in the minds of consumers (Cornwell et al., 2006).
Becker-Olsen and Hill (2006) define fit as a strategic match between the sponsor and the sponsored in target audience, mission and/or values. But they provide one definition where many authors use a different version. To describe the fit between a sponsor and the sponsored numerous definitions and terminology have been used such as similarity, link and synergy. The most common method of describing a fit between a sponsor and a sponsored event is to distinguish between an image related and a functional fit (Grohs, Wagner & Vsetecka, 2004; Gwinner & Eaton, 1999), for example where a functional fit usually encompasses an easy identifiable fit between functions and where an image fit looks for shared attributes between the two parties. It is not uncommon for a sponsor to make use of a sponsorship in order to strengthen a desirable aspect of his image through shared values (McDonald, 1991). However, images do not shift easily in the minds of the consumers. It will take much effort by the sponsor in order to benefit from the desired image. The sponsor must ensure that the consumers perceive the sponsor being relevant to the sponsored (McDonald, 1991).
Fundamentally, a fit matters as high-fit sponsorships are what is expected from an organisation as it feels consistent whereas low-fit sponsorships lacks this consistency (Speed & Thompson 2000). The consistency aids in the clarity of the chosen position of the organisation and this influences the degree on which the sponsorship is liked by the consumer. Keller (1993) stated that the attitude towards the sponsorship and the clarity of the fit have an influence on the behavioural response towards the organisation. So not only the attitude toward the sponsor will be influenced, but also the revenue of the sponsor.
equity (Simons & Becker-Olson, 2006). A high fit creates a more consistent brand identity and differentiates the brand through clear beliefs and images (Becker-Olsen & Hill 2006).
One of the reasons a fit is of such importance, is that consumers favour consistency in their thoughts (Ahluwalia & Gürhan-Canli, 2000; Yoon, Gürhan-Canli & Bozok, 2006). If a pairing seems to be consistent, a consumer is more likely to respond favourably (Keller & Aaker 1992; Speed & Thompson 2000). With a low-fit there is a lack of consistency and this will in turn negatively influence the response and attention of the consumer (Porter & Kramer 2002; Speed & Thompson 2000).
Consistency builds clarity for the consumer. They will know what to expect from the organisation (Keller 1993). High-fit sponsorships will provide more clarity as it is what the consumer expects from the organisation. When clarity is high, buyers who value the brand’s benefits perceive less risk in choosing the brand and feel less need to gather information to make that choice (Erdem and Swait 1998) A clearer position also makes the brand more credible which in turn will improve the chances that the brand is included in the consideration set of the consumer (Erdem and Swait 2004). Woodside et al. (2007) state something similar, they suggest that there will be a more positive attitude and a higher purchase intension if the sponsor has a high fit with the sponsored event. This makes a high fit even more important for the sponsor.
Gwinner and Eaton (1999) have done research on the image transfer between a sponsor and a sponsored event. They found that if there is a strong similarity between the brand and the event in the eyes of the consumer, this will influence the image transfer. This was the case for both a functional fit as well as with an image based fit. Simons and Becker-Olson (2006) agree with this statement and also predict a higher brand equity for the sponsor if there is a high fit. It therefore seems clear that a fit between a sponsor and sponsee in the mind of the consumer is vital for success. According to much literature on sponsoring, fit is considered to be of great importance for the success of the sponsoring campaign. Based on the literature study a number of hypothesis can be formulated. These hypotheses will be researched later in this thesis. Figure 3. gives a visual representation of the hypothesised importance of a perceived fit between the sponsor and the sponsored event.
H1A A positive fit in the minds of consumers between the sponsor and the sponsee will have influence on the ability to recall the sponsor
H1B A positive fit in the minds of consumers between the sponsor and the sponsee will have influence on the ability to recollect the sponsor
Figure 3. The hypothesized influence of perceived fit on the image and awareness of the sponsor
3.3 Variables influencing customer involvement
There are a number of proposed predicting variables on the change in image and awareness concerning the involvement of a consumer. The degree of involvement a consumer has with an activity related to the sponsored activity might be a predicting variable for the success in increasing the awareness and or changing the image of the sponsor.
It is therefore important to identify the different variables affecting the involvement with the sponsored event. This will also help managers with segmentation in their attempt to reach their target group. These factors can be divided into two groups. Involvement related to the sponsored event, and involvement that stems from association with the sponsoring organisation. The different proposed variables will be discussed in the following paragraphs.
3.3.1 Being a Fan
Some consumers spend many hours watching television. This comes as little surprise as these consumers exhibit genuine enthusiasm stemming from a strong and solid interest directed to a subject relevant to the individual. In the case of sports this regular wish to watch an individual, event, match or team, increases the possibility of exposure to stimuli of the sponsors (Lardinoit & Derbaix, 2001). Therefore it seems logical to suggest that the more often a consumer views an event, the better chance there will be that sponsorship messages will be noticed.
The feeling of deep involvement with an activity can lead to somebody to be considered a fan of this activity. To some being a fan of an activity can be considered a lifestyle. An extreme example of this are football hooligans. They will remain faithful to their idols even when their idols are unsuccessful (Laverie & Arnett 2000). Their attitude towards the event or team will be consistently favourable and relatively stable. This attitude relates to the enjoyment that is felt by the consumer and the support felt for it (Lee, Sandler & Shani, (1997). But to simply have a psychological connection to a team or event is not enough to be considered a fan. One
Fit between the Sponsor and
Sponsee
Exposure
team or event. To be considered a fan, a consumer must consider himself to be a fan (Wann, 2002). Being a fan is thus a personal decision and must be determined by the individual consumer himself. But the enduring involvement felt by a fan is a genuine enthusiasm for a cause that stems from a strong interest and relevance felt towards it. This leads the fan to follow his cause of interest on television or in real life when the time is available. Consequently the fan is exposed to an increased level of sponsor’s messages presents during the sports activity (Lardinoit & Derbaix, 2001).
Mason (1999) attempted to clarify sports customers to a greater degree, differentiated four different groups of customers of professional sports. 1) Fans are the first group he differentiated. The other groups are 2) television and other media, 3) communities which build facilities and support local clubs and lastly 4) corporations that support teams and events. This classification forgoes several aspects in its desire to categorise all variables. For example a community is bound to include many fans. With personalisation of brands being a hot topic, it can be argued that certain organisations or sponsors are actually fans or show fan characteristics. It is also not uncommon for a television station to sponsor the event it is broadcasting. Therefore, it can be assumed the different groups interact and flow over.
When a team or player is successful, fans will participate in their celebration. The fans and players will revel in the success of what has been achieved (Wann, Waddill & Dunham 2004). Even though it has been the players who have been competing, fans feast as if they stood on the field themselves and accentuate their affection for their team. This principle is known as “basking in reflected glory” (Bernache-Assollant, Lacassagne & Braddock, 2007). As victory brings a positive state of mind and gives fans an opportunity to bask in the reflected glory of their team, victories attract more fans. These fans are often mockingly referred to as “Fair weather fans” (Bristow & Schneider, 2003). Some fans treat this group with a little contempt, but from a sponsor’s point of view fair weather fans are a potential for a larger consumer base. To share in the reflected glory, fans show they are connected to a particular team or event (Cialdini et al., 1976). In this way they show their allegiance and are directly identifiable. An example of this would be wearing a cap from the event or a shirt of their favourite team both of which usually also depict a sponsor.
Individuals tend to define themselves to a certain degree in terms of the social group they belong to and thus develop a positive social identity. Generally, a positive social identity is achieved by comparing other groups to one’s own. In this way a valued psychologically distinctive group exists in the mind of group members. For sport fans, social comparison can be very important. Consequently one of the greatest threats to the group is a lack of performance (Bernache-Assollant, Lacassagne & Braddock, 2007). But many fans have such a high involvement with their team that they state that they will follow their team in good and bad times. As such it can be argued that only the so called “fair weather fans” are lost when performance is lacking.
Not all consumers have the same emotional attachment to the same sports. Consumers differ in their attitudes towards the different sporting events. Research suggests that those that exhibit a higher level of fandom also enjoy themselves more during an event (Tobar, 2006). Organisations that sponsor a sport that is of little interest to certain consumers will have a harder time reaching those particular consumers. Reason would suggest that the effectiveness of a sponsoring campaign will therefore be either limited to consumers with an emotional connection to the sponsored event or that it will have more effect on consumers with an emotional connection. When an organisation decides to sponsor an event, it will support or even make the event possible. From the perspective of a fan this will mean the organisation is responsible for making something happen that is important to him. This will create an emotional reaction from the fan that will lead to goodwill towards the sponsor in the mind of the consumer (Meenaghan 1998). The sponsor might even become a virtual friend and ally in the consumers mind (McDonald, 1991). Fans are generally also better aware of investments the individual sponsors have made and thus know what it had cost the sponsor to aid “their” event or team. This also evokes a more positive state of mind towards the sponsoring firm (Grohs, Wagner & Vsetecka, 2004). Many consumers are sceptical about the commitment a sponsor has with a sponsored event. But even if the consumer is cynical about the reasons of the sponsor for sponsoring the event, goodwill will be created towards the sponsor (McDonald, 1991). So even if the sport fan rationally believes that the sponsorship had no effect on his way of thinking and acting, there has been some effect in the way the sponsor is approached emotionally. With this in mind it is not surprising that Gantz and Wenner (1995) state that sport fandom can be devised in three components, namely a cognitive component, comprising of rational and financial elements, an affective component, comprising of emotions and feeling and a behaviours component comprised. So being a fan is partly reason and partly emotion with a desire to indulge in the valued past time.
Research suggests that people have a better ability to learn when they are in a positive mood compared to a negative one (Pham 1992). This is important to realise as fans when exposed to promotional messages are partaking in a pastime that they feel enthusiastic about and that they consider to be enjoyable. So fans are targeted with promotional activities under ideal circumstances for organisations. Their state of mind will make them more receptive to the messages of the sponsors (Nicholls, Roslow & Dublish 1999) and they will have a lower state of alertness (Meenaghan, 2001B). Some fans are even actively trying to find out more information on a brand that is sponsoring their favourite team, event or sport (Lardinoit & Derbaix, 2001). As these highly involved fans follow their passion to great detail, they consider themselves to be experts on the matter. Like experts on other fields they try to sustain and enhance their knowledge on the subject (Okechuku, 1992). This results in a better understanding of brands associated with the sport and its sponsors, enabling fans to process the brand names on the field much faster and with little difficulty compared to non-fans (Lardinoit & Derbaix, 2001). It will take these highly involved consumers less effort to process the game and therefore have more capacity to process sponsorship stimuli on the field (Pham, 1992).
opportunities for a fan to be reached by a sponsor (Edell & Keller, 1989). Even though the learning process happens at a diminishing rate, it still shows that fans have a greater chance of being reached by the messages of the sponsors. However it could also be argued that a fan of the sport will be following the sport intently and have little time for his or her surroundings.
It is difficult to separate a sport practitioner from a sport fan as many people that watch a sport out of interest, will also have the desire to participate in such a sport (Wann, Schrader & Wilson 1999). It can be concluded that more research is needed on the relationship between sport fans and the effects the event has on them (Tobar, 2006). But it is argued that being a fan of the event, fan of sports in general and fan of the sport central to the event could have an influence on the image and awareness of the sponsor. With the previous discussion as a basis, the following hypotheses will be researched (Figure 4 gives a visual representation of these Hypotheses):
H2A Being a fan of the sport central to the event will have an influence on the ability to recall the sponsor
H2B Being a fan of the sport central to the event will have an influence on the recognition of the sponsor
H2C Being a fan of the sport central to the event will have an influence on the image of the sponsor
H3A Being a fan of the event will have an influence on the ability to recall the sponsor H3B Being a fan of the event will have an influence on the level of recognition of the
sponsor
H3C Being a fan of the event will have an influence on the image of the sponsor
H4A Being a fan of sports in general will have an influence on the ability to recall the sponsor
H4B Being a fan of sports in general will have an influence on the level of recognition of the sponsor
H4C Being a fan of sports in general will have an influence on the image of the sponsor
H5A Following the event through the media will have an influence on the ability to recall the sponsor
H5B Following the event through the media will have an influence on the ability to recollect the Sponsor
Figure 4. The hypothesized variables related to being a fan and their influence on the image and awareness of the sponsor
3.3.2 Region of origin
Some groups of people feel the need to defend their local city against “other cities”. They turn a sportive challenge into a regional dispute. This is a classical form of in-group versus out-group opposition (Bernache-Assollant, Lacassagne & Braddock, 2007). However this does not have to be in a hostile matter.
Certain teams become a synonym with certain cities or regions. For example some fans consider Ajax playing Feyenoord to be a match between Amsterdam and Rotterdam just because of their original home city. That both teams have more players from outside their respective origin than from within does not change that fact. This is a logical but important thing to realise. When sponsoring a team from one city, it might alienate consumers in another. Building a marketing campaign around a sponsored team will therefore likely have more effect in the native city of the sponsored team than in the home city of their main rival. So having a demographic understanding of the origin of certain fans can be valuable information (Nicholls, Roslow & Dublish 1999).
Based on the literature study on this subject a number of hypothesis can be formulated. Figure 5. visually represents these proposed hypothesis:
H6A The region of origin has an influence on the ability to recall the sponsor H6B The region of origin has an influence on the ability to recollect the Sponsor H6C The region of origin has an influence on the image of the sponsor
