The Long Reach of Sponsorship

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1 The Long Reach of Sponsorship How Fan Isolation and Identification Strength Jointly Shape Sponsorship Performance Marc Mazodier, Hong Kong Baptist University Conor M. Henderson, University of Oregon Joshua T. Beck, University of Oregon *authors contributed equally, order is reverse alphabetical

2 Tough Times for Brand Managers Brand value as a percent of enterprise value Project Context Graph source: Binder and Hanssens 2015 Good Times for Sponsorship Sponsorship is one of the few remaining channels to efficiently reach mass market customers Brand expenditures on Sports Sponsorship is $16B in North America & growing faster than general brand advertising (4.3% vs 2.6%) Digital ad platforms (e.g., Facebook) undermine traditional media, but also allow for targeting audiences based on location & interests which enables targeting isolated fans.

3 Research Motivation Manchester United and Chevy $560 Million sponsorship deal was criticized as a poor fit by fans living in Manchester. The deal is also very expensive considering Manchester population is only 530,300 ($1,056 per citizen). The deal appears more reasonable in light of Manchester United s global fan base and Chevrolet s global ambitions. An understanding of how isolated fans receive sponsor brands would help brand managers who were considering similar deals.

4 Isolation s Effect on Sponsorship Performance Depends on Identification Strength Fan Isolation Separation of a fan and team community Generates an affiliation motive Fan-Team Identification Strength Importance of team and fan community to fan s self concept Alters how fans cope with affiliation motives arising from isolation Strong fans cannot suppress identity, seek to bolster fandom by pursuing affiliation Weak fans suppress identity affiliation because it inhibits local affiliation

5 Conceptual Model Identification Strength Isolation Affiliation Motives Sponsorship Effectiveness More than simple affect transfer

6 Overview of Studies Study Subjects Design Outcome Purpose fans of Premier League team (UK) Measured Identity Strength, Isolation, Need to Belong Unaided recall of team jersey sponsor Establish simple interaction in real world 2a/2b 596 fans of Paris Saint- Germain (France) Measure Identity Strength, Manipulate Isolation & Sponsorship Unaided recall of sponsor brand Experimental validation fan of NFL teams (US) Measure Identity strength & affiliation motives, Manipulate Isolation Attitude towards sponsor Measure processes & new outcome

7 Study 1: Premier League (UK) Survey of 389 fans DV is simple unaided sponsor brand recall: what is the jersey sponsor of the [Team name] football club? Identification strength scale: adapted from Cameron s (2004) scale - 12 items (α=.82) I often think about being a [Team name] fan, In general, I am glad to be a [Team name] fan, I have a lot in common with other [Team name] fans Isolation: 5 items (α=.78) my community supports the [Team] (reversed), my community supports a different team; the average citizen of [city of residence] is very different from the [Team] s community of supporters

8 Study 1 Sponsor Brand Recall More (+1SD) Fan Isolation Less (-1SD) 1 Isolation worsens weak fans recall (ID strength less than 1.9, bottom 1% of the sample) Identification Strength Isolation improves strong fans recall (ID strength greater than 5.2, top 20% of the sample) 7 Evidence supporting affiliation motives explanation: Isolation effects go away for those with chronically low need to belong (scores less than 4.74 out of 7)

9 Study 2: Paris Saint-Germain (France) Procedure Stage 1: PSG Fan survey. Asked people living outside of Paris if they are a fan of PSG, and if so, to complete ID strength survey items Stage 2 : 1 week later, unrelated survey on layout of a news magazine. Participants read the magazine, commented on layout, and then named any advertisers they could remember DV unaided recall of Citroën target brand Manipulated PSG fan isolation (more vs less isolated) in cover story: More isolated: seeking magazine feedback from 500 citizens of la province and 50 citizens of Paris. Less isolated: seeking magazine feedback from 50 citizens of la province and 500 citizens of Paris. Manipulation check: I felt isolated and I felt alone (p <.05). Manipulated sponsorship advertisement conditions in magazine Ad with sponsorship or not (Study 2a) One or two exposures to ad with sponsorship (Study 2b)

10 Study 2a: Paris Saint-Germain (France) Advertisement with or without sponsorship Brand Recall Fan Isolation Context Less Isolated More Isolated Weak Identification Strong Identification Single Exposure to Ad with Sponsorship Weak Strong Identification Identification Single Exposure to Ad without Sponsorship

11 Study 2b: Paris Saint-Germain (France) One or two exposures to advertisement with sponsorship Brand Recall Fan Isolation Context Less Isolated More Isolated Weak Strong Identification Identification Single Exposure to Ad with Sponsorship Weak Strong Identification Identification Two Exposures to Ad with Sponsorship

12 Study 3: NFL (US) Isolation manipulation: As a fan of the [Team], think about a time when you were watching a [Team] game and everyone around you was rooting for a different team (also rooting for the [Team]). What was it like to be so distinct from (similar to) other fans? How did you feel? Describe this experience Affiliation motives. 5 item scale (α =.86): When you described your experience watching a game of the [Team], how did you feel? I felt a strong desire to fit in with fellow [Team] fans, I felt a need to belong to a [Team] group of fans, Read fan article with displayed sponsor ad Attitude toward sponsor: Rated attitude for seven different automobile brands: Rate your attitude toward the following brands List included the sponsor Chevrolet as well as Ford, Cadillac, Acura, Chrysler, Tesla, and Toyota. Identification Strength same as previous studies

13 Study 3 Results Attitude towards sponsor brand More Isolated Fan Isolation Context 2.5 Isolation reduces weak fans attitude toward sponsor (ID strength less than 3.72, bottom 7% of the sample) Isolation improves strong fans attitude toward sponsor (ID strength greater than 5.42, top 19% of the sample) Less Isolated More than simple affect transfer Identification Strength 7

14 Study 3 Results Affiliation Motives Explanation Evidence supporting affiliation motives explanation: All fans experience an increase in affiliation motives from isolation Strong fans double down while weak fans exhibit desertion More than simple affect transfer

15 Conclusion Engage Customers At Points of Passion You (brand) Chicago Cubs(team) Cubs Susan (target customer) Execution: How, When, Where? With Facebook and mobile advertising, brands can target audiences based on their location and stated interest

16 Execution: With Facebook and mobile advertising, brands can target audiences based on location and stated interest Target ads that highlight sponsorship on social media accordingly: -Out of state: target those who self identify as fans -In state: use broad targeting to reach less isolated moderate fans

17 Questions? For more info, please contact: