A Model of Consumer Buyer Behaviour Relating to the Sponsorship of Major Sporting Events in Australia

A Model Of Consumer Buyer Behaviour Relating To The Sponsorship Of Major Sporting Events In Australia Yayoi Chester Doctor of Philosophy 2007 A Model of Consumer Buyer Behaviour Relating To The Sponsorship Of Major Sporting Events In Australia by Yayoi Chester Faculty of Business and Enterprise Swinburne University of Technology Abstract This thesis investigates the key determinants of positive consumer behaviour to sponsorships. Using the consumer decision making process and classical conditioning principles as an underpinning framework, this thesis examines consumer perceptions of a sponsor, sponsored property and sponsorship activity relative to a consumer’s intent to purchase a sponsor’s product or service. The purchase intent of consumers is analysed as an outcome of five significant constructs: event factors, sponsor factors, sponsorship factors, a pre-purchase response and the transfer of image values. Intent to purchase is evaluated as the antecedent to purchase, however, both economic and non-economic outcomes are considered in this study as pivotal to encouraging positive consumer behaviour. A multi-method approach involved the collection of both qualitative and quantitative data. Focus groups established the scope of research followed by the distribution of multi-item surveys to members of the public from regional and metropolitan areas of Victoria, Australia. By selecting Australian Rules Football and the Australian Tennis Open as the context for the empirical component of this study, a number of sponsors in key industries could be examined. i Structural equation modelling was used to analyse survey data. The conceptual model and hypotheses were tested using exploratory and confirmatory factor analyses. The results show that consumer attitudes and beliefs about a sponsor, and their perception of fit between a sponsor and sponsored property, have a strong bearing on their pre- purchase response. The strength of a pre-purchase response is determined by a consumer’s interest in, and favourability of a sponsor’s products or services. Image congruence and a positive sponsorship experience ensure a transfer of image values occurs. This transfer is central to predicting a consumer’s intent to purchase, enhancing the possibility of actual purchase. Of the 696 survey respondents, half made an actual purchase of a sponsor’s product or service. This study posits solid sponsor and property collaboration assists effective sponsorship administration. Both parties must invest resources towards market research to facilitate the development and adherence of appropriate fit and congruence objectives. Image and image effects act as a mechanism from which consumers can construct meaningful evaluations of sponsorships and must also be considered. Most importantly, a holistic, consumer-centric approach to sponsorship examination offers practitioners a guide to effective sponsorship planning and execution. ii Acknowledgements I will reflect upon this experience as an important and fulfilling chapter of my life. It has been an incredible journey, one that has carried me across the borders of academia, to a place of personal significance. I am grateful to have experienced many highs throughout my candidature and I certainly could not have done so without a number of very important people in my life. First and foremost, I would like to express my gratitude to my amazing and inspirational supervisor, Dr. Antonio Lobo. I would not be where I am today without your superior guidance, understanding, and unconditional support. I feel so blessed to have met you and I am truly honoured to have had you as my supervisor. Thank you. I would also like to thank my wonderful co-ordinating supervisor Dr. Denny Meyer for her incredible support and expert assistance. Thank you from the bottom of my heart. I feel so lucky that you were a part of my team. Thank you also to the lovely and hardworking staff involved with the postgraduate program at Swinburne University. It has been an awesome experience. Additionally, a very, very big thank you to everyone who kindly volunteered their time to be a part of this research. I know I could not have done this without you all. On a personal note, I would like to thank my amazing mother for her love, strength, and support. I will eternally be grateful for everything you have done for me. Love you. Thank you to Stuart for being there for me when I needed you most. You mean the world to me. A big thank you to my family, including the wonderful Stan and Yvonne, and to all of my friends who have supported me every step of the way. Thank you! iii Statement of Declaration I, Yayoi Chester, declare that this PhD thesis: • contains no material which has been accepted for the award to the candidate of any other degree or diploma, except where due reference is made in the text of the thesis; • to the best of the my knowledge contains no material previously published or written by another person expect where due reference is made in the text of the thesis; and • where the work is based on joint research publications, discloses the relative contributions of the respective workers or authors. Signature Date iv Table of Contents Abstract i Acknowledgements iii Statement of Declaration iv Table of Contents v List of Tables xiv List of Figures xvi Chapter One Introduction 1.0 Background 1 1.1 Sports Sponsorship 2 1.2 Sponsorship and Consumer Behaviour 3 1.3 Context of the Study 3 1.4 Defining the Determinants of Sports Sponsorship Response 6 1.5 Examining the Key Constructs of Sports Sponsorship Response 7 1.6 Theoretical Contribution 10 1.7 Outline of the Thesis 10 1.7.1 Chapter One 10 1.7.2 Chapter Two 11 1.7.3 Chapter Three 11 1.7.4 Chapter Four 11 1.7.5 Chapter Five 11 1.7.6 Chapter Six 12 1.7.7 Chapter Seven 12 v Chapter Two Key Concepts in Sponsorship 2.0 Introduction 15 2.1 Sponsorship Definition 16 2.2 Sponsorship Development and Growth 18 2.3 The Role of Sponsorship in Marketing Communications 20 2.4 Sponsorship of Sports and Sporting Events 21 2.5 Sponsorship Objectives 25 2.6 Evaluating Effective Sponsorships 27 2.7 Issues in Sponsorship and Sports Sponsorship Practice 31 2.7.1 Issues Regarding Sponsorship Research 34 2.8 Chapter Summary 36 Chapter Three Consumer Behaviour and The Role of The Consumer in Sponsorship 3.0 Introduction 39 3.1 Developing Relationships Through Sponsorships 42 3.1.1 Relationship Marketing and Exchange Theory 42 3.2 Segmenting the Sponsorship Audience 44 3.3 Consumer Behaviour 44 3.4 The Consumer Decision Making Process 46 3.4.1 Need Recognition 48 3.4.2 Search for Information 49 3.4.3 Pre-Purchase Evaluation of Alternatives 50 vi 3.4.4 Purchase Decision and Consumption 51 3.4.5 Post Consumption Evaluation and Divestment 52 3.4.6 Consumer Satisfaction 52 3.5 The Psychological Influences of the Consumer Decision Making Process 53 3.5.1 Information Processing 53 3.5.2 Learning 53 3.5.2.1 Associative Learning 54 3.5.2.2 Cognitive Learning 54 3.5.3 Attitudes and Behaviour Change 55 3.6 Engaging the Consumer Through Sponsorships 56 3.7 Event Factors 56 3.7.1 Event Status 56 3.7.2 Liking 57 3.7.3 Fan Involvement 57 3.8 Sponsor Factors 58 3.8.1 Attitudes and Beliefs Towards the Sponsor 59 3.8.1 Prominence 59 3.8.2 Goodwill 60 3.9 Sponsorship Factors 61 3.9.1 Exposure 62 3.9.2 Sponsor-Event Fit 63 3.10 Sponsorship Effects on the Consumer 63 3.10.1 Interest 63 3.10.2 Recall and Recognition 63 3.10.3 Awareness 64 3.10.4 Favourability 65 3.11 The Transfer of Image Values 65 3.11.1 Activity Level Transfer 66 3.11.2 Emotive Level Transfer 66 3.11.3 Image Congruence 67 3.12 Chapter Summary 70 vii Chapter Four Determinants of Consumer Response to Sponsorship and Development of The Conceptual Framework 4.0 Introduction 72 4.1 Event, Sponsor and Sponsorship Factors 79 4.2 Event Factors 79 4.2.1 Event Status 79 4.2.2 Personal Liking 80 4.2.3 Fan Involvement 81 4.3 Sponsor Factors 82 4.3.1 Personal Beliefs 82 4.3.2 Sponsor Prominence 83 4.3.3 Sponsor Goodwill 84 4.4 Sponsorship Factors 85 4.4.1 Type and Level of Exposure 85 4.4.2 Sponsor-Event Fit 86 4.5 Pre-Purchase Response 87 4.5.1 Recall 87 4.5.2 Awareness 88 4.5.3 Favourability 88 4.5.4 Interest 89 4.6 Transfer of Image Values 89 4.6.1 Activity Level 90 4.6.2 Category Level 91 4.6.3 Image Congruence 91 4.7 Intention Purchase 92 4.8 Actual Purchase 93 4.9 Chapter Summary 93 viii Chapter Five Methodology 5.0 Introduction 95 5.1 Context of Research 95 5.2 Unit of Analysis 98 5.3 Research Design and Data Collection 98 5.4 Focus Groups 99 5.5 Instrument Design 101 5.6 Operationalisation of the Constructs 102 5.7 Phase One: Event, Sponsor, Sponsorship Factors 102 5.7.1 Event Factors 102 5.7.2 Event Status 103 5.7.3 Personal Liking of Event 103 5.7.4 Fan Involvement 103 5.8 Sponsor Factors 106 5.8.1 Personal Beliefs Regarding the Event Sponsor 106 5.8.2 Sponsor Prominence 106 5.8.3 Perceived Sponsor Goodwill 107 5.9 Sponsorship Factors 108 5.9.1 Level of Exposure 109 5.9.2 Type of Exposure 109 5.9.3 Sponsor-Event Fit 109 5.10 Phase Two: Pre-Purchase Response, Transfer of Image Values, Intention to Purchase and Actual Purchase 112 5.10.1 Pre-Purchase Response 112 5.10.2 Interest 112 5.10.3 Awareness 113 5.10.4 Recall 113 5.10.5 Favourability 113 ix 5.11 Transfer of Image Values 115 5.11.1 Sponsorship Activity Effect 115 5.11.2 Sponsorship Effect on Personal Feelings 115 5.11.3 Image Congruence of Sponsorship 116 5.12 Intention to Purchase 116 5.13 Actual Purchase 117 5.14 Scaling and Measurement 118 5.15 Reliability and Validity 118 5.16 Pretest 121 5.17 Chapter

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