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1 – 10 of 234Brett Centracchio, Nels Popp and Jonathan A. Jensen
Most college athletics department have not sold corporate naming rights to their athletics facilities. Popp et al. (2016) suggests two primary reasons: (1) difficulty in…
Abstract
Purpose
Most college athletics department have not sold corporate naming rights to their athletics facilities. Popp et al. (2016) suggests two primary reasons: (1) difficulty in determining proper valuation and (2) fear of stakeholder backlash. The purpose of the current study is to address both concerns by utilizing a hedonic pricing model predicting collegiate naming rights values and utilizing fixed-effects models to determine if consumer behavior (event attendance and donations) is impacted by a corporate name change.
Design/methodology/approach
Data from 110 naming rights agreements among NCAA Division I programs were examined, alongside market-related variables, institution-related variables and venue-related variables. Utilizing hierarchical model building to reduce independent variables and OLS regression modeling, significant relationships with annual value of naming rights agreements were uncovered. Fixed effects models were utilized to determine if naming rights impacted attendance and donations.
Findings
A final model explained more than 53% of the variance in average annual value of naming rights agreements, with three significant factors: (1) attendance, (2) all-time winning percentage and (3) venue construction cost. Fixed-effects models revealed no significant differences in attendance or donations after a naming rights deal was signed.
Originality/value
Corporate naming rights agreements for college athletics facilities are a recent phenomenon. While a similar study examining drivers of collegiate sport naming rights was previously conducted, the current study revealed a shifting marketplace. In addition, no prior study has examined the impact of a corporate naming rights agreement on future attendance and donations.
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While numerous studies have investigated the returns firms receive for their investments in sponsorship, no study to date has examined the potential for organizational performance…
Abstract
Purpose
While numerous studies have investigated the returns firms receive for their investments in sponsorship, no study to date has examined the potential for organizational performance to contribute to the continuance of business to business (B2B) relationships. Thus, this study aims to illuminate B2B sponsorship relationships in isolating whether firm decision-makers are like fair-weathered fans, in that they are more likely to stick with successful organizations.
Design/methodology/approach
An advanced quantitative modeling approach, survival analysis, is applied to a data set of more than 350 sponsorships to isolate the impact of performance on B2B decision-making.
Findings
Even after controlling for several potentially confounding variables, results indicate that every point per game earned by English football clubs decreases the probability of the sponsoring firm exiting the agreement by 54.4%.
Originality/value
These findings provide empirical evidence of the impact of the sponsored organization’s performance to influence B2B firm decision-making, a novel finding yet to be confirmed in the sponsorship-linked marketing literature.
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Jonathan A. Jensen, Patrick Walsh and Joe Cobbs
The achievement of a requisite return on investment (ROI) from a brand’s investment in sponsorships of sport events is becoming increasingly important. Consequently, evolving…
Abstract
Purpose
The achievement of a requisite return on investment (ROI) from a brand’s investment in sponsorships of sport events is becoming increasingly important. Consequently, evolving trends in the consumption of the live television broadcasts of such events (e.g. increased usage of second screens by consumers) are an important consideration. The purpose of this paper is to examine the impact of second screen use during sport broadcast consumption on important marketing outcomes (i.e. brand awareness and the perceived value and intrusiveness of sponsor brand integration), and whether effectiveness is dependent on the consumer’s level of identification with the sport being broadcast.
Design/methodology/approach
A 2×2 (experimental/control and high SportID/low SportID) between-subjects experimental design featuring the broadcast of a sport event as the stimuli was utilized to examine a potential interaction effect between sport identification and second screen use on three dependent variables important for sport sponsors.
Findings
Results confirmed that those with a high level of sport identification realized significantly higher levels of brand awareness for sponsors integrated into the broadcast. However, when consumers were asked to engage in second screen use, the experiment revealed a moderating effect of sport identification on the impact of second screen use, for both brand awareness and the perceived value of the brand integration.
Originality/value
Consumers with higher levels of sport identification are an important target of sport sponsorship activities by brand marketers. Given this, the implication that second screen use can reduce the effectiveness of important sponsorship-related outcomes such as brand awareness is a sobering result for marketers expecting a positive ROI from sponsorships of sport events.
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Joe B. Cobbs, Jonathan A. Jensen and B. David Tyler
A sponsorship performance cycle of business-to-business (B2B) exchange is conceptualized, where distinct types of resources are invested by sponsoring firms into sponsored…
Abstract
Purpose
A sponsorship performance cycle of business-to-business (B2B) exchange is conceptualized, where distinct types of resources are invested by sponsoring firms into sponsored properties and the competitive success of those properties enhances returns to sponsors. While the latter return channel in this cycle is well-documented, the former investment channel has remained opaque. Recognizing this empirical missing link, this paper aims to illuminate the investment channel through a longitudinal analysis.
Design/methodology/approach
Based on 50 years of Formula One (F1) team and sponsor alliances, this study models the effects of three different sponsorship categories on team performance in the annual F1 constructors’ championship.
Findings
The results demonstrate that each incremental sponsor offering performance-based resources is associated with four additional team points in the championship, controlling for factors such as past success and team experience. Conversely, sponsors offering access to financial or operational resources have no competitive impact. This performance-based sponsor effect is illustrated in models of the current and following seasons.
Research limitations/implications
In combination with related literature, this study substantiates a complete sponsorship performance cycle in the motorsports context.
Practical implications
The findings contribute an empirically-based strategy for sustainable sponsorship support that emphasizes acquisition of performance resources in the business-to-business exchange over operational or strictly financial alternatives.
Originality/value
While scholars have discerned that sponsors invest heterogeneous resources into sponsored properties, and the competitive success of those properties can enhance returns to sponsors, this study demonstrates that particular resources invested by sponsors are related to the property’s competitive success.
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Jonathan A. Jensen, David Head and Christopher Mergy
Naming rights sponsorships of sport facilities are among the most highly visible marketing agreements in the world. However, factors that may lead one sponsorship to persist for…
Abstract
Purpose
Naming rights sponsorships of sport facilities are among the most highly visible marketing agreements in the world. However, factors that may lead one sponsorship to persist for decades, while others end after just a few years, have yet to be investigated. Thus, this study examines the decision-making of brand marketers by investigating the predictors of a sponsoring brand's decision to either continue or dissolve such agreements.
Design/methodology/approach
Utilizing a global data set of 219 naming rights agreements, an empirical approach is utilized to isolate whether a variety of factors increase or decrease the probability of sponsorship dissolution.
Findings
Results indicate that agreements entered into with new, as of yet-unnamed facilities lead to a reduction in the probability of dissolution, with a high level of brand equity also reducing the probability of dissolution. Agency conflicts may also play a role, as the sponsoring firm being headquartered in the same metropolitan area as the facility also contributes to the persistence of such agreements.
Originality/value
These results are intended to assist both sides of what is ideally a long-term relationship in better understanding the factors that may either contribute to or inhibit longer-term partnerships.
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Jonathan A. Jensen, Akash Mishra and Mara Averick
Over the past several years, growth in sponsorship spending has surpassed that of traditional marketing and promotional approaches, as it has become an indispensable part of the…
Abstract
Purpose
Over the past several years, growth in sponsorship spending has surpassed that of traditional marketing and promotional approaches, as it has become an indispensable part of the marketing mix. Yet, despite considerable advances in the application of analytics across the sport industry, sponsorship revenue forecasting still largely relies on a decades-old methodology. The paper aims to discuss this issue.
Design/methodology/approach
This research seeks to assist sport organizations by applying more advanced survival analysis methodologies to the study of shirt sponsorships of football clubs, utilizing more than 300 sponsorships of every team that has competed in the English Premier League (EPL) over the past 25 years.
Findings
The analysis of the lifetimes of shirt sponsorships provides several insights for those employed by European football clubs and tasked with managing these increasingly lucrative sponsorships. Notably, tests confirmed that survivor functions of EPL shirt sponsorships are significantly different than those that appeared solely in English Football League (EFL) Championship play. In addition, results found that the median lifetimes of shirt sponsorships of EPL clubs were more than one year longer, when compared to EFL clubs.
Originality/value
This research marks the first attempt in the literature to apply survival analysis methods to describe the lifetimes of European football shirt sponsorships. The results provide empirical evidence that the potential effects of promotion or relegation could have consequences for football clubs in the tens of millions of dollars, and illustrate the importance of providing those tasked with managing such partnerships with more advanced methodologies to assist in the organization’s sponsorship revenue forecasting activities.
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Furkan Amil Gur, Adrien Bouchet, Brian R. Walkup and Jonathan A. Jensen
The purpose of this study is to understand the structure and dynamics of minority equity sponsorship agreements and the motivations for organizations to go beyond traditional…
Abstract
Purpose
The purpose of this study is to understand the structure and dynamics of minority equity sponsorship agreements and the motivations for organizations to go beyond traditional sponsorships by acquiring minority equity in the sponsored organization.
Design/methodology/approach
This paper adopts a qualitative methodology and presents interview data from key actors involved in minority equity sponsorship agreements.
Findings
The findings of the paper include major characteristics of minority equity sponsorship agreements including the motivations, dynamics and resources exchanged by sponsoring firms and clubs in these relationships, based on the experiences of key actors from firms, clubs and other key stakeholders, and a conceptual model for forming and maintaining these relationships.
Practical implications
Sponsorships are increasingly evolving into minority equity sponsorship agreements, particularly in the European market. The findings of this study assist sponsoring firms and the executives of clubs in better understanding the dynamics and stakeholder-related consequences of these relations.
Originality/value
The findings of this paper illustrate the differences between minority equity sponsorship agreements and both traditional sponsorships and minority equity alliances. The findings also identify major characteristics of these relationships and the interdependencies among these characteristics.
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Jennifer L. Harker and Jonathan A. Jensen
The purpose of this research is to extend current knowledge regarding rivalry communication among sport consumers to better understand how rivals behave with one another when they…
Abstract
Purpose
The purpose of this research is to extend current knowledge regarding rivalry communication among sport consumers to better understand how rivals behave with one another when they communicate.
Design/methodology/approach
This national survey of US sport consumers used a novel approach to explore whether and with whom rivals discuss National Football League (NFL) game outcomes. The survey captured both uniplex and multiplex data by asking respondents to name rival discussants with whom they had recently interacted, and the fan behaviors they exchanged with those named rival discussants.
Findings
Through use of this novel data collection approach, new findings were uncovered related to blasting, glory out of reflective failure, schadenfreude and the influence of team identification on the exchange of rivalry fan behaviors. The results of the uniplex and multiplex data analyses uniquely showcase the ways in which social identity theory combines with team identification to enact rivalry behavior.
Originality/value
This research is the first to precisely dichotomize the psychological antecedents from the communicated behavior between rival fans. Results reveal the precise ways in which team identification influences discordant communication between rival fans, which differs from past research in an interesting new way.
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Nels Popp, Jonathan A. Jensen, Chad D. McEvoy and James F. Weiner
The purpose of the study is to ascertain whether sport organizations which outsource ticket sales force management outperform sports organizations which manage their ticket sales…
Abstract
Purpose
The purpose of the study is to ascertain whether sport organizations which outsource ticket sales force management outperform sports organizations which manage their ticket sales force internally, relative to ticket revenue and attendance.
Design/methodology/approach
Thirteen years of ticket revenue and football attendance data were collected for National Collegiate Athletic Association (NCAA) Football bowl subdivision (FBS) Division I Athletics Departments (n = 126), as well as data on whether the organization employed an external (outsourced), internal or no ticket sales force. The number of salespeople employed was also captured. Within-subjects, fixed effects regression models, which included several control variables such as number of home contests, prior season attendance, team success and population, were run to assess the relationship between sales force type and both ticket revenue and attendance, for one year, two years and three years after sales force establishment.
Findings
All models were significant. While both internally managed ticket sales forces and those managed by outsourced firms saw significant increases in ticket revenue (compared to not employing a sales force), internally managed departments outperformed third parties. In addition, departments utilizing outsourcing companies reported lower attendance for the first two years after outsourcing, but attendance differences were negligible by the third year of outsourcing.
Practical implications
The results of the study provide data to help sport managers determine whether outsourcing sales functions within an organization will lead to greater ticket revenue and/or attendance.
Originality/value
While several sport management studies have examined the decision-making process of outsourcing organizational functions, no prior studies have examined the financial implications of doing so.
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