Journal of Sport Management, 2007, 21, 497-520 © 2007 Human Kinetics, Inc. Social Identity and Brand Equity Formation: A Comparative Study of Collegiate Sports Fans Brett A. Boyle and Peter Magnusson Saint Louis University The authors empirically tested Underwood, Bond, and Baer’s (2001) social identity–brand equity (SIBE) model in the context of fans of a university men’s basketball team. Their model proposes that service marketplace characteristics (venue, team history, rituals, and social groups) enhance one’s social identity to a team. This heightened social identity, in turn, is seen to build brand equity of the team brand. Using the SIBE model as a conceptual framework, a comparative study was conducted across 3 distinct fan groups of the team: current students, alumni, and the general public. Results provide strong support for the effect of social identity on brand equity; regardless of the type of fan, a heightened social identity to the team enhanced the perceived equity of the athletic program (i.e., brand) overall. How social identity was formed, however, differed by fan group. For example, team history showed a significant relationship to social identity for alumni and the general public. Students were most influenced by their sense of the basketball program being part of the local community as a whole. These finding are valuable in knowing how to craft marketing communications for various fan constituencies, as well as understanding how identification to 1 team might be leveraged across all sports in a collegiate athletic program. The relationship between a sports team and its fans has long been of great interest to researchers from a number of disciplines. Indeed, the fan–team relationship has helped explain such things as fan aggression (Goldstein & Arms, 1971), fan self-perception (Hirt & Zillmann, 1985), and even the outcome of the contest itself (Greer, 1983). From a business perspective, this relationship has obvious implications for such things as game attendance, season ticket purchases, and team merchandise sales, to name a few. Intuitively, the likelihood of a team’s on-field success would suggest a greater bond between fan and team and, in turn, add value to the brand’s (i.e., team’s) equity (cf. Fisher & Wakefield, 1998). There is much evidence that winning does breed more loyal fans. The work of Cialdini and colleagues illustrated the phenomenon of “basking-in-reflected-glory” (Cialdini et al., 1976; Cialdini & Brichardson, 1980). These seminal experiments showed a marked increase in the number of people wearing team apparel soon after that team’s victory. Conversely, “fans” attending the New Orleans Saints games during the 1980 Boyle and Magnusson are with the John Cook School of Business, Saint Louis University, St. Louis, MO. 497 498 Boyle and Magnusson season (during which the team finished with a 1-15 record) were compelled to wear paper bags over their heads during games (Saunders, 2000). However intuitive, the relationship between team success and fan loyalty is neither consistent nor universal. For example, the Atlanta Braves tied for Major League Baseball’s best regular-season record in 2003, yet home attendance for the Braves (as measured by percent of capacity of a team’s stadium) ranked a mediocre 14 out of 30 teams. Furthermore, during the same year the eventual World Series champion Florida Marlins drew nearly a million fewer fans than the Major League average. Although successful sports teams at times post mediocre (if not poor) attendance figures, perennially poor performing teams still attract large and loyal crowds. Die-hard Chicago Cub fans have gained a reputation for unwavering loyalty, despite the team’s reputation for futility. Similarly, the Cleveland Browns have not won an NFL championship since 1955, yet over the last 20 seasons their rabid fans have filled the stands in numbers well above the NFL average. These examples are consistent with Parker and Stuart’s (1997) assertion that sports teams typically enjoy high brand loyalty regardless of the strengths or weaknesses of the organization. Unlike consumers of other products, sports fans hold a vexing challenge for those who would market to them. If winning were to equate with quality, and, in turn fan (brand) loyalty, then marketing would be solely focused on placing a winning team on the field of play, assuming such a situation was tenable. Consumer decision making under this scenario would be viewed as the logical connection between team success and brand loyalty. Yet, it is likely that emotions have a strong influence on fan loyalty, influenced by more than a team’s won–loss record. In some cases, fan loyalty might be lukewarm even when a team is winning. On the other hand, poorly performing teams still endear themselves to passionate fans. Fischer and Wakefield (1998) contend that in times of poor performance by a team, a fan will redirect attention to other aspects of the spectating experience in an effort to minimize those negative associations. Therefore, what are those associations to which fans seek to identify beyond the action on the field? What differences are there, if any, across different fan groups in their development of social identity to a team? How does this identification translate, if at all, to brand equity? Underwood, Bond, and Baer (2001) proposed a model in which social identification is seen “as a mechanism for tapping the emotional connection between the consumer and the service brand” (p. 2). Their general contention is that the greater the fan identifies with a team, the greater the brand equity the former holds for the latter. In essence, the more an individual sees him or herself as being connected, in some way, to a team, the greater the value of the team’s brand for that person. Underwood et al. further proposed that certain “service marketplace” characteristics play a role in forming a fan’s social identity with a team, ways in which social identification might develop. Their model subsequently proposes that increased social identity (via these marketplace factors) increases brand (i.e., team) equity. The purpose of the current study is to apply and extend Underwood et al.’s “social identity–brand equity” (heretofore SIBE) model in a number of ways. First, an empirical investigation is conducted to test the notion that teambrand equity is enhanced via a fan’s increased social identity with the team, as Underwood et al. (2001) postulate. In doing so, we test the SIBE model as to the effects marketplace factors have in shaping social identity to a team. Second, we compare three distinct fan groups for any differences in the way that marketplace Social Identity and Brand Equity Formation 499 characteristics affect social identity. We chose to test these differences in the context of a collegiate basketball program. As with many sports, college athletics bring together an eclectic fan base. We seek to investigate whether those marketplace characteristics proposed by the SIBE model vary across students, alumni, and the general public. Although they share a common passion for their university’s team, fans might not identify with that team in similar ways. Recognizing how segments of a team’s fan base identify with that team allows for more effective marketing communication with each group. In route to testing the SIBE model, a number of measures of four marketplace factors that potentially affect social identity are developed and tested. The remainder of this article is organized into the following sections: a discussion of social identity; a description of the SIBE model, along with its adaptation via a survey of college basketball fans; and results of the study, along with managerial implications and opportunities for future research. Literature Review and Hypothesis Development Social Identity Individuals’ sum-total view of themselves is comprised of personality traits (or personal identity) and the aspects of his or her social experiences (social identity). The former focuses on internalized, seemingly stable characteristics (e.g., creative vs. analytical, extrovert vs. introvert), but one’s social identity is defined more so from external group affiliation. Among others, these groups could be social in nature (e.g., Elks Club), professional (e.g., dentists’ association), political (e.g., democrat), or from an ethnic or religious background (Deaux, Reid, Mizrahi, & Ethier, 1995). Indeed, Tajfel (1982) goes so far as to say individuals require social identity via group affiliation in order to form a self-image. Fisher and Wakefield (1998) note that when individuals are asked to describe who they are, descriptors invariably focus on group affiliations such as occupation, position in a family, or membership in social organizations. Given this, these authors cast social identity as the “anchor” of self-definition (p. 25). Unlike personal identity, however, social identity can be seen as more conceptually dynamic for two reasons. First, group affiliation, either real or vicarious, is a choice of the individual. Although some group affiliations are a consequence of birth (e.g., age, gender), much of one’s social identity is constructed through social networks, product purchases, and other lifestyle choices (Schouten & McAlexander, 1995). Second, because individuals might see themselves as “belonging” to any number of groups, their identification is much more situation-specific, thus more fluid than seemingly static segmentation groups formed by demographic or psychographic variables. Indeed, Underwood et al. (2001, p. 3) stated that “the essence of social identity theory is that people do not conform to neatly ascribed categories (e.g., social class, VALS group), but instead take part in the creation of their own categories.” This identity creation is likely influenced by such factors as the individual’s exposure to marketing communications, product consumption experience, and social reference groups, to name a few. The model described in the following section considers similar factors that are specific to the formation of social identification with a sports team. 500 Boyle and Magnusson Brand Equity Brand equity has become a central construct for understanding purchase preferences, as well as overall consumer loyalty. Keller (1993) defines brand equity in terms of “marketing effects uniquely attributable to the brand” (p. 1). This perspective considers the leverage a brand has in the marketplace relative to other purchase choices. At high levels of equity, a brand’s effect is considered relevant, if not dominant, when a markedly lower preference for the product choice would be evidenced in the absence of a brand’s attributes (e.g., name, symbol; cf. Simon & Sullivan 1993). High brand equity carries with it a cadre of advantages in a competitive arena. Strong brands serve as a hedge against risk for the consumer when consistency across brand experiences meets or exceeds expectations. Premium pricing is also afforded to the brand for which product quality is associated with the brand’s image. Finally, high brand equity provides advantageous bargaining power when dealing with distribution channel members (Aaker 1991). Keller (1993, p. 2) argued that “understanding the content and structure of brand knowledge is important because they influence what comes to mind when a consumer thinks about a brand.” His conceptual framework casts brand knowledge to be composed of brand awareness and brand image. The latter is determined by the type, favorability, strength, and uniqueness of various associations that a consumer makes about the brand, relative to other memory nodes. For example, Harley-Davidson is a brand strongly associated with patriotism and individual freedom (Schouten & McAlexander, 1995). To the extent that a consumer strongly believes this association and is favorable toward it, brand image—and in turn brand equity—is enhanced. For a sports team, brand associations and, in turn, brand equity are particularly essential to commercial success of the operation (Ross, 2006). This is particularly the case for the marketing of collegiate teams. Unlike many consumer products, an athletic department must manage and promote a wide range of sports, appealing to varied tastes among spectators in a local market. Even products falling within a “family” of brands (e.g., Budweiser and Bud Light), still retain a semblance of consistency in a discernable product category. In intercollegiate sports, however, the diversity of spectator options of which an athletic department oversees presents a unique challenge when attempting to raise the brand equity of the overall program. The Social Identity–Brand Equity Model Underwood et al. (2001) proposed a conceptual model that considers several characteristics of the sports fan’s experience that are likely to affect one’s social identity with a particular team. In turn, this heightened connection between fan and team is assumed to build brand equity in the mind of the consumer. From qualitative research via sports teams’ online chat rooms, these authors proposed the following “servicescape” dimensions (Wakefield & Blodgett, 1996) as having the capability of strengthening a fan’s social identification with a team: group experience, history/tradition, role of physical facility, and rituals. Group Experience. Being part of the crowd has been an attraction of sporting events for centuries. The social bonds formed through common association with Social Identity and Brand Equity Formation 501 a team is what Zillmann and Paulus (1993) contend separates a fan from being a mere spectator. The fan finds camaraderie, social connectivity, and a sense of a relationship with the team itself via the relationships formed with fellow fans (Cialdini et al., 1976). Yet attending a sporting event might provide more than mere social bonding among fans. There is ample evidence that fans have a direct effect on the outcome of the contests themselves (Edwards & Archambault, 1989; Greer, 1983; Schwartz & Barsky, 1977). A number of collegiate and professional football teams have such a strong, supportive fan base that they collectively become known as the “12th man” (i.e., an extra player for the team). Indeed, the National Football League’s Seattle Seahawks franchise has gone so far as to retire the number 12 in honor of their fans. As fans come to believe that their presence and participation in a game is vital to the success of the team, social identity is heightened to an even greater extent. At this point, the fans view their role as more than passive spectators to be entertained and instead as a part of something greater than themselves in which their participation is important. At the extreme, such fans perceive themselves as, virtually, members of the team. On the other hand, we recognize that the motivation to be “part of the crowd” at a sporting event might have little to do with an individual’s interest in a team or the outcome of a game. Instead, the event might merely provide an opportunity to socialize with others or to be seen in a high-profile setting. Businesses have increasingly used sporting events as a means to network with clients, as evidenced by the increased presence (and price) of skybox suites at many major sports venues. In these instances an individual might have little or no emotional investment in the team’s performance. The value of attending the game is not through personal identification with the team but through the relationships or status that comes from attending the event. Thus, the outcome of the game itself is irrelevant, relative to any favorable outcome for the individual spectator that the game provides. It is from this more narcissistic viewpoint that we operationalize salient group identification: the degree to which the sporting event serves as a conduit for social interaction and identification with a reference group. We make the distinction of salient group because what constitutes a group can vary greatly, depending on the perspective one wishes to take. One such perspective could be that of the group being the community as a whole, rather than an intimate circle of friends. Both Anderson and Stone (1981) and Gladden and Funk (2002) recognized that a team can act as a symbol of a community, providing individuals with a “point of attachment” (Robinson & Trail, 2005, p .60). Similarly, Underwood et al. (2001) noted, The sense of belonging that is found in small groups can extend to a larger community and is part of the psychological experience of being a fan. The team’s success reflects on the collective identity of the community. (p. 5) The social bonds provided by team identity can be as salient as those shared by a group of friends. Yet in a broader sense, being associated with a team is tantamount to showing one’s identification with the city in which the team calls home, provided there is strong association perceived between the team and the community at large. Indeed, the earliest owners of American sports teams leveraged an implied association between city and team by literally naming the former after the latter, even though in most cases a city had no direct ownership in the team. More 502 Boyle and Magnusson recently, teams have attempted to broaden their appeal beyond one city and into a state or entire region (e.g., Minnesota Timberwolves, Arizona Cardinals). Such naming strategies attempt to imply to those in a region that the team belongs to them, even though they might not live in the city in which it plays. Therefore, we augment the tact taken by Underwood et al. (2001) by forming two group-experience dimensions: (a) the salient group at the level of small group experience, typically encountered at the sporting event itself, and (b) a broader community identification, the perceived association between the team and a community. History. Fans can cultivate a social identity through their appreciation for the history of their team. The seamless continuity between past and present allows fans to feel as though they are part of that continuing history. Underwood et al. (2001) make a compelling statement that history can be especially critical to the sports marketer, because it “connotes a sense of tangibility in a largely intangible environment” (p. 6). These authors mention historical records and statistics and consistent uniforms as examples of those tangible aspects to team history. Indeed, the recent popularity of throwback jerseys is an example of history being an attractive attribute of team sports. Finally, over time some historic team moments can gain legendary status. For example, Babe Ruth’s “Called Shot” during the 1932 World’s Series is still debated as to whether Ruth actually pointed to the outfield just before hitting a home run in that direction. Franco Harris will forever be known for making the “Immaculate Reception,” which secured a playoff victory for the Pittsburgh Steelers in 1972. (Like Ruth’s “Called Shot,” there is still controversy as to whether Harris’ catch was legal.) The lore of such events, as evidenced by a designated title associated with them, are assets to team-brand equity. For older fans of a team, a sense of history is particularly acute when the individual witnessed a legendary moment in team history. Such moments shared with family members or friends add to the nostalgic value of those memories, thus tying a team even closer to one’s own personal history. Physical Facility (Venue). Underwood et al. (2001) propose that leveraging a team’s physical facility into greater social identification for the fan is contingent on how strongly the facility is integrated into the organization’s brand identity and the degree to which attributes of the facility allow for group identity formation. Although many times not owned by a team, sports stadiums and arenas become the de facto home of the organization. Similar to the points made regarding statistics and uniforms, the sports venue also provides a stable, tangible representation of the team’s identity. This is particularly true for sports—both collegiate and professional—in which players might only be associated with a team for a short period of time. As players and coaches come and go, old records are broken and uniform styles change; many times the only consistency for the fan is the team’s facility. For example, the University of Michigan’s “Big House” football stadium, the Boston Red Sox’s Fenway Park, and Duke University’s Cameron Indoor Stadium are iconic in their association with the teams that have played there for decades. Indeed, Yankee Stadium’s Monument Park—an area in centerfield with granite monuments of past Yankee greats—makes the stadium as much a museum of the past as a ballpark of the present. Social Identity and Brand Equity Formation 503 Aside from their historic symbolism, sports venues also provide opportunity for individuals to identify with one another as a group, despite the fact that such individuals might not have known one another before the game, nor will they associate with one another after its conclusion. Again, the SIBE model would predict that social identity with a team is enhanced to the extent that facility characteristics and amenities bring people together. For example, many NFL stadiums provide areas for tailgating, a pregame event that includes barbeque cooking, drinking, and camaraderie among otherwise total strangers. The home of the Chicago Cubs, Wrigley Field, is well-known for its outfield bleacher seats, where “bleacher bums” come to drink, socialize, and, at times, watch the baseball game. The following describes this stadium’s role within a typical Cub fan’s social identity: Truth is, Wrigley Field is the biggest draw here, more so than Sammy Sosa or even the Cubs themselves. Some people come for the frat party in the bleachers, some just to be seen. But so many come just for that old feeling, that magic. (Couch, 2003, p. S7) Rituals. It has been argued that sport itself grew from ancient ceremonial events, many of which were religious in nature (Diem, 1960; Gutttman, 1978). Today, sports have been a source of rituals, more so than being ritualistic in and of themselves. Rituals as a source of social identity are those that are unique to the team or region of the country in which they play. For example, college football is replete with examples of ritual—the “dotting of the i” by the Ohio State marching band and the Texas A&M bonfire ceremony before their game against archrival Texas (Underwood et al., 2001). Such rituals are obviously a by-product of a team’s history. As mentioned, an understanding and appreciation for such history would likely enhance one’s social identity with the team of the present. Rituals serve as a reminder of that history and to bring it into the current experience of the fan. Being part of the ritual also allows fans to feel that their participation is a continuation of the team’s legacy. Finally, overt public participation in ritual also allows fans to demonstrate their allegiance to the team, thereby solidifying a place of status in the group to which they identify. This corresponds to Lee and Kacen (1999), who noted that such overt public behavior is a form of self-presentation used to gain favorable identity in one’s subculture. Testing the SIBE Model Aside from a general empirical testing of the SIBE model, we attempt to compare three groups of fans as to how various marketplace factors affect social identity with a team. Of those proposed by the SIBE model, we have chosen to focus on the following: group experience (both salient and community), history, and physical facility (i.e., venue). Because rituals are extremely unique from one team to the next, testing this construct using data from one team does not allow for a high degree of external validity. Because of this, and the likelihood of rituals being closely tied to team history, this aspect of the SIBE model was not included in our study. A subsequent comparison across fan groups is made as to the role social identity plays in affecting brand equity of a university athletic program. 504 Boyle and Magnusson We test aspects of the SIBE model using the fans of one university’s basketball program. The choice of a collegiate rather than a professional team was done for a number of reasons. First, many authors have argued that some of the most ardent and socially identifiable sports fans are those of collegiate athletic teams (Goldstein & Arms, 1971; Schurr, Ruble, & Ellen, 1985; Wann & Branscombe, 1993; Zillman & Paulus, 1993). Therefore, such a setting is amenable to testing the SIBE model proposition of the role of social identity toward brand equity formation. Second, college sports is unique to other sporting events because fan subgroups are relatively easy to discern. Specifically, we categorize fans into the following groups: current university students, alumni, and the local population with no direct association with the school. Understanding how social identity is formed and, in turn, plays a role in their brand equity formation for these groups holds value for those who would market to them. In extending the SIBE model, our premise is that the manner in which social identity is formed varies across the three fan subgroups. For one group, history might be important. In another, identification might manifest in group experience. Knowing how social-identity formation varies for these groups allows the marketer to craft effective marketing communications that, in turn, build brand equity. Social Identity’s Effect on Brand Equity. For our purposes, the brand in question is that of a university’s athletic program rather than one individual team. Similar to any other lines of consumer products, universities typically oversee a number of team sports, appealing to a wide range of preferences of potential spectators. These teams also differ in the amount of revenue they provide an athletic program. For many universities, football and men’s basketball are the primary revenuegenerating sports, which in turn provide funding for nonrevenue sports such as volleyball, gymnastics, or golf. Therefore, these flagship sports have a significant effect on the overall financial stability of a school’s athletic program. Evidence of a positive relationship between social identity of one team and brand equity of the overall athletic program would bolster this assertion. Therefore, Hypothesis 1: There is a positive relationship between fan social identity with a collegiate team and fan-perceived brand equity of the school’s overall athletic program. Group Comparisons of Social-Identity Formation. For college students, iden- tification with their school is highly likely to some degree because their daily lives are dominated by their interaction with elements of the institution, particularly for full-time on-campus residents. Because students, as a group, are younger than alumni and the general population, it is less likely that the team’s history will play a strong role in forming social identification. This would be even less likely for the student who comes to the university from another region of the country, thus having limited exposure to the team and its history before matriculation. Because the social life of undergraduates is likely to revolve around the university in general and others in their own age group specifically, identification with their college’s teams is formed through their group experience within a peer group. The team provides social-interaction opportunities for the group, both in attendance of the games or simply as a topic of conversation. This is congruent with other studies that show consumers preferring products that are consistent with highly identifiable peer groups (Bearden & Etzel, 1982; Childers & Rao, 1992). To some students, however, the game itself might not be as important as the social Social Identity and Brand Equity Formation 505 interaction it affords. As mentioned, sporting events provide a setting for spectators to interact with one another, as much as an opportunity to watch the game itself. In some cases, the former can be of greater value to the individual than the latter. Alumni, having been part of this student population at one time, also provide a generically cohesive fan group. Similar to current students, alumni’s emotional tie to the institution is even more heightened by a mix of nostalgia. It is also possible that an alum would have witnessed some of the more historic moments in team history. As mentioned, such experiences meld the individual’s personal history to that of the team, thereby enhancing social identification that much more. Even without eyewitness accounts of historic moments, the alum’s knowledge of history is likely to be greater relative to that of a current student merely by the difference in age between the two. Nonalumni fans of a university’s teams in the general public are no less fervent than students or alumni, even though these individuals might have never set foot on the campus. For example, the University of Notre Dame’s subway alumni is a term which originated in the early 20th century from the Irish-immigrant population of New York, most of which could not afford to attend college. Yet this group found social identity through the obvious connection with the school’s nickname (Fighting Irish). Today there are a number of subway alumni chapters across the country whose membership is primarily comprised of nonalumni fans of the university. The self-designation of these individuals as alumni is an obvious desire to be associated with the institution, albeit vicariously. The general public’s connection with the university, however passionate, is likely to be more limited than that of the student body or alumni community. Indeed, the public’s only direct interaction with the institution might be attending university sporting events. We speculate this outside-looking-in perspective can produce an upwardly biased opinion of the school, because nonalumni were not exposed to possible negative aspects of day-to-day life at the school (e.g., difficult classes, tuition increases). This bias can have an impact on how members of the general public form their social identity toward a school’s athletic teams in contrast to alumni and current students. Given this discussion, we provide a second general hypothesis. Hypothesis 2: Students, alumni, and the general public will differ as to the factors that contribute to their identification to a team. Method Research Setting and Data Collection The focus of the research was the men’s basketball program of a private midwestern university of approximately 12,000 students, located in a metropolitan area of approximately 2.7 million people. Aside from the university’s athletic programs, the area is also home to a number of professional teams, both at the major- and minor-league level. Therefore, the local population has a number of varied choices for live sports entertainment. At the time of the data collection, the men’s basketball team was a member of one of the top 10 NCAA Division I basketball conferences in the U.S. Although the school itself had not reached the status of an elite program for many years, it did compete with the more elite teams in the country, both in and outside its conference. Such teams are typically referred to as mid-majors—those 506 Boyle and Magnusson that are just below the upper echelon but are competitive with such programs. In the years before data collection, the team had reached the NCAA postseason basketball tournament, only to be eliminated in the early rounds. Aside from basketball, the university sponsors 13 other intercollegiate athletic teams; however, football was not one of them. Therefore, the men’s basketball program was the most visible of the sports offered by the university and, in turn, generated the largest amount of revenue for the athletic department. At the time of data collection, the basketball team played all of their home games at an offcampus arena shared by two professional sports teams, as well as special events such as concerts throughout the year. Similar to Wann and Branscombe (1993), we focus on the fan base of one university, rather than collect data from fans of a number of schools. Although the latter approach might produce a more representative sample of U.S. college fans, it was felt that the nuances and idiosyncrasies of any individual institution and community would have been blurred by aggregating it with those of others. The focal institution of investigation, however, is arguably representative of a large number of Division I NCAA member schools. The data-collection process was conducted approximately 3 months after the conclusion of the basketball season. That particular season, the team established a respectable but not outstanding 19–13 record. The team was invited to play in the National Invitational Tournament (NIT), but the team lost its opening-round game. The timing of the data collection was seen as critical to the validity of the findings; had the team experienced an extremely poor or outstanding season, and the data been collected soon thereafter, responses might have been biased because of those recent events (i.e., jumping on or off the bandwagon). A lack of such a bias yields responses that reflect more consistent and enduring attitudes about the team. Two separate data-collection procedures used a survey method via a two-page questionnaire. Students were given a questionnaire in a classroom setting, whereas the other two fan groups received it through the mail. Students, alumni, and the local population were asked their opinions regarding the school’s men’s basketball team. Specifically, measures focused on (a) salient and community group experience, (b) historical appreciation for the basketball program, (c) opinions about the university’s basketball venue, (d) the individual’s own (social) identification with the team, and (e) perceived brand equity of the university’s athletic program in general. Aside from minor modifications, the in-class and mailed versions of the questionnaire were virtually identical. The first phase of data collection focused on undergraduates enrolled in various upper-level (junior/senior) undergraduate business courses at the university, with instructions that the students were not obligated to participate. An incentive was provided, however, in the form of a drawing for a free skybox party at one of the school’s basketball games. The mailed version of the questionnaire was sent to individuals from a list of alumni that was obtained from the university, as well as a mailing list of the general public used by the university athletic department for direct-mail promotions. The list was then reduced to include only zip codes from the metropolitan area in which the university is located. As with the student sample, the same skybox-contest incentive was offered to this sample. Social Identity and Brand Equity Formation 507 Sample Response Rate and Description Of the 157 questionnaires distributed to students, 109 (69%) chose to respond. All questionnaires from this group were deemed acceptable for analysis. A total of 1,400 mailed questionnaires were sent out, of which 569 were returned 1 month after the initial mailing. Of these, 17 were deemed unacceptable, primarily because of a high number of incomplete answers. Therefore, the 552 accepted questionnaires represent a response rate of 39.4%. Given that the study looked to compare only students, alumni, and the general public, some acceptable responses were not part of the subsequent analysis. In particular, those respondents were removed from the analysis who identified themselves as a spouse of an alum or student, a university employee, or a parent of a student or alum. These totaled 44 respondents, resulting in a sample of alumni and the general public of 508, or 36.3% of the original mailing. Combining the mailed and student respondents provided an overall sample of 617 usable questionnaires, and an aggregate usable response rate of 39.6%. Table 1 provides an overview of the characteristics of the three groups in the overall sample. Most of the respondents were male (78.6%), although the student sample was nearly equal among men and women. Household income varied to a large extent, with a plurality of respondents (28.3%) claiming an annual income between $100,000 and $150,000. The average age of a respondent was 47, although the student sample (M = 21) was significantly lower than both alumni (M = 51) and general public (M = 55). Caucasians made up a significant proportion of the overall sample (94.1%). Asian-Americans were better represented, however, in the student sample (5.6%) than the other two groups. Finally, the respondents were asked a yes/no question: “Do you consider yourself a native of the [metropolitan] area?” To this, 73.5% of the overall sample responded to the affirmative. The lowest percentage of those responding yes were students (56%), followed by the general public (69%) and alumni (81%). Measures We adapted the social-identity measure that was first developed and tested by Wann and Branscombe (1993) in their study of University of Kansas basketball fans. Brand equity was measured using original items that focused on the perceived quality dimension of the construct (Aaker, 1991). We take this tact given Aaker’s (p. 86) assertion that perceived quality provides a brand with reason-to-buy leverage in the marketplace. Essentially, well-managed brands that convey high quality tend to hold a high place among consumer choice preferences. Therefore, although other aspects of the brand (loyalty, awareness, and brand associations) contribute to overall brand equity, perceived quality captures the end-game of branding efforts: the brand becoming the reason to purchase the product. In addition, we would expect perceived quality to be highly correlated with other dimensions of brand equity. Indeed, findings by Lassar, Mittall, and Sharma (1995) revealed a halo (i.e., high correlation) across dimensions of brand equity, supporting this contention. As noted, our brand equity items seek to capture the construct in terms of the brand being the overall athletic program of the university, rather than an individual team 508 Boyle and Magnusson Table 1 Sample Demographics Alumni n % Gender male female Household income < $30,000 $30,000–74,999 $75,000–99,999 $100,000–149,999 $150,000–199,999 $200,000–249,999 $250,000+ Age 18–25 26–38 39–55 56–65 66+ Ethnicity White Black Hispanic Asian other Native to metropolitan area yes no Public n % Students n % Overall n % 280 69 80.2 19.8 146 12 92.4 7.6 56 53 51.4 48.6 533 143 78.6 21.2 13 57 46 78 40 20 54 4.2 18.5 14.9 25.3 13.0 6.5 17.5 4 32 13 46 22 9 18 2.8 22.2 9.0 31.9 15.3 6.3 12.5 10 17 16 32 7 18 0 10.0 17.0 16.0 32.0 7.0 18.0 0.0 27 106 75 156 69 47 72 4.9 19.2 13.6 28.3 12.5 8.5 13.0 18 64 109 110 47 5.2 18.4 31.3 31.6 13.5 0 5 76 51 23 0.0 3.2 49.0 32.9 14.8 107 0 0 0 0 100.0 0.0 0.0 0.0 0.0 125 69 185 161 70 20.5 11.3 30.3 26.4 11.5 335 6 1 4 3 96.0 1.7 0.3 1.1 0.9 151 3 1 1 1 96.2 1.9 0.6 0.6 0.6 92 1 2 6 7 85.2 0.9 1.9 5.6 6.5 578 10 4 11 11 94.1 1.6 0.7 1.8 1.8 269 64 80.8 19.2 105 47 69.1 30.9 54 43 55.7 44.3 428 154 73.5 26.5 therein. For the remaining constructs, original measures were developed and tested. Underwood et al.’s (2001) conceptualization of SIBE constructs served as a guide in item construction. All items were constructed as 6-point Likert scale responses, with strongly agree and strongly disagree or very important and not important as end points. In addition, the following demographic items were included on the instrument: age, gender, ethnicity, household income, and whether or not the respondents considered themselves a native of the metropolitan area. For the mailed questionnaire, a single item captured the individual’s relationship with the school: an alum, family member of an alum or student, a university employee, or no direct relationship with the school. Data Analysis The analysis for testing the proposed hypotheses was carried out in multiple stages. In the first stage, we evaluated reliability and validity of the independent and dependent constructs using Cronbach’s alpha coefficients, we extracted average variance, and we performed a confirmatory factor analysis for each subgroup. After establishing that all measures were valid and reliable, we subsequently evaluated the hypotheses using Structural Equation Modeling in LISREL 8.7. We examined the path structure for each subgroup, followed by a multiple group analysis to test for path invariance. We controlled for several demographic factors such as age, gender, Social Identity and Brand Equity Formation 509 ethnicity, income, relationship with the university, and whether or not the respondent was native to the area by computing partial correlations as input for the test of the model. Without partitioning these effects from the models, distorted relationships between exogenous and endogenous variables could occur. Although the use of partial correlations is appropriate when controlling for various demographic factors (Graves, Ohlott, & Ruderman, 2007), this can compromise some of the distributional assumptions in LISREL inferential statistics. Thus, the path estimates needed to be treated as heuristic estimates rather than precise probabilities. Results Measurement Testing Reliability. For all six multiple-item scales, item reliability was assessed by calcu- lating Cronbach’s alpha and average variance extracted (Fornell & Larcker, 1981) for each subgroup. The items for each construct are presented in Table 2, along with their standardized factor loadings, coefficient alpha, and variance extracted. The items demonstrate acceptable reliability. Five out of the six constructs have alphas above .70 across all groups and the average variance extracted are above the recommended .5 cutoff (Steenkamp & van Trijp, 1991). For the salient group construct, however, we were forced to omit one item and only retain a two-item construct. Even with omitting one item, the construct fails to meet acceptable cutoffs in the alumni and public groups. Because of the nature of the study and the fact that these statistics are downwardly biased for measures with relatively small number of items, however, this construct was included in our study (Nunnally & Bernstein, 1994). Measurement Validity. Construct validity was assessed using a confirmatory factor analysis in LISREL 8.7 for all construct measures included in the study. Model fits are presented at the bottom of Table 2 and are acceptable across all groups. Although the chi-squares are significant, contrary to what is desired, the chi-square fit index is highly dependent on sample size (Bagozzi & Yi, 1988). The root mean squares of approximation are acceptable for all groups, however, and the NFI and GFI are above the recommended .9 cutoff (Bagozzi & Yi, 1988; Hu & Bentler 1999). In addition, all factor loadings were significant at the 5% level, indicating convergent validity (Zhang, Cavusgil, & Roath, 2003). Finally, all six constructs were allowed to correlate with one another, which resulted in crossconstruct correlations significantly different than 1.0 across all groups, suggesting that the constructs were discriminant from one another (Zhang et al., 2003). Hypothesis Testing We first tested the hypothesized path model on each of the subgroups. This was followed by a comparison of means across fan groups for all constructs, and the final multigroup analysis examined whether the measurements and structural model were invariant across groups. Brand equity (in the form of perceived value of the athletic program) is proposed to be directly affected by one’s social identity with the men’s basketball team. The antecedents of social identity are, in turn, history of the team, venue, 510 1. It’s more important to me to have fun in a group of people at a game than for the [university’s] basketball team to win. 2. I won’t go to a [university] men’s basketball game unless I’m with a certain group of people. 3. I have a lot of fun at a [university] men’s basketball game just by being part of the crowd. (item deleted) Salient group 1. It’s hard to think about the City of X without thinking about the [university’s] men’s basketball team. 2. The [university’s] basketball team is a big part of the culture in the City of X. 3. The City of X would be a very different place without the [university’s] men’s basketball team. Community group 1. How important is it to YOU that the men’s basketball team wins? 2. How strongly do YOU see YOURSELF as a fan of the [university’s] men’s basketball team? 3. During the season, how closely do you follow the [university’s] men’s basketball team by way of ANY of the following: newspaper, radio, internet, or TV? 4. How important is being a fan of the [university’s] men’s basketball team to YOU? Social identity Table 2 Item Measures and Factor Loadings Public α = .79 AVE = .49 .37 .82 .75 .78 α = .90 AVE = .76 .91 .94 .76 α = .46 AVE = .30 .55 .55 – Alumni α = .85 AVE = .59 .55 .84 .81 .83 α = .93 AVE = .81 .89 .95 .87 α = .54 AVE = .38 .67 .56 – .66 – α = .74 AVE = .59 .87 .94 .87 α = .94 AVE = .84 .89 .94 α = .94 AVE = .78 .80 .92 .88 Students 511 α = .80 AVE = .57 .64 .92 .68 α = .80 AVE = .58 .81 .75 .72 α = .83 AVE = .57 .86 .95 .50 .62 α = .80 AVE = .57 .81 .79 .67 α = .82 AVE = .60 .82 .74 .77 α= .82 AVE = .54 .87 .87 .59 .54 .57 .63 α = .84 AVE = .58 .90 .89 .78 α = .81 AVE = .59 .84 .68 α = .86 AVE = .67 .78 .85 .82 Note. AVE = average variance extracted. Alumni: χ2 (df) = 322.3 (137), RMSEA = .06; Public: χ2 (df) = 188.3 (137), RMSEA = .05; Students: χ2 (df) = 228.1 (137), RMSEA = .08. 1. I believe that, overall, [the university] has quality intercollegiate athletic teams. 2. The [university’s] athletic teams are competitive with other universities in their respective sports. 3. Attending a [university] athletic event is worth the money and time to do so. 4. For someone to be a [university] athlete takes a great deal of talent, regardless of the sport. Brand equity 1. Its long and storied past makes the [university’s] basketball program of today something special. 2. The rich tradition of [university] basketball is something you don’t find at most other universities. 3. The [university] basketball program has a special place in the history of [the university] itself. History 1. I think [the venue] is a unique place. 2. I have a lot of great memories from events I attended at [the venue]. 3. I would be very upset if [the venue] was torn down tomorrow. Venue 512 Boyle and Magnusson salient-, and community-group identification. The overall fit statistics for each model are presented in Table 3, and the individual path coefficients are presented in Figure 1. Despite significant chi-squares, the fit statistics indicate that the models have an acceptable fit to the data across all groups. Social identity was found to have a significant positive effect on brand equity across all three fan groups, in support of Hypothesis 1. An initial examination of the path coefficients, however, shows that the manner in which social identity was affected by the market factors proposed by the SIBE model is varied across groups, which provides preliminary support for Hypothesis 2. Surprisingly, student social identification was most strongly associated with the perceived connection between the team and the city itself (β = .34, p < .01). Indeed, of the four market factors this was the only one that proved significant among students. Unlike the student group, alumni appear to form their social identification through an appreciation for team history (β = .37, p < .01). A strong negative relationship was also evident among alumni between salient group and social identification (β = –.44, p < .01). Again, given the tone of the items used in the salient group measure, these results suggest that strong identity to a team is at times at odds with other social group ties. The hypothesized link between social identity and brand equity was most prominent among those fans from the general public (β = .30, p < .01). This group was similar to the alumni group with respect to the effects of history (β = .36, p < .01) and salient group (β = –.26, p < .01) on social identity. Unlike the alumni and student groups, however, the public’s identification with the sports venue was positively associated with its identity to the team itself (β = .18, p < .05). To further analyze the differences, we tested for mean differences across fan groups. Table 4 provides the results of an analysis of variance for all constructs across the three fan groups on the key constructs of the SIBE model. Overall, these groups differed regarding a number of variables in the SIBE model. Most notable Table 3 Structural Equation Model Fit Statistics Model Alumni Public Students 350 158 109 431.50 (141) 220.70 (141) 231.10 (141) RMSEA .077 .060 .076 RMR .12 .099 .12 GFI .88 .87 .81 NFI .91 .91 .89 TLI (NNFI) .92 .96 .94 CFI .94 .96 .95 R2 (Social identity) .31 .35 .25 R (Brand equity) .05 .09 .05 Fit statistic N χ (df) 2 2 513 Figure 1 — Structural Path Model. S = student, A = alumni, P = public. *p < .05. **p < .01. 514 Boyle and Magnusson was the relatively low social-identity score of the student group. This might be because of a student’s university life obviously encompassing more than one of the school’s sports teams, in contrast to an alum or other nonstudent whose only link to the institution might be through watching or following that team. In addition, given that (a) the team is not a top-tier basketball program and (b) the timing of the survey was well after the conclusion of an uneventful season, the midrange social-identity score for students should not be surprising. It should be noted, however, that our study is not intended to reveal differences in social identity per se. Instead, the SIBE seeks to identify those marketplace factors that contribute to one’s social identity to a team. Therefore, we were more concerned with differences in social-identity formation across fan groups than differences in social identity. Further evaluation of Table 4 confirms our findings from the structural equation model. In particular, students, alumni, and the general public all had different perceptions of the team history. Given their younger age, it is not surprising that the student sample had the lowest perceived historical value of the basketball program. In addition, alumni were also more appreciative of the team’s history than the general public. A similar pattern was seen with regard to the perceived link between the team and the community at large. Students saw this connection as being less apparent than alumni and the general public. This might be because of the disproportionately large number of students who claimed to have not been native to the metropolitan area, versus the other two fan groups (χ2 [1] = 19.2, p < .01). Students also differed from alumni and the general public in terms of the role a salient reference group plays in their in-game experience. Specifically, students appeared to require the presence of friends to derive value from attending a game, more so than the other fan groups. The groups did not differ with respect to their perceived value of the venue in which the team plays its home games. This might be a function of the arena being off-campus and used by other professional teams and nonsporting events. Finally, students had a significantly lower perceived value of the athletic program in general, as reflected in the brand equity scores. We speculate that because the athletes in the program are also members of their peer group, the student respondents do not hold athletes in as much awe as those who only see them performing as gifted athletes. Table 4 Mean Comparisons Across Fan Groups Social identity History Salient group Community Venue Brand equity Alumni Public Students 5.19 4.36a 2.22a 3.90a 3.82a 4.84a 5.37 4.13b 1.95b 3.71a 3.95a 4.83a 3.28c 2.99c 4.04c 2.35b 4.06a 3.91b a b Note. Likert scales for all measures were in a 1–6 disagree/agree format. Means with uncommon superscripts are significantly different at p < .01, except alumni/public comparison of history, which is significant at p = .03. Social Identity and Brand Equity Formation 515 The mean comparison test and the varying significance levels between the market factors and social identity across groups suggest that the three subgroups differ as to the factors that contribute to their identification to a team, which we suggested in Hypothesis 2. A more thorough analysis, however, would include direct comparisons of path coefficients across the three models. Because p values provided in Figure 1 only highlight those paths significantly different from zero, a test for path invariance through multigroup analysis (Byrne, 1998; Jöreskog & Sörbom, 1993) was conducted through a multiple-step process. In the first step, all three groups were tested simultaneously with no constraints. This model has acceptable fit (RMSEA = .053, NNFI = .98, NFI = .94), with a global chi-square of χ2 (421) = 594.87. Next, before testing for path invariance we examined whether all of the factor loadings were invariant. Thus, in the second model we constrained the factor loadings for all three groups. This resulted in a significantly worse model. Global chi-square is (χ2 [455] = 699.11), which results in a significantly reduced fit (∆χ2 [34] = 104.24, p < .01). Because the factor loadings were variant, we would expect the model paths to be variant, as well. This was the result of a third model in which the paths themselves were constrained, resulting in a significant model fit: a global chi-square of χ2 (465) = 770.45 (∆χ2 [10] = 71.4, p < .01). The analysis of three different groups of fans has shown that increased social identification with the team increases brand equity, as suggested in Hypothesis 1. In Hypothesis 2, we suggested that the creation of social identity would differ across the three groups. Although the path models and mean comparison indicated that there would be differences, the multigroup analysis not only found that the groups were not path invariant but, more importantly, their perceptions of the latent constructs were different. Despite using identical items and the fact that all respondents were confined in a relatively limited geographic area in the Midwest, the three different fan groups had significant differences in the factor structure of the latent constructs. This has important implications on the marketing strategy for how various segments should be targeted. These differences across fan segments are the focus of our discussion. Discussion A sports team’s brand equity can be one of the most vital, as well as precarious, aspects of managing the business side of a sports team. Over the last 20 years, the U.S. sports consumer has been introduced to an increasing number of sporting-event options. Aside from the “big three” sports (football, baseball, and basketball) the growth of alternative sports such as Arena League (indoor) football, NASCAR, and extreme sports has produced a heightened level of business competition for consumers’ sports dollar. In such a competitive environment, the ability to effectively manage fan perception of a team brand is placed at a premium for success. Undoubtedly, how well a team performs on the field of play affects fan perception of that team and, in turn, their desire to make financial and emotional investments in it. Yet, we have discussed that ardent fans are found to be loyal toward the worst, as well as the best, performing teams. Therefore, there are factors beyond winning that cause fans to remain brand loyal. The SIBE model attempts to explain fan attraction to a team beyond the team’s own success, or lack thereof. This model casts social identity as the focal point at which one’s psychological connection with 516 Boyle and Magnusson a team is influenced by market factors, presumably under some degree of control by team management. Strong social identity, in turn, is felt to lead to higher levels of brand (i.e., team) loyalty. The results of the present study lend general support to the notion of social identity shaping brand loyalty among sports consumers. Within each of three distinct fan groups, social identity showed a consistent, positive effect on brand equity of a university’s athletic program. It is worth emphasizing that we cast brand equity in terms of the perceived value of the cadre of sports offered by one university’s athletic program. Social identity, however, was from the perspective of one’s identification with one team from that program. Therefore, social identity that was instilled in fans of one university team appears to transfer to the perception of other sponsored sports. This has implications for those who are responsible for marketing collegiate athletic programs. Understanding that a synergistic relationship can be leveraged among a school’s various sports provides opportunities for cross-promotions, improving the popularity of lesser-attended games in the program. In effect, being known as a “football school” (e.g., Notre Dame) or a “basketball school” (e.g., Duke University) need not be to the detriment of other sports in the program. Quite the contrary, playing on the reputation of the dominant sport in the program (and the resulting social identity held by fans), allows for transfer of positive identification to those “minor” sports. Such transfer would require marketing communications that integrate multiple sports (including the flagship team) into a common theme, statement, or visual presentation. In essence, our results argue against the use of “silo” promotional messages that attempt to distance the less popular team from the high-profile team. The effects shown in our study would indicate that the perceived quality of any of a school’s teams can be enhanced by associating with the more popular, highly-identifiable teams. Depending on the fan group in question, all four marketplace factors chosen for investigation appeared to have an impact on shaping one’s social identity to a team, further supporting Underwood et al.’s (2001) SIBE model. As shown in our empirical test, a team’s history affords the marketer a powerful brand-enhancing tool. Fan identification with a present-day team is heavily influenced by an individual’s appreciation for its history. This appeared particularly true for nonstudent fans, who are relatively older and more likely to have lived through historical moments of the team. The power of nostalgia in building brand equity in common consumer products has long been recognized by other authors (e.g., Elliot & Wattanasuwan, 1998) and has also been demonstrated in sport (Fairley, 2003). Indeed, emotion plays a particularly prominent role in consumer decision-making of sports-related products and services. Our results confirm Underwood et al.’s contention that the use of history can tap this emotional capital held by fans. In addition, our comparison of fan groups gives guidance that the use of history might be less effective for student than nonstudent fans. Our approach toward group effects on social identity varied from that of Underwood et al. (2001). Specifically, we distinguished between the identification with a salient, social cohort and that with the local community in general. This resulted in the two having varied effects on social identity. Surprisingly, only the student sample showed a significant relationship between community identification and social identity. This is even more intriguing considering the students reported Social Identity and Brand Equity Formation 517 relatively lower perceived connection between community and team, as well as lower levels of social identity. The student group also had the highest proportion of individuals not native to the area. Perhaps for those not from the area the university, and particularly the university’s athletic programs, is their first and most significant connection to the community at large, and therefore the connection between team and city is that much more easily established. Lifetime residents, particularly those of the general public not affiliated with the school, might recognize the university as being an important institution in the community. This does not appear to play a role, however, in increasing one’s identification as a fan of the university’s basketball team. There are likely other touch points the university provides the public with which to identify. For example, the focal university has a well-respected medical school, has a highly visible modern art museum, and sponsors a number of community outreach programs. These and other aspects of the university, beyond the basketball program, become woven into the public consciousness over time. Therefore, alumni and the general public, while seeing the connection of the basketball program to community life, appear to develop their identification most notably through their sense of team history. Salient group effects were counter to those proposed by Underwood et al. (2001), who saw group identification as a catalyst toward identification with a team; if one’s friends loved a team, it is likely that the person would identify with that team, as well. We allowed for the notion that team identification might be thwarted, however, by intense group identification—there might be instances whereby the sporting event merely acts as a conduit for group interaction and expression, with the outcome of the contest itself being secondary. Such appears to be the case for the student group. For marginal fans (of which our students appeared to relatively be), a game is valuable primarily for socializing with friends. In contrast, more ardent fans are less likely to be inspired to attend a game because of the availability of such interaction. Indeed, the results suggest there might be a point at which intense fans find such interaction unattractive as part of their spectator-experience. This is not to say that at some level identification with a group of like-minded friends cannot enhance social identification with a team. The manner in which our items were posed, particularly Item 1 in Table 2, however, represents an extreme case in which the respondent is asked to choose between having fun with friends and a team victory. Among the three fan groups, only the student sample did not reveal a significant, negative effect of salient group identification on social identity. This corresponds with the mean differences in Table 4 among students on the salient group measure, relative to the other two fan groups. Although not significant in the student model, these differences point toward the importance of peer-group participation in attending a game for the individual student. That the perception of the team’s home venue did not play a role in social identity is not surprising. Again, the arena in which the team plays is an off-campus location, is shared by two professional teams, and plays host to a number of nonsporting events throughout the year. In this case, the connection between team and venue is tangential, at best. Although during a game the team might enjoy homecourt advantage, our results indicate that, in this particular case, the venue is not seen as being one and the same as the team itself. It is not likely that this would be a common finding across a number of different schools, particularly for those whose teams play in an on-campus arena. 518 Boyle and Magnusson Certainly, our results should be considered in light of their limitations. Our data-collection effort focused on fans of one school’s athletic program. There is little doubt that our results would differ to some degree if data had been collected regarding any number of other schools. Our purpose was to test a conceptual model in an exploratory manner, however, illustrating how certain marketplace factors can affect the development of social identity to one particular team. Because a school’s athletic program, history, rituals, venue, and other characteristics are unique, further research is necessary to find contingencies in which particular marketplace factors might or might not play a role in social-identity development toward a team. For example, the focal school in the present study plays their home games in a multipurpose, off-campus arena. The results revealed that this venue had little impact on social identity. The role of an on-campus venue might be more significant in developing social identity toward a team. Our exclusion of rituals from model testing is also a by-product of the data-collection method used. Because rituals are, by definition, unique to a particular team, any findings that included rituals would suffer from a lack of external validity. We encourage the continued investigation of rituals as a marketplace factor using methods that would allow for a high degree of generalizability. 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