ADVERSE SPONSORSHIP EFFECTS: OBSERVATIONS AND REMEDIES Heribert Reisinger, Reinhard Grohs, University of Vienna David Woisetschläger, University of Dortmund Abstract A key sponsorship objective is to improve consumer attitudes towards the sponsor brand. However, sponsors simultaneously supporting rival sport teams, sponsorships of controversial activities or groups, and negative headlines on sponsored events increasingly confuse consumers. This study uses balance theory to predict if attitudes towards sponsors are negatively affected by disliking of the sponsor object. Next, means of counteracting negative sponsorship effects are investigated. An empirical study on sponsorships of two rival soccer teams confirms that fans of a soccer team evaluate sponsors of an opposing team significantly worse compared with a neutral control group. Sponsors can attenuate these negative attitudes by shifting the focus of the sponsorship on aspects that are valued positively by the fans. They need to keep in mind, however, that counterbalancing is more difficult to achieve if fans are highly involved with the team. Introduction A key sponsorship objective is to improve consumer attitudes toward the sponsor brand (e.g., Cornwell and Maignan, 1998). It is argued that through sponsorship positive associations attached to a sponsor object will become attached to the sponsor brand in the consumer’s memory (Gwinner, 1997). However, joint sponsorships of rival sport teams (e.g., NTL and Carling’s sponsorship of Celtic Glasgow and Glasgow Rangers, see Davies, Veloutsou & Costa, 2006), sponsorships of controversial or stigmatized activities or groups (e.g., AIDS organizations, see Ruth and Simonin, 2006), and negative headlines on sponsored events (e.g., the doping scandals at the Tour de France 2006 and 2007) increasingly confuse consumers. Nevertheless, research remains scarce on whether a sponsorship of a disliked or controversial activity results in a sponsor being evaluated worse compared with no sponsorship at all. Furthermore, research to date has not investigated how companies might counteract negative sponsorship effects. In this study we shed light on these two issues using Heider’s (1958) balance theory. We first demonstrate that sponsorships can exert negative effects on a sponsor’s brand attitude if the sponsor object is disliked. Next, we examine means of attenuating negative sponsorship effects by altering sponsorship communication. 1 Rationale and Hypotheses Balance theory (Heider, 1958) is often used to explain attitude change caused by sponsorship (e.g., Cornwell, Weeks, & Roy, 2005; Dean, 2002). In a sponsorship context, balance theory considers the triadic relationship Person, Sponsor, and Sponsor Object. This relationship consists of three simple relations formed by two elements. Clearly, S and O are linked positively through the sponsorship. If P has a positive attitude toward O, she will also have a positive attitude toward S (balanced relationship). If P’s attitude toward O becomes negative (e.g., because of sponsorship of rival teams, controversial sponsorships, etc.), the relationship becomes imbalanced. Heider’s theory assumes that P will strive to correct the imbalance. In a sponsorship context, attitudes toward O are probably more stable than attitudes toward S. Thus, the dilemma is resolved by changing the attitude toward S, resulting in a negative evaluation of the sponsor. Dalakas and Levin (2005) found that, while there is a strong positive connection for NASCAR fans between attitude toward their favourite driver and attitude toward that driver’s sponsor, the reverse was true as well. In line with balance theory we propose hypothesis H1: H1: Consumers who have a negative attitude toward a sponsor object will have a more negative attitude toward a sponsor compared with consumers who are indifferent with regard to the sponsor object. The aim of our second study is to examine means of attenuating negative sponsorship effects. Balance theory suggests that negative attitudes toward a sponsor S can be attenuated if the attitude toward the sponsor object O were more positive. From above we know that, if P has a negative attitude toward O, this will result in a negative attitude toward S. If O is linked to a liked object X, P’s strive for consistency predicts that the attitude toward O will become less negative (given that the attitude toward X is stable). Consequently, the attitude toward S will become less negative, too. Persistence of an attitude over time was found to be positively associated with the importance of the attitude (e.g., Krosnick, 1988). Hence, changing negative attitudes toward O will be more difficult to achieve if P deeply cares about O. We propose the following hypotheses H2 and H3: H2: Negative sponsorship effects can be attenuated if the disliked sponsor object is associated with another object that is positively evaluated by the consumer. H3: The attenuation effect is moderated by involvement level, i.e., the attenuation will be smaller for consumers highly involved in the sponsor object compared with consumers less involved in the sponsor object. Study 1 – Adverse Sponsorship Effects To test H1 we assess attitudes of soccer fans toward their own team’s sponsors vs. sponsors of a rival team and compare the results with neutral spectators’ attitudes. Following from balance theory, we expect that fans of Team A (B) have a more positive attitude toward sponsors of team A (B) than neutral spectators. Similarly, fans of Team A (B) are expected to have a more negative attitude toward sponsors of team B (A) than neutral spectators (c.f. H1). 2 For each team, we select two sponsors; one sports goods brand (Sponsor A Sport, Sponsor B Sport) and one beer brand (Sponsor A Beer, Sponsor B Beer). Three groups of respondents are interviewed: fans of team A, fans of team B, and neutral spectators. Respondents are first asked to declare themselves as fans of team A, team B, or as no fan of either of these teams. Next, respondents state whether they are familiar with the sponsor brands. Then, they indicate their sponsor awareness; i.e., they indicate for each of the four sponsors, whether the brand is a sponsor of team A or team B, or none of the two. Attitudes toward each sponsor are assessed with Stayman and Batra’s (1991) Hedonic Attitudes toward the Product scale: good-bad, favourableunfavourable, agreeable-disagreeable, pleasant-unpleasant, positive-negative, and like-dislike. Items are measured on a seven-point rating scale with higher numbers representing better attitudes. Data was collected close to the stadiums during the hour before a match of each team started, and for the neutral group additionally in other environments (e.g., at home or in shopping streets). A standardized questionnaire was administered personally by trained interviewers. Fans are excluded from the analysis if they a) were not familiar with the sponsor brand, or b) could not correctly identify the sponsor. This procedure results in between 50 and 112 responses for each sponsor and fan group. Respondents in the control group are excluded if they did not know the sponsor, resulting in a sample of 60 to 74 respondents for each sponsor. To compare the attitudes between different respondent groups, a single index is calculated for each sponsor by averaging the item scores on the Hedonic Attitudes toward the Product scale (α > 0.84 for all sponsors). Table 1 illustrates the attitudes of the three respondent groups toward sponsors of team A and team B. In all four cases the mean for the control group lies in between the means of the fans of both teams. Independent samples t-tests show that for every sponsor the differences between the control group and the fan groups are significant in both directions (p < 0.01, one-tailed). Hence, the effects proposed by balance theory are empirically found. Fans of team A (B) evaluate sponsors of team A (B) significantly better than the control group. In line with H1 fans of team A (B) evaluate sponsors of team B (A) significantly worse than the control group. Table 1: Attitudes toward Sponsors Sponsor A Sport Sponsor A Beer Sponsor B Sport Sponsor B Beer a, b, c Attitudes toward Sponsors Fans Team A Control Group Fans Team B 6.18a 5.41b 4.70c a b 6.26 4.39 2.63c 3.87a 5.14b 5.97c a b 3.44 4.51 5.23c Different alphabetical superscripts indicate significant differences between means in each row (p < 0.01, one-tailed) 3 Study 2 – Counteracting Adverse Sponsorship Effects In the soccer context, H2 proposes that fans of team B have a less negative attitude toward sponsors of team A if this sponsorship is associated with an activity that team B fans like. H3 argues that changing attitudes toward rival teams and their sponsors is particularly difficult if fans are highly involved with their teams or strongly opposed to rival teams (see also the literature on fan identification, e.g., Wann and Branscombe, 1993). Hence, the effect postulated by H2 will be moderated by fan identification in that attenuating negative sponsorship effects will work better for the average fan compared with die-hard fans. To test H2 and H3 we develop a 2 X 2 factorial design manipulating the content and the communicator of sponsorship information. The factor content has the levels team A and soccer. The factor communicator has the levels team A and sponsor brand. In line with H2 we expect that evaluations of the rival team’s sponsor will be better if the sponsor brand (instead of team A) announces a sponsorship related to soccer (compared with team A). Press releases are developed for each of the four experimental conditions in which either team A or the sponsor brand (communicator) announces the renewal of an existing sponsorship in order to support either team A or soccer in general (content). We use team A from study 1 and select three sponsors; Sponsor A Sport, Sponsor A Beer, and Sponsor A Insurance. Fans of team B are asked to fill out the questionnaire. Respondents are randomly assigned to one of the four experimental conditions with one of the three sponsors. Respondents are first asked to correctly identify for the brand in the press release whether the brand is a sponsor of team A. Next, they read the press release and assess attitudes toward the company with Stayman and Batra’s (1991) Hedonic Attitudes toward the Product scale. Finally, respondents answer items with regard to soccer involvement and fan identification and indicate whether they belong to a fan club of team B. Respondents who could not correctly identify the sponsors of team A are excluded from the analysis. The remaining sample consists of 196 respondents. We pool the data across the three sponsors to increase cell size resulting in a cell size of between 44 and 56 fans. A single index is calculated for the attitude scale for each sponsor (α > 0.9 for all sponsors). Finally, respondents are split into two groups according to their level of fan involvement, i.e., average fans (n = 104) and die-hard fans (those who are members of a fan club of team B; n = 92). Analysis of variance is used to test the effects of fan identification, press release content and communicator on attitudes toward the sponsor. Results for significant effects are presented in Table 2. Fan identification exerts a significant main effect (F = 25.20, p < 0.01, one-tailed) on attitudes toward the sponsors, with less favourable attitudes for fans with high fan identification compared with fans with low fan identification. This finding lends additional support to H1. As postulated in H2, content is significant (F = 3.44, p < 0.05, one-tailed). Respondents who read the soccer content press release have better attitudes than respondents who received the team A content press release. H2 is not supported for the factor communicator because a main effect of communicator is not observed (F = 0.05, p = 0.82). It appears that, while the soccer content elicits positive evaluations for team B fans, the use of a company as communicator is not viewed sufficiently positive to attenuate the negative sponsorship effect. Consistent with H3, a two-way interaction of fan identification and press release content is observed approaching significance 4 (F = 1.89, p = 0.09, one-tailed). For highly involved fans, soccer content is less successful in shifting respondent attitudes toward the sponsors compared with fans with lower fan identification. No other interaction is significant. Table 2: Attitudes toward Sponsors: Significant ANOVA Results Main Effects Sponsor Attitude (Fans Team B) Interaction Sponsor Attitude (Fans Team B) Sponsor Attitude (Fans Team B) a, b Fan Identification Average Fans Die-hard Fans 3.66a 2.64b Press Release Content Soccer Team A a 3.32 3.04b Average Fans Soccer Team A 4.04a 3.36b Die-hard Fans Soccer Team A 2.69a 2.58a Different alphabetical superscripts indicate significant differences between means for factors fan identification and press release content, as well as for the interaction fan identification X press release content (p < 0.05, one-tailed) Conclusion The results contribute to our understanding of sponsorship effectiveness. It is shown that sponsorships can negatively affect brand attitudes if a brand is associated through sponsorship with a disliked sponsor object. 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