Sponsor, ambusher, and other: consumer response to three strategies

Abstract

Sponsorship, in advertising and marketing, has enjoyed considerable currency with managers, especially in the context of sporting events. However, this strategy option is constantly challenged by ambush marketing (which seeks an unofficial association with the event) as well as by a neither strategy (i.e. firms not undertaking either sponsorship or ambush marketing). At the core of all the three strategies is the expectation that a firm's association (official or unofficial) or non-association with a sporting event will result in certain benefits for the brand.

This study measures and compares consumer responses to the three strategy options available to a firm for a sporting event. This research uses the Resource Advantage (RA) Theory to examine the interrelationships among the three types of firms and the environment in which these firms compete. RA theory posits that when a firm has a resource that is rare among competitors, then that resource has the potential for producing competitive advantage for that firm (Barney, 1991). The Hierarchy of Effects (HOE) model is used to formulate hypotheses regarding the possible consumer responses to the three strategy options. The HOE model predicts that consumers usually go through the stages of cognition, affect, and purchase intention after being exposed to a piece of promotion (i.e. communication). Sponsorship can be a source of competitive advantage as it may lead to greater consumer awareness, positive attitude, and a higher intention to purchase. Some firms may try to engage in ambush marketing. On the other hand, some other firms may choose to follow a neither strategy.

This study is set in the context of an international sporting competition, the ICC Cricket World Cup held in South Africa, in 2003. It finds that while sponsorship is effective in creating awareness, it does not lead to liking and?or preference for the brand. Others are able to break the clutter in the world of intense competition where event-related promotions are seen as a means of fulfilling marketing objectives. Moreover, the relationship between attitude and intention to purchase is not significant for any of the three strategy options. These findings indicate that any association with an event provides scope for elementary messages which may be suitable for increasing awareness but does not lead to higher order effects of building positive attitude and intention to purchase.