Sponsorship portfolio as brand image creation strategies: A commentary essay

This essay discusses Chien, Cornwell, and Pappu's (forthcoming) paper, “Sponsorship portfolio as brand image creation strategy.” Although Chien et al. (forthcoming) seek to enhance understanding of the impact of a brand's sponsorship portfolio on its brand image they are not completely successful in this endeavor. One of their key constructs, the event personality fit (EPF) construct, has no significant effect on brand meaning. This essay suggests that this finding is because of limitations in the brand personality metrics in the study and because of the tautological nature of the hypotheses proposals. Their sponsorship category relatedness (SCR) construct, however, is a useful construct for those seeking to assemble a portfolio of sponsored products that builds positive brand meaning for the sponsor's brand.     

Rejoinder to commentary on Chien, Cornwell, and Pappu (2010): Advancing research on sponsorship portfolio effects

This article responds to the issues Bibby (2010) raises in his recent commentary essay on Chien, Cornwell, and Pappu (2010). The rejoinder focuses on brand meaning's definition, measurement, construct delineation and operationalization, and cautions against outright rejection of Aaker's (1997) brand personality scale applied to the sponsorship context. Further, criticism by Bibby of employing Aaker's scale in Australia seems unwarranted given similarities in cultural values between Australia and the United States. Bibby (2010) also questions the legitimacy of event personality fit effects but the questions potentially misinterpret the construct used by Chien et al. (2010). While this rejoinder admits to the challenges of brand personality measurement, theory-testing goals of Chien et al.'s (2010) research are not compromised by the measures employed.     

Sponsorship effects on brand image: The role of exposure and activity involvement

Sponsorships capture a significant proportion of marketing budgets. In firm evaluations of the effectiveness of sponsorship engagements, image improvements represent the most important company objective. This study develops and tests a framework for explaining how exposure and activity involvement moderate the effects of event image, event–sponsor fit, and event commercialization on sponsor image. Using empirical data collected at a large sporting event with multiple sponsors, the authors show that increased sponsorship exposure reduces sponsor image if respondents perceive a low fit between the event and sponsor or high levels of event commercialization. Involvement in the sponsored activity improves the sponsor's image, in that the effect of event commercialization is positive for highly involved persons. This paper concludes with some reasons for the findings, implications for the choice and design of sponsorships, and further areas for research.     

Perceived quality and image: When all is not “rosy”

The “meaning” of a brand resides in the minds of consumers, based on what they have learned, felt, seen, and heard over time. This study explores the relationship between quality and image with special attention on brands plagued with negative impressions, including instances where consumers' perceptions of a product's quality conflict with its perceived “image”. Data confirm that quality and image impact attitudes in a distinct manner, and overall, low brand image is more damaging than low quality. In addition, findings show that (1) hedonic attitudes towards brands are most driven by image, whereas utilitarian attitude formation/change processes are dominated by quality, (2) non-attribute brand beliefs are a stronger predictor of hedonic attitudes when quality or image is low versus high, while (3) attribute-based beliefs are strong predictors of utilitarian attitudes across image and quality levels.     

Sponsorship relationships as strategic alliances: A life cycle model approach

In recent years, academics and practitioners have recognized that sponsorship relationships operate as strategic alliances. Additionally, they have emphasized the lack of analytical approaches which allow an understanding of the developmental process of such alliances. In an attempt to fill this gap, we examine how key sponsorship characteristics change over different stages of the life cycle (formation, operation, and outcome) to determine the success or failure of the relationship. Specifically, we propose a life cycle model that articulates general paths in sponsorship relationship developmental stages and the behavior pattern of sponsorship characteristics. Throughout this framework, we illustrate our reasoning with examples drawn from the UBS/Team Alinghi sponsorship relationship.     

Bundling as a new product introduction strategy: The role of brand image and bundle features

Marketers can bundle an unknown brand with a strong brand as a new product introduction strategy. Drawing upon the categorization theory and the elaboration likelihood model, this study examines how a new brand can benefit from bundling with a strong brand. The results of two studies indicate that consumers’ quality perception of a new brand will be affected by the brand image of a bundle partner, and this effect is moderated by the bundle forms and the complementarity of bundle components. Academic and managerial implications of these findings are presented, along with suggestions for further research.     

Investigating the Influence of a Joint Sponsorship of Rival Teams on Supporter Attitudes and Brand Preferences

The sponsorship of football is a multi‐million pound industry. Sponsors hope that supporters' enthusiasm for their team will translate into long‐term benefits for the sponsor. However, the intensity of team rivalry means that a sponsorship may also alienate opposing supporters. The rival Glasgow clubs, Celtic and Rangers, therefore undertook a joint sponsorship arrangement with the communications company NTL. This paper investigates how the benefits obtained compared to those that may have been expected from a single sponsorship. While the sponsorship was very effective in creating awareness for NTL, ambivalent attitudes were found towards the company. The most committed supporters were the least accepting of the sponsorship and the expected positive relationship between support for the club and brand preference for NTL was not found.     

Sponsorship programmes and corruption in sport: management responses to a growing threat

Abstract

Sponsorship programmes are increasingly being exposed to the threat of corruption in sport. Several recent notable cases of corruption have exposed sponsors and their investments to significant perceived pressures including negative consumer associations with athletes, teams and officials that have been found guilty of engaging in corrupt activity. How sponsors respond to such instances of corruption in sport forms the basis of this paper. Drawing from an analysis of corruption cases (n = 2089), the paper initially examines the nature of corruption in sport. Through interview data (n = 21), it subsequently identifies key factors that sponsors should take into consideration when deciding upon a course of action to mitigate any potential effects of corrupt activity by a sporting property they are associated with. Finally, the paper discusses those courses of action.     

Configuring a corporate venturing portfolio to create growth value: Within-portfolio diversity and strategic linkage

This study attempted an empirical investigation of whether and how a corporate investor can enhance future growth opportunities through corporate venturing investments (CVIs). Different from previous studies, we assessed the firm-level performance impact of a CVI portfolio with a focus on two configuration features: within-portfolio diversity and strategic linkage. Based on a longitudinal dataset of CVIs made by Taiwanese technology-based companies, we found that increasing CVI portfolio diversity and maintaining strategic linkages, particularly vertical ones, between the portfolio companies and the investing firm's core business will add value to the investing firm's future growth. Implications for CVI strategy and opportunities for future research are also discussed.     

Preference for a career in retailing: a question of personality

Drawing on previous findings from the field of brand personality research and employer branding, this paper aims to explore the symbolic attributes of the retail industry image in South Africa and to identify those personality traits that distinguish preferred industries from the retail industry. The research provides a contemporary overview of the current image of the retail industry in South Africa from the perspective of young university students and allows retailers to strengthen their joint communication effort accordingly. Therefore, a quantitative survey study with 1426 participants from five South African universities was conducted. Participants assessed personality characteristics of the retail industry as well as their most preferred industry. The main results suggest that retail and non-retail students hold different personality perceptions of the retail industry and that prior retail involvement accounts for this difference to some extent. Moreover, the analysis shows that retailing performs significantly worse on those personality attributes that are of major importance for future job seekers. Additionally, the study identifies those attributes that exert a strong effect on students’ preferences for the retail industry. The findings provide useful communication themes for educational institutions, retail companies, and industry associations in order to foster positive personality perceptions associated with the retail industry.     

What induces online loyalty? Online versus offline brand images

This study investigates the effect of the interplay between a multi-channel retailer's offline and online brand images on consumers' online perceived risk and online loyalty within the framework of a theory of cognitive dissonance. A sample of 671 female college students participated in an experiment using a 2 (prior offline brand image) × 2 (online performance) between-subjects design. Results reveal that offline brand image exerts significant effects on online brand image - which, in turn, significantly explains online perceived risk - and online customer loyalty. However, online perceived risk has no significant effect on online customer loyalty after controlling for the effects of online and offline brand images. These results provide implications for the direct and indirect halo effects of offline brand image and the direct effect of online performance that may influence consumers' perceptions, expectations, and loyalty regarding multi-channel retailers.     

How marketing strategy,perceived value and brand image influence WOM outcomes—The sharing economy perspective

As concepts and technology evolve, the sharing economy changes not only business management methods but also lifestyle, leisure, tourism and hospitality consumption. This research proposes an integrated empirical model that illuminates the role of shared economy perceptions on transportation tools in explaining consumer behaviour in word-of-mouth (WOM) and usage intention. In Study 1, 368 YouBike users' perspectives were examined, and the results showed that ease of use is key to promoting WOM through perceived value and brand image. Furthermore, based on 338 GoShare users' perspectives in Study 2, brand image and reputation are shown to play the critical mediating roles in linking the relationships between marketing strategy and WOM. Additionally, usage intention has important moderating roles in the WOM development process. Overall, this study helps academics and marketing decision-makers understand which critical attributes influence customers’ behaviours when implementing sharing economic concepts.     

An investigation of determinants of counterfeit purchase consideration

The primary purpose of this study is to examine the determinants governing the likelihood of considering the purchase of counterfeit branded products (CBPs) in the context of non-deceptive counterfeiting. The study anticipates and explores the effects of consumer-perceived brand image (i.e., brand personality, product attributes, and benefits/consequences), perceived risk, product knowledge, product involvement, and consumer demographic variables. Focus groups generated the criteria that consumers use to evaluate the studied brands; the main study then collected data from interviews. The results show that among the tested variables, brand personality performs best in determining consideration of the CBP. In general, demographic variables and product involvement do not appear to be significantly influential. The results also provide empirical evidence for Plummer's (Plummer, J.T. How Personality Makes a Difference. Journal of Advertising Research 1985; 24 (6): 27-83 (December/January), Plummer, J.T. How Personality Makes a Difference. Journal of Advertising Research 2000; 40 (6): 79-83 (November/December)) notion of brand image components; furthermore the results also suggest that perceived risks should not be part of the benefit/consequence component of the brand image concept.     

Mediated-moderated effects: High and low store image,brand awareness,perceived value from mini and supermarkets retail stores

This paper addresses how different store formats moderate the relationship between store image and purchase intention, mediated by brand awareness and perceived value. Questionnaire data was collected through face-to-face interviews with retail customers on the streets of a city in southern Brazil. Hypotheses testing were performed using the partial least squares structural equation modeling, supported by Smart-PLS and the Bootstrapping procedure run in the Process software. The model's sample included 298 retail customers for each store format (supermarket and mini-market). Results showed that store image positively impacted customer purchase intentions and the mediators, perceived value and brand awareness, which had a distinct effect on the direct relation of store image and purchase intention. Store format presented moderation effects on the relation between store image and brand awareness for both store formats: the higher the perception of store image, the greater the consumer's brand awareness. However, store format did not present a moderating effect on the relationship between brand awareness and purchase intention. Store image was found to be an important independent construct that improves brand awareness and increases perceived value. The number of mini-markets in Brazil is increasing, indicating that they are supplying a need unmet by supermarkets. The study design's implementation in the city streets, respondents were requested to imagine store image, which may have affected some of the parameters. The model integrated store image as an important construct influencing purchase behavior and this study presented a mediated-moderated model with managerial implications.     

Entrepreneurs: Invent a new brand name or revive an old one?

This paper discusses launching an entrepreneurial venture by acquiring a once popular brand name and reviving it. Interviews were conducted with 10 executives who acquired dormant brands and successfully relaunched them into the market. Their comments suggest that, with proper planning, an entrepreneur may be able to substantially increase his or her chances of success by reviving brands, rather than spending the enormous amount of capital required to build new brand image. Conclusions suggest that nostalgia targeting is not enough; the revived brand must be repositioned to satisfy today's customer values. Evidence also suggests licensing a revived brand name to unrelated industries may prove very profitable for the entrepreneur.     

Brand experience as a moderator of the negative impact of promotions

While price promotions are generally believed to have a positive impact on immediate sales, their effects on attitude towards repurchase, quality perceptions, and repurchase are far less clear. We present a study that tests the effect of brand experience in moderating the negative impact of promotions. The results of the laboratory study indicate that the negative impact of a discount on perceptions of quality and subsequent intent to purchase at full price is eliminated among those who had tried the brand. The moderation of the negative impact of promotions has not been previously shown to occur despite its prediction by a variety of behavioral theories.     

Brand personality appeal,brand relationship quality and WOM transmission: a study of consumer markets in Vietnam

This study investigates the impact of brand personality appeal on both brand relationship quality and word-of-mouth (WOM) transmission in Vietnam. It also examines the role of consumer attitudes towards advertising and public relations on brand personality appeal as well as brand relationship quality. An empirical test with a sample of 477 consumers by means of structural equation modelling reveals that brand personality appeal has a positive impact on both brand relationship quality and WOM transmission and that brand relationship quality has a positive effect on WOM transmission. Furthermore, attitudes towards public relations have positive impacts on both brand personality appeal and brand relationship quality. Finally, attitudes towards advertising have a positive impact on brand personality appeal but not on brand relationship quality.     

Determinants of Success of Employer Branding in a Start‐up Firm in Nigeria

This article aims at providing an understanding of factors that determine the success and failure of employer branding. An African steel‐producing start‐up company developed an employer brand image, which enabled it to effectively attract and hire talent from the labor market and inspired high engagement and productivity. A few years later, the firm lost its attractive brand image and its employer brand loyalty also declined. The study is a longitudinal investigation, and data were collected from policies and through structured interviews with the employees, ex‐employees of the organization, and prospective employees. Findings show amazing success of the employer brand in the first six years in talent attraction, hiring, engagement, and retention. Thereafter, the brand lost its potency, and its dysfunctionality significantly impacted on the future of the firm—employee dissatisfaction, decline in productivity, and increase in turnover. The reasons include a toxic organizational environment, overbranding, failure to keep promises, disconnect between employer branding and human resource strategy, shift of emphasis by senior management from people to production, and lack of a dynamic and differentiated employee value proposition. The study offers practical lessons to managers. © 2017 Wiley Periodicals, Inc.     

Defensive strategy against a private label: Building brand premium for retailer cooperation

We build a game-theoretic model of price competition between a national brand manufacturer and a retailer that also sells its private label. In particular, we examine a national brand's strategy of building brand premium in the context of channel coordination. The importance of national brand's brand equity has been well-documented in many empirical and behavioral studies. We reinforce the argument that building brand premium should be the first line of defense for a national brand instead of aggressively cutting wholesale price. Not only does the national brand manufacturer benefit from it, but also the retailer who sells both the national brand and its own private label has less incentive to promote the latter. Therefore, it can induce retailer cooperation, which is essential for a successful strategy in a distribution channel.     

The Impact of a New Retail Brand In-Store Boutique and its Perceived Fit with the Parent Retail Brand on Store Performance and Customer Spending

With data from a specialty apparel retailer, we present two studies that investigate the impact of an in-store boutique displaying merchandise of a new retail brand on overall performance of the parent stores in which the boutiques are placed, and on customer spending on merchandise offered by each of the two brands. Findings from the two studies generally support that the in-store boutique enhances three key store-level metrics: average customer transaction value per store visit; comparable sales growth from one year to the next; and customer conversion ratio. At the customer-level both studies show that average customer transaction value on merchandise offered by the new brand is negatively related to average customer transaction value on the parent brand, and vice versa. Furthermore, both studies reveal that the relationship between the perceived fit between the two brands and average customer transaction value on the parent brand increases at an increasing rate (positive main and quadratic effects of perceived fit), but that the impact of perceived fit on average customer transaction value on the in-store boutique brand increases at a deceasing rate (positive main effect, but a negative quadratic effect of perceived fit). Implications for retail practice and theory are offered.