The effect of sports marketing strategies on spectator’s purchase decision the case of football

ChungYuan Chritian University Department of IMBA Master Degree Dissertation The Effect of Sports Marketing Strategies on Spectator’s Purchase Decision: The Case of Football 運動行銷策略對於觀眾購買決策的影響：以足球為例 指導教授: 李正文博士 研 究 生: 段友慶 (Doan Huu Khanh) 中華民國 107 年 ACKNOWLEDGEMENT I would like to say thanks a million for Dr Cheng-Wen Lee for her guidance and support me during this time I also want to say a sincerely thank Dr 林震岩 and Dr 林仲廉 for their time and their comment to build my final dissertation better There are no words to show my appreciation to my department: College of Business, especially Ms April, she helped me a lot Finally, I am thankful to my friend, Lehang Vu She helped me set up and solved any computer technique for me Thank you from the bottom of my heart for everything i 摘要 本研究從體育營銷角度，特別是從足球市場營銷的角度出發，從兩個角度分別從 運動商業角度（使用體育營銷的商家）和非體育商業（贊助商）角度（使用體育營銷 的商家）以表明為什麼今天的企業認為體育營銷如此重要。 本研究的目的在於確定營銷在體育業務和非體育業務足球領域的作用，並著眼於 在足球領域有效和成功進行的營銷策略。更具體地說，這項研究試圖調查一些突出的 策略對觀眾的購買決定的影響。 論文的理論來源於包括書籍和文章刊物在內的各種贊助文獻。實證研究是通過 對觀眾的調查研究和問卷調查進行的。問卷是基於本研究中使用的理論和關於足球場 營銷實施如何影響贊助商的表現和客戶行為的信息，特別是觀眾。 研究結果可能表明，足球場營銷策略的實施是幫助體育企業存在，提高和創造 競爭優勢的關鍵之一。對於贊助商來說，他們不太需要不必要地冒險，因為形象好， 觀眾範圍廣，所以願意贊助不同的目標板塊。此外，這項研究也對體育事業和足球領 域的潛在讚助商具有理論和實踐意義。這項研究可能會大大有助於對足球業務，贊助 和關係營銷的現有知識。 關鍵詞：體育營銷，體育經營，非體育經營，贊助商，觀眾，消費者行為，消 費者購買決策。 ii Abstract This research looks at sport marketing and in particular marketing in football from two perspectives: The sport business perspective (the businesses who use marketing of sport) and the non-sport business (sponsor) perspective (the businesses who use marketing through sport) in order to show that why businesses today consider sports marketing so important The purpose of this research is determined the effect of marketing in football field of the sport business and the non-sport business and focus on their marketing strategies that they perform effectively and successfully in football field More specifically, the study attempted to investigate the effects of some stand out strategies on spectator’s purchase decisions The theory of the thesis was collected from various sponsorship literatures that included both books and article journals The empirical study was conducted by survey research and questionaire for the spectators Questionnaires were based on the theory used in this study and the information on the outcome how the implementation of marketing in football field affect sponsor’s performance and customer’s behavior(s), in particular spectators The findings will probably show that the implementation of marketing strategies in football field is one of the most crucial way to help sport businesses exist, improve and create their competitive advantages Toward the sponsor, they are not too keen on taking risks unnecessarily and are willing to sponsor various target segments because of the good image and a wider audience range In additions, this study also has both theoretical and practical implications for sport business and prospective sponsors in the field of football The study will probably contribute significantly to existing knowledge about the football business, sponsorship and relationship marketing Keywords: sport marketing, sport business, non-sport business, sponsor, spectator, consumer’s behavior(s), consumer’s purchase decision iii Table of content ACKNOWLEDGEMENT i 摘要 ii Abstract iii Table of content iv List of table vii Chapter 1: Introduction 1.1 Background research: 1.1.1 Marketing of sport 1.1.2 Marketing through sport: 1.1.3 Understanding Spectator Behavior: 1.1.3.1 Definition 1.1.3.2 Marketing Implication 1.2 Problem Statement: 1.3 Research question 1.4 Significance of this study Chapter 2: Literatures Review: 2.1 Sport marketing 2.2 Football Marketing: 2.2.1 Sport business (who marketing of sport) 2.2.2 Non-sport business (who marketing through sport): 2.4 Sport Marketing Strategy - Marketing Mix 12 2.4.1 Sport Product: 13 2.4.2 Sport Pricing: 14 2.4.3 Sport Place 14 2.4.4 Sport Promotion 15 2.2.5 Typical example - The marketing mix of Manchester United Football Club 16 Chapter 3: Data and Methodology: 18 3.1 Research Hypotheses and Research Model: 18 3.2 Data Size and Sampling: 20 3.3 Questionnaire and data collection 21 3.4 Control Variables 21 Chapter 4: Results 22 4.1 Statistical data and results 22 iv 4.1.1 Frequencies Data 22 4.1.2 Reliability& Validity Test 24 4.1.2.1 Reliability 24 4.1.2.2 Validity Test 24 4.1.3 Correlation Analysis 26 4.2 Regression Analysis 28 4.2.1 Hypothesis Test 28 Chapter 5: Discussion 34 5.1 Discussion and Limitation 34 5.1.1 Discussion 34 5.1.2 Limitations and further research 34 5.2 Implication relating to sport and non-sport business 34 5.3 Suggestions 35 Reference 36 Appendix A: Survey Questionnaire 38 v List of Figure Figure Evolution of Real Madrid Revenue Figure 2 The Sport Marketing Framework 11 Figure Marketing Mix Model 13 Figure Sportscape Model 15 Figure The Research Framework 18 vi List of table Table Demographic Data 22 Table Showed the reliability of the variables 24 Table 4.3 Showed the Validity of the variables 25 Table Mean, Standard Deviation and Correlation Coefficient of Variable 26 Table Linear Regression of Model 30 Table Linear Regression of Model 31 Table Linear Regression of Model 32 vii Chapter 1: Introduction 1.1 Background research: There is a hobby or free time activity for most people, they call “sport” Nowadays, it is also strongly considered that sport is also a business (Chadwick, 2008) This study was emphasized on the football industry – a king sport industry It now is an international business; international professional competitions are held, players are transferred all over the world and the Europa League finals and FIFA World Cup finals are top media events with television broadcasting all over the world Variety of people also suppose that football is the most popular sport globally (Richelieu, Lopez & Desbordes, 2008) And despite of the economic unstable recently there has been a steadily increase in European football sales, indicating the uninterrupted loyalty of the supporters and the undeniable attraction of football to the sponsors and broadcasters That proves Sport Marketing is probably one of the good solution for sport business as well as non-sport business in any circumstance Aaron Smith (2012) argued that: Sport marketing is the application of marketing concepts to sport products and services, and the marketing of non-sport products through an association to sport There are two main characteristics of Sport marketing Firstly, it is the implementation of common marketing methods for sports-related products and services Secondly, doing the marketing of other consumer and industrial products or services through sport As usual, fulfilling the needs and wants of consumers is usually a main task of marketing, not except sport marketing Every business always focusses on their consumer behavior and satisfaction in order to create new Marketing strategies to affect them It achieves this by supplying sport services and sport-related products to consumers However, a strengthen aspect that sport marketing is different with conventional marketing is it has the ability to encourage the consumption of nonsport products and services by association It is important to understand that sport marketing means the marketing of sport as well as the use of sport as a tool to market other products and services 1.1.1 Marketing of sport Aaron Smith (2012) mentioned in his book that Sport marketing including the marketing of sport and marketing through sport The former one directly to sport consumers could include sporting equipment (In football, it is football shoes, shin guards, ball, socks, jersey, etc.); professional competitions (In football, it is the matches of Divisions in the world, final UEFA Champion League, Europe League, etc.); sport events (In football, it is World Cup, CONCACAF, EURO, CAN, etc.) And another simple example is the team advertising, designing a publicity stunt to promote an athlete, selling season tickets, and developing licensed apparel for sale With regard to football field, it is the main strategy of sport businesses (sport organization) such as: - The providing sport products business: Adidas, Puma, Nike, Under Amor, New Balance, etc - The professional football club: Manchester United (England), Borussia Dortmund (Germany), Juventus (Italia), etc 1.1.2 Marketing through sport: In contrast, marketing through sport happens when a non-sport product is promoted and sold through an connection to sport Some examples could include setting up the advertising sign board on the pitch, a celebrity athlete endorsing for a brand, a corporation sponsoring a sport event, or even an sport event could be witnessed a monopoly right of a company to provide their products for all (Aaron Smith – 2012) Concerning football field, the non-sport business (the sponsors) who the marketing through sport such as: Car brand Chevrolet is a kit sponsor of Manchester United football club, Beer brand Budweiser is the golden sponsor of World Cup Korea 2002, Cristiano Ronaldo – the most famous player in the world is an endorsement of Coca-Cola, KFC, Tag Heuer, Konami, etc 1.1.3 Understanding Spectator Behavior: 1.1.3.1 Definition Aaron Smith – 2012 said that: There are variety of sport consumer definition, most of which swing around identifying different kinds of sport products or services However, before getting this definition, the important point to make is clarify a difference between sport consumers and sport stakeholders When a person buys a sport or sport-related product or service directly (like using cash to buy a ticket to a game) or indirect way (like purchasing a television or upgrading internet package in order to enjoy sport as an entertainment solution) In the other hand a stakeholder is an individual or group who have an interest in a sport product or service For example, the government and corporate sponsors are stakeholders in that they have an interest in sport products and services, but they are not consumers Sport consumers are the end users Sport consumers may be spectators, participants, and business sponsors However, in this study we only discuss about one kind of consumers that is spectators and their behavior Figure 1.1 showed all aspect of them Mean wage SD 2.580 Sig (2-tailed) 2.680 656 4.047 639 3.871 1.001 Pearson Correlation Sig (2-tailed) 4.238 769 Pearson Correlation Sig (2-tailed) SPD 816 Pearson Correlation Sig (2-tailed) DP 2.000 Pearson Correlation Sig (2-tailed) SB PI MA SB DP -.255** Pearson Correlation Sig (2-tailed) MA TOS 981 home Pearson Correlation PI home Pearson Correlation Sig (2-tailed) TOS wage 3.220 1.044 Pearson Correlation Sig (2-tailed) 4.623 567 000 105 021 128 765 234** 104 083 001 135 234 -.592** -.025 026 -.252** 000 723 706 000 -.272** 160* 167* -.021 325** 000 021 016 767 000 248** 248** -.029 744** -.376** -.089 000 000 675 000 000 201 -.081 071 301** 003 245** 227** -.044 240 305 000 960 000 001 523 ** Correlation is significant at the 0.01 level (2-tailed) * Correlation is significant at the 0.05 level (2-tailed) Note: Wage: Spectator’s income per month Home: Spectator’s continental TOS: Type of Spectator PI: Promotion in the pitch MA: Media Advertisement SB: Sport Branding DP: Distribution SPD: Spectator’s Purchase Decision N = 210 From result in table 4.4 the mean, standard deviation and correlation matrix of variables are provided Most mean values are higher than 3, which means that the majority of spectator respondents generally agree to the content of items 27 As shown in Table 4.4, there were positive relationships among independent variables which are PI, MA, SB with the dependent variable SPD that mean when one of three independent variables move higher or lower, the SPD variable move in the same direction with the same magnitude However only two of the former variables have the significant correlations with SPD variables which are MA and SB Those variables all have the significant coefficient at p