Risky business: An investigation of sponsorship marketing risk

This paper examines the characteristics of sponsorship risk in order to better understand the potential pitfalls that may arise for firms contemplating sponsorship-linked marketing. A content analysis of the online sponsorship information provided by 117 listed companies was performed using Leximancer software to gain insights about the corporate conceptualisation of sponsorship risk. Next, in-depth interviews were conducted with 20 sponsorship marketing managers and the managers of 20 sponsored organisations to understand risk in terms of sponsorship practice. Central components of sponsorship risk were identified. Strategies for managing sponsorship risk are proposed in order to enhance sponsorship practice in the future.

Cause-related sport sponsorship: An assessment of spectator beliefs, attitudes, and behavioral intentions

Marketing communications utilizing a non-profit cause (i.e., the sponsorship of a nonprofit cause) have emerged as a mainstream practice as practitioners respond to rising consumer expectations of corporate social responsibility (CSRI. The increasing popularity of cause-related marketing programs (CRMPS) can be attributed to the Integration of sponsorship in many organizations' sport marketing strategy. The purpose of this study was to examine the attitudes, beliefs, and purchase intentions of consumers exposed to a firm's sponsorship of a sporting event associated with a non-profit organization. A survey instrument was developed by a panel of experts, pre-tested, revised, and completed by (442 event spectators. Results suggested consumers' attitudes, beliefs, and purchase intentions toward the sponsoring company were positively impacted by the firm's involvement with cause-related marketing.

Social-servicescape conceptual model

There is considerable evidence that environmental variables can substantially influence consumer behavior in service settings (cf. Turley and Milliman, 2000). However, research to date has focused on the effects of the physical elements (‘atmospherics’), with the social aspects (customers and service providers) of the environment largely ignored. First, we provide a review of the extant literature drawing on four major streams of research from (1) previous marketing (servicescapes); (2) environmental psychology (approach–avoidance theory, behavior setting theory); (3) social psychology (social facilitation theory); and (4) organizational behavior (affective events theory). Second, we present a new conceptual model, the ‘Social-servicescape’. In this paper we argue that the social environment and purchase occasion dictates the desired social density which influences customers’ affective and cognitive responses, including repurchase intentions. Furthermore, we argue that customers play a key role in influencing the emotions of others either positively or negatively, and this largely determines whether they intend to return to the service setting. Implications of this conceptual model for theory and practice are discussed.

Nonstationary brand variables in category management: A cointegration perspective

Category-management models serve to assist in the development of plans for pricing and promotions of individual brands. Techniques to solve the models can have problems of accuracy and interpretability because they are susceptible to spurious regression problems due to nonstationary time-series data. Improperly stated nonstationary systems can reduce the accuracy of the forecasts and undermine the interpretation of the results. This is problematic because recent studies indicate that sales are often a nonstationary time-series. Newly developed correction techniques can account for nonstationarity by incorporating error-correction terms into the model when using a Bayesian Vector Error-Correction Model. The benefit of using such a technique is that shocks to control variates can be separated into permanent and temporary effects and allow cointegration of series for analysis purposes. Analysis of a brand data set indicates that this is important even at the brand level. Thus, additional information is generated that allows a decision maker to examine controllable variables in terms of whether they influence sales over a short or long duration. Only products that are nonstationary in sales volume can be manipulated for long-term profit gain, and promotions must be cointegrated with brand sales volume. The brand data set is used to explore the capabilities and interpretation of cointegration.

The effect of provocation in the form of mild erotica on attitude to the ad and corporate image: Differences between cause-related and product-based advertising

Provocative advertising is characterized by a deliberate attempt to gain attention through shock. This research investigates the reactions of individuals to a provocative appeal for a cause as opposed to a provocative advertisement for a standard consumer product, using mild erotica as the element of provocative imagery. An experiment using 391 adult subjects was conducted, and two analyses were performed. The first examined the effect of stimulus type (mildly erotic/nonerotic) by product category (cause appeal/consumer product) on attitude to the ad. The second examined the effect of stimulus type (mildly erotic/nonerotic) by cause (AIDS [acquired immunodeficiency syndrome]/SIDS [sudden infant death syndrome]) on corporate image. Both analyses also included gender as a third independent variable. The results suggest that people prefer mildly erotic ads generally, that an organization using mild erotica in appeals for a cause will be viewed more favorably where the erotica is congruent with the cause, and that women may be more responsive to mild erotica in cause appeals than are men.

Investigating the relationship between internet privacy concerns and online purchase behavior

Many organizations now emphasize the use of technology that can help them get closer to consumers and build ongoing relationships with them. The ability to compile consumer data profiles has been made even easier with Internet technology. However, it is often assumed that consumers like to believe they can trust a company with their personal details. Lack of trust may cause consumers to have privacy concerns. Addressing such privacy concerns may therefore be crucial to creating stable and ultimately profitable customer relationships. Three specific privacy concerns that have been frequently identified as being of importance to consumers include unauthorized secondary use of data, invasion of privacy, and errors. Results of a survey study indicate that both errors and invasion of privacy have a significant inverse relationship with online purchase behavior. Unauthorized use of secondary data appears to have little impact. Managerial implications include the careful selection of communication channels for maximum impact, the maintenance of discrete “permission-based” contact with consumers, and accurate recording and handling of data.