‘‘The impact of the doping effect on cycling …...The impact of the doping effect on cycling...

The impact of the doping effect on cycling sponsorship 1

October 2013 Kassel, Germany

‘‘The impact of the doping effect on cycling sponsorship:

analysis of brand lovers and cycling fans consumer reaction’’

Exposé

Submitted by César López Flórez

European Master in Business Studies


Abstract

Title: “The impact of the doping effect on cycling sponsorship: analysis of

brand lovers and cycling fans consumer reaction”

Keywords: Doping; Sport sponsorship; Team/athlete identification;

Brand attachment; Image transfer; Consumer behaviour; Image restoration

(optional).

Background: Doping cases are increasing in recent years and it has reached

such dimension that concerns society as a whole. The phenomenon will be

more extensive because the interests related to sport grow larger. As a result,

the sport and the sponsorship are affected in a negative way and consumers

may change their opinion about the athletes or sponsor brand. This study

shows that far from being limited to the public health and ethics issues,

doping is a critical business problem that companies have to face.

Purpose: The intention of the thesis is to find out if there is a relation

between brand attachment and demand for sport with consumer behaviour

after a doping case. In order to measure this possible attitude change, the

perception of the sponsored brand image and the image transfer will be

analyzed through the associations of the Sponsorship Portfolio Model. Also, a

Doping Effect-Consumer Behaviour Model will be developed to describe the

repercussion of sponsorship on consumers arising from the doping effect.

The last aim of this study is to find out how effective image restoring

strategies are on customers.

Method: A quantitative approach will be used to evaluate the hypotheses.

The data will be collected through an online survey. The questionnaire will be

divided into two parts: the first one will set forth general questions concerning

doping (H1) and sponsorship (H2) and the second part will evaluate the

negative impact on people who identify with athletes/team (H3), sport lovers

(H4) and brand lovers (H5) and investigate their consumers’ reaction.


List of content

Abstract ............................................................................................. 2

Table of figures .................................................................................. 4

1. Introduction ................................................................................... 5

2. Problem statement ........................................................................ 6

2.1. Research questions ................................................................. 6

2.2. Purpose ................................................................................... 6

2.3. Relevance ................................................................................ 6

3. Theoretical background ................................................................. 7

3.1. Demand for sport ..................................................................... 7

3.1.1. Identification with athlete/team ........................................... 8

3.1.1. Performance of the sport .................................................... 8

3.2. Brand attachment..................................................................... 9

3.3. Sport sponsorship .................................................................... 9

3.4. Image restoring (optional) ...................................................... 10

3.5. Doping Effect-Consumer Behaviour Model ............................ 10

4. Hypotheses ................................................................................. 11

5. Review of literature ...................................................................... 12

6. Methodology ................................................................................ 17

5.1. Primary data .......................................................................... 17

5.2. Secondary data ...................................................................... 17

7. Overview of chapters ................................................................... 20

8. Work plan .................................................................................... 22

9. References .................................................................................. 23


Table of figures

Figure 1 Sport sponsorship portfolio (Cliffe & Motion, 2005) Adapted version…………………………………………………………………….9

Figure 1 Doping Effect-Consumer Behaviour Model (López, 2013).10

Figure 2 Research Model………………………………………………11


1. Introduction

Sport used to be a game full of values; from respect, partnership,

teamwork to competitiveness, social relationship and justice (Burdett,

1997). With the evolution of society to the present, the sport has

become a business (Ratten, 2011).

The rivalry has made that it has been used by any possible means in

order to gain an advantage in any sport event and thus achieve the

status or money associated to victory, often resorting to doping,

where doctors and trainers have worked unethically to increase the

performance of athletes (Baron, Martin, & Abol, 2007).

The term "doping" is used to refer to the use of banned substances

(or the presence of markers of such substances in the athlete's body)

or methods that may artificially enhance physical or mental condition

of an athlete, and with it, the performance in sports, according to the

International Olympic Committee (2004).

Rather often nowadays we hear in the news about rejecting

behaviours in the sport world. As a result, the sport and the

sponsorship are affected in a negative way. Sponsors are afraid of

their brand or product experiment negative repercussions for being

linked to a doping case, so consumers may change their opinion

about the brand sponsored.

From my point of view, the relationship doped athlete-sponsor-fan is

still undiscovered, being this reason why the research topic chosen is

about the impact of the doping effect on sport sponsorship and fans

consumer behaviour.


2. Problem statement

2.1. Research questions

This research aims to understand brand lovers and cycling fans

consumer behaviour, with the formulation of these questions:

RQ1: How is the sponsoring brand image perceived after a doping

scandal?

RQ2: How are customers affected after a doping scandal?

RQ3: How do image repair activities affect consumer behaviour?

2.2. Purpose

The purpose of the study is to find out if there is a relation between

brand attachment and the demand for sport (team/athlete

identification and performance of the sport) with consumer behaviour

after a doping case. I will try to find out how consumers react to the

brand and sportsman after a doping case and how effective image

restoring activities are on customers.

Previous studies have mainly dealt with the relation between sponsor

companies and elite athlete (Bloxsome, Voges, & Pope, 2011;

Connor & Mazanov, 2010; Messner & Reinhard, 2012). However, not

many studies revealed if there is change in the consumer behaviour

of brand lovers and sport fans in a doping framework.

2.3. Relevance

Consumer behaviour is an important concept due to its relevant

impact in strategic decisions of the company. After a negative effect

on the brand, the company must analyze the customer thoughts. In

this way, it could carry out an effective marketing communication

strategy since the customer is the most important pillar of marketing.


3. Theoretical background

3.1. Demand for sport

The literature has divided the demand for sport into two subgroups,

direct demand and indirect demand (Borland & Macdonald, 2003).

The original idea is carried out by the economist Alfred Marshall

(Solberg, Hanstad, & Thøring, 2010); the direct demand is the

consumption of goods and services in order to satisfy consumers’

necessities while the indirect demand is derived from the direct

demand.

Referring to sport, there are types of direct demand: demand for live

attendance to sporting events and for watching sporting events via

media (Brennan, Canning, & McDowell, 2013).

The indirect demand for sport is the resources spent by business

stakeholders on sporting contest because of the direct demand from

sports fans. There are some types of derived demand as television

advertisers, subscriptions or pay-per-view, merchandising and

sponsorship by companies which want to build a positive reputation

and be a well-known brand in the market (Brennan et al., 2013;

Solberg et al., 2010).

The indirect demand is extremely affected by doping scandals.

Fewer and fewer firms want to sponsor athletes or sporting events as

there is the risk of doping. The brand image could be adversely

affected and, therefore, it could lose current and potential clients

(Bloxsome et al., 2011).

The direct and indirect demands are influenced by some variables

which have a special relation to doping (Borland & Macdonald, 2003;

Wann, Melnick, Russell, & Pease, 2001):

- Identification with teams/athletes

- Performance of the sport

I found especially interesting the perspective expounded by Solberg

and colleagues (2010). Depending on some variables such as age,

interest in sport, uncertainty of outcome, identification with athletes

and calculative motive, people have different opinions about doping.


Additional work is needed to find out if this different opinion causes a

change in the consumer behaviour.

3.1.1. Identification with athlete/team

Athlete and team identification is a phenomenon connected with

sport consumption. People experience an emotional attachment and

this feeling affects their behaviour (Wann & Branscombe, 1993;

Sutton, McDonald, Milne & Cimperman, 1997). Individuals with high

identification would consume and invest more time and money (Gau,

James, & Kim, 2009).

However, the benefits of using teams/athletes as brand image can

reverse markedly if they, for example, are involved in disgraceful

event (Erdogan, 1999).

Applying the theory of celebrity endorsement effect, three different

effects on the consumer can be found:

Till and Shimp (1995) found out that a negative information about an

athlete endorser influences on consumers' perception of the

sportsman, and also the endorsed product.

On the other hand, when a negative situation affects to the endorser,

the consumers may feel empathy (Berger, Sorensen, & Rasmussen,

2010; Puj, 2012). This feeling is a positive effect and the consumer

will purchase sponsored products.

The third possibility is to sack the endorser in order to avoid a link

with the company (Louie, Kulik, & Jacobson, 2001).

3.1.1. Performance of the sport

Another possibility to demand sport is the performance of the sport or

the uncertainty of outcome (Solberg et al., 2010). Uncertainty of

outcome is a special characteristic of sport events that differentiates

them from other services (Gratton & Taylor, 2000).

The objective of this study is to find out if people who like to watch or

practise sport without any identification with team or athlete will

change their perception to the sponsoring brand after a doping

scandal and if there is a possible attitude change that affects their

consumer behaviour.


3.2. Brand attachment

Based on the Thomson’s (2006) research, Rafi, Ahsan, Saboor,

Hafeez and Usman (2011) defined brand attachment as ‘‘a critical

construct connecting the consumer and the brand affecting the

behaviours and fosters the profitability of the brand and lifetime

values of the customers’’.

Studies in marketing propose that consumers can also feel attached

thanks to marketplace entities, such as product brands (Keller, 2003)

and celebrities (Thomson, 2006) relating brand attachment with the

theory of endorsement.

3.3. Sport sponsorship

Cliffe and Motions (2005) developed a sponsorship portfolio model

which links the consumer behaviour with the different components of

the sponsorship.

Within the sponsorship components, associations have a special

relation to doping because a possible damage in the image of the

sponsoring company (Lagae, 2005). Brand associations can be

influenced because of the celebrity endorsement and sponsorship

activities (Keller, 1993). Keller’s research is based on the theory of

the meaning transfer (McCracken, 1989). For Amis and Cornwell

Figure 3 Sport sponsorship portfolio (Cliffe & Motion, 2005) Adapted version


(2005), ‘‘Consumers assign meanings to celebrities based on

individual’s interpretation of celebrity image in television, athletics…’’)

and this meaning is transferred to the brand image being able to

change the consumer behaviour (Cliffe & Motions, 2005).

3.4. Image restoring (optional)

The author of the image restoration theory is Benoit (1995) who has

also written or co-authored numerous studies about image

restoration. This theory has been used to analyze tobacco media

campaigns (Metzler, 2001), U.S. Air Force Army sexual scandals

(Roberts, 2006), hotels crisis (Vassilikopoulou, Siomkos,

Chatzipanagiotou, & Triantafillidou, 2009) and image repair

strategies of famous sportsmen like Lance Armstrong (Hambrick,

Frederick, & Sanderson, 2013) and Roger Clemens (Sanderson,

2008).

Rosenfield (1968), Scott & Lyman (1968) and Ryan (1982) have

carried out several image restoration strategies that have provided

the basis for Benoit's theory. This theory explains the different

strategies (denial, evading responsibility, reducing offensiveness,

corrective action and mortification) to rebuild the image of a

brand/celebrity when the reputation has been damaged.

3.5. Doping Effect-Consumer Behaviour Model

The Doping Effect-Consumer Behaviour Model (DE-COB) has been developed to describe the effects of sponsorship resulting from a doping scandal. DE-COB model has been designed with the support of different theories, explained before, regarding sponsorship and consumer behaviour.

Figure 4 Doping Effect-Consumer Behaviour Model (López, 2013)


4. Hypotheses

H1. If a sponsor brand is involved in a doping scandal, the image of

the sponsored brand will be negative compared to previous.

H2. The negative image transfer will cause an attitude change.

H3. Consumers who are highly identified with a cycling team or

athlete involved in a doping scandal will not change their consumer

behaviour towards the sponsoring brand.

H4. Consumers who demand cycling because of the performance will

change their consumer behaviour towards the sponsoring brand

involved in a doping scandal.

H5. Consumers who are attached to a brand involved in a doping

scandal will not change their consumer behaviour.

H6.Image repair activities help to restore lost brand image after a

doping scandal having a positive change in consumer behaviour.

Figure 5 Research Model


5. Review of literature

Introductory articles

TOPIC TITLE AUTHOR SOURCE RELEVANT CONTENT

Sport

management

International Sport Management : Current Trends and Future Developments.

(Ratten, 2011)

Thunderbird International Business Review

Economic, commercial and multicultural influences on sport sponsorship.

Communication as the key for promoting.

Sponsorship of sporting events and branding have an important impact on consumer behaviour.

Doping and commercialization

Commercialization in Professional Cycling 1950-2001: Institutonal Transformations and the Rationalization of ‘‘Doping’'

(Brewer, 2002)

Sociology of Sport Journal

Relationship between doping and sponsorship during the last 50 years s. XX.

Reasons why doping turns up and how affects sport and sponsorship.

Sponsorship

Effects of Strategic Exiting from Sponsorship after Negative Event Publicity.

(Messner & Reinhard, 2012)

Psychology and Marketing

Impact of a sponsor’s corporate reputation on consumer responses (after a negative event).


Demand for sport


Demand for

sport

Demand for sport

(Borland & Macdonald, 2003)

Oxford Review of Economic Policy

Determinants of the demand for sporting contests.

Variables affected by doping.

Other sources of demand (broadcasting, sponsorship and merchandising).

Social Interactions and the Demand for Sport: An Economic Analysis

(Downward & Riordan, 2006)

International Association of Sports Economics Conference

Relation between social interaction theories and economic theories.

Identification with athlete/team


Team

identification

Effects of Team Identification on Motives , Behavior Outcomes , and Perceived Service Quality.

(Gau et al., 2009)

Asian Journal of Management and Humanity Sciences

Examination of the emotional and cognitive effects of team identification

Links between consumer behaviour and team identification.

‘Highly identified fans consume more media and merchandise’.



Celebrity

Endorsement

Celebrity Endorsement: A Literature Review

(Erdogan, 1999)

Journal of Marketing Management

Importance of the use of celebrities as marketing strategy.

Historical development of celebrity endorsement.

Pros and cons of Celebrity Endorsement Strategy.

Possibility of bad image because of celebrities’ negative qualities.

Endorsers in Advertising: The Case of Negative Celebrity Information

(Till & Shimp, 1995)

Journal of Adverstising

There is a risk in the using of celebrity endorsers.

Study of the impact of negative information about a celebrity on the brand.

Positive Effects of Negative Publicity: When Negative Reviews Increase Sales

(Berger et al., 2010)

Marketing Science

‘’Can negative information about a product increase sales, and if so, when?’’

The study argues that negative publicity can increase the sales.


Brand attachment


Brand

attachment

Brand Attachment and Brand Attitude Strength: Conceptual and Empirical Differentiation of two Critical Brand Equity Drivers

(Park, Macinnis, Priester, Eisingerich, & Dawn, 2010)

Journal of Marketing

Basic concepts.

Differentiation between brand attachment and brand attitude strength.

Impact on purchasing behaviour.

Brand attachment measure scale.

Knowledge Metrics of Brand Equity: Critical Measure of Brand Attachment and Brand Attitude Strength

(Rafi et al., 2011)

Asian Journal of Business Management

Knowledge metrics: relationship between brand attachment and brand associations.

Image transfer


Image

transfer

Global Sport Sponsorship

(Amis & Cornwell, 2005)

Oxford International Publichers Ltd

Image transfer in sport sponsorship: basic concepts. Explanation of the different theories along the time.

Relationship between team identification and image transfer.


Image restoring (optional)


Image

restoring

A Transformative Typology of Pragmatic and Ethical Responses to Common Corporate Crises : Interaction of Rhetorical Strategies , Situational Contingencies , and Influential Stakeholders

(Wallace, Ferguson, & Chandler, 2007)

Association for Business Communication Convention.

Definitions of Crisis Communication Rhetorical Strategies. Analysing which ones are perceived more positively and negatively in terms of ethical, recommend and effective.

Study of different reputation crisis scenarios (Interesting for the thesis: illegal activity and social irresponsibility).

Consumer Reaction to Negative Publicity: Effects of Corporate Reputation, Response, and Responsibility for a Crisis Event

(Dean, 2004)

Journal of Business Communication

The paper studied the effects of company reputation after a crisis event and how consumers react.

Links between response, reputation, and responsibility.


6. Methodology

The methodology carried out in this thesis is divided into two

complementary subprojects: desktop (primary data) and field

research (secondary data). Within the field research, it will be used

quantitative and qualitative methods.

5.1. Primary data

Objectives:

1. Get results that may be the basis for the development of scientific creation:

a. Definitions necessary for the understanding of the

theoretical background.

b. Identify the field methodology to be applied in this study.

2. Be a base on the construction of knowledge for the field research. Academic journals' articles, books, notices, circulars and dossiers will be analysed.

Some of the articles and books that I am already taking into consideration can be seen at the references section of this exposé.

5.2. Secondary data

Objectives:

1. Collection of information about attitudes and behaviours to add to the findings obtained in the desktop research of the project.

2. Obtain the information needed to affirm or reject the hypotheses of the study.

An online questionnaire will be launched via Sphinx software in order to get the required information to succeed in the study.

o Quantitative research with seven or five point (Likert) scales.

o Qualitative research: wall of pictures and open-ended questions.


The questionnaire will be divided into two parts:

The first one will set forth general questions concerning doping

and sponsorship; and how this factor affects to the image of the

sponsored brand. The information collected will be used to affirm

or reject the H1 and H2.

Possible questions:

- Are you aware of any sponsorship between a company and an athlete, team, event or other? Y/N

- Have you ever heard of a doping scandal which might have affected the relationship between sponsor and sponsored? Y/N

- In what way would you best describe your reaction to the

incident? Neutral/Positive/Negative/Surprised (…)

- Did you have any previous perceptions connected to the sponsoring company? Y/N. If yes, which ones? Status/Energy/Extreme/Quality/Respect (…)

- How have your previous perceptions of the sponsoring company changed because of the doping scandal? Neutral/Positive/Negative (…)

- What was your attitude towards the sponsoring company’s desired associations before the doping scandal? Very bad/Bad/neutral/good/Very good

- What was your attitude towards the sponsoring company’s desired associations after the doping scandal? Very bad/Bad/neutral/good/Very good

The second part will evaluate the negative impact on people who

identify with athletes/team (H3), sport lovers (H4) and brand lovers

(H5) and investigate their consumers’ reaction. This second part

will separate in three:

- Brand attachment. It will be asked to select some

sponsoring brands related in a doping scandal that they

like. Then, participants have to rate some five-point Likert-

type items (Ahluwalia, Stilley & Swaminathan, 2009; Park,

Macinnis, Priester, Eisingerich, & Dawn, 2010), for

example:


o This brand makes a statement about what is

important to me in life.

o This brand’s image and my self image are similar in a

lot of ways.

- Demand for sport. The participants will be asked the motive

why demand watching sport (Solberg et al., 2010). If the

answer is Identification with athlete/team, participants will

select some athletes/teams related in doping scandals that

they like. Then, they have to rate four-item scale from

strongly agree to strongly disagree (James & Trail, 2001),

for example:

o Regardless of whether the (athlete/team) win or lose

I will continue to support them.

o I consider myself to be a real fan of (athlete/team)

- Finally, participants will answer some questions about their

consumer behaviour after a doping scandal. A behavioural

outcome measure will be applied, 2 items will be rated

(Asadollahi & Hanzaee, 2011):

o How often have you bought the brand in the past?

Not at all (1) to very frequently (5).

o Do you intend to buy the brand in the future? Not at

all (1) to very frequently (5).

o If you answered 1 or 2, in which way do you change

your consumer behaviour? I stopped buying their

products/ I tried to substitute their products/ It made

me think twice before purchasing from that brand.

The potential sample of the questionnaire will be cycling fans with enough knowledge about doping. After the analysis of the data obtained in the questionnaire, I would like to conduct 5-10 in-depth interviews with professionals in order to get another point of view, for example, for the image restoration strategies (H6).


7. Overview of chapters Chapter 1. Introduction

1.1. Background

1.2. Problem discussion

1.3. Relevance of the topic

1.4. Purpose of the thesis

1.5. Demarcations

1.6. Outline of the thesis

Chapter 2. Theoretical framework

2.1. Sport sponsorship portfolio

2.1.1. Brand equity

2.1.2. Brand image, identity and personality

2.1.3. Brand awareness

2.1.4. Brand experience, loyalty

2.1.5. Associations, image transfer

2.1.6. Goodwill

2.2. Demand for sport

2.2.1. Identification with athlete/team

2.2.2. Performance of the sport

2.3. Brand attachment

2.4. Image restoring

2.5. Doping Effect-Consumer Behaviour Model (DE-COB Model)

2.5.1. Doping effect

2.5.2. Image transfer

2.5.2.1. Negative publicity media

2.5.2.2. Negative effects image transfer

2.5.3. Possible attitude change

2.5.4. Consumer behaviour

2.5.5. Image restoring


Chapter 3. Methodology

3.1. Starting point

3.2. Procedure

3.3. Implementation

3.4. Credibility

Chapter 4. Results and discussion

Chapter 5. Conclusions

5.1. Theoretical implications

5.2. Managerial implications

5.3. Limitations

5.4. Further research

Chapter 6. References

Chapter 7. Appendices


8. Work plan


9. References

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Amis, J., & Cornwell, T.B. (2005). Global Sport Sponsors. Oxford International Publichers Ltd.

Asadollahi, A., & Hanzaee, K. H. (2011). Investigating the Effect of Brand Knowledge and Brand Elationships On Purchase Behavior of Customers. World Applied Sciences Journal, (13 (9)), 2012–2020.

Baron, D. A., Martin, D. M., & Abol, S. (2007). El dopaje en el deporte y su propagación a las poblaciones de riesgo: una revisión internacional. World Psychiatry (Spanish edition), 5(2): 118–123.

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Berger, J., Sorensen, a. T., & Rasmussen, S. J. (2010). Positive Effects of Negative Publicity: When Negative Reviews Increase Sales. Marketing Science, 29(5), 815–827. doi:10.1287/mksc.1090.0557

Bloxsome, P. E. L., Voges, K. E., & Pope, N. K. (2011). Sport Sponsorship : Appeal and risks. Research Journal of Social Science & Management, 1(8), 133–145.

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