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Generalizing across generations, or not? A comparative study of sport sponsorship outcomes across generational cohorts

Mehta, Mithila; Shah, Kunal
Master thesis
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URI
http://hdl.handle.net/11250/2623053
Date
2019
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  • Master of Science [1823]
Abstract
Millennials are the ‘new shiny thing’ - everyone seems to want a piece of the largest

consumer segment in history. However, alarmingly for sports businesses,

Millennials do not seem to be consuming sport. TV viewership is falling, and to

make matters worse, the Millennials who do consume sport are believed to have low

sponsorship responsiveness. This threatens the ability of the sport to score lucrative

sponsorships since the size, attractiveness and responsiveness of the sport’s audience

is a key determinant of sponsorship value. The resultant situation is highly

concerning as without sponsorship revenues, the sport would financially bleed.

Despite this alarming context, the hard facts are missing. No comprehensive

research exists across the three main cohorts (Millennials, Generation Xers and

Boomers) to investigate how the cohorts differ on key sponsorship outcomes. This

research gap forms the basis of our study. Our study uses Formula 1 as a case study

and is based on highly identified fans of the sport. Using the communication

hierarchy as a framework, we studied six key sponsorship outcomes (starting from

sports consumption up to sponsorship influence on purchase ) across cohorts.

The findings revealed that Millennials were on par with Gen Xers and Boomers for

every sponsorship outcome - in essence, there was no evidence to show that

Millennial consumers were less responsive to sponsorship. We also noticed that the

sports consumption habits of Millennials and Gen Xers are converging, and that

sports businesses would be well served to expand their measures of sport

consumption to include digital platforms. Further, we developed models to predict

sponsorship outcomes overall and by cohort for involvement, sponsorship awareness

and sponsorship influence on purchase - as well as identified their key drivers.

Our research helps sports businesses understand / adapt to ongoing changes in the

sporting landscape with respect to Millennials - and also gives them the tools to

make a strong business case for sponsorship. For sponsors, our findings can

contribute to better sponsorship selection, valuation, design and effectiveness.
Description
Masteroppgave(MSc) in Master of Science in Strategic Marketing Management - Handelshøyskolen BI, 2019
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Handelshøyskolen BI

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