Consumer Response to

Sponsorship Leveraged Packaging –

a Fast Moving Consumer Goods Context

Frances M Woodside

B. Bus (Marketing) (First Class Honours)

Submitted in fulfilment of the degree of

Doctor of Philosophy

University of Southern Queensland

2010

i

CERTIFICATION OF DISSERTATION

I certify that the ideas, results, analyses and conclusions reported in this dissertation are entirely my

own effort, except where otherwise acknowledged. I also certify that the work is original and has not

been previously submitted for any other award, except where otherwise acknowledged.

______________________ ______________

Signature of candidate: Date

ENDORSEMENT

______________________ ______________

Signature of Supervisor/s Date

______________________ ______________

Signature of Supervisor/s Date

ii

Abstract

In the last decade, sponsorship has become a mainstream marketing communications

tool with worldwide sponsorship spending approaching US$45 billion. However, the

rapid growth of corporate sponsorship has led to the emergence of ‗sponsorship

clutter‘, a major challenge for companies seeking sponsorship opportunities. As the

market for sponsorship becomes intensely competitive, it is essential that sponsorship

investments be carefully managed to ensure their effectiveness.

One type of sponsorship leveraging that is widely used in the Australian Fast Moving

Consumer Goods industry (FMCG) is sponsorship leveraged packaging (SLP). SLP

involves depicting the sponsored property‘s image and logos on the sponsoring

brand‘s packaging. Despite its widespread use, little empirical research exists to

explain whether sponsorship leveraged packaging (SLP) impacts consumer

behaviour in low involvement settings. This research specifically addresses these

gaps in the known body of literature relating to sponsorship, packaging and

marketing communications by empirically investigating the relationship between

SLP and consumer behaviour.

Given the current trend of large sponsorship leverage investments, it becomes

increasingly important to have a clear understanding of what to expect when SLP is

used and how to maximise its impact on consumers and the marketplace. In this

research, image transfer theory, together with an attention-trial-response model are

presented in order to develop a framework to explain factors impacting consumer

response to SLP. Empirical results indicate that consumer response to SLP is

impacted by identification with the sponsored property and perceived fit of the

property and sponsor. Furthermore, the relationship is moderated by type of

sponsored property, awareness of the sponsorship, frequency of purchase of the

sponsoring brand and respondent characteristics. Theoretically, this research

provides understanding of a little explored context for sponsorship, i.e. FMCG. It

also provides strategic relevance for brand managers in guiding sponsorship

investment and package design decisions.

iii

Table of Contents

Abstract .................................................................................................... ii

Publications Produced in Conjunction With This Thesis ................... x

Acknowledgements ................................................................................. xi

1 Introduction .......................................................................................... 1

1.1 Sponsorship as a Marketing Communications Tool: an Overview ....................... 1

1.2 Purpose of the Research ......................................................................................... 3

1.3 Justification for the Research ................................................................................. 3

1.3.1 Academic Contributions .................................................................................. 4

1.3.2 Contributions to Practice ................................................................................. 5

1.4 Methodology .......................................................................................................... 5

1.4.1 Stage One: Literature Review and Research Design. ...................................... 6

1.4.2 Stage Two: Study 1 .......................................................................................... 7

1.4.3 Stage 3: Study 2 ............................................................................................... 7

1.4.4 Research Paradigm and Methodology ............................................................. 8

1.5 Delimitations of Scope and Definitions ................................................................. 9

1.6 Outline of the Thesis ............................................................................................ 10

1.7 Conclusion ........................................................................................................... 11

Chapter 2 Literature Review ............................................................... 12

2.1 Introduction .......................................................................................................... 12

2.2 Marketing Communications ................................................................................ 13

2.3 Sponsorship .......................................................................................................... 16

2.3.1 Sponsorship Defined ...................................................................................... 17

2.3.2 Sponsorship Types ......................................................................................... 21

2.3.3 Sponsorship Research .................................................................................... 22

2.4 Theoretical Framework – Sponsorship Processing Mechanics ........................... 23

2.4.1 Low Level Processing .................................................................................... 25

2.4.2 Brand Image transfer ..................................................................................... 27

2.4.3 Sponsored Property Identification ................................................................. 30

2.4.4 Perceived Fit .................................................................................................. 32

2.5 Leveraging Sponsorship Through Packaging ...................................................... 34

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2.6 Consumer Response to Sponsorship Messages ................................................... 36

2.6.1 Hierarchy of Effects Model ........................................................................... 36

2.6.2 Attention, Trial, Reinforcement Model ......................................................... 37

2.6.3 Consumer Attitudes Toward the Sponsoring Brand ...................................... 39

2.6.4 Brand Experience ........................................................................................... 39

2.6.5 Purchase Intention Toward the Sponsor‘s Products ...................................... 40

2.6.6 Trial Intention Toward the Sponsor‘s Products ............................................. 41

2.7 Preliminary Model - Factors Impacting Consumer Response to SLP ................. 44

2.8 Conclusion ........................................................................................................... 47

Chapter 3 Study 1.................................................................................. 48

3.1 Introduction .......................................................................................................... 48

3.2 Theoretical Foundations ...................................................................................... 49

3.3 Rationale and Objectives for Study 1 .................................................................. 52

3.4 Methodology for Study 1 - Exploratory Research ............................................... 53

3.4.1 Step 1 - Focus Group Methodology ............................................................... 53

3.4.2 Step - 1 Focus Group Findings ...................................................................... 56

3.4.3 Step 2 - Depth Interview Methodology ......................................................... 60

3.4.4 Step 2 - Depth Interview Findings ................................................................. 62

3.4.4 Step 3 - Qualitative Survey Methodology ..................................................... 64

3.4.5 Step 3 - Qualitative Survey Findings ............................................................. 66

3.5 Discussion of Results from Study 1 ..................................................................... 69

3.6 Revised Model and Hypotheses ........................................................................... 75

3.7 Conclusions .......................................................................................................... 76

Chapter 4 – Study 2 Methodology ....................................................... 77

4.1 Introduction .......................................................................................................... 77

4.2 Rationale for Research Method ........................................................................... 77

4.3 Study 2 Methodology ........................................................................................... 79

4.3.1 Experiment Design ........................................................................................ 79

4.3.2 Questionnaire Design and Measurement Scales ............................................ 82

4.3.3 Sampling ........................................................................................................ 97

4.3.4 Ethical Considerations ................................................................................... 98

4.3.5 Data Analysis Strategies ................................................................................ 99

4.4 Conclusion ......................................................................................................... 103

v

Chapter 5 – Study 2 Results ............................................................... 104

5.1 Introduction ........................................................................................................ 104

5.2 Development of Conceptual Model and Hypotheses ........................................ 105

5.3 Profile and Analysis of Respondents ................................................................. 107

5.3.1 Response Rate .............................................................................................. 109

5.3.2 Assessment of Profiles ................................................................................. 109

5.4 Preliminary Analysis .......................................................................................... 109

5.4.1. Cleaning and Screening .............................................................................. 110

5.4.2 Descriptive Statistics .................................................................................... 113

5.5 Measurement Models ......................................................................................... 117

5.5.1 Sponsored Property Identification Scale ...................................................... 121

5.5.2 Sponsoring Brand Loyalty scale .................................................................. 123

5.5.3 Consumer Response to Sponsorship Leveraged Packaging (SLP) scale ..... 126

5.5.4 Perceived Fit Scale ....................................................................................... 129

5.5.5 Four Factor Measurement Model ................................................................ 131

5.6 Analysis of the Structural Models and Tests of Hypotheses ............................. 136

5.6.1 Descriptive Statistics .................................................................................... 136

5.6.2 Correlation Analysis .................................................................................... 137

5.6.3 Structural Equation Model Factors Impacting Consumer Response to SLP 138

5.7 Moderating Hypotheses ..................................................................................... 142

5.7.1 Type of Sponsored Property ........................................................................ 143

5.7.2 Awareness of Sponsorship ........................................................................... 145

5.7.3 Frequency of Purchase ................................................................................. 147

5.7.4 Demographic Groups ................................................................................... 150

5.8 Conclusions ........................................................................................................ 152

Chapter 6 .............................................................................................. 154

6.1 Introduction ........................................................................................................ 154

6.2 Implications of Results of Study 2 ..................................................................... 157

6.3 Conclusions about the Research Purpose .......................................................... 165

6.4 Theoretical Contribution .................................................................................... 167

6.5 Implications for Practice .................................................................................... 170

6.6 Limitations and Future Research ....................................................................... 171

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LIST OF REFERENCES ................................................................... 174

APPENDIX 1 – EXPLORATORY RESEARCH PROTOCOLS .. 193

APPENDIX 2 – STUDY 2 QUESTIONNAIRE VERSIONS .......... 202

APPENDIX 3 – CORRELATION MATRIX ................................... 203

vii

List of Tables

Table 1.1 – Summary of Research Program ................................................................ 6

Table 2.1 – Definitions of Sponsorship ..................................................................... 17

Table 2.2 – Types of Sponsorship ............................................................................. 22

Table 2.3 – Sponsorship Research Streams ............................................................... 22

Table 2.4 – Sponsorship Processing Mechanics ........................................................ 24

Table 2.5 – Image transfer Study Findings ................................................................ 29

Table 2.6 – Sponsored Property Identification Study Findings ................................. 31

Table 2.7 – Congruency Study Findings ................................................................... 33

Table 2.8 – Sponsorship Outcomes ........................................................................... 42

Table 3.1 – Alternative Enquiry Paradigms ............................................................... 50

Table 3.2 – Focus Group Profiles .............................................................................. 55

Table 3.3 – Depth Interview Profiles ......................................................................... 61

Table 3.4 – Qualitative Survey Participant Profiles .................................................. 65

Table 3.5 – Response to Category Involvement ........................................................ 66

Table 3.6 – Response to Packaging in Product Categories ........................................ 67

Table 3.7 – Response to Attitude Questions – Qualitative Survey ............................ 68

Table 3.8 – Research Hypotheses .............................................................................. 76

Table 4.1 – Operationalisation of Variables .............................................................. 88

Table 4.2 – Validity and Reliability ........................................................................... 94

Table 5.1 – Research Hypotheses ............................................................................ 107

Table 5.2 – Demographic Profile of Respondents ................................................... 107

Table 5.3 – Means and standard deviation of variables used in Study 2 ................. 114

Table 5.4 – Exploratory Factor Analysis - Factor Correlation Matrix .................... 118

Table 5.5 – Pattern Matrix Study 2 .......................................................................... 120

Table 5.6 – Sponsored Property Identification Scale .............................................. 121

Table 5.7 – Item Correlations Sponsored Property Identification Scale ................. 122

Table 5.8 – Measures of Fit for the Sponsored Property Identification Scale ......... 122

Table 5.9 – Sponsoring Brand Loyalty Scale .......................................................... 124

Table 5.10 – Item Correlations Sponsoring Brand Loyalty Scale ........................... 124

Table 5.11 – Measures of Fit for the Sponsoring Brand Loyalty Scale ................... 126

Table 5.12 – Consumer Response to Sponsorship Leveraged Packaging Scale ..... 126

Table 5.13 – Item Correlations Consumer Response to SLP scale ......................... 127

viii

Table 5.14 – Large Standardised Residuals Consumer Response to SLP Scale ..... 128

Table 5.15 – Measures of Fit for the Consumer Response to SLP Scale ................ 129

Table 5.16 – Perceived Fit Scale ............................................................................. 130

Table 5.17 – Measures of Fit for the Perceived Fit Scale ........................................ 131

Table 5.18 – Four Factor Measurement Model ....................................................... 132

Table 5.19 – Large Standardised Residuals Four Factor Measurement Model ....... 133

Table 5.20 – Measures of Fit for the Four Factor Measurement Model .................. 134

Table 5.21 – Construct Descriptive Statistics .......................................................... 137

Table 5.22 – Correlation Table for Constructs in the Model ................................... 138

Table 5.23 – Measures of Model Fit – Multi-group Analysis Perceived Fit ........... 142

Table 5.24 – Regression Coefficients – Multi-group Analysis Perceived Fit ......... 142

Table 5.25 – Measures of Fit – Multi-group Analysis Type of Sponsored Property143

Table 5.26 – Measures of Fit Constraints freed – Type of Sponsored Property ...... 144

Table 5.27 – Regression Coefficients – Multi-group Analysis Perceived Fit ......... 145

Table 5.28 – Measures of Fit – Awareness of the Sponsorship ............................... 146

Table 5.29 – Regression Coefficients –Awareness of the Sponsorship .................. 147

Table 5.30 – Measures of Fit – Multi-group Analysis Frequency of Purchase ....... 148

Table 5.31 – Regression Coefficients – Frequency of Purchase ............................. 149

Table 5.32 – Moderating Hypotheses – Respondent Characteristics ...................... 151

Table 5.33 – Results of Hypotheses Tests 1 - 8 ...................................................... 153

Table 6.1 – Results of Hypotheses Tests 1 - 8 ...................................................... 157

ix

List of Figures

Figure 1.1 – Outline of the Thesis ............................................................................. 11

Figure 2.1 – Literature Review Sequence .................................................................. 12

Figure 2.2 – Model Sponsorship Linked Marketing Communications ..................... 24

Figure 2.3 – Preliminary Model - Factors Impacting Consumer Response to SLP .. 46

Figure 3.1 – Chapter Outline ..................................................................................... 49

Figure 3.2 – Revised Research Model for Study 2 .................................................... 75

Figure 4.1 – Chapter Outline ..................................................................................... 77

Figure 5.1 – Chapter Outline ................................................................................... 105

Figure 5.2 – Conceptual Model - Factors Impacting Consumer Response to SLP . 106

Figure 5.3 – Factors Impacting Consumer Response to SLP .................................. 139

Figure 5.4 – Final Model of Factors Impacting Consumer Response to SLP ......... 152

Figure 6.1 – Chapter Outline ................................................................................... 154

x

Publications Produced in Conjunction With This Thesis

Woodside, F, Summers J, and Johnson Morgan M, 2006, ‗Sponsorship of Fast

Moving Consumer Goods – Does packaging endorsement contribute to brand

attitude? A conceptual paper‘ International Business Trends: Contemporary

Readings, Sam Fullerton and David L. Moore, editors, The Academy of Business

Administration: Ypsilanti, MI, 2006, pp213 – 221.

Woodside, F, Summers J, and Johnson Morgan M, 2006, ‗The Effect of Sponsorship

Endorsed Packaging on Consumer Attitudes: a conceptual enquiry‘ Proceedings of

2006 ANZMAC Conference (1 – 3 December) Brisbane QLD.

Woodside, F, Summers, J and Johnson Morgan, M 2007, ‗Sponsorship leveraging

improves consumer attitudes and purchase intentions towards the sponsoring brand –

but is it relevant for FMCG packaging?‘ Proceedings of 2007 ANZMAC Conference

(3-5 December), Dunedin, New Zealand. ** Awarded Best Paper in IMC track

Woodside, F, & Summers, J 2008 ‗Packaging Exploitation In Fast Moving

Consumer Goods: Consumer Processing Of Sponsorship Messages‘, Proceedings of

2008 Global Marketing Conference, Shanghai (March).

Woodside, F, & Summers, J 2008 Sponsorship logos on FMCG packaging – what

factors impact effectiveness? Proceedings of 2008 ANZAM Conference, (4-6

December), Auckland, New Zealand.

Woodside, F, & Summers, J 2009, Consumer Awareness of Sponsorship – a FMCG

context‘ Proceedings of 2009 ANZMAC Conference (1-3 December), Melbourne

VIC.

Woodside, F, & Summers, J, Consumer Awareness of Sponsorship – a FMCG

context, Journal of Marketing Communication, [paper accepted October 2009 -

publication date to be advised]

xi

Acknowledgements

This is an excellent opportunity to express my admiration and appreciation to all

those who have greatly assisted me in this work. Firstly, to my husband Malcolm

for his encouragement, assistance and patience, you have made a challenging time

more bearable. To my helpful and supportive children Tiffany, James, Jeremy,

Bronson and Natasha, thanks everyone.

My supervisor, Associate Professor, Dr Jane Summers provided invaluable,

guidance, constructive feedback and encouraging support throughout my research

program, thank you for your expertise and understanding, Jane. I would also like

show my appreciation to my associate supervisor, Dr Melissa Johnson Morgan.

Thanks for your sincere friendship, Melissa. I value greatly the tremendous

assistance you have given by being there and cheering me on.

To my friends and marketing colleagues: Jason, Eric, Tiana, and Dawn, your care

and encouragement, sympathetic ear and humorous adages made the hard work seem

like fun (almost). To my parents, thank you Mum and Dad, for your prayers and

support, and for teaching me by example, to do whatever I do, with wholehearted

dedication and determination.

Finally, thank you to my Lord and Heavenly Father, for granting me wisdom to

understand what I was doing and inspiration to make this thesis happen. Without

God‘s grace, patience and longsuffering, I would not have succeeded in this often

challenging, frequently frustrating but greatly rewarding adventure.