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Abstract
The purpose of the paper is to extend brand relationship and brand equity research into the
corporate sponsorship literature in corporate co-branding. We obtain this goal by developing a
conceptual model that synthesizes three theoretical frameworks in order to explain the spill-over effects in
corporate co-branding within the context of sponsorship. The model posits that motivational factors
(brand involvement and brand self expression) account for the creation of close relationships with a
corporate brand - sport team (brand attachment) which in co-branding situations facilitates associative
learning and leads to consumers brand equity reactions toward the partner corporate brand - sponsor
(increased familiarity, favored personality and image, and positive word of mouth). Consumers
increased ability to process information about the secondary corporate brand (sponsor familiarity and
sponsor personality) affects their motivation (brand involvement and brand self-expression) and
reinforces their emotional bond with the parent corporate brand. The model was tested using data
collected from sport consumers in a South East European country (N=280) and its results not only
confirm the proposed relationships but provide new insights regarding the role of brand equity elements in
creating spill-over effects in corporate co-branding.
Keywords: corporate co-branding, brand equity, sponsorship, brand attachment, self-expression, wordofmouth
Introduction
Co-branding constitutes a type of brand extension (Hadjicharalambous, 2006), a source of brand
equity (Motion et al., 2003), and a long-term brand alliance strategy in which two or more brands are
combined to form a new brand (Hillyer and Tikoo, 1995). Brand equity is directly related to co-branding
because high brand equity of partner brands improves the perceived brand equity of the co-branded
product and generates positive direct effects (Washburn et al., 2000; 2004).
Although the practice of co-branding is not new, there are limited quantitative empirical
investigations on the topic (Helming et al., 2008). In their review of literature, Helming et al. (2008)
identify only 25 empirical studies on co-branding and ascertain several shortcomings such as: a paucity
of research on co-branding, and particularly on spill-over effects, in combination with the use of student
samples in the majority of the studies which do not allow for generalizations of their findings. The
measurement models used are often confined to one item per construct putting into question the
reliability and validity of these constructs. Furthermore, the majority of the studies use hypothetical cobranded products for evaluation whereas only few of them investigate the spill-over effects of real cobranded products. The above authors recommend the examination of antecedents of co-branding success
factors and multi-group analysis in order to achieve a more comprehensive picture of co-branding and
its effects. Furthermore, because most empirical investigations use fast-moving consumer goods, they
consider imperative the inclusion of durables and services in the research agenda of co-branding.
Our review of literature reveals an additional under-investigated area on co-branding, corporate cobranding. Corporate co-branding refers to partnerships between corporate brands and other corporate, product
or service brands in order to establish a co-branded identity. This strategic alliance enables the parties
involved in expanding and reinforcing their existing set of corporate brand values without
diminishing their corporate brand equity (McDonald et al., 2001; Motion et al., 2003). Corporate brands
differ from product brands in their strategic management, communication and culture (Balmer, 2001).
However, as Motion et al. (2003) indicate, there is a significant gap in the literature regarding the
sources of corporate co-branded equity and especially, how co-branding within a sponsorship leverages
corporate relationships to partnerships and builds brand equity.
Taking into account all the above deficiencies, the present study aims to respond to recent calls
for more research on co-branding (Helming et al., 2008) and co-branded equity (Motion et al., 2003), to
delve deeper in the co-branding mechanism, and to contribute to some unsolved issues in the literature.
Specifically, the objectives of this research are: a) to investigate the mechanism under which spill-over
effects take place in co-branding, and specifically in a special case of corporate co-branding such as
sponsorship; b) to identify the antecedents of corporate co-branding success and c) to examine the
effects of the parent corporate brand on specific outcomes of the secondary corporate brand such as
brand equity dimensions (image, familiarity, and personality) and word of mouth. The contribution of
the present investigation is multi-fold: First, to our knowledge, this is the first study that investigates the
spill-over mechanism and effects on corporate co-branding. Moreover, this is the first research endeavor
focusing on corporate co-branding in the context of sponsorship. Although sponsorship has been
proposed as a corporate co-branding case (Kahuni et al., 2009; Farrelly et al., 2005; Motion et al., 2003),
there is no quantitative empirical data explaining the spill-over phenomena and their underlying
mechanisms in this context. The two available investigations (Kahuni et al., 2009; Motion et al., 2003)
use case studies in order to show how corporate co-branding operates in sponsorship. Thus, this is the
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first research endeavor that proposes a comprehensive conceptual framework and uses quantitative data in
order to examine the spill over effects in corporate co-branding in sponsorship.
Following, the conceptual framework of the study is presented along with the method utilized.
Then, the results are reported and the paper concludes with a discussion of findings in terms of their
implications for marketing theory and practice.
2.
Conceptual framework
In our study we will focus on corporate co-branding which we argue that it is very much
applicable concept in the sponsorship context. Recently, sponsorship is recognized as a case of corporate
co-branding (Kahuni et al., 2009; Farrelly et al., 2005; Motion et al., 2003) that can be used for strategic
purposes (Cliffe and Motion, 2005). Thus, sponsorship is much more than a commercial activity aiming
to increase the advertising exposure of the sponsor. It is a co-branding partnership situation which
enables values to be extracted from the relationship at a variety of levels (Motion et al., 2003), and a
significant driver of brand strategy that leverages the value of the brand (Cliffe and Motion, 2005).
Therefore, we develop a conceptual model that explains how the spill-over effects take place in
sponsorship. We combine three frameworks, brand relational perspectives, associative learning, and brand
equity in order to explain how co-branding operates within sponsorship. The proposed framework is shown
on Figure 1. For communication purposes we use the term brand when referring to the sport team (parent
corporate brand) and the term sponsor for the sponsors corporate brand (secondary
corporate brand).
2.1 The role of self-expression and involvement on brand attachment
Carroll and Ahuvia (2006) defined a self-expressive brand as the consumers perception of the
degree to which the specific brand enhances ones social self and/or reflects ones inner self (p.82). It is
well documented in the consumer behavior literature that individuals choose specific brands not only for
their functional benefits but also for their symbolic properties (Piacentini and Mailer 1999;
Wattanasuwan, 2005). Consumers choose brands that help them in creating, fostering and developing
their identity (Elliot and Wattabasuwan, 1998; Yoo et al., 2006). In this case, the symbolic meaning of
the brand is used as an expression of a consumers self-concept in relation to her / his status in society
(Elliot, 1999). Piacentini and Mailer (1999) also argued that consumption of a specific brand might also
be used by consumers for communicating with their friends and significant others. In this case,
purchasing of a specific brand is used as mean for encoding messages to others. The same author also
argued that products, which are consumed in social situations, are those that have the highest symbolic
meaning, since this situation help consumers to better express their identity. Furthermore, as Piacentini
and Mailer (1999) discussed, individuals can use the symbolic content of a chosen brand to reflect to
their affiliation or connection to a particular social group. Following the above discussion we
hypothesized that:
H1. Brand self-expression is positively related to brand attachment.
Involvement is regarded as a primary determinant of consumer behavior and has been defined as
a person's perceived relevance of the object based on inherent needs, values, and interests
(Zaichkowsky, 1985, p. 342). Involvement is a function of individual characteristics (e.g. needs, values,
goals), situational factors (e.g. purchase occasion or perceived risk associated with a purchase decision),
and characteristics of the product or stimulus (e.g. type of the media, variations within a product class)
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(Zaichkowsky, 1985). The consequences of involvement are higher motivation, heightened arousal and
increases in cognitive elaborations (Mano and Oliver, 1993). Zaichkowsky (1985) distinguished
involvement into two categories: product involvement and brand-decision involvement. Product
involvement refers to the interest consumer finds in a product class. Brand-decision involvement is the
interest taken in making the brand selection. Involvement has been related to brand loyalty and brand
commitment (Beatty and Kahle, 1988) and to the success of co-branding (Helming et al., 2008). We
therefore propose that:
H2. Brand Involvement is positively related to brand attachment.
2.2. The effect of brand attachment on sponsor equity dimensions and word-of-mouth
In line with the works of Washburn et al. (2004) and Osselaer and Alba (2000), we build upon the
associative-learning framework to explain the spill-over effects on corporate co-branding.
Consumers involved and attached with a brand develop a number of associations (cognitive and
emotional) around this brand. When the brand is coupled with another brand, this association may lead
consumers to extend the features of the parent brand to the secondary brand. We also propose that the
associations of the parents brand should be strong in order for co-branding to be viable and brand
attachment acts as the gatekeeper in building co-branded equity.
Brand attachment has been defined as the strength of the cognitive and affective bond
connecting the brand with the self (Park et al., 2006, p. 4) in a symbolic manner (Wallendorf and
Arnould, 1988). The significance of brand attachment as a key determinant in consumer consumption
behavior is substantiated by several attributes inherent to the concept. Attachment expresses emotional
bonds which are persistent, resist to change, impact cognition, and predict behavior (Krosnick and Petty,
1995). Persistence reflects the degree to which an individual's attachment toward an object remains
unchanged over time. Resistance represents an individuals ability to refuse shifting to competitive
products (Petty and Cacioppo, 1986). A strong attachment will lead to consumers resistance to change
and the ability of a brand (e.g. sport team) to withstand bad results (Keller et al., 2008). Moreover, brand
attachment has been linked recently to brand equity (Park et al., 2006) and brand equity behaviors
((Chaudhuri and Holbrook, 2001).
Research shows brand attachment as a key variable in brand extensions (Fedorikhin et al., 2008)
and sponsorship (Gwinner and Swanson, 2003; Madrigal, 2001; Meenagham, 2001; Pope and Voges,
1999). Fedorikhin, Park and Thomson (2008) found that attachment with the parent brand has positive
effects on consumer reactions to brand extensions. Sponsorship can develop an associative partnership
between the sponsor and the sponsored team where image spill-over effects take place (Kahuni et al.,
2009) via consumers emotionally laden experiences (Cliffe and Motion, 2005). We argue here that the
emotional experiences with a sport team are accumulated and expressed on consumers attachment with
this team which in turn affects through association sponsors brand equity. Although previous research
does not use the associative learning paradigm, indicates that consumers highly attached to sport teams
develop positive attitudes towards their sponsor, exhibit higher levels of sponsor recognition, patronage,
and satisfaction (Madrigal, 2001; Gwinner and Swanson, 2003). Therefore, we propose here that brand
attachment plays a critical role in developing the spill-over effects in co-branding and specifically we
hypothesize that:
H3. Brand attachment is positively related to sponsor familiarity.
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Method
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The target population for this research is the sport industry and specifically professional sport
teams. The particular industry, sport, is of great economic importance due to its size and continuous
development. A single industry approach was taken because it allows developing questions understood
by all respondents (Dobni and Luffman, 2000), provides a degree of control over environmental
particularities, and increases internal validity at the expense of its findings generalizability (Dobni and
Luffman, 2000). Furthermore, because causal relationships are tested, a single industry investigation is
more appropriate for inference purposes. Data were collected from a questionnaire distributed to sport
fans of various teams in a Southeast European country. A total of 280 completed questionnaires were
collected.
3.1.
Results
First, a confirmatory factor analysis (CFA) was used for testing the measurement model and
then, structural equation modelling (SEM) was deployed to test the theorized model (Figure 1).
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4.1.
5.
An emerging challenge in corporate brand management is how to develop, manage and leverage
corporate brand partnerships. The present study investigates how sponsorship alliances become cobranded
partnerships that benefit both parties involved via spill-over effects between both corporate brands. The
findings unlock the spill-over effects phenomenon in corporate co-branding and support Motion et al., (2003)
assertion that sponsorship is not a simple exchange transaction but it is a more strategic and complex
partnership within the co-branding continuum.
In the current paper, we introduce the attachment construct into the co-branding literature and
suggest that it operates as a powerful determinant of consumers reactions to co-branding. We
compliment previous research on brand extensions (Fedorikhin et al., 2006) by showing that the positive
effect of brand attachment on consumer reactions is also present in a co-branding situation. Specifically,
the findings show that strong emotional attachment with the parent brand constitutes a necessary
prerequisite in building brand equity for the secondary brand. Previous research disregarded the role of
emotional bonds in co-branding and their spill-over effects in building brand equity. The present study
confirms Park et al. s (2006) speculation that brand attachment is more than an attitudinal construct and
accounts for higher-order consumer behaviors associated with commitment to a relationship. This
research shows that attachment is not only a characteristic of the relationship between a consumer and a
brand (Park et al., 2006), but the connecting chain that leads to spill-over effects between the brands
involved in co-branding. Our findings indicate that when consumers self-concept (inner and social self)
is expressed through a brand, consumers get into a relationship with the brand, become attached to the
brand and process any information associated with the brand such as a partner brand in co-branding. In a
co-branding context, brand attachment not only reflects the strong linkages between a consumers self
and the parent brand leading to automatic retrieval of thoughts and feelings about the brand (Park et
al., 2006) but through associative learning accounts for brand equity relevant behaviors for the
secondary brand (increased familiarity, and favorable image, personality and word-of-mouth).
Moreover, the findings show that reciprocal spill-over effects take place in co-branding where
consumers increased ability to process information regarding the secondary brand (brand familiarity
and brand personality) affects their motivation factors for the parent brand (brand involvement and
brand self-expression).
Managerially speaking, because brand attachment plays a central role in the success of
cobranding, we recommended that corporate brands seek partnerships with corporate brands whose
consumers have strong emotional bonds with them, with favorable brand personalities, and familiar
brands in order to benefit from the spill-over effects and develop successful partnerships.
The proposed model was tested in the context of corporate sponsorship limiting our ability to
generalize the results to other corporate co-branding cases. The favored teams of the consumers
participating in the study were high equity corporate brands (high winning records) partnered with
corporate sponsors of high equity brands as well (well known telecommunication companies).
Therefore, we recommend future research should use corporate brands with varied degrees of brand
equity in order to validate the proposed model. Moreover, the data was gathered from consumers of a
single country, a South East European country. Using samples from other countries could help in
validating the proposed model and providing useful insights in developing international corporate cobranding relations.
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Table 1
Measurement model and confirmatory factor analysis results
Exogenous Variables
Loading
AVE**
____________________________________________________________________________________
BRAND INVOLVEMENT (a=0.80, CR = 0.71)**
0.84
Importance
(BINV1)
0.70*
Hedonic
(BINV2)
0.96*
BRAND SELF-EXPRESSION ( = 0.86, CR = 0.75)**
0.87
Inner Self (BSEX1)
0.83*
Social Self (BSEX2)
0.90*
____________________________________________________________________________________
Endogenous Variables
Loading
AVE**
____________________________________________________________________________________
BRAND ATTACHMENT ( = 0.81, CR = 0.57)**
0.76
I feel like the team as my team (BAT1)
0.77*
I feel like I am a member of the team (BAT2)
0.83*
It is important for me to be a fan of my team (BAT3)
0.66*
SPONSOR PERSONALITY ( = 0.87, CR = 0.80)**
Sincerity (SPP1)
Excitement (SPP2)
0.89
0.93*
0.85*
0.87
0.94*
0.80*
0.84*
0.69*
0.77
13
Brand
Involveme
nt
R2=26
ASSOCIATIVE LEARNING
IN COBRANDING
.19*
H2
.41*
.32*
Sponsor
H5
.76*
Familiarit
y
R2=23
Brand
Attachme
nt
R2=64
H3
.39*
Sponsor
Image
R2=86
.17*
H7
.29*
Word of
Mouth
R2=42
H6
.32*
Brand
Self
Expressi
on
R2=25
H1
.47*
.33*
.43*
H4
.33*
Sponsor
Personality
R2=31
14