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Assessing corporate demand for sponsorship: marketing costs in the financial services industry

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  • Jonathan A. Jensen

    () (Department of Exercise and Sport Science, University of North Carolina at Chapel Hill)

Abstract

Abstract Despite increased interest in nontraditional marketing activities such as sponsorship, the ability of brand marketers to quantify the return on investment from such approaches is a continued challenge. Given their proprietary nature, investigations of sponsorship costs are particularly sparse. Therefore, this study utilizes a dataset of more than 700 sponsorships undertaken by competitors in the financial services industry to investigate the influence of a variety of factors on costs. Results indicate that costs are not simply reflective of firm size, and costs of title and naming rights sponsorships are significantly higher. Evidence of agency conflicts are found in increased costs for sponsorships of events, organizations, and venues residing within the marketers’ home market. Sponsorships of sport organizations are significantly more costly than those of arts, entertainment, and nonprofit organizations, presenting a challenge for marketers seeking to engage today’s consumer via sport sponsorships in an increasingly competitive environment.

Suggested Citation

  • Jonathan A. Jensen, 2017. "Assessing corporate demand for sponsorship: marketing costs in the financial services industry," Marketing Letters, Springer, vol. 28(2), pages 281-291, June.
  • Handle: RePEc:kap:mktlet:v:28:y:2017:i:2:d:10.1007_s11002-016-9410-5
    DOI: 10.1007/s11002-016-9410-5
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    References listed on IDEAS

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    1. John Clark & T. Cornwell & Stephen Pruitt, 2009. "The impact of title event sponsorship announcements on shareholder wealth," Marketing Letters, Springer, vol. 20(2), pages 169-182, June.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Robert DeYoung & Douglas Evanoff & Philip Molyneux, 2009. "Mergers and Acquisitions of Financial Institutions: A Review of the Post-2000 Literature," Journal of Financial Services Research, Springer;Western Finance Association, vol. 36(2), pages 87-110, December.
    4. Elizabeth Currid, 2006. "New York as a Global Creative Hub: A Competitive Analysis of Four Theories on World Cities," Economic Development Quarterly, , vol. 20(4), pages 330-350, November.
    5. Pruitt, Stephen W. & Cornwell, T. Bettina & Clark, John M., 2004. "The NASCAR Phenomenon: Auto Racing Sponsorships and Shareholder Wealth," Journal of Advertising Research, Cambridge University Press, vol. 44(03), pages 281-296, September.
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