The Role of Brand Knowledge in Determining Sponsorship Effectiveness

Abstract

Using the theoretical framework of consumer-based brand equity, this paper reports findings from a cross-sectional survey, measuring the comparative brand-building effectiveness of sponsorship for new and established brands. Results suggest that sponsorship is capable only of building awareness for new brands, while for an established brand, sponsorship exposure is found to impact positively on brand associations, perceived quality and brand loyalty. The need for an underlying level of brand knowledge for image transfer to occur is proposed, suggesting that the brand-building role of sponsorship is one of reinforcement, rather than creation. The findings have practical implications relating to sponsorship selection.