The Features of Brand Loyalty Formation among Sport Fans: Case of Russian Football Clubs
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STATEMENT ABOUT THE INDEPENDENT CHARACTER OF THE MASTER THESIS 2
ABSTRACT 3
АННОТАЦИЯ 4
INTRODUCTION 7
CHAPTER 1. THEORETICAL AND PRACTICAL BACKGROUND OF THE TOPIC 10
1.1. Brand Loyalty: Exploring its Definition and Significance 10
1.2. Brand Loyalty Features in the Sports Sphere 17
1.3. Hypotheses for a Model for Brand Loyalty Formation in the Sports Sphere 22
CONCLUSION ON CHAPTER 1 37
CHAPTER 2. METHODOLOGY AND CUSTOMER RESEARCH 39
2.1. Methodology justification 39
2.1.1. Benchmarking 39
2.1.2. Development of the Online Survey 40
2.1.3. Linear Regression Analysis 42
2.1.4. Cluster Analysis 43
2.2. Justification of chosen respondents and the questionnaire 45
2.3. Main findings 46
2.3.1. Results of Benchmarking 47
2.3.2. Sample Description 54
2.3.3. Results of Linear Regression Analysis 60
2.3.4. Results of Cluster Analysis 77
CONCLUSION ON CHAPTER 2 83
CHAPTER 3. DEVELOPMENT OF RECOMMENDATIONS 85
3.1. Theoretical Contribution 85
3.2. Practical Implications 86
3.3. Limitations of the research 91
CONCLUSION 93
LIST OF REFERENCES 95
APPENDIX 1. QUESTIONNAIRE (TRANSLATED) 103
APPENDIX 2. CLUSTER DISTRIBUTION BY SOCIO-DEMOGRAPHIC
PARAMETERS 109
ABSTRACT 3
АННОТАЦИЯ 4
INTRODUCTION 7
CHAPTER 1. THEORETICAL AND PRACTICAL BACKGROUND OF THE TOPIC 10
1.1. Brand Loyalty: Exploring its Definition and Significance 10
1.2. Brand Loyalty Features in the Sports Sphere 17
1.3. Hypotheses for a Model for Brand Loyalty Formation in the Sports Sphere 22
CONCLUSION ON CHAPTER 1 37
CHAPTER 2. METHODOLOGY AND CUSTOMER RESEARCH 39
2.1. Methodology justification 39
2.1.1. Benchmarking 39
2.1.2. Development of the Online Survey 40
2.1.3. Linear Regression Analysis 42
2.1.4. Cluster Analysis 43
2.2. Justification of chosen respondents and the questionnaire 45
2.3. Main findings 46
2.3.1. Results of Benchmarking 47
2.3.2. Sample Description 54
2.3.3. Results of Linear Regression Analysis 60
2.3.4. Results of Cluster Analysis 77
CONCLUSION ON CHAPTER 2 83
CHAPTER 3. DEVELOPMENT OF RECOMMENDATIONS 85
3.1. Theoretical Contribution 85
3.2. Practical Implications 86
3.3. Limitations of the research 91
CONCLUSION 93
LIST OF REFERENCES 95
APPENDIX 1. QUESTIONNAIRE (TRANSLATED) 103
APPENDIX 2. CLUSTER DISTRIBUTION BY SOCIO-DEMOGRAPHIC
PARAMETERS 109
The subject of brand loyalty formation is highly popular in both theoretical discussions and practical implementation. The sports industry is no exception to this trend, as evident in the marketing efforts of prominent sports organizations. To begin with, it is worth figuring out how, in general, a sports organization receives money. To find out about this moment in more detail, I turned for an expert assessment to a person working as a leading specialist in the PR department of FC Zenit, a graduate of GSOM Denis Lapshin. He told me about how and thanks to what sports organizations earn. There are, of course, some exceptions such as when a businessman comes to a sports team and invests money, including fulfilling a social mission, developing the region where the team is based, as for example in the case of FC Krasnodar and club president Sergey Galitsky. However, in most cases, the financing is divided into 2 parts:
1. Sports component. This factor includes two sub-items:
• Everything that is directly related to the sports results of the team: payments depending on the final place in the table at the end of the season, success in the international arena, as well as income from TV contracts, which also depends on the success of the team;
• Everything related to earnings from the sale or resale of players to other sports organizations.
2. Marketing and PR. This factor can also be divided into 2 sub-items:
• Sponsorship contracts. Various companies are ready to sponsor teams if they understand that in this way, they can attract the audience of a sports organization;
• Direct sales to fans. This includes the sale of tickets, and the sale of merchandising and other goods that organizations produce themselves, as well as the release of various goods under the brand name that are produced in cooperation with other companies, that is, licensing.
In both factors related to marketing and PR, such a parameter as brand loyalty plays a huge role, since the higher the loyalty, the better the listed factors work.
And if the sports component is actively considered in the theoretical discourse in the works of researchers immersed in the sports sphere, then the marketing and PR component and the role of brand loyalty in this issue remain to this day as a research gap. It is important to understand that in the modern world, any sports organization is a hybrid of social and commercial principles, and both of them should be given important attention. Why do we need such theoretical studies, especially if we are talking about specifics of Russian sports sphere?
It can be observed that there is a growing trend in sports organizations, or at least their efforts, to achieve self-sufficiency. Taking football clubs as an example, which are among the largest sports organizations in Russia, they have faced challenges in generating revenue from international tournaments due to various political issues. Additionally, the implementation of the Fan ID law has posed difficulties in ticket sales. Furthermore, the sports industry is highly competitive, and brands are constantly seeking ways to differentiate themselves from competitors, aiming to stand out in the market and gain a competitive edge. In light of these circumstances, striving to build a brand loyalty strategy that increases the financial prospects of a football club from a marketing perspective seems to be an effective option.
The main goal of this paper is to develop empirical model for successful brand loyalty formation in the sports sphere. In order to achieve the research goal, it is necessary to tackle the following objectives such as:
1. Review and analyze scientific studies that focus on defining the concept of brand loyalty and its specificities within the sports sphere.
2. Conduct benchmarking and examine the experiences of leading sports organizations that have implemented strategies for brand loyalty formation.
3. Formulate hypotheses regarding the essential factors and moderators necessary for constructing an empirical model of brand loyalty formation in the sports sphere.
4. Test the formulated hypotheses through a survey.
5. Conduct cluster analysis to segment Russian football fans.
6. Formulate recommendations for sports organizations based on the findings obtained from the research.
In fact, the main question addressed in this study is: how should the connections in the empirical model be organized to foster brand loyalty in the sports industry? In simpler terms, what factors influence the possibility of forming brand loyalty in the sports industry, what acts as a moderator, and what are the results of the model? Furthermore, as part of conducting the cluster analysis, required to formulate practical implications, we will be able to answer the question: “What are the consumer segments among the fans of leading Russian football clubs?”.
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1. Sports component. This factor includes two sub-items:
• Everything that is directly related to the sports results of the team: payments depending on the final place in the table at the end of the season, success in the international arena, as well as income from TV contracts, which also depends on the success of the team;
• Everything related to earnings from the sale or resale of players to other sports organizations.
2. Marketing and PR. This factor can also be divided into 2 sub-items:
• Sponsorship contracts. Various companies are ready to sponsor teams if they understand that in this way, they can attract the audience of a sports organization;
• Direct sales to fans. This includes the sale of tickets, and the sale of merchandising and other goods that organizations produce themselves, as well as the release of various goods under the brand name that are produced in cooperation with other companies, that is, licensing.
In both factors related to marketing and PR, such a parameter as brand loyalty plays a huge role, since the higher the loyalty, the better the listed factors work.
And if the sports component is actively considered in the theoretical discourse in the works of researchers immersed in the sports sphere, then the marketing and PR component and the role of brand loyalty in this issue remain to this day as a research gap. It is important to understand that in the modern world, any sports organization is a hybrid of social and commercial principles, and both of them should be given important attention. Why do we need such theoretical studies, especially if we are talking about specifics of Russian sports sphere?
It can be observed that there is a growing trend in sports organizations, or at least their efforts, to achieve self-sufficiency. Taking football clubs as an example, which are among the largest sports organizations in Russia, they have faced challenges in generating revenue from international tournaments due to various political issues. Additionally, the implementation of the Fan ID law has posed difficulties in ticket sales. Furthermore, the sports industry is highly competitive, and brands are constantly seeking ways to differentiate themselves from competitors, aiming to stand out in the market and gain a competitive edge. In light of these circumstances, striving to build a brand loyalty strategy that increases the financial prospects of a football club from a marketing perspective seems to be an effective option.
The main goal of this paper is to develop empirical model for successful brand loyalty formation in the sports sphere. In order to achieve the research goal, it is necessary to tackle the following objectives such as:
1. Review and analyze scientific studies that focus on defining the concept of brand loyalty and its specificities within the sports sphere.
2. Conduct benchmarking and examine the experiences of leading sports organizations that have implemented strategies for brand loyalty formation.
3. Formulate hypotheses regarding the essential factors and moderators necessary for constructing an empirical model of brand loyalty formation in the sports sphere.
4. Test the formulated hypotheses through a survey.
5. Conduct cluster analysis to segment Russian football fans.
6. Formulate recommendations for sports organizations based on the findings obtained from the research.
In fact, the main question addressed in this study is: how should the connections in the empirical model be organized to foster brand loyalty in the sports industry? In simpler terms, what factors influence the possibility of forming brand loyalty in the sports industry, what acts as a moderator, and what are the results of the model? Furthermore, as part of conducting the cluster analysis, required to formulate practical implications, we will be able to answer the question: “What are the consumer segments among the fans of leading Russian football clubs?”.
...
This study focused on exploring the features of brand loyalty formation in the sports sphere, using Russian football clubs as a case study. The research accomplished its goal and objectives. The main goal was to develop an empirical model for successful brand loyalty formation in the sports sphere. In addition, the objectives that were dedicated to conducting a literature review, benchmarking, constructing and testing the model, segmenting the participants through cluster analysis, and providing recommendations to Russian football clubs, were also achieved. The data for the study was collected through an online survey.
In the first chapter of our research, we explored the evolution and understanding of the term “brand loyalty”, analyzing various perspectives and concepts. Throughout this chapter, we emphasized the vital role of brand loyalty in facilitating successful brand extensions. Additionally, we examined the specific characteristics of brand loyalty in the sports industry. These investigations allowed us to identify the components comprising our research model for brand loyalty formation. Through expert assessments, including insights from Denis Lapshin, a leading specialist in the PR department of FC Zenit, and thorough analysis of relevant scientific papers, we identified location features, semantic association between a new product category and a brand, brand association transfer, and self-concept connection as the factors in our research model. We also selected willingness to pay more and emotional attachment to a brand as moderators. Ultimately, the logical outcome of our constructed model is brand loyalty itself, which, fueled by consumers' willingness to recommend the brand to others, creates favorable conditions for sports organizations to enter new product category markets. Based on the developed model, we formulated hypotheses that reflect the relationships among the components of the model.
In the second chapter, we provided a detailed overview of our research methodology, including an assessment of its strengths and drawbacks. We extensively discussed the online survey and its specific aspects, such as the selection process for participants, the questionnaire design principles, and the methods used to distribute the survey and collect responses. Furthermore, we presented the key findings derived from the various research methods employed. Our benchmarking analysis highlighted the importance of considering the unique context and characteristics of individual football clubs. Notably, all the hypotheses we formulated received support from the results of the linear regression analysis, confirming the robustness of our research model and the significance of all the factors included. Additionally, through the cluster analysis, we categorized the survey respondents into distinct segments, which we named "Ardent Fans," "Fans with Diversified Interests," and "Only Football Focus Fans."
In the third chapter of our research, we reflected on the theoretical contribution of our study and concluded that it could serve as a solid foundation for future research on the examined topic. Primarily, this is attributed to the success of our validated research model, which can be further developed and refined by researchers, for instance, through the testing of new factors. Additionally, in this chapter, we formulated practical implications for Russian football clubs. Firstly, we emphasized how the experiences of foreign clubs can be utilized. After that we highlighted which product categories would be of interest to loyal fans in the case of brand extension, as well as those that they would consider unacceptable. Moreover, we provided recommendations for each fan segment based on the 4P concept (marketing mix). Lastly, there are some limitations of our work, such as the sociodemographic characteristics of the respondents and geographical constraints. Therefore, future research should address these limitations to enhance the validity of the findings obtained.
In the first chapter of our research, we explored the evolution and understanding of the term “brand loyalty”, analyzing various perspectives and concepts. Throughout this chapter, we emphasized the vital role of brand loyalty in facilitating successful brand extensions. Additionally, we examined the specific characteristics of brand loyalty in the sports industry. These investigations allowed us to identify the components comprising our research model for brand loyalty formation. Through expert assessments, including insights from Denis Lapshin, a leading specialist in the PR department of FC Zenit, and thorough analysis of relevant scientific papers, we identified location features, semantic association between a new product category and a brand, brand association transfer, and self-concept connection as the factors in our research model. We also selected willingness to pay more and emotional attachment to a brand as moderators. Ultimately, the logical outcome of our constructed model is brand loyalty itself, which, fueled by consumers' willingness to recommend the brand to others, creates favorable conditions for sports organizations to enter new product category markets. Based on the developed model, we formulated hypotheses that reflect the relationships among the components of the model.
In the second chapter, we provided a detailed overview of our research methodology, including an assessment of its strengths and drawbacks. We extensively discussed the online survey and its specific aspects, such as the selection process for participants, the questionnaire design principles, and the methods used to distribute the survey and collect responses. Furthermore, we presented the key findings derived from the various research methods employed. Our benchmarking analysis highlighted the importance of considering the unique context and characteristics of individual football clubs. Notably, all the hypotheses we formulated received support from the results of the linear regression analysis, confirming the robustness of our research model and the significance of all the factors included. Additionally, through the cluster analysis, we categorized the survey respondents into distinct segments, which we named "Ardent Fans," "Fans with Diversified Interests," and "Only Football Focus Fans."
In the third chapter of our research, we reflected on the theoretical contribution of our study and concluded that it could serve as a solid foundation for future research on the examined topic. Primarily, this is attributed to the success of our validated research model, which can be further developed and refined by researchers, for instance, through the testing of new factors. Additionally, in this chapter, we formulated practical implications for Russian football clubs. Firstly, we emphasized how the experiences of foreign clubs can be utilized. After that we highlighted which product categories would be of interest to loyal fans in the case of brand extension, as well as those that they would consider unacceptable. Moreover, we provided recommendations for each fan segment based on the 4P concept (marketing mix). Lastly, there are some limitations of our work, such as the sociodemographic characteristics of the respondents and geographical constraints. Therefore, future research should address these limitations to enhance the validity of the findings obtained.
