Why Do Marketing Relationships End? Findings From an Integrated Model of Sport Sponsorship Decision-Making

Abstract

With firms spending $60 billion on sponsorship annually, it has become an integral part of the marketing mix and is necessary for the survival of many sport organizations. Despite the importance of these partnerships, conditions that may jeopardize what can be a long-term relationship for both sides are underresearched. Utilizing survival analysis modeling to examine a longitudinal dataset of 69 global sponsorships, the purpose of this research is to isolate factors that predict the dissolution of such partnerships and test a dynamic, integrated model of sponsorship decision-making. From the perspective of the sponsoring firm, congruence and high levels of brand equity were found to reduce the hazard of dissolution. Results indicate that economic conditions, such as an inflationary economy, are a statistically significant predictor of sponsorship dissolution. Increased clutter was also detrimental, with every one sponsor added increasing the hazard of dissolution, demonstrating the importance of exclusivity in global sponsorships.