The impact of sport financial sponsorship on brand equity and performance: Structural Equation Modeling (SEM) approach

Abstract

Background. Sport financial sponsorship can offer sport marketers the opportunities to address new audiences and enhance brand equity and companies' performance. Objectives. The purpose of the current study was to develop a model for the role of sport financial sponsorship on brand equity of Yazd ceramic and tile companies. Methods. The current study was conducted with a survey method. Standard sport financial sponsorship and brand equity questionnaires were used as measurement tools to assess the subjects. Data analysis was conducted both descriptively and inferentially. Results. The results of the data analysis revealed that sport financial sponsorship has a significant positive effect on brand equity, and brand equity, in turn, has a significant positive impact on companies' performance. Conclusion. It seems that due to the nature of the exercise and its effectiveness in promoting the sponsor company, it has a positive influence on developing brand equity of companies. It was found that proper behavior of members of the board of directors of companies towards their brand facilitates this process.