A new Performance Research study of American consumers revealed that 32% reported they are paying "Less attention" to corporate sponsorships than they were a year ago. Moreover, 62% would
like to see less spending on sports sponsorships for companies experiencing any difficulties, and 68% would especially like to see less spending by those accepting federal assistance.
This
expectation is in keeping with consumer's own behaviors, with:
- 67% of respondents indicating that they are less likely to purchase a ticket for a favorite sporting
event
- 64% for a favorite performing arts or cultural event
- 55% less likely to donate money to a favorite cause than they were a year ago
Over two-thirds of
respondents reported having a lower overall approval of how
corporate America conducts business than they had a year ago.
"Overall, has your approval rating of how corporate America conducts business today changed from what it was a year
ago?" |
Higher approval than a year ago | 3% |
Same approval as a year ago | 17 |
Lower approval than a year ago | 69 |
Not sure | 10 |
Source: Performance Research, March 2009 |
Not surprisingly, two-thirds reported that they
have a "Lower approval" of American companies than they did one year ago. But would increasing or decreasing sponsorship spending change this opinion?
Within the sports environment,
just 13% reported that sponsorship of their favorite event should increase to raise their opinion of corporate America, while twice that many reported it should decrease- with the remainder
indicating it would make no difference.
Results were mixed for sponsorship of cultural events. The story was different for non-profits and causes, with 41% feeling sponsorship should
increase to raise opinions of corporate America, and just 12% indicating it should decrease.
Sponsorship Change Preference to Raise Consumer Opinion of Corporate America ∫(% Respondents) |
Sponsorship
Change | Sports Event | Cultural Event | Non-Profit/Cause |
Increase support | 13% | 20% | 41% |
No change in support | 61 | 60 | 47 |
Decrease support | 26 | 20 | 12 |
Source: Performance Research, March 2009 |
The majority of respondents indicated they were less likely to buy tickets to a favorite
sports or entertainment event, or to donate to a favorite cause, than they were a year ago.
Specific Spending Likelihood vs. A Year Ago |
| Likelihood Of Buying A Ticket |
Degree | Sporting Event | Performing Arts or Cultural Event | Donate Money to Cause |
More likely | 3% | 4% | 6% |
The same | 30 | 32 | 39 |
Less likely | 67 | 64 | 55 |
Source: Performance Research, March 2009 |
When
respondents were asked if they would be more or less confident if a company were to sponsor their favorite sporting event, those industries most under fire in the current economy (banks, investment
firms, and domestic automobile manufacturers) were most likely to inspire "Less" confidence as a sponsor. Only about 10% indicated they would be "More confident" by seeing
sponsorship in these industries.
A majority of respondents agreed:
- They are thinking more about wasteful corporate spending now than ever before (74%)
- That
there should be restrictions on sponsorship spending for companies receiving federal assistance (69%)
- That it is more important than ever for companies to appear "Humble"
(64%)
- That they are impressed when hearing of a company cutting back on corporate hospitality (64%)
According to Jed Pearsall, president of Performance Research,
"Consumers are recognizing that they need to live within their means, and they expect corporate America to do the same. This is not the time for stable companies to drop sponsorships, but to
provide more value to consumers with their programs... "
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