Location Dependency and Sport Sponsors: A Factor Analytic Study

Theories explaining the mechanics of sport sponsorship relationships are underdeveloped (Gilbert, 1988; Hoek, Gendall, & West, 1990; Pope, 1998), bolstered by studies lacking systematic methods (Kuzma, Shanklin, & McCally, 1993) and tending toward broad, descriptive, macro-level analysis (Sandler & Shani, 1993). This paper attempts to redress this empirical chasm in a small way by examining an element of the sponsorship relationship. Specifically, this paper explores the importance of one particular mode of sponsorship delivery: the location of a venue containing sponsor affiliations or what has been named location dependency. Location dependency of sport sponsors has been shown to be a pivotal determinant when devising sponsorship proposals or when assessing the attractiveness of a sponsorship opportunity (Westerbeek, 2000). Factor analysis was used to determine if sponsors’ response patterns would deliver a number of constructs that could be related to the concept of location dependency. Factor analysis revealed five factors that principally reinforced the notion of location dependency of sponsorship. T-tests delivered significant differences between location dependent and location independent sponsors on some of the factors. The results of this study suggest that appreciating the concept of location dependency may assist companies in the effective discharge of their sponsorship decisions.