ABSTRACT
The purpose of this study was to examine the effect of brand identity on fan loyalty using the Nigerian professional football league (NPFL) as the case study. The study also examined the effect of brand image on brand identity and fan loyalty. We employed a causal research design. The sample comprised 384 adult football fans across six states in South-South zones of Nigeria and was determined using the formula suggested by Cochran (1977). Brand identity was measured using four dimensions; namely, brand symbol, brand organization, brand experience and brand communication, while fan loyalty was measured in terms of fan behavioural loyalty. All variables were measured on an interval scale using the 5-point Likert scale. The response rate was approximately 99%. The reliability of the research instrument was determined using the Cronbach Alpha method, with all variables having a reliability coefficient that was substantially greater than the Alpha threshold of 0.7. Face and content validity were established based on expert opinion. A confirmatory factor analysis was also conducted to further determine the reliability and validity of the research instrument. Composite reliability, convergent and discriminant validity all were established based on the CFA results. The results found that brand symbol and brand experience both have a positive but insignificant effect on fan behavioural loyalty. However, brand organization and brand communication both have a positive and highly significant effect on fan behavioural loyalty. The results further showed that brand image has a positive and highly significant effect on fan behavioural loyalty, both directly and through its interaction with brand identity. Finally, brand symbol, brand organization, brand experience and brand communication all jointly account for approximately 82% of the variance on customer loyalty, and when brand image and its interaction with brand identity are incorporated in the customer loyalty model, the explained variance increases to approximately 98%. However, brand communication is the most significant brand identity factor for improving fan loyalty in the Nigerian professional football league. We recommended rebranding of Nigeria professional football league and giving them the right identity, which would, not only, turnaround the current declining fortune, but also, make the Nigerian professional football league more competitive in the global football industry.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of Contents vi
List of Tables vii
List of Figures viii
Abstract ix
CHAPTER 1: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problems 5
1.3 Objectives of the Study 7
1.4 Research Questions 8
1.5 Research Hypotheses 9
1.6 Significance of the Study 9
1.7 Scope of the Study 10
CHAPTER 2: LITERATURE REVIEW
2.1 Conceptual Frame Work 12
2.1.1 Brand identity 13
2.1.2 Fan loyalty 17
2.1.2.1 The attitudinal/psychological fan layout 20
2.1.2.2 The behavioural dimension of fan loyalty 20
2.1.3 Brand identity and customer loyalty 21
2.1.4 Football as a product or brand 22
2.1.4.1 Brand loyalty in football 23
2.1.5 Brand image 24
2.1.5.1 Product and non product-related attributes 25
2.1.5.1.1 Product related attributes 26
2.1.5.1.2 Non product related attributes 27
2.1.5.2 Benefits 28
2.1.5.3 Brand attitudes 29
2.1.6 Brand image in sports 30
2.1.7 Brand identity and brand image 31
2.1.8 Brand image and customer loyalty 32
2.2.1 Aaker’s (1996) brand identity planning model 33
2.2.2 Moorthi’s (2002) extension of Aaker’s (1996) Model 34
2.2.3 Kapferer’s (1997) brand identity prism model 35
2.2.4 De Chernatony (1999) model 36
2.2.5 Ghodeshwar’s (2008) PCDL model 37
2.2.6 Burmann Hegner and Riley’s (2009) model of identity-based 38
Understanding of brand
2.2.7 Da Silveria et al.’s (2013) theoretical framework on brand identity 38
2.2.8 Social Identity theory 39
2.3 Review of empirical studies 41
2.4 Summary and, Gap in the Literature 48
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Design 51
3.2 Population of the Study 52
3.3 Sample and Sampling 52
3.4 Instrument for Data Collection 53
3.5 Data Collection Procedures 53
3.6 Validity and Reliability of the Instrument 54
3.6.1 Pilot study 54
3.6.2 Reliability of the instrument 54
3.6.3 Validity of the instrument 55
3.7 Method of Data Analysis 55
3.8 Model Specifications 56
3.8.1 Confirmatory factor models 56
3.8.2 Regression models 58
3.9 Method of Hypothesis Testing 60
CHAPTER 4: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1 Descriptive Analysis 61
4.1.1 Analysis of the demographic information 61
4.1.1.1 Gender statistics 61
4.1.1.4 Levels of education of statistics 63
4.1.1.5 Analysis of football fans 64
4.1.2 Analysis of the dependent variable 65
4.1.3 Analysis of the independent variable 68
4.1.3.1 Brand symbol 68
4.1.3.2 Brand organization 69
4.1.3.3 Brand experience 71
4.1.3.4 Brand communication 72
4.1.4 Analysis of the moderator variable 73
4.2 Confirmatory Factor Analysis 75
4.2.1 Confirmatory factor analysis for brand identity scale 77
4.2.2 Confirmatory factor analysis for behavioural loyalty scale 78
4.2.3 Confirmatory factor analysis for brand image scale 81
4.3 Empirical Analysis and Hypothesis Testing 82
4.3.1 Estimation and analysis of regression model 1 82
4.3.2 Estimation and analysis of regression model 2 84
4.3.3 Estimation and analysis of regression (ANOVA) Model 3 86
4.4 Test of Hypothesis 87
4.4.1 Hypothesis 1: brand symbol and behavioural loyalty 88
4.4.2 Hypothesis 2: brand organization and behavioural loyalty 88
4.4.3 Hypothesis 3:brand experience and behavioural loyalty 89
4.4.4 Hypothesis 4: brand communication and behavioural loyalty 89
4.4.5 Hypothesis 5: effect of brand image on behavioural loyalty 90
4.4.6 Hypothesis 6: moderating role of brand image 91
4.4.7 Hypothesis 7 Nigeria vs English football fans 91
4.5 Discussion of Findings 92
4.5.1 Brand symbol and behavioural royalty 92
4.5.2 Brand organization and behavioural loyalty 93
4.5.3 Brand experience and behavioural loyalty 94
4.5.4 Brand communication and behavioural loyalty 95
4.5.5 Brand image and behaviour loyalty 96
4.5.6 The moderating role of brand image 97
4.5.7 Comparing Fan loyalty between EPL and NPFL 98
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of the Study 100
5.2 Conclusion 101
5.3 Recommendation 104
5.4 Limitations of the Study and Suggestions for Further Studies 105
LIST OF FIGURES
Page
2.1 Conceptual frame work 12
3.1 CFA Model for the four dimensions of brand identity 56
3.2 CFA model for fan behavoural loyalty scale 57
3.3 CFA Model for brand image 57
4.1 Gender distribution of the respondents 61
4.2 Age Distribution of the respondents 62
4.3 Distribution of the respondents by marital status 63
4.4 Distribution of the respondents by education level 63
4.5 Distribution of the respondents by type of football watched 64
4.6 Distribution of the respondents by name of english football 65
4.7 Mean and standard deviation for BLY 66
4.8 Behavoural loyalty for two study groups 67
4.9 Mean and standard deviation for BAS 69
4.10 Mean and standard deviation for BAO 70
4.11 Mean and standard deviation for BAE 71
4.12 Mean and Standard Deviation for BAC 73
4.13 Mean and Standard Deviation for BIM 74
4.14 Standardized solution for the CFA for brand identity scale 76
4.15 Standardized solution for the CFA for brand identity scale 79
4.16 Re-estimated CFA model for behavoural loyalty scale 79
4.17 Standardized solution for the CFA for brand identity scale 81
4.18 Residual plot for empirical model 1 84
4.19 Residual plot for empirical model 2 86
5.1 Heuristic model for brand identity and fan loyalty 103
LIST OF TABLES
Page
3.1 Alpha Reliability Coefficients 54
4.1 Behavioural Loyalty (BLY) 66
4.2 Behavioural Loyalty for two study groups 67
4.3 Brand Symbol (BAS) 68
4.4 Brand Organization 70
4.5 Brand Experience (BAE) 71
4.6 Brand Communication (BAC 72
4.7 Brand Image (BIM) 74
4.8 CFA results for Brand Identity Scale 77
4.9 Discriminant Validity 77
4.10 CFA results for Behavioural Loyalty Scale 80
4.11 CFA results for Brand Image Scale 81
4.12 Model 1 Estimation Results; DV = BLY 82
4.13 Model 2 Estimation Results; DV = BLY 85
4.14 Model 3 (AVOVA) Regression Results 87
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Throughout history, sports have gained recognition as an integral aspect of entertainment and social integration. According to United Nations Inter-Agency Task Force on Sport for Development and Peace (2005), sports are vital to the development of youths and the enhancement of social integration, having the capacity to build social connections (Okolie-Osemene, 2012; Okolie-Osemene & Okoh, 2014). However, in the past few decades, sports have turned out to be the main avenue for generating huge revenue and profits for individuals, firms and even governments (Arun, 2008; Esebamen, 2010; Johnson, 2001). According to Bridgewater and Stray (2002), although estimates of the size of the global sports business vary according to whether it encompasses sports participation and sports goods, it is variously valued as the 11th largest sector in the USA and as 3% of GDP in the UK. Between 2005 and 2006, the total income of the “Big 5” European football leagues stood at £12.6 billion ($18.54 billion) (Deloitte & Touche, 2007), of which the English Premier League was the largest single contributor generating € 2 billion or $2.9 billion.
Football is not just a beautiful game, it is a global and highly visible business whose customers are intensely loyal to their chosen brand (Bridgewater & Stray, 2002). People have gone into football as professionals while firms are spending huge sums of money to buy players with a view to either become strong brands or sustain the brand equity they created for themselves in the sports industry. The English Premier League (EPL) is one of the most exciting and popular football leagues in the world. This is as a result of the suspense, intrigue and unpredictability that accompany every football match in the league. This account for the growing interest and love for the EPL in Nigeria, in spite of the fact that Nigeria has its own home-based professional football league with about 20 teams in it just like the English premier League. Many Nigerians, especially the male folk ; both young and old, who are ardent supporters of Arsenal FC, Chelsea FC, Liverpool FC, Manchester United FC, Everton FC, Manchester City and Leicester City among other EPL clubs, troop down to viewing centres to watch their favourite clubs and players in the EPL football matches especially on weekend.
In developing world economy such as Nigeria, the English Premier League (EPL) has also stood as means of income generation for some small scale entrepreneurs in the sense that so many outfits referred to as convenient viewing places have entered into seasonal business of creating convenience centres where the European football leagues are brought live to teaming fans for profit, and the turnover rate remained rewarding till date. On the other hand, for Nigeria professional football League (NPFL), it is said that reverse is the case (Eno Abasi, 2012; Odegbami 2012) in the sense that the local leagues are not often viewed by many Nigerians. An average football fan in Nigeria can name almost all the twenty top league clubs known as the EPL. Many fans have the knowledge of the match fixtures in England but never care nor show willingness to stroll to any of the nearest stadia to watch the Nigeria professional football league matches.
The Nigerian professional football league was introduced in 1990 when Air Vice Marshal Bayo Lawal, who was the Honourable Minister of Social Development, Youth and Sports at that time, appointed some experts on 8 February 1989 to work out modalities for the introduction of professional soccer in the country (National Sports Policy of Nigeria, 2009; Nigeria National League, undated). According to the National Sports Policy of Nigeria (2009, p. 3), “Decree 101 of 1991 gave legal backing to the Nigeria Football Association (NFA) and the status of a parastatal under the Federal Ministry of Youth, Sports and Social Development” at that time. It is remarkable that there was a period when Decree 101 generated controversies both within and outside Nigeria, especially in the first decade of the 21st century, when the global football governing body, FIFA, cautioned Nigeria over the implementation of the decree and threatened to sanction the country for failing to abrogate Decree 101 at the right time. The decree gave federal government legal backing to regulate football in the country. This led to the transformation of football in the country, including the rebranding of the NFA to the Nigeria Football Federation (NFF).
All over the world, customer loyalty is a major concern for organizations and marketers across different industries. Customer loyalty has also attracted a considerable scholarly attention. Loyalty is an excellent concept to understand the quality of a relationship between an organization and its customers. As an indicator and predictor for an organisation’s business success (Huiszoon, 2015), loyalty does not only measure customer retention but also shows the retention value (Reichheld & Teal, 1996). According to Oliver (1999), customer loyalty is a self-promise to repurchase or re-choose a preferred product or service, an action that would continue in the future. Also, according to Dick and Basu (1994), customer loyalty indicates the strength of the relationship between an individual's relative attitude and repeat patronage.
In the present business environment, characterized by increasing global competition, rapid market entry of innovative products, and increasing awareness of customers of dynamic market conditions, the task of managing loyalty has become the principal managerial challenge (Dick & Basu, 1994). In recognizing the importance of customer loyalty, organizations are now creating loyalty programs that aim to bond customers with their products and services by providing additional incentives (Bowen & Chen, 2001). According to Dowling and Uncles (1997), companies that expect high loyalty from their customers are designing marketing strategies that replace disloyal customers who discourage new customers with more loyal customers in order to keep sales level steady. It is also believed that customer loyalty helps to promote businesses by creating referrals, providing references and spreading positive word of mouth (Bowen & Chen, 2001; Reichheld & Sasser, 1990), hence, they are less likely to switch to other brands.
In professional football, fan loyalty is the principal factor that makes a football club more attractive to companies or organisations. A football fan can be referred to as someone who perceives himself or herself as a deep supporter or follower of a certain team or a sport in general (Dietz- Uhler, Harrick, End, & Jaquemotte, 2000). A loyal fan is much interested, motivated and has reasons to be attached to a team or club (Bauer, 2008). Fan loyalty comprises of the internal affinity of fans to a team, as well, it distinguishes between spurious or false loyalty and true loyalty (Backman & Crompton, 1991). As point out by Kaynak, Salman and Tatoglu (2008), it is highly important for football clubs to better understand their fans since they play an important role in the process of branding a football club. Fans dedicate their time, efforts and money to support their preferred teams and they outpour emotions and give unconditional love to them. A loyal fan can boost a team’s brand equity and success can be considered a crucial aspect in the process of branding (Kaynak, Salman & Tatoglu, 2008).
It is well documented that companies can achieve high customer loyalty through brand identity. By brand identity, which is also the essence and authenticity of any brand, is meant the distinctive features of a brand such as name, colour, design and logo that differentiate the brand from other brands in consumers’ mind. Identity is the essence and authenticity of any brand. According to Da Silveira, Lages and Simões (2013), a brand with the right identity respects its contract with itself, its mission, and its consumers. Strategic brand identity works across diverse audiences and cultures to build awareness and understanding of a company and its strengths. Organizations that offer strong, distinctive and suitable brand identity can create market preference, add value to their offer and command superior prices (Coleman, de Chernatony & Christodoulides, 2011). Also, as Kazemi, PaEmami, Abbaszadeh, and Pourzamani (2013) contends, an organization that wants to build a permanent image must first create and maintain proper brand identity. Brand identity is therefore, vital for organizational success and has remained one of the principal topics in the branding literature.
In the football industry, particularly the premier league or professional football that is characterized by fierce global competition, creating strong brands with proper identity that is attractive to fans is a principal managerial challenge. The professional sports or football is unique in the sense that football leagues and the individual clubs that constitute the league provide a joint product that largely depends on the effective collaboration between competing clubs (Michie & Oughton, 2005). Fans that have low identification with a team are more quickly to withdraw their support and patronage from a losing team (Wann & Branscombe (1990). In terms of perceived quality, research (for example, Baade and Dye (1990)) suggests that fans tend to be more loyal when teams are successful. Since, successful teams are those with right brand identity, it follows that proper brand identity also plays a significant role in fan loyalty in professional football leagues.
STATEMENT OF THE PROBLEM
It is well established in the marketing literature that brand identity has a strong positive effect on customer loyalty. Creating and maintaining a brand identity is the first stage in building strong brands (Aaker 1996; Keller 2003)
According to Rashid (2012), a well-designed brand with the right identity will be more likely to communicate successfully to consumers, and between consumers through word of mouth. Also, Ghodeswar (2008) stated that effective brand identity resonates with customers, differentiates the brand from competitors and represents the long-term direction of the organization. Shirazi, Zeynvand Lorestani and Karimi Mazidi (2013) contend that because different people have different levels of motivation and needs to distinguish their identity, a brand with a more distinct identity is key to attract customers.
The dwindling fan loyalty in the Nigerian professional football league has continued to be a major concern among sport marketers, governments and researchers. Although, the number of professional football leagues in Nigeria is quite high at 20, a considerable number of its citizens are die-hard fans of English premier leagues and other European championships (Onyebueke, 2015). According to Walker (2008), despite the huge population and the growing popularity of foreign premier leagues in Nigeria, it is difficult to get more than 20,000 paying fans when local professional football teams are playing. It has also been observed that Nigerian professional football league has an unpromising future, with all its brightest stars migrated to Europe while its own local clubs, which are watched by only few people, wane and die (Walker, 2008).
The observed low patronage, the decreasing fan loyalty and the increasing preference of football lovers for English premier league all suggest that Nigerian professional football leagues are not strongly branded with right identity that communicates successfully to the numerous football fans, and between fans through word of mouth. If this is true, then rebranding these local football clubs and giving them the right identity would be the right antidote for reversing the current declining fortune and making Nigerian professional football league more competitive in the global sport industry. Therefore, the question that is begging for answer is that: To what extent does brand identity affect fan loyalty in the Nigerian professional football league?
Unfortunately, it seems that there is no previous empirical study of the effect of brand identity on fan loyalty of Nigerian professional football league. Although, some previous studies emphasize the implication of brand identity and brand image for customer loyalty, they are however, largely focused on developed countries such as Germany (Bauer, Stokburger-Sauer & Exler, 2008), Germany and France (Huiszoon, 2019) and UK (Pereek, 2015). This study attempts to provide a dependable answer to the above question by investigating the effect of brand identity on fan loyalty in the Nigerian professional football league within the structural equation modeling framework using cross-sectional survey data. The study also examines whether brand image plays a moderating role in the relationship between brand identity and fan loyalty, and whether there is a significant difference in fan loyalty between Nigerian professional football league and English premier league using Nigerian data.
The current study is distinct from previous studies in three important ways. First, we consider four dimensions of brand identity; namely, brand symbol, brand organization, brand experience and brand communication, and one dimensions of fan loyalty, behavioural loyalty. This gives us two empirical models, with each model having one dimension of fan loyalty as the dependent variable and the four dimensions of brand identity as independent variables. This modeling approach is novel in the literature as no previous study (to the best of the researcher’s knowledge) has examined the brand identity-fan loyalty effect using this empirical strategy. It therefore, follows that our results would provide new perspective into brand identity-fan loyalty effect. Second, the use of structural equation modeling to examine the link between brand identity and fan loyalty in the premier league football industry is novel in the Nigerian growing literature. Third, the incorporation of the effect of brand image on brand identity and fan loyalty is an important gap this study also fills. Previous studies conspicuously ignored this aspect of the brand identity and fan loyalty effect.
1.3 OBJECTIVES OF THE STUDY
The objective of this study was to examine the effect of brand identity on fan loyalty using Nigerian Professional football League (NPFL) and English premier league (EPL) as the case study.
The study specific objectives are to:
examine the effect of brand symbol on behavioural loyalty in the Nigeria professional football league.
ascertain the effect of brand organisation on behavioural loyalty in the Nigeria professional football league.
evaluate the effect of brand experience on behavioural loyalty in the Nigeria professional football league.
determine the effect of brand communication on behavioural loyalty in the Nigeria professional football league.
examine the direct effect of brand image on fan loyalty in the Nigeria professional football league.
evaluate the moderating effect of brand image on brand identity and fan loyalty.
ascertain the difference in fan loyalty between English Premier League and Nigerian Professional Football League.
1.4 RESEARCH QUESTIONS
The following questions were raised to guide the study:
How does brand symbol affect behavioural loyalty in the Nigeria professional football league?
How does brand organisation affect behavioural loyalty in the Nigeria professional football league?
How does brand experience affect behavioural loyalty in the Nigeria professional football league?
How does brand communication affect behavioural loyalty in the Nigeria professional football league?
How does brand image affect fan loyalty in the Nigeria professional football league?
How does brand image moderate the effect of brand identity on fan loyalty
How does fan loyalty differ between English Premier League and Nigerian Professional Football league?
1.5 RESEARCH HYPOTHESES
To achieve the objectives of the study, the following hypotheses were tested:
: Brand symbol has no significant effect on behavioural loyalty.
: Brand organisation has no significant effect on behavioural loyalty.
: Brand experience has no significant effect on behavioural loyalty.
: Brand communication has no significant effect on behavioural loyalty.
: Brand image has no significant effect on brand identity.
: Brand image has no significant effect on brand identity and fan loyalty.
: There is no significant mean difference in fan loyalty between Nigerian Professional Football League and English premier league.
1.6 SIGNIFICANCE OF THE STUDY
This study will be of great significance mainly to Nigerian professional football league managers, football investors, sport marketers, government and the academic community. For football managers, the findings of this study would provide rich empirical insight on why Nigerian football lovers tend to prefer English premier league over Nigerian professional football league, and how brand identity and brand image can help turnaround this ugly trend. The heuristic model that would be provided in the study would also guide Nigerian professional football league managers on which brand identity factors are good candidates for improving fan loyalty. This would help them to address the current revenue shortfall and other financial challenges that are hampering the growth and viability of the Nigerian professional football league.
For potential football investors, the study would expose the investment opportunities in the Nigerian professional football league as well as provide empirical insights that would guide sound investment decisions for maximum return on investment.
For sport marketers, this study would increase the brand identity consciousness as it relates to Nigeria professional football league. As a result, it would help to open up new and positive landscape for marketing and business transactions involving fans, football clubs and authorities, players and their agents, sport betting activities, advertisers and promoters, hospitality industry, the media, telecommunications companies, breweries and multiplier effects in other sectors.
For government, the empirical insight that this study would provide would help in formulating good policies that would address the various problems inflicting the Nigerian professional football league in particular, and the sport industry in general, especially in the area of private sector investment and participation in the sport sector.
For academicians and researchers, this study would be of a great contribution to the scanty and limited literature on football and sports marketing both locally and internationally. More importantly, the study would enrich the academic literature by suggesting the plausible conceptual and empirical model and framework for analysing the relationship between brand identity and fan loyalty in the context of Nigerian professional football league. These models can be built on and extended to other sports sectors that are currently experiencing declining loyalty and low fan patronage.
1.7 SCOPE OF THE STUDY
The scope of this study centers on Academic Scope, Geographical and Unit of Analysis
Academic scope
This study domicile in service marketing and thus covered the effect of brand identity on fan loyalty in the Nigeria professional football league, the current study conceptualized brand identity using four dimensions; namely, brand symbol, brand organization, brand experience and brand communication, and fan loyalty using one dimension, behavioural loyalty. Therefore the study is delimited to these dimension, it findings would be interpreted only in the context of these conceptualizations.
Geographical and unit of analysis
This study focuses on fan loyalty in the Nigeria professional football league (NPFL) who also patronized English premier league (EPL) in South – South Nigeria, hence, it is not intended to examine fan loyalty in other football and sport activities in Nigeria, this implies that Super Eagle and Flying Eagle which are also experiencing declining loyalty and low patronage are not examined in the study. The study focuses on individual adult fan in the South-South geopolitical zone, this implies that football lovers in other five geopolitical zone are not included in the sample, which may significantly affect the generalization of the study findings.
1.8 OPERATIONAL DEFINITION OF TERMS
Brand identity: This variable is operationally defined in terms of brand symbol, brand organization, brand experience, and brand communication.
Brand symbol: This comprises name, logo, colour, history, home (training ground) of a football club.
Brand organization: This is operationally defined as the vision, culture, formation and style of play, social responsibility, reputation and values associated with a football club.
Brand experience: This is defined as the personal encounter and relationship a fan has with their football club, the individual players, other supporters including previous experiences.
Brand communication: This is defined as the relationship a football club has with the public in terms of advertisement and promotional activities, celebrity endorsement, and social media engagement.
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