The impact of the national sports lottery and the FIFA World Cup on attendance, spectator motives and J. League marketing strategies

Transcription

1 The impact of the national sports lottery and the FIFA World Cup on attendance, spectator motives and J. League marketing strategies Keywords social impact attendance motives sport events Daniel C. Funk Griffith University, Gold Coast Campus PMB 50 Gold Coast Mail Centre, Queensland 9726, Australia Makoto Nakazawa University of Tuskuba, Japan Daniel F. Mahony University of Louisville, United States Robert Thrasher University of Louisville, United States Research supported by the Japan Professional Soccer League Peer reviewed Abstract This paper examines the impact of the national sports lottery (toto) in 2001 and the 2002 FIFA World Cup for the Japan Professional Soccer League J. League. In 2001 J. League attendances grew dramatically and were sustained in subsequent years, even though member clubs did not change many of their marketing strategies and chose to maintain a distance from toto. The evidence suggests that hosting the World Cup allowed the league to leverage the country s hosting of the event in order to generate long-term interest and attendance at J. League games. By contrast, toto appears to have had a short-term impact. Executive summary The Japan Professional Soccer League (J. League) began play in After its initial popularity, attendance began to dwindle in J. League clubs failed to anticipate this decline through the misperception that attendance levels would continue and the alienation of fans due to sponsorship obligations. The J. League responded with grass-roots marketing activities to strengthen relations between the clubs and their local communities. Despite these efforts, attendance remained relatively consistent from 1997 to In , two external activities emerged that had the potential to impact J. League attendance. The present study examined the impact of the national sports lottery (toto) introduced in 2001 and the hosting of the 2002 FIFA World Cup on attendance, spectator motives and marketing MAY 2006 International Journal of Sports Marketing & Sponsorship 267

2 strategies. (Japan co-hosted the Word Cup with Korea.) The Psychological Continuum Model (PCM) (Funk & James, 2001) was used as the theoretical framework to understand the social impact of toto and the World Cup. From the literature, five research questions were developed. Data for this study were taken from an ongoing research programme that surveyed spectators attending J. League matches during the years Questionnaires were distributed at J. League games in the Tokyo Metropolitan area each year. Qualitative data was also collected during semistructured interviews with two J. League executives. The results revealed that J. League attendance declined after 1995 but increased by 49.5% in 2001, with average attendance of 16,548 and a total of 600,000 new spectators. The results also indicated that 65.6% of J. League spectators participated in toto in 2001 and this increased interest in game results, effort in gathering information before matches and in interest for the league in general. However, by 2003, the impact of toto had declined. The World Cup had two separate impacts. The Japanese national team s first participation in the World Cup in 1998 increased new spectator attendance, but total attendance did not increase. Hosting the World Cup in 2002 succeeded in attracting new spectators, increasing total attendance and improving television ratings. Spectators before 2002 had a stronger attachment to the team, community and interest in the sport, while spectators after 2002 were more attracted by marquee players, the drama of the game and the enjoyment of simply being at a match. Although the J. League has benefited from both toto and the World Cup, interviews with J. League executives confirmed that no marketing programmes were developed for toto. The league sought to maintain distance from toto by supporting social benefits but avoiding suspicion related to prearranged games and the negative image of gambling. This decision not to promote the lottery may have limited the long-term impact of toto. By contrast, the league implemented a World Cup ticket draw through member clubs in 2001 that had a more profound impact on attendance. These results suggest that marketers may benefit from external forces to help move individuals from initial sport awareness to a desire to attend a match as a spectator. However, marketers must leverage these forces through additional promotions to continue this momentum and move the individual from being a spectator towards becoming a loyal fan. Introduction Social impacts refer to the consequences to human populations of any public action that alters the ways in which people live, work, play, relate to one another, organise to meet their needs and generally cope as members of society (Institute for Environmental Studies, 1995). Public actions in the form of sportsled projects have become an attractive strategy for local, regional and national governments to provide social benefits for community residents (Johnson & Whitehead, 2000). Social benefits associated with these types of sports-led public actions are generally agreed to include increased recreational participation, improved community image and civic pride (Crompton, 2004; Groothius et al, 2004; Swindell & Rosentraub, 1998). However, the social benefits accrued by residents from these sports-led public actions are more difficult to quantify and have rarely been subjected to scientific scrutiny (Coates & Humphries, 1999; Siegfried & Zimbalist, 2000). In addition, research has not examined managerial responses to public action by league officials and franchises. In response to this lack of evidence, the current study examined the impact of two sports-led public actions on both passive recreation participation and league marketing responses. 268 International Journal of Sports Marketing & Sponsorship MAY 2006

3 Literature review It has become common for governments to expend public money and political resources on infrastructure and venues for professional sports franchises and major sporting events (Jago et al, 2003; Johnson & Whitehead, 2000). The arguments for these investments are generally based on the economic and social windfalls that such developments will provide to a geographical region. However, there has been great debate about the true economic benefits of these investments, with great disparity between the reports commissioned by proponents of the ventures and those found in the academic literature (Howard & Crompton, 2003b). Independent studies have generally found that such sports-led investment strategies have no significant positive correlation with economic development (Siegfried & Zimbalist, 2000). In fact, Coates & Humphries (1999 p. 620) concluded their study with:...our results do not invalidate the contribution of sports to the sense of community and overall satisfaction enjoyed by residents of metropolitan areas. Rather, our results suggest, as do the papers in Noll & Zimbalist [1997c], that efforts to attract or retain a professional sports franchise should be motivated and justified by these factors, and not by false claims of economic benefits flowing from professional sports. In contrast to views on economic impact, researchers tend to be in more agreement about the potential social benefits associated with these types of investments and the possibility that they will provide a real net benefit to the community (Howard & Crompton, 2003b). These benefits include increased recreational participation both active (playing) and passive (volunteers, officials, spectators), improved community image and identity, and a more integrated and inclusive community (Crompton, 2004). Despite this anecdotal evidence, few attempts have been made to quantify the social impact of sports-led projects. A review of the literature uncovered only three such studies (Groothius et al, 2004; Johnson & Whitehead, 2000; Swindell & Rosentraub, 1998). These studies relied on survey data taken in single case periods from community residents to quantify the impact of sports-led projects on community pride and identity. Results revealed social benefits were mainly accrued by a small percentage of community members who used the facilities for active recreation purposes and to a larger degree for spectators who attended games. However, previous studies did not examine whether the impact was sustainable over a period of time. Moreover, these studies did not assess whether sports-led public actions alter the type of motives for spectators. In addition, the impact of sports-led public actions on sports marketing practices was not explored. The present research extends the line of inquiry by quantifying the impact that sports-led public actions have on the residents mostly likely to benefit spectators by analysing trends of attendance patterns and motives to attend. The research analysed attendance patterns at J. League games before and after two sports-led public actions: the introduction of the national sports lottery (toto) and the hosting of the 2002 FIFA World Cup. Spectators attending J. League matches were also surveyed the season preceding and the season following the World Cup to examine whether changes to individual motives for attendance occurred. In addition, the impact that these two external forces had on J. League marketing strategies was explored through interviews with league officials. The following discussion provides the basis for five research questions that guide this inquiry into examining the impact of sports-led public actions on spectators and management, as follows: RQ1: Did attendance increase in 2001 and was that increase sustained in subsequent years? RQ2: What possible impact did marketing strategies or activities other than toto and the World Cup have on attendance? MAY 2006 International Journal of Sports Marketing & Sponsorship 269

4 RQ3: Did the introduction of toto have an impact on J. League attendance? RQ4: Did hosting the World Cup have an impact on J. League attendance? RQ5: Did hosting the World Cup have a significant impact on spectator motives to attend J. League games? The study utilised the framework provided by the PCM (Funk & James, 2001, 2006) to examine the social impact of toto and the World Cup on the J. League and test each hypothesis. The PCM represents a useful theoretical framework to interpret the trends identified in the data collected and to discuss the impact that these external forces had on spectator attendance and motives. However, prior to a review of the PCM framework, a brief discussion of the J. League is given to provide a historical context for the current study. J. League history pride felt by local fans turned to resentment through feeling neglected. Hence, after the early years, alienated fans did not continue their support of the league and the popularity of the league among sponsors and their customers also declined. The decline in popularity and alienation of fans prompted marketing activities. J. League clubs introduced fan development programmes to reinforce the relationships between clubs and local communities. These activities represented a response to internal forces that could be managed by marketers. However, attendance patterns from indicated that these efforts had little impact. Then, two key external forces emerged in : the introduction of toto in 2001 and the hosting of the World Cup in Because of its history, the J. League offers a unique context in which to examine the impact of external forces for cultivating new and renewed interests in football and whether such interest is sustainable and meaningful for individual clubs. A review of the theoretical framework is now provided to guide the present investigation. The J. League began play in 1993 as the first professional football league in Japan. After initial success, enthusiasm and attendance levels began to decline in 1996 (Nakazawa et al, 1999). This fluctuation pattern is often found in new teams and leagues as the novelty to attend matches dwindles. However, the J. League and member clubs were slow to respond and failed to anticipate this decline. Prior sponsorship agreements further restricted the league s response. During the boom period ( ) when ticket demand was high, clubs allocated tickets to sponsors in compliance with prior agreements. Although clubs did not prioritise sponsors, the perception among local fans was that sponsors were more important than the individual fan. In addition, sponsors distributed tickets to customers who were not necessarily soccer fans but enjoyed the status of attending matches, while true soccer fans could not get the best tickets. The initial Theoretical framework for study Research conducted on the J. League has taken two general approaches. The first has identified a number of demographic trends related to media preferences, purchase behaviour among niche markets and membership club involvement (Hakuhodo, 1994; Nakazawa et al, 1998; J. League, 2005). The second has taken a more psychological approach, to identify individual motives that explained interest and behaviour toward football, players and teams (Funk et al, 2000; Mahony et al, 2002; Matsuoka et al, 2003). Taken together, this body of work has been instructive and provides a baseline understanding of J. League spectators and current marketing strategies that have been instituted by the league and clubs. The PCM (Funk & James, 2001, 2006) provides a theoretical framework to incorporate prior J. League 270 International Journal of Sports Marketing & Sponsorship MAY 2006

5 research to examine the impact of external forces on spectator behaviour and motives. The PCM proposes that sociological and psychological processes combine to create four stage-based outcomes that operate along a vertical continuum. The PCM outlines a developmental progression that describes how an individual goes from initial awareness of a team, to attraction, to attachment and ultimately to team allegiance. The progression represents the formation of a connection with a sports team and identifies various facilitators (demographics, community events, advertising, individual motives) that influence continued formation. As such, this framework is instructive for understanding how external forces such as sports-led public actions can serve to create new or renewed interest in the J. League and explain their impact on individual motives and attendance patterns. The initial awareness level within the PCM is achieved primarily through an awareness process that describes how and when an individual first learns that certain sports teams exist, but does not have a specific favourite. Awareness outcomes reflect the level of general knowledge of sport and teams created by socialising agents (e.g. parents, friends, school, media, events) and the value placed on sport from a societal perspective (James, 2001). Although general awareness of sports teams is likely to begin in childhood, the emergence of new leagues and teams, and movement to different cities, is also likely to have an effect. For the current study, the introduction of toto and the hosting of the World Cup represent two catalysts within the awareness process that would have considerable social impact. Hence, toto and the World Cup can be considered public actions that would increase the level of general understanding of soccer and the J. League within Japanese society. This increased awareness plays an important role in moving the individual up to the attraction level through the attraction process. The attraction process describes how the general level of knowledge interacts with individual motives, dispositional needs and social situational factors to push the individual up to attraction. For example, toto and the World Cup can lead to a realisation that attending J. League matches offers a context to fulfil individual needs and motives. Attraction has been reached when an individual forms an emotional response towards a sport or team based on positive or negative evaluation of features associated with a sport or team (Gladden & Funk, 2001). A number of features have been reported in prior research on sports spectators, including vicarious achievement, escape, drama, social interaction, attachment to players and teams, service quality, venue attractiveness, utilisation of technology, promotions, managerial decisions and gambling (Beech et al, 2000; Robinson & Trail, 2005; Wann, 1995). Research specific to the J. League has further indicated that there exist different motivations (i.e. features) for different J. League spectators. This research has reported that promoting features of drama and the individual players may be beneficial for attracting new spectators, while opportunities to realise achievement needs and express team identification should be communicated to existing fans (Mahony et al, 2002). Beyond these general motives, features related to cheering participation, passive attendance and direct presence were observed to be different, based on the length of time a person has supported a J. League team (Nakazawa et al, 1999). The current study extends this line of inquiry by outlining the impact that playing toto and the World Cup would have had on spectator motives and attendance patterns. The following section provides a discussion of how toto and World Cup could operate as external catalysts that could be leveraged by sport marketers. Lottery player motivations There is considerable research into the type of people who participate in lotteries and other gambling activities, as well as the reasons why people participate in these activities (Brenner & Brenner, MAY 2006 International Journal of Sports Marketing & Sponsorship 271

6 1990; Brinner & Clotfelter, 1975; Chantal et al, 1994; Clofelter & Cook, 1987). Previous researchers have examined the relationships between various demographic variables and participating in lotteries and other gambling activities. Overall, research suggests that the lottery is most appealing to those in the lower income brackets (Brenner & Brenner, 1990; Brinner & Clotfelter, 1975; Livernois, 1987), older people (Clotfelter & Cook, 1987) and men (Clotfelter & Cook, 1987). Given the popularity of the J. League among older people and men, one would expect that toto would be popular among J. League fans. In addition to demographics, playing the lottery and gambling have been linked to various intrinsic and extrinsic motives (Chantal et al, 1994; Neighbors et al, 2002). Neighbors et al (2002) found that 70% of the respondents reasons for being involved with gaming were related to money, enjoyment, social, excitement and boredom-relief motives. Hence, lottery motives appear to overlap with the motives for being a sports spectator (Funk et al, 2002). Therefore, it would be expected that the lottery would be appealing to traditional sports fans and could be effective in increasing interest in the league among the target population. behaviours of the host country s residents, as well as on the local sports organisations. In the case of the 2002 World Cup, the media exposure and new facilities resulting from hosting the World Cup would have led to an increased level of general awareness of soccer within Japanese society, as well as a potential increase in interest in attending a match. In the case of the J. League, the potential benefit was increased by the use of the World Cup ticket draw in In order to enter the World Cup ticket draw promotion, spectators had to write their contact information on their ticket stub. Spectators entered the promotion when the stub was torn from their original J. League match ticket and collected upon entry to the stadium. The promotion was implemented in its first stage in March to August There were 1,462,378 applications collected at J. League games; 54.1% of all spectators entered the draw and the rate for winning a World Cup ticket was 2%. The draw allowed individuals to have multiple entries, so it had the potential to draw new fans as well as to increase the number of games attended by all types of fans. Method Benefits of hosting a hallmark event Cities around the world continue to bid to host major sports events such as the Olympic Games and the World Cup. The staging of major events or hallmark events has recently become a significant component of destination branding due to awareness and image benefits (Jago et al, 2003). Cities such as Manchester, Sydney and Barcelona have built successful destination brands by hosting hallmark sporting events. Central to this branding strategy is the media s role in the formation of destination image to external visitors as well as in communicating economic and social benefits for community residents (Chalip et al, 2003). Moreover, while there is a potential for increased tourism as a result of hosting a hallmark event, there is also a potential impact on the attitudes and Participants and procedure Data for this study were taken from an ongoing research programme that surveyed spectators attending J. League matches in Questionnaires were distributed at J. League games in the Tokyo Metropolitan area each year. (See Appendix A for overview.) Spectator responses were gathered using a proportionate sampling method stratified by age and gender and representative of the spectators in each venue. Before distributing the questionnaires, each surveyor observed an assigned block of seats to estimate the percentages in categories such as gender (male-female) and age group (e.g. ages 12-18, 19-29, 30 plus). Each surveyor was responsible for distributing 24 self-administered questionnaires according to category percentages. Participation was voluntary but it was very rare that a surveyor s request 272 International Journal of Sports Marketing & Sponsorship MAY 2006

7 was rejected. The questionnaire took approximately 10 minutes to complete. Qualitative data were collected during semistructured interviews in September and October 2005 with two J. League executives. The interviews were designed to elicit information regarding J. League marketing activities, particularly those relating to toto and the World Cup. Responses were transcribed and summarised. Material Spectators were given a questionnaire that included the following elements: 1 Demographics 2 Previous J. League behaviour (e.g. frequency of game attendance, length of time as fans, travel time to stadia, accessibility to sources of information on the game, soccer experience) 3 Motivations to attend matches (on a seven-point Likert-type scale) 4 Prior soccer lottery involvement (e.g. participation, expenditure, impact of participation). FIGURE 1 Attendance per game 25,000 20,000 19,598 18,965 17,976 16,922 16,548 16,368 17,351 15,000 13,353 10,000 10,131 11,982 11,658 11,065 5, MAY 2006 International Journal of Sports Marketing & Sponsorship 273

8 TABLE 1 J. League attendance for periods , and PERIOD ATTENDANCE PER GAME NUMBER OF SEASONS SD BOOM PERIOD ( ) 18, ,348 F = POST-BOOM PERIOD ( ) 11, ,189 TOTO & WORLD CUP IMPACT PERIOD ( ) 17, ,184 p <.01 TOTAL 15, ,318 The spectator motives were single items adapted from prior studies on the J. League (Mahony et al, 2002; Nakazawa, 1999). The highest factor loading among items to measure each motivational construct in previous studies was selected. (See Appendix B.) Although the use of single-item indicators to measure psychological constructs is not beyond criticism, recent work has provided evidence for its use in survey research (Kwon & Trail, 2005). In addition, restrictions placed on the length of the survey by J. League officials prohibited multiple-item scales. The behavioural and lottery items were developed by the researchers in consultation with J. League officials. Results J. League attendance patterns (RQ1) Attendance for the years are reported in Figure 1 and provide insight into the overall league attendance. J. League attendance averaged 18,165 during the boom years of , then declined during , with an average attendance of 11,637. However, a 49.5% increase in J. League attendance occurred in 2001, with 16,548 spectators per game compared to 11,065 spectators in The increase in attendance appears to be sustained, as the average league attendance for years was 17,308 and represents a 48.7% increase over the attendance figures. The attendance patterns for the three periods were observed to be significantly different p <.01 (see Table 1). Evidence reported in Table 2 also reveals that the 2001 season succeeded in attracting approximately 600,000 new spectators. In addition, Table 3 reveals that the average number of games attended the previous season by spectators significantly increased, from 6.53 in 2000 to 9.72 in 2002 (p <.01). So the J. League was successful both in attracting new spectators and in increasing the frequency of attendance. Impact of marketing strategies and other activities (RQ2) While attendance clearly increased, the reason for that increase required further analysis. Given the information available, there were three possible reasons for the increase in attendance: (a) the introduction of toto; (b) the hosting of the 2002 World Cup; and/or (c) other marketing strategies or events occurring at this time. While any analysis examining attendance patterns in a naturalistic setting will be limited by the inability to control all the possible factors, there are strategies that can be used to provide the best possible explanation. In the present study, the primary focus was on the impact of toto and the World Cup. So the first step was to determine whether there were any other possible explanations for the change in attendance patterns. Interviews with J. League officials indicated that no alternative explanation existed. 274 International Journal of Sports Marketing & Sponsorship MAY 2006

9 TABLE 2 J. League attendance: and percentage of new spectators RATE OF NEW ESTIMATED NEW YEAR TOTAL ATTENDANCE SPECTATORS (%) SPECTATORS (10,000 PERSON) ,235, ,173, ,159, ,204, ,755, ,666, ,798, ,655, ,971, ,928, ,164, ,651, Note: "New Spectators" are individuals who initial attendance began 12 months or less from data collection. TABLE 3 Average number of games attended in previous season by J. League spectators PERIOD ATTENDANCE PER SEASON SD n 2000 SEASON ,782 t = SEASON ,721 p <.01 TOTAL ,503 Except the draw promotion for the tickets of the 2002 World Cup by the J. League, the league did not provide any special marketing programmes for the 2001 season. The budgets and activities were as usual. (Sasaki, K., personal communication, 4 October 2005) Likewise, a review of information on the J. League at that time indicates that nothing else was happening during the 2001 season that could have caused the observed increase in attendance. This left the researchers with two possible causes for the increased attendance: toto and the World Cup. Impact of toto (RQ3) Evidence for the impact of toto is reported in Table 4. For example, 65.6% of J. League spectators participated in toto in 2001 and 4.4% of the general population in Japan participated in toto (SSF, 2004). Moreover, toto had a number of impacts on spectators MAY 2006 International Journal of Sports Marketing & Sponsorship 275

10 TABLE 4 Participation in the national sports lottery (toto) ITEM x 2 p PARTICIPATED IN TOTO YES 65.6% 62.0% NO 4.4% 38.0% SAMPLE SIZE 2,919 1,769 INCREASED MY INTEREST IN J. LEAGUE YES 36.2% 19.2% NO 63.8% 80.8% INCREASED MY INTEREST IN GATHERING INFORMATION BEFORE MATCH YES 45.4% 26.2% NO 54.6% 73.8% INCREASED MY INTEREST IN MATCH RESULTS YES 62.8% 43.7% NO 37.2% 56.3% BROADENED MY INTEREST IN OTHER TEAMS YES 28.9% 19.2% NO 71.1% 80.8% INCREASED MY INTENTION TO ATTEND YES 12.7% 5.1% NO 87.3% 94.9% INCREASED MY FREQUENCY OF ATTENDING YES 11.9% 5.5% NO 88.1% 94.5% INCREASED MY FREQUENCY OF WATCHING J. LEAGUE GAMES ON TV YES 21.4% 12.6% NO 78.6% 87.4% HAD NO IMPACT YES 18.2% 38.8% NO 81.8% 61.2% SAMPLE SIZE 1,890 1,065 FUTURE INTENTIONS TO PARTICIPATE IN TOTO WILL BUY 18.2% 38.8% MIGHT BUY 32.2% 39.7% MIGHT NOT BUY 10.4% 27.3% WON T BUY 4.6% 15.0% SAMPLE SIZE 2,866 1, International Journal of Sports Marketing & Sponsorship MAY 2006

11 in 2001, including: increased interest in game results; increased effort in gathering information before matches; and increased interest for the J. League in general. On this basis, the introduction of toto would be considered a primary reason for the sustained attendance increase at J. League games. However, there is evidence to suggest that this is not the case. First, the percentage of agreement that toto had an impact for each category, as well as the intention to participate in toto, all declined significantly in Second, interviews with J. League officials indicate that they never attempted to use toto as a marketing tool. In fact, their goal was to maintain some distance from toto. It seems that there have been two types of promotions for toto in Japan. One focuses on the attraction of gambling, the other on toto s social contribution to promoting sports. The J. League had several meetings with member clubs and developed a strategy to balance these two promotions. As to the social contribution, the J. League and member clubs decided to support toto because it was perceived as having an important role for providing public benefits. However, it also decided to keep some distance from toto. The league and member clubs adopted a position to not accept any impacts (positive or negative) from toto for two reasons. The first was that the toto programme was not launched with a national consensus and there was uncertainty in starting toto (in terms of sales, image, etc). The league and member clubs did recognise a benefit of increased media exposure and developed a policy that supported toto but would not use toto to leverage marketing activities. The league and the clubs should not use toto as our marketing/promotional tool. (Fujimura, S., personal communication, 30 September 2005) The reason to keep distance from toto was to avoid arousing a suspicion related to prearranged games. Some clubs were afraid that soccer might be spoiled by being connected with a kind of gambling The impact of the World Cup was much larger than the impact of toto. (Sasaki, K., personal communication, 4 October 2005) Taken together, there is evidence to suggest that while toto may have had an impact on the 2001 increase in attendance, it was unlikely to have been the primary explanation for the sustained attendance increase. The interest in toto significantly declined and league officials never leveraged toto in any of their marketing activities and indeed actively sought to maintain some distance from the lottery. This leaves one remaining explanation for the change in attendance patterns: the World Cup. Impact of the World Cup (RQ4) Evidence for the impact of the World Cup can also be observed in Table 1. After the boom period ( ), there were two spikes in new spectator attendance. During the 1998 season, the Japanese national team s first participation in the World Cup had cultivated new spectators, despite no league-wide marketing activities in the 1997 season. While the 1998 World Cup succeeded in cultivating new fans, it failed to increase total attendance. The 2002 World Cup, by contrast, succeeded both in attracting new spectators and in increasing total attendance. The J. League appears to have benefited from the World Cup in three ways. First, as is often the case with host countries, Japan built a number of new, state-of-theart facilities in preparation for the World Cup, many of which opened in Prior research has indicated that new facilities can be important in attracting more fans (Howard & Crompton, 2003a). Second, as discussed above, the J. League held a World Cup ticket draw in 2001 in which 72.3% of J. League attendees participated (see Table 5). The fact that individuals could enter the draw each time they MAY 2006 International Journal of Sports Marketing & Sponsorship 277

12 TABLE 5 Participation of the draw promotion with J. League tickets YES NO x 2 p NEW SPECTATORS 41.3% 58.7% - - PRIOR SPECTATORS 77.8% 22.2% % 27.7% - - n 2, attended a game provided an incentive to fans to increase their frequency of attendance. Even among new spectators, the rate of participation was higher than expected, at 41.3% (p <.01). Third, there was significant media coverage of the World Cup, which further enhanced and sustained interest in men s soccer. For example, in 2002, among the top 30 rated television programmes, 24 were World Cup matches (videor.co.jp). The hosting of the World Cup appears to have boosted interest in soccer, with a continued focus on the men s national team. This evidence suggests that hosting the World Cup is the most likely explanation for sustained attendance increases at J. League games. Moreover, J, League officials believe that this increase in interest occurred despite limited use on their part of the World Cup in their marketing activities. Except the draw promotion, the league and clubs did not implement any marketing programmes related directly to the World Cup. However, it seemed that the World Cup changed the perception of soccer among other sports in Japanese. The World Cup helped increase the popularity of soccer. In particular, this influence was seen more in host cities such as Niigata, Sapporo and Oita that had not experienced the J. League boom, where there were no J. League clubs before The impact of the World Cup was much larger than the impact of toto. (Sasaki, K., personal communication, 4 October 2005) Evidence for changes in motives for attendance (RQ5) While J. League attendance clearly increased and hosting the World Cup appears to be a major reason for this increase, an examination of spectator motives was still needed in order to determine the usefulness of the PCM for explaining the changing attendance patterns at J. League games. Spectator motives for 2001 and 2003 are reported in Figure 2. The motives of vicarious achievement, team preference, sport preference and community pride significantly decreased after 2002 (p <.01), while the motives of player preference, drama, passive attendance and direct presence significantly increased after 2002 (p <.01). No difference was observed for cheering participation. As will be discussed below, the changes in motives are consistent with the explanations provided by the PCM. Discussion Overall, the data examined provide clear evidence of an increase in interest in the J. League and a possible explanation for this change. The longitudinal nature of the data and large sample size provide new evidence for the impact of sports-led public actions over time. While the findings should not be considered conclusive, as the study was limited to interpreting secondary data within an existing theoretical framework, this is common for studies in a naturalistic 278 International Journal of Sports Marketing & Sponsorship MAY 2006

13 FIGURE 2 Spectator motives for J. League attendance 7.00 BEFORE 2002 AFTER VICARIOUS TEAM PREFERENCE PLAYER PREFERENCE SPORT PREFERENCE COMMUNITY PRIDE DRAMA CHEERING PARTICIPATION PASSIVE ATTENDANCE DIRECT PRESENCE setting and the approach used in the current study allows for a thorough examination of the possible explanations for the phenomenon observed. The results provided answers to the five research questions identified. First, there was a clear change in the attendance pattern in Attendance increased by 49.5% in 2001 over Moreover, this change reversed a period of declining attendance for the J. League that had lasted from 1996 to This increase was maintained in subsequent years, with the second highest attendance figures ever recorded in Second, a review of the events at that time, along with interviews with J. League officials about marketing strategies used, suggest that the only significant changes occurring during the first year of attendance growth (2001) were the introduction of toto and the use of a ticket draw for the upcoming World Cup in Japan. Taken together, both toto and the hosting of the 2002 World Cup were possible catalysts for moving individuals along the PCM by first creating greater awareness of the J. League and then a desire to attend matches. Third, the evidence suggested that toto may have had a positive impact on attendance initially, with the majority of attendees in 2001 participating in toto. This is not surprising given the similarities between J. League spectators and the demographic characteristics and motives of lottery players in general. Respondents also indicated that participating in toto had increased their interest in game results, in gathering information before the match and in the league in general. While it is difficult to determine the exact impact of toto on attendance MAY 2006 International Journal of Sports Marketing & Sponsorship 279

14 due to the naturalistic setting and the fact that the World Cup drawing also occurred in 2001, the responses do indicate that the initial impact of toto on attendance was positive. Perhaps most interesting is that the J. League did not attempt to leverage toto. The increased attendance observed was not related to J. League marketing activities. The reason no marketing action was taken emerged from interviews with J. League officials. First, they were concerned about the possible negative impact on the league s image if it was too closely associated with the lottery specifically and gambling more generally. Second, J. League officials were concerned about the integrity of the matches and wanted to avoid the perception of prearranged games. These concerns both appear to be common for leagues and many, particularly in the United States, have attempted to limit any gambling-related activities associated with their leagues. However, sports-related lotteries are popular in other parts of the world, particularly in Europe, so some groups have found ways to overcome these concerns. It seems logical that cross-promotions and public relations efforts would have been possible to sustain the interest generated by toto. Participation in toto would have served as the socialising agent to create an initial and continued interest in the sport that would also have facilitated movement from awareness to attraction within the PCM. Anti-gambling programmes or Did you know? campaigns that clearly communicate the social benefits of toto but also the league s independence from toto could have been conducted, suggesting the need for further development of public relations professionals in sports management to help position a team within a broader social and community context, to communicate organisational goals and to manage public opinion. Perhaps one of the differences in the case of the J. League, compared to other league-related lotteries, was that neither the league nor the sport of soccer received any direct financial benefit from toto. Although J. League officials recognised and supported the positive social impact from toto, a closer link might have been seen if direct benefits had been realised. In the future, sports leagues and lottery officials could work more closely together to ensure that the relationship is mutually beneficial and that there is incentive for both groups. For the J. League, there appears to have been a positive initial impact despite the league s efforts to maintain some distance from toto. One can only imagine the possible impact if the relationship had been closer and leveraged. Perhaps because of this arms-length relationship, the impact of toto appeared to decline by 2003, with respondents indicating that toto had significantly less impact than in Fourth, the World Cup appears to be the key factor that helped spur the sustained increase in J. League attendance. In addition to the opening of new facilities in 2001, the World Cup ticket draw may have had an impact on attendance. The World Cup ticket draw not only encouraged new people to attend, but also encouraged people to attend more frequently. The more games they attended, the more times they could enter the draw, thus increasing their chances of winning. In fact, over 72% of the respondents indicated that they were participating in the J. League s World Cup draw promotion. While the rate was less for the new spectators, over 41% of that group also participated in the draw. So it appears the J. League s attempt to utilise the excitement of the upcoming World Cup games in Japan resulted in increased interest in the league. However, the World Cup draw promotion should have had a direct impact only on attendance in 2001 because it lasted just five months (i.e. there was no draw in later years to attract spectators). The fact that attendance levels have been maintained in the years since 2001 indicates that there may have been some sustained impact from the World Cup, which was successful in 2002 at attracting both game attendees and large television audiences. Moreover, it appears likely that some of the efforts of J. League marketers were successful in maintaining the interest of both new and returning fans. New fans appear to have moved from awareness of the J. League to attraction 280 International Journal of Sports Marketing & Sponsorship MAY 2006

15 and perhaps further along the PCM. Returning fans may have been able to recapture feelings of attachment and allegiance. While the J. League did not use promotions directly related to the World Cup after 2001, the J. League marketers were successful at leveraging the popularity of the World Cup and the Japanese national team to move fans from initial attraction to a stronger connection with the sport and clubs. In the long term, the World Cup may have helped current fans to become more regular attendees. This result suggests that large single hallmark events can serve as an important catalyst in the awareness and attraction processes outlined in the PCM framework, bringing both a short-term and a long-term impact if the leagues in the host countries handle the opportunity correctly. Fifth, changes in the motives of J. League fans did occur with the growth in attendance and this change is consistent with expectations based on the PCM. The fans before 2002 had a stronger attachment to the team and community and were more connected to the team s success (vicarious achievement). They were also more interested in the sport of soccer. The newer spectators were more attracted by marquee players, the drama of the game and enjoying the atmosphere at matches. Using the PCM, it appears that toto and the World Cup created awareness and subsequently many of the new spectators may have moved to the attraction stage. However, they have not yet reached the higher levels (attachment and allegiance). This should raise some concerns for J. League sport marketers, because the psychological commitment to the team and sport has not developed and it would be easier for these spectators to drop out over time or slide back down to a lower psychological connection. In order to ensure the long-term success of the league, the J. League sport marketers must find ways to continue to move these new fans upwards along the continuum. This could be done in a variety of ways, including having more team merchandise giveaways, providing greater incentives to join supporters clubs, promoting the game of soccer more, providing rewards for fans when the team is successful, and so on. It would also be important to incorporate a strong community message with an educational component that promotes feelings of nostalgia and tradition (Gladden & Funk, 2001). For example, one of the clubs in Yokohama uses a large screen at home matches to show the history of the club, great goals in history, and the club s grass-roots activities in the community. Such activities help spectators understand the culture of soccer and increase interest in teams. In general, it appears that the J. League has benefited from the introduction and continuation of toto and of hosting the World Cup. However, the clubs responses to these two events were somewhat different. In the case of toto, the league sought to maintain some distance between their operation and toto. While this is understandable on some level, it is likely that this decision, and the lack of effort to promote the relationship, limited the long-term impact of toto on J. League attendance. In contrast, the World Cup draw, the event itself and the Japanese team had a positive and sustained impact. However, the results of the study also indicate that while the J. League marketers may have successfully moved some of the individuals who came to games in 2001 upward along the psychological continuum, these individuals have not yet reached the higher levels on the continuum that mark loyal fans. It is important to continue to monitor J. League attendance to determine how long the league will be able to leverage hosting a one-time event. Further research Future studies could build on the current results by examining the impact of sports lotteries and the hosting of hallmark events on attendance for leagues throughout the world. The difficulty in the current study was that both the introduction of toto and the World Cup draw occurred in the same year, so it is difficult to determine their relative impact. In most MAY 2006 International Journal of Sports Marketing & Sponsorship 281

16 cases, only one of these would occur, so it would be easier to assess the impact. Studies in other countries would also help to determine if the large increase in attendance, and more importantly the maintaining of that increase, is unique to the J. League. Furthermore, a more detailed analysis of related marketing activities could help marketers determine how to best leverage these events. Based on the results of this study, it would appear that external forces such as sports lotteries and hallmark events can be useful in reinvigorating a league, but more research is still needed to understand their impact and to utilise these events more effectively. There are a number of future research possibilities related to sports lotteries in general and toto in particular. For example, researchers could examine the demographic profile of participants in toto and other soccer lotteries, how that profile may change over time, and whether the lotteries have any impact on the demographic profile of fans at soccer games. In addition, research could examine the motivations of soccer lottery players and whether those motivations change over time. It is possible that the motives of soccer lottery players are different from regular lottery players. For example, while the chances of winning are very low in both cases, the soccer lottery may allow for more active participation in the lottery (i.e. participants can monitor their success by watching games; typical lotteries simply announce the winning numbers). Finally, future research could examine whether there are any correlations between the motives to participate in the lottery and the motives to attend games. For example, will those who indicate that a primary motive for playing the lottery is excitement also indicate equal excitement for attending games? Overall, there is a considerable amount of research still required to understand the social impact of sporting events and sport lotteries International Marketing Reports Biographies Daniel C. Funk is an associate professor of Griffith Business School in Gold Coast, Australia. His primary research areas are sports consumer behaviour and sports marketing. The focus of this research is to evaluate the development of recreation participation through the use of the Psychological Continuum Model with management implications for organised sport, recreation services and sport event tourism. Dr Funk has published over 35 referred articles in scientific journals including Leisure Sciences, Journal of Business Research, Sport Marketing Quarterly, Sport Management Review, Perceptual & Motor Skills and Journal of Sport Management. Daniel F. Mahony is an assistant university provost and professor in the Department of Health and Sport Sciences at the University of Louisville, US. His major line of research is related to the application of relevant theories from consumer behaviour and social psychology to the study of the sports marketplace. Dr Mahony is a very active researcher and in 2003 he was inducted as a NASSM Research Fellow. He has published over 30 refereed journal articles in journals including Journal of Sport Management, Sport Management Review, Sport Marketing Quarterly, International Journal of Sports Marketing & Sponsorship, International Journal of Sport Management and Journal of Sport and Social Issues. Makoto Nakazawa is an associate professor at the Institute of Health and Sport Sciences at the University of Tsukuba, Japan. He has worked with a variety of sports-related organisations, including Japan Amateur Sport Association, Japanese Olympic Committee, Japanese Ministry of Education, Culture, Sports, Science and Technology, Japan Professional Soccer League and other professional sports organisations. His primary research interests are the structure of 282 International Journal of Sports Marketing & Sponsorship MAY 2006