Int. J. Revenue Management, Vol. 7, No. 2, 2013 171

Copyright © 2013 Inderscience Enterprises Ltd.

Creating revenue via Organisational ‘Brandpression’ Management (OBpM): a marriage of brand management and impression management in professional sport

Kwame J.A. Agyemang* School of Kinesiology, Louisiana State University, 112 Huey P. Long Field House, Baton Rouge, LA 70803, USA E-mail: kagyemang@lsu.edu Website: http://kwameagyemang.com *Corresponding author

Antonio S. Williams School of Public Health, Indiana University, Bloomington, 1025 East 7th Street, HPER 112J, Bloomington, IN 47405, USA E-mail: aw22@indiana.edu

Abstract: Characterised as activities organisations take to positively influence the image the public has of them, Organisational Impression Management (OIM) is essentially analogous to brand management. To date, however, there is a dearth of literature that links OIM and brand management. Taking this into account, this paper dovetails OIM and brand management literature, detailing a process we refer to as Organisational ‘Brandpression’ Management (OBpM). Focusing on professional sport, we illustrate how professional sport organisations can proactively employ OBpM, thereby contributing to its ability to maintain support from its current consumer base while also creating positive first impressions and attracting those yet to ‘buy in’ to the organisation’s brand. This, we argue, permits the organisation to leverage their brand as a revenue generator in the marketplace. We identify key areas that professional sport organisations should focus on in order to accomplish this: legitimacy, distinction, consistency, trustworthiness, reputation, affiliation, and employee satisfaction. We conclude with a discussion of future research directions.

Keywords: proactive organisational impression management; revenue generation; brand loyalty; brand management; professional sport.

Reference to this paper should be made as follows: Agyemang, K.J.A. and Williams, A.S. (2013) ‘Creating revenue via Organisational ‘Brandpression’ Management (OBpM): a marriage of brand management and impression management in professional sport’, Int. J. Revenue Management, Vol. 7, No. 2, pp.171–181.

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Biographical notes: Kwame J.A. Agyemang, PhD is an Assistant Professor at Louisiana State University. He is interested in perception of organisations and personalities in industries that have their foundation in individual creativity, skill and talent (e.g., sport and entertainment).

Antonio S. Williams, PhD is the Director of the Sport Management Masters Program and Assistant Professor at Indiana University. His research areas include strategic sport and fitness brand management, fitness marketing and communication and athlete brand management.

1 Introduction

Dating back almost 40 years ago, Wortman and Linsenmeier (1977) suggested that impression management tactics, though historically researched at the individual level, could be applied to organisations as well (Wayne and Liden, 1995). Since then, a number of organisational scholars have begun to conduct research involving impression management and organisations, allowing it to become a dominant research area in organisation science and fields such as social psychology. Referred to as Organisational Impression Management (OIM), this process includes organisations engaging in calculated activities crafted and implemented to influence the public’s perception of their organisation (Elsbach et al., 1998). It is thought that effective employment of OIM is important because consumers and other stakeholders, such as employees and stockholders, play an integral part in whether an organisation is successful (Highhouse et al., 2007; Tyler et al., 2012).

From a marketing viewpoint, the notion of OIM is essentially analogous to brand management. The chief construct within brand management research – brand equity – is defined from a consumer’s perspective as the assets and liabilities linked to the brand that add or subtract from the value of the brand in the minds of its consumers (Aaker, 1991). That is, consumer-based brand equity is essentially the strength, uniqueness, and favourability of the impressions one has with an organisation. Previous research has suggested that the aforementioned impressions (i.e., brand associations), when implemented into the marketing mix, have the ability to generate revenue due to increased brand loyalty (e.g., Gladden and Funk, 2001; Ross, 2006; Williams et al., 2012).

However, despite the similarities between OIM and brand management, there is a dearth of literature that links these two concepts. Accordingly, this paper dovetails OIM and brand management literature, crafting the concept we refer to as Organisational ‘Brandpression’ Management (OBpM). We discuss this concept in relation to professional sport organisations and is centred on the notion that professional sport organisations can employ OBpM to contribute to its ability to maintain support from its current consumer base while also creating positive first impressions and attracting those yet to ‘buy in’ to the organisation’s brand. This, we argue, permits the organisation to leverage their brand as a revenue generator in the marketplace. We identify key areas that professional sport organisations should concentrate on in order to accomplish this: legitimacy, distinction, consistency, trustworthiness, reputation, affiliation, and employee satisfaction.

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It is also worth noting that this paper focuses on the use of proactive OBpM as a means of creating revenue. This stems from OIM scholars’ tendency to focus on the remedial use of OIM (i.e., to repair an organisation’s image after a publicly perceived negative event) (Agyemang, 2011; Tyler et al., 2012). In contrast, proactive OIM (see Bolino et al., 2008) is employed to either prevent future controversies from occurring (e.g., Elsbach et al., 1998) or used in more general terms, such as achieving organisational objectives (e.g., Avery and McKay, 2006; Bansal and Clelland, 2004). This is significant because remedial tactics are thought to be costly to an organisation (Sutton and Galunic, 1996) because they are employed after an unexpected event (Elsbach et al., 1998). Therefore, it is a cost to the organisation because the tactics that are used to respond are not in an organisation’s budget. Furthermore, remedial tactics, while potentially successful, could also backfire if the audience they are directed towards feels they are insincere (Benoit, 1995; Marcus and Goodman, 1991). In the event that this occurs, the organisation’s brand is not creating value, but instead, it is decreasing the value’s brand and losing out on potential revenue.

2 An alternative perspective

Admittedly, our approach to revenue generation in professional sport is unique, as a great majority of the extant literature regarding revenue sources in sport explores conventional means such as tickets, sponsorships, broadcast rights, public sector funding, naming rights, Personal Seat License (PSLs), and food services, just to name a few (e.g., Rascher et al., 2007; Shapiro et al., 2012). Given the paucity of literature examining other forms of revenue generation, there is most certainly a need to further explore this area. As scholars who have worked with professional sport organisations in various capacities, we wanted to take a different approach when investigating revenue generation. From our perspective, the professional sport industry, most notably in the United States, is not struggling to earn revenue. To illustrate, all 32 National Football League (NFL) franchises were listed in Forbes’ 50 most valuable sports teams. A few basketball and baseball teams were also mentioned (Badenhausen, 2012).

The factors cited above leads us to believe that professional sport organisations must be doing something correct. For this reason, this paper does not delve into the aforementioned conventional ways of earning revenue. Instead, we have linked two related concepts (i.e., OIM and brand management), which we refer to as Organisational ‘Brandpression’ Management (OBpM) in an effort to illustrate how professional sport organisations can generate revenue. This is based on the premise that successful OBpM will allow professional sport organisations to maintain support from its current consumer base while also creating positive first impressions and attracting those yet to ‘buy in’ to the organisation’s brand.

In sum, although similar in their intentions, scholars have yet to link OIM and brand management. Furthermore, these two concepts have not been explored in regards to revenue generation. Additionally, while there is an abundance of literature in organisation science regarding impression management, research linking the sport industry with impression management, and specifically OIM, is relatively non-existent. The closest investigation in regard to the sport industry is probably Kellison and Mondello’s (2012) study using perception management (Elsbach, 2003) as a means to gain public support for desired facility referenda outcomes. This paper attempts to fill these noteworthy

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gaps in the literature, answering the following question: How can professional sport organisations proactively use OBpM as it relates to revenue generation. Below, we detail why professional sport organisations should employ OBpM.

3 Why OBpM in professional sport

Given its large number of stakeholders and license-holders (Washington and Patterson, 2011), we believe that professional sport provides an excellent context to discuss the employment of OBpM as a revenue generator. To illustrate, consider the high levels of commitment it engenders from its consumers by asking yourself the query posed by Babiak and Wolfe: “Can we imagine the type of passion one sees at a World Cup soccer game, or a Yankees-Red Sox playoff game, exhibited by devotees of Harley Davidson or any traditional product” (Babiak and Wolfe, 2009, p.722). Thus, not only is professional sport unlike any other industry in the marketplace, but in view of the aforementioned factors, it provides professional sport organisations with added impetus to engage in proactive OBpM or risk alienating their consumer base.

The likelihood of scandals and controversies in professional sport (Giannoulakis and Drayer, 2009) is another incentive to engage in proactive OBpM. Consider the numerous scandals leagues such as the National Basketball Association (NBA) and NFL have been forced to confront over the years (e.g., the Indiana Pacers/Detroit Pistons brawl, steroids, drug and alcohol abuse, alleged sexual abuse) (Giannoulakis and Drayer, 2009). In the NBA’s case, league officials instituted a dress code for players, set an age limit for prospective athletes, and launched an outreach program called NBA Cares in order to address these issues. They also altered their marketing strategy, hiring Mathew Dowd, a campaign adviser for George Bush’s 2004 Presidential campaign, in order to address dwindling merchandise sales and loss of its main consumer: White males (Lane, 2007). OBpM, however, would proactively address these issues, potentially preventing them from occurring. From a revenue generation perspective, these tactics outweigh the benefits of tactics that are more remedial in nature. Not only are remedial tactics said to be costly (Sutton and Galunic, 1996), but they could also backfire if the audience they are directed towards feels they are insincere (Benoit, 1995; Marcus and Goodman, 1991). This could potentially result in loss revenue if consumers and potential consumers decide the organisation’s brand is no longer appealing.

4 OBpM areas of significance

In the subsequent paragraphs, we detail areas of importance that contribute to OBpM. We believe that these areas will allow professional sport organisations, and those who manage them, to better understand how to employ OBpM and shape the impression of their respective organisational brand. Consequently, this will permit current consumers to continue their loyalty to the organisation, while also attracting those yet to have ties with the organisation. This produces positive impressions from all parties and will ultimately permit the organisation to witness increased revenue.

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4.1 Legitimacy

The concept of organisational legitimacy is defined as “a generalised perception or assumption that the actions of any entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions” (Suchman, 1995, p.574). In the sporting realm, professional sport organisations have much to gain by achieving legitimacy. For one, Suchman (1995) argued that legitimate organisations are deemed trustworthy. As a result, a legitimate organisation can attract and maintain stakeholders and is able to command premium prices from their consumer base without the use of unwarranted promotional activities (Elsbach, 2003). Furthermore, research has suggested that legitimacy (i.e., brand trust) mediates the relationship between stakeholders’ opinions and brand loyalty (Filo et al., 2008). David Stern’s decision to establish the NBA Cares initiative exemplified support for these findings. Meaning, sport organisations that align their company mission with philanthropic endeavours are able to communicate corporate responsibility and create legitimacy amongst their consumers.

4.2 Distinction

Being distinctive is another avenue to engage in OBpM whereby organisations can generate revenue. For example, a sport organisation such as the Green Bay Packers has a unique set of ‘associations’ or ‘impressions’ (e.g., Vince Lombardi, Brett Favre, Bart Starr, the Lambeau Leap, Lambeau Field, Cheeseheads, the Frozen Tundra) that differentiates the organisation from its competitors, provides a sense of consistency to its fans, and an additional source of revenue. Furthermore, in an effort to manage their impression and protect their brand, The Green Bay Packer’s organisation reportedly offered Brett Favre $20 million to stay retired and do promotional work for the organisation (Rhoden, 2006). It is plausible to think that this decision was based on the notion that fans seeing Brett Favre playing for a different team would damage their perception of the organisation, and adversely affect Brett Favre related merchandise sales.

4.3 Consistency

Sport organisations should also concern themselves with consistency as a means of OBpM to generate revenue. Research in this area has centred upon the decisions of chief personnel, concluding that consistent decisions among top personnel will enable an organisation to appear more stable (Brockner, 1992; Elsbach, 2003). Given that an organisation is consistent in their decision-making, the public may become expectant of future decisions. The New England Patriots of the NFL serve as an excellent example. They have been one of the most consistent and stable organisations over the years, and much of this can be credited to the consistent decision making of upper management. Another good example of this would be Arsenal Football Club of the Barclay’s Premier League (BPL). They have a tradition of fostering youth talent and not spending large sums of money in the transfer market. So, while other BPL clubs struggle to accrue profits, Arsenal (before taxes) made £36.6 million for the year ending in May 2012 (Arsenal buoyed by increase in pre-tax profit, 2012). This means that they can rely on their own ‘homegrown’ players and not have to buy players in the ‘transfer market’.

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Also, since they are renowned for their youth academy, they can also sell their players to other clubs for profit.

4.4 Trustworthiness

Engaging in behaviour that is considered trustworthy is also a viable means of OBpM. Trustworthiness is defined as an organisation displaying acts of competence, benevolence, and integrity in its behaviour and principles (Mayer et al., 1995). Competence pertains to the rate of proficiency that permits an organisation to carry out its goals. Benevolence signifies an organisation’s readiness to perform good acts. Lastly, integrity indicates whether an organisation adheres to their values that correspond with societal norms (Mayer and Davis, 1999). When organisational stakeholders question the veracity of any of these components, it could potentially damage the organisation’s brand and cause current and future stakeholders to withhold future revenue the organisation would receive. That is, if an organisation and its employees cannot be trusted, stakeholders are arguably less likely to associate with the organisation. Consequently, we believe that executing in these areas (i.e., competence, benevolence, and integrity) results in sustained success for a professional sport organisation. Extant research alludes to trustworthiness being a factor in achieving organisational outcomes (Cho and Ringquist, 2011).

4.5 Reputation

Obtaining and maintaining a positive reputation is another key area for professional sport organisations. Reputation is similar to legitimacy, but differs in that it reflects an overall perception of an organisation (Elsbach, 2003; Fombrun, 1996). For instance, when considering reputation, people consider whether an organisation is regarded in high esteem and how they compare to competing firms (Cowden and Sellnow, 2002; Fombrun and Shanley, 1990). Past research has referred to a positive reputation as a resource in its own right and allows an organisation to increase their performance in their field. To achieve a positive reputation, organisations should engage in activities that will distinguish them from their competitors in the marketplace. This can be accomplished by showcasing a new way of conducting business (Staw and Epstein, 2000). In sport competition, an example of this would be innovating a new type of offensive or defensive strategy. Lastly, after realising success, an organisation should frequently publicise their successes. This puts stakeholders on alert of the successes of the organisation, thus allowing them to associate the organisation’s brand with a positive reputation (Elsbach, 2003). Achieving this positions a professional sport organisation to capitalise off the success of their reputation as they maintain and build loyalty to the brand.

4.6 Informal or formal affiliations

Expressing organisational beliefs and values through encompassing informal or formal ties with outside groups and organisations can also be employed as an OBpM tactic. These tactics can help highlight and enhance the identity of the organisation. Take for instance, a primary school being referred to as a ‘recognised school’ for doing well on standardised tests. Being mentioned on a list of ‘Green companies’ is also a relevant example. Other than being recognised for these feats, engaging in charitable giving is

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also seen as advantageous activity (Bae and Cameron, 2006). In sport, an example could involve being ranked among the best teams in your conference, league, etc. or being noted as a charitable organisation.

Another avenue is for professional sport organisations to participate in cause-related marketing. Research has suggested that consumers have favourable attitudes towards organisations that support charities or give back to the community (Roy and Graeff, 2003). By doing so, professional sport organisations can demonstrate their support for relevant social issues related to the society in which they operate or even social issues that are more global in scope. An example of this would be the NFL’s partnership with the American Cancer Society. This campaign is called “A Crucial Catch”, and during the month of October, NFL games, players, coaches, and referees wear pink in support of this cause. As a result, the NFL has raised millions for the American Cancer Society (Jessop, 2012).

4.7 Employee satisfaction

Lastly, we believe that engaging in practices that treat employees with respect can also be utilised as an OBpM tactic. Decision-makers need to have the confidence of their employees. This can be done in a number of ways. For one, exhibiting concern for employees’ well-being is one way to accomplish this task. Other strategies involve allowing employees to have a sense of ownership and control and keeping promises (Elsbach, 2003). We believe that these strategies will foster a positive work environment and pave the way for employees to work at their highest levels. In turn, it could be argued this will create better performance for the organisation as a whole. For instance, in sport competition, often times you hear that certain coaches or managers are described as a ‘players coach’. This typically means the players have a great amount of respect for the coach or manager, bought into his or her message and will go the extra mile in competition. If this is the case, the team could arguably witness better performance.

There are a number of examples of this phenomenon in professional sport. For instance, former Chicago Bulls and Los Angeles Lakers head coach Phil Jackson is noted as one of the greatest coaches of all-time, winning 11 NBA titles (McMenamin, 2012). Kobe Bryant has been complimentary of Jackson, saying he instills confidence in his players (McMenamin, 2012). In the Lakers case, this resulted in five NBA titles with Jackson at the helm. Among other positives, this permitted the Lakers more airtime on television, more games, and the potential to increase merchandise sales. These all contribute to a strengthened brand and increased revenue, all stemming from the employees being satisfied and ‘buying in’ to the coach’s message.

4.8 The OBpM model

In an effort to further the conceptualisation of revenue generation in professional sport, we have suggested here that OIM and brand management act in an analogous manner to aid in maintaining and generating revenue for a sport organisation. Further, the framework presented in Figure 1 illustrates how the aforementioned factors related to OIM may influence consumers’ perceptions of the brand and positively or negatively impact their consumption behaviour. For example, if a consumer does not perceive an organisation to be trustworthy, the consumer may choose not to support any of the

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organisation’s brand offerings (e.g., sport apparel, corporate sponsors, sporting events), thus having a negative influence on the sport organisation’s ability to generate revenue.

Figure 1 Organisational Brandpression Management (OBpM) model

5 Conclusion

Earlier, we mentioned the shortcomings of literature involving OIM and brand management as well as sport phenomena and OIM. As a result, there are ample areas for scholars to examine how these areas can impact sport organisations. As we conclude, we provide recommendations that researchers could potentially investigate. We would like to point out that the directions below are not exhaustive.

5.1 Future research directions

The overarching premise of this paper is that professional sport organisations can utilise OBpM as a revenue generator. Based on this notion, our foremost recommendation is for scholars to empirically determine if OBpM can influence an organisation’s brand and create revenue. This would be of particular interest because many impression management studies merely investigate the effect on ratings of an organisation (Bolino et al., 2008).

Based on the areas mentioned in the previous section, scholars could explore the effectiveness of OBpM tactics. A longitudinal study could gather perceptions of stakeholders regarding what factors were successful in getting them to become a supporter of the professional sport organisation. From a practical standpoint, OBpM tactics deemed ineffective could be discontinued.

Another area for scholars to delve into is recruiting. Recruiting of talent, whether it is player personnel or other staff, often involves OBpM tactics. For instance, when recruiting an athlete, an organisation will attempt to convince the athlete that their team is the best fit by accentuating past records, future prospects, etc. Given the inherent nature of professional sport, it would be interesting to examine tactics utilised to recruit athletes and how effective or ineffective they were in acquiring the athlete. Scholars may also want to compare and contrast the OBpM tactics used by competing sport organisations in an attempt to sign the same athlete. From here, studies could be conducted on how acquiring or losing out on the athlete’s services has impacted performance and how this performance ties to the revenue of the sport organisation.

In the current era of professional sport, professional athletes are viewed as standalone entities, no longer exclusively connected with the team they compete for or products they

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endorse. For example, individuals such as LeBron James, Crisiano Ronaldo, David Beckham, and others, are equated to brands in their own right (Chadwick and Burton, 2008). Thus, our next recommendation concerns individual uses of brandpression management among athletes. Previous research has investigated the impression management strategies potential employees use during interviews (e.g., Iddekinge et al., 2007; Silvester et al., 2002; Swider et al., 2011). Future studies could examine how brandpression management tactics impacted an athlete’s ability to get an offer from a team. Furthermore, such studies could investigate how these impacted the salary they were offered. It could be the case that an applicant highlighted their qualities so well that their initial salary offer was better than an offer another applicant received with the same qualities. From a revenue perspective, this would obviously be a cost to the sport organisation and warrant investigation.

In sum, as scholars, we all have a duty to produce research that is useful to practitioners and contribute to the existing body of knowledge. To that end, from a practical perspective, we feel this work will be of particular interest and very helpful to professional sport organisations and those who manage them. In regards to research, the aforementioned directions can be utilised to extend impression management frameworks, create a better, more in-depth understanding of impression management, and potentially lead organisational scientist interested in impression management to construct questions and answers previously not considered.

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