Effect of Sponsorship in MotoGP towards Public Purchase Behavior in Indonesia

Abstract

Promotion is an essential aspect of business that must be performed by any company, especially for companies engaging in the exchange of goods or services. The promotion media for an organization is also rising with competition growing in industry, which ensures that firms must find an appropriate and productive way to advertise their business. Sponsorship is one of the advertising media that attracts attention. Sponsorship offers several advantages in business: enhancing the reputation of a brand, differentiating the company from the competition, establishing partnerships with targeted clients, also showing their goods to their customers. MotoGP is the oldest World Championship in motor racing ever held. This research is aiming to find the effect of sponsorship in MotoGP on the public purchase behavior in Indonesia. Since there are positive effects on becoming sponsor in MotoGP but there is no clear information whether becoming sponsorship in MotoGP gives positives impacts towards businesses in Indonesia. The objective of this research is to determine the effects of becoming sponsor in MotoGP towards public purchase behavior in Indonesia and to determine what are the factors that effect the public purchase behavior in Indonesia in becoming sponsors in MotoGP. Data from 362 survey respondents were collected and analyzed. Using the SmartPLS program, the data was evaluated using the PLS process. The results show that MotoGP sponsorship has an effect on Indonesia's public purchase behavior. It can be seen that 36.19% of the respondents are actually bought their favorite MotoGP team sponsorship products at least once. And the factors that affect public purchase behavior in Indonesia are the variable used in this research which are Team Identification (TID), Perceived Fit (PFIT), Brand Awareness (AW), Perceived Quality (PQ), and Brand Engagement (ENG). This result can be used by companies in Indonesia to able to make decision on their marketing strategy whether to use sponsorships in MotoGP or not.