How Market Resources Drive Demand for International F1 Racing

What is it about?

This research utilized F1 racing to examine how a niche portfolio strategy—focusing expansion efforts across geographically defined markets—is influenced by the resources available within those niches. Demand was operationalized using F1 broadcast advertising rates in each country. Hierarchical regression analysis revealed that three categories of resources were highly significant predictors of demand: participant-based resources (e.g., local F1 events and team championships), spectator-based resources (e.g., population size), and sponsor-based resources (e.g., current sponsor spending from that country). Participant resources alone accounted for half the variance in demand. Conversely, media-based resources (traditional and new media) were non-significant predictors. The finding that the market capitalization (potential sponsor support) was negatively related to F1 demand in certain countries suggests that these large markets, including the US and China, possess unrealized demand for F1 that requires better activation.

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Photo by Jannis Lucas on Unsplash

Photo by Jannis Lucas on Unsplash