I tried some Monster Energy drink in a Wetherspoons once in the mistaken impression that it would turn me into Sam Hill.
Didn't make me ride any better, but it did taste pretty sick.
Seriously though - The bike association was what made me curious to try it I think.
Sponsorship defnitely builds awareness. Not always in a good way. Seeing carbon frames snap in front of you can put you off a brand.
Sponsorship affects my choices.
Some friends are sponsored racers, and in return for work I do for them I get access to their trade accounts. Consequently what they use, I tend to as well...
Although saying that, a lot of the stuff is kit I'd use regardless, because it happens to be "the right thing" for me to use.
Would I drink Monster instead of Red Bull just because Peaty is now paid by Monster? Nope - I'll drink either if they're given to me for free just for the ginormous belches one can do after necking a can of the stuff. 
Can't see Monster being so popular if it didn't do some serious sponsorship.
Then there's the Iron Horse Sunday - before the CRC offer, there were still shed loads of them around in Morzine (now there's a few more!).
....and I'm sure we'll see a lot more Demo 8s next summer.
Sure there's a lot of great bikes out there, and on of the deciding factors between them will be the image you're trying (sub consciously or otherwise) to convey.
I'm sure Continental will get a bigger bite of the tyre market with the Athertons on board.
Even Kenda probably sell more tyres because they sponsor World Cup teams even though those teams just use Maxxis anyway.
Sponsorship sells stuff - when it's used in the right context, and the event / person / thing you're sponsoring reflects the brand. It can equally go the other way if the event / person / thing goes wrong.
It's definitely had an effect on what I've bought in the past - I remember choosing a Cannondale over a Specialized many years back becuase I knew the same frame (well, not literally the same one...the same model) had won the World Champs a couple of years before. I'd seen it being raced at the very highest level and wanted a piece of that action, even if it was only at little local races rather than at the World Cup 
I've never been in any doubt that companies sponsor people/events as it's great advertising, but I've always seen it as probably the 'nicest' way of advertising your stuff...not altruistic or anything quite that noble of course, but it does make them easier to identify with (IYSWIM)
I imagine we are all influenced in some way by sponsorship and other forms of advertising and thats why the companies partake in such activities. Exactly how much each of us is influenced i guess is down to the individual, for me it just plants a seed until i'm on that particular wavelength but for me it also has to be a great deal to take the plunge......
Shimano and Campagnolo dominated the road bike groupset market almost exclusively before SRAM came along.
We all use groupsets but who would of bought anything other than the main two players when SRAM was a relative newcomer?
The quality of it's product has been validated in the eyes of the cycling public in part by it's sponsored winning riders as a real alternative. Getting the name out there helped too. Obviously price,the quality of the product and buyer experience/reviews/word of mouth etc come into play but without the sponsorhship and success who would pay an equivalent price for a "untried" new product. Would you be using SRAM?
Oh winning their court case against Shimano helped too
UK sales manager, SRAM(astroturf my a***)
:)
I think that for small companies wanting to get their name and their products out there, it can be effective. Even to cynical mountain bikers.
I trust my eyes and my peers more than anything else when it comes to bikes/parts/clothing. My first stop is personal recommendations from people I know, but if I see something good at a race or on the trail, I might consider buying it. It's good grass-roots marketing.
And having riders doing interesting stuff on your bikes give magazines/websites more opportunities to mention you. They might only review your bike once, but then it gets mentioned/seen in action later. That's the kind of thing that sticks in people's subconscious.
Zulu Eleven the change from Felt to Cervelo has more to do with Vaughters team's contract with Felt coming to an end and Cervelo Test Team going tits up - hence the merger of both teams, than Vaughters wanting the fastest frames
mmmmmmm, spam.......
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