Download - KUSBI-Presentation IUP-3
Hannah Martin and Arjun Arora
Examining the Impact of Core and Peripheral Service Satisfaction on Repurchase Intention:
A Case of a Minor League Sport Team
Sport Management & Leadership StudiesCollege of Business
Kutztown University
KU Sport Business Institute
Introduction
• Financial difficulties faced by minor league teams
• Large costs for venue rental, travel, and equipment
• Offensive vs. Defensive Marketing Strategies
• Long term success: Customer satisfaction
KU Sport Business Institute
Significance of the Study
• Previous research not focused on core and peripheral service satisfaction
• Minor league context not focused on
• Minor league teams must find alternatives to generate revenue
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Research Objectives
• To develop and test a conceptual model delineating the relationship between consumer satisfaction and repurchase intention
• To examine the moderating effects of fan identification on the relationship
KU Sport Business Institute
Theoretical Background
• Core service (Caldwell & Woodside, 2003)
– The primary show experience – The basic reason for the business to
be in the market– Represents the firm’s basic
competency in creating value in the first instance
KU Sport Business Institute
Theoretical Background
• Peripheral service (Lovelock, 1983)
– Services that facilitate the core offering but are not specifically related to the core
– Venue quality, concessions, signage, parking, etc.
KU Sport Business Institute
Theoretical Background
Customer Satisfaction (Oliver, 1980)
– The attitude resulting from the comparison of the expectations of performance and the perceived performance of the service experience.
• Direct and positive relationship to repurchase intention
• Increases a firm’s profitability (Hume, 2008)
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Theoretical Background
• Repurchase Intention – Individual’s judgment about buying a
service again– The decision to engage in future
activity with a service provider and what form this activity will take
(Hellier et al, 2003; Zeithaml et al, 1996)
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Theoretical Background
• Fan Identification (Shank, 2009)– Personal commitment and emotional involvement
customers have with sport organizations
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Hypothesis Development
Core Service Satisfaction
Peripheral Service
Satisfaction
Repurchase Intention
H1
H2
Conceptual ModelIdentification
H3-1
H3-2
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Methodology
• Procedure– Data collected at 4 minor league ice hockey games– Paper and Pencil survey (self-administered)– Incentives
• One free voucher for next season• Entered in drawing to win 14 person suite
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Methodology
• Sampling:– Convenience sampling method was used
• A total of 444 fans:– Male: 52.5%– Married: 61.7%– White: 87.4%; – Average Age: 42.95 years
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Methodology
• Measurements– Fan Identification (3 items)– Customer Satisfaction
• Core Service Satisfaction (3 items)– Game Performance
• Peripheral Service Satisfaction (5 items)– Entertainment (Pre-, half-time, & Post event)– Concession – Facilities– Customer service– Staffs
– Likert-type scale
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Methodology
• Data analysis– Confirmatory Factor Analysis (CFA)• Reliability and Validity
– Structural Equation Modeling (SEM)• To test hypotheses in the model• To examine moderating effects of
identification• Identification criteria (n = 304):
<3.5 for low identification fans (n = 144)>4.5 for high identification fans (n = 160)
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Results
Core Service Satisfaction
Peripheral Service
Satisfaction
Repurchase Intention
β = .30 **
β = .12*
SEM: Χ2(52) = 135.5, p < .00; CFI = .96; TLI = .95; RMSEA = .06; SRMR = .04
* = p < .05; ** = p < .01
KU Sport Business Institute
SEM Results
Core Service Satisfaction
Peripheral Service
Satisfaction
Repurchase Intention
β = .35 **
β: NS
Moderating effect of Identification: High Identification Fans
* = p < .05; ** = p < .01
KU Sport Business Institute
SEM Results
Core Service Satisfaction
Peripheral Service
Satisfaction
Repurchase Intention
β = .23 **
β = .18*
* = p < .05; ** = p < .01
Moderating effect of Identification: Low Identification Fans
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Discussion
• To meet needs and wants of low and high identification fans• Improve the core product (game and players)• Model for Fan Identification (Sutton et al,
2006)
• Practical implications:• Recruit better players and coaches• Compete with higher level teams• Highlight current player statistics and
achievements
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Discussion
• For low identification fans, marketers should focus on: – Entertainment– Promotional Activities– Facility Quality
• Practical Implication: – In house contests – Ticketing services– Staff training – Crowd control
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Conclusion
• Positive relationship between consumer’s core service satisfaction and repurchase intention
• Need to understand consumer needs and wants across identification levels
• Increased targeted efforts across different levels of identification will make the organizations more profitable in future
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Questions?