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

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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

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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?