Factors, differential market effects, and marketing strategies in the renewal of season tickets for intercollegiate football games.
Pan, David W. ; Baker, John A.W.
Dempsey (2001) indicated that intercollegiate football and
basketball games have served as a magnet to draw alumni and other
supporters back to campuses. An attraction of this kind was the driving
force behind the National Collegiate Athletic Association's (NCAA)
success in securing a multi-billion dollar contract with the CBS and
ESPN sports networks to air numerous NCAA sports until the year 2013
(NCAA, 1999; NCAA, 2001). In the case of football, attendance at NCAA
Events in 2003 reached a record 46 million. Of this, Division IA schools
posted an all-time record of 35 million spectators, with an average of
45,447 for all 772 games played (Campbell, 2004).
To accommodate such a market demand in intercollegiate football at
the NCAA Division I level, athletic administrators created a two-tier
system for selling season tickets and general admission tickets for
individual games. Given the fact that a stadium has a fixed capacity, an
attempt to allocate a high proportion of seats to season ticket holders
is a logical sales tactic to maintain a viable spectator base. This
assumes that any unsold season tickets can always be re-allocated for
general admission. A sufficient number of pre-sold season tickets not
only guarantees a known income, but also provides a predictable market
base to help athletic administrators secure other revenues from such
sources as corporate sponsorships and alumni donations.
The competition for a share of a fixed amount of consumer
expenditures is a challenge to all athletic administrators in
today's dynamic and complex sport marketplace that is saturated
with numerous competing alternatives. Season ticket holders for
intercollegiate football, for example, often face the dilemma of whether
or not to renew their tickets, and few athletic administrators are
adequately prepared to overcome this type of situation. Instead, much of
the blame for new renewing season tickets is attributed to the lack of a
winning record. Mullin, Hardy, and Sutton (2000), criticized this single
focus on winning as "sport marketing myopia," because it fails
to identify the entire scope of consumer needs and wants when designing
suitable marketing strategies to sell tickets. Athletic administrators
should, therefore, understand that the decision of season ticket holders
to renew or not renew season tickets is not based solely on a
team's performance, but also on other factors associated with
attending games such as market characteristics, and competing
alternatives. This rationale prompted the undertaking of this study.
Theoretical Framework
The achievement of a marketing objective usually begins with the
identification of an unmet need or want in a market segment so that a
suitable product can be designed and marketed to that segment (Porter,
1985). While the classification of meaningful consumer characteristics
is a prerequisite to market segmentation, market objectives can usually
be achieved by deriving product attributes that are congruent with
market needs and wants (Kotler, 2003).
The types of variables used to determine their effect on an
individual's decision of whether or not to attend a sport event
appear to be similar to those used in other industries. For example, the
reasons why season ticket holders purchase intercollegiate football
tickets are similar to why consumers buy products in general marketing.
However, the usefulness of the information obtained in the sport
industry is different from that in other industries. This is because the
feedback relative to the expectations of season ticket holders towards
the unique nature of sport cannot be fully transformed into
corresponding marketing efforts to make the sport product congruent with
consumer needs and wants. A sport marketer's responsibility,
therefore, does not rest primarily upon the sport product core (the game
itself) but rather on sport product extensions (other than those of the
game itself) (Mullin, et al, 2000). An effective sport marketing
strategy does not come solely from the production of a winning team, but
rather from a conscious effort to produce a successful product which
contains consumer-expected value-driven attributes, for an event that is
congruent with unmet needs and wants.
Theoretically, sport marketers only prescribe attributes of sport
product extensions to satisfy a market's unmet needs and wants.
This is done through partial-scale product development that is
fundamentally different from that in general marketing. In the latter
case, all consumer-expected product attributes can be made available
through full-scale product development. To arrive at a precise sport
marketing strategy, however, it is imperative that a differentiation is
first made between those attributes inherent to the nature of a
particular sport versus sport in general, and those related to the
nature of marketing versus market itself. We, therefore, propose a
sport-marketing dual status model that focuses on the nature of market
by distinguishing between "sport consumers" and "sport
customers."
By our definition using the purchase as the pivotal point, the term
"sport consumers" (actual buyers) refers to individuals who
consume a sport product either as spectators or participants, while the
term "sport customers" (prospective buyers) refers to those
who contemplate whether or not to become consumers of that sport product
(or others). Individuals always have a dual status, as they can be
consumers of a sport product (such as attending a football game), while
remaining customers of others. Conversely, they can become customers of
a sport product (such as contemplating whether to purchase a season
ticket), while remaining consumers of other products (such as attending
other sport events). This distinction is made because human beings
behavior is a complex physiological, psychological, and socioeconomic
experience. People all possess a myriad of needs, and only, or a group
of related needs, can be catered for with a particular product, in a
given place, at a given time. We reason that where people become
consumers of a given sport (by attending a game); the same people also
remain customers of other products (including other sports) with a
degree of propensity to become consumers of the other products. The
degree of such propensity for a market, dependent upon the type and
intensity of marketing effort exerted upon, can be placed from
"uncertain," "less certain," "somewhat
certain," "more certain," to "certain" on a
probability continuum.
From the perspective of efficiency, the effort of marketing
strategies therefore should vary in type and intensity according to the
predisposed different degree of certainty on which customers
(prospective buyers) will become consumers (actual buyers). Arguably, a
large portion of a marketing effort should be directed towards
transforming prospective buyers who are "less certain" into
those who are "more certain." Similarly, those customers who
already are "more certain" or "certain" may require
only a small marketing effort (or different type of strategy) because of
their propensity to become or remain consumers.
A sport marketer's job, therefore, has a two-fold obligation:
to gain and retain consumers of their own, but also help organizations
offering other products to convert their desired customers among sport
consumers who are "uncertain" into consumers or customers who
are "certain." This distinction between "sport
consumers" and "sport customers" is important, as each
asks a different type of question necessitating different analyses in
the proposed theoretical framework. For example, a study of "sport
consumers" requires answers that determine reasons that influence
their behavior, and how to improve their behavioral tendency to remain
loyal consumers. Conversely, research on "sport customers"
demands solutions of how to build upon their brand knowledge, formulate
or change their preferences for a product, and consequently determine
how to make the sport product fits their expected value, personality,
and life style.
This distinction provides sport marketers with an opportunity by
which their consumers with "customer" status can be
cross-promoted through the introduction of other products or sports. The
probability to become consumers of other products or sports only becomes
a reality when their key attributes are effectively communicated to
customers who have similar characteristics as their own consumers. In
this case, sporting events are deemed to be a platform to stage the
marketing efforts of other products, thereby transforming those
"customers" into consumers through commonly shared and enjoyed
attributes in both products.
An understanding of this theoretical model should enable sport
marketers to (1) use sport as a cross-promotional platform for other
products, thereby helping convert their sport consumers with
"customer" status into their consumers, and (2) prescribe
value-based attributes to retain their own consumers through the process
of relationship marketing. Both are traditionally done in the area of
sport product extensions, so that these product attributes can not only
be congruent with the expected needs and wants of the consumers, but
also counter act the force of competing alternatives. Using the above
theoretical framework, this research attempted to identify factors that
influence the decision of "sport consumers" to renew or not
renew their season tickets for intercollegiate football games and
determine the effects that selected market characteristics and competing
alternatives have on the underlying factors expected by these consumers.
Review of Literature
Numerous studies have been conducted in attempts to understand the
consumption of spectator sport. Based on the proposed theoretical
framework, this review of literature is limited to the
socio-psychological functions of spectator sport, and the effects of
certain market characteristics on spectator and fan behavior.
As previously mentioned, athletic administrators and sport managers
have presumed that winning is the most important, if not the only,
factor that can produce a large number of spectators at a sporting
event. While winning has been found to be important in a variety of
sports (e.g., DeSchriver & Jenson, 2002 for NCAA Division II
football; Jones, 1984 for hockey; Baade & Tiehen, 1990 for major
league baseball; and Schofield, 1983 for professional sports), other
factors have been investigated and reported as important. These include
game schedules (Hill, Madura, & Zuber, 1982; Knowles, Sherony, &
Haupert, 1992; Marcum & Greenstein, 1985; Pan, Gabert, McGaugh,
& Branvold, 1997; Zhang, Pease, Hui, & Michaud, 1995); identity
of fans and its importance to team loyalty and satisfaction (Laverie
& Arnett, 2000; Suggon, Mcdonald, Milne, & Cimperman, 1997; Warm
& Branscombe, 1990); social learning (Pan & Baker, 1999); per
capita and household income (Bird, 1982; Pan, Zhu, Gabert, & Brown,
1999); competing sport alternatives (Coffin, 1996, Demmert, 1973; Noll,
1974); star players (Baade & Tiehen, 1990; Jones, 1984; Schurr,
Wittig, Ruble, & Ellen, 1987; Schwartz, 1973, Scully, 1974); and
travel distance (Maschiach, 1980; Schurr, et al, 1987). Several
attendance models and classification schemes that either influence or
indicate spectator behavior also have been proposed by Noll (1974),
Hansen and Gauthier (1989), Baade & Tiehen (1990), and Funk and
James (2001). Further, an attempt to understand fan behavior and
subsequently develop an instrument by which it can be measured also was
initiated by Howard, Madrigal, and Kahle (1995).
Mashiach (1980) asserted that the function of spectator behavior is
not determined by a single action, but occurs for a variety of reasons.
Twenty years later, Funk and James (2001) also proposed that an
individual's experience for being a spectator or fan was
distributed along a psychological continuum manifested through a set of
its own distinct characteristics. The complexity and magnitude of sport
consumers' behavior is evidenced in these studies. Considering
there is a strong interested in NCAA Division I intercollegiate sport,
many consumers who attend intercollegiate football games appear to be
attracted by not only the team's performance, but also other
factors (Campbell, 2004; Heidmous, 2003).
In early research, Schwartz (1973) found that several important
function attributes were associated with spectator sports. These
included creating a spectacle, displaying talent, relieving tension,
confirming cultural values, providing continuity in the lives of fans,
fostering social conformity and companionship, building team spirit and
allegiance to an organization, and providing an avenue that fostered
business interests. Spreitzer and Snyder (1975) also reported that 75
percent of both men and women agreed that sports were part of being a
well-rounded person, and 84 percent of men and 75 percent of women
believed that sports were a good way for getting together with friends
to have a good time. Duncan (1983) surmised that by understanding the
dimensional items that symbolize sport (such as aesthetics, political
and religious overtones, and societal values) people would realize the
important social implications of the sporting event. Melnick (1993)
proposed a theory of fan sociability and being a sport spectator. He
suggested that this provided an avenue that enhanced people's
"social/psychological lives, and allowed them to experience pure
sociability, quasi-intimate relationships, and sense of belonging that
are indigenous to the stands" (p. 46). Funk and James (2001) also
developed a Psychological Continuum Model (PCM) in an attempt to
classify a variety of indicators manifested by spectators and fans into
a spectrum of four distinct stages (awareness, attraction, attachment,
and allegiance).
As previously addressed, studies concerned with the functions and
effects of spectator sports, and of fans and their ticket purchasing
behavior, have been documented for many years. For example, Schurr,
Ruble, & Ellen (1985); and Schurr, Wittig, Ruble, & Ellen
(1987), examined the relationship between ticket purchasing behavior and
student personality types, academic achievement, vocational interest,
demographics, and distance of the venue fi'om a hometown, and
Frazier and Snyder (1991) observed that the status of being an underdog
team could create a strong attraction for fans. This is possibly a clear
reflection of the popular attitude of upward social mobility.
Closely related to the social aspects of sporting events is the
loyalty fans appear to have for a particular institution. For example,
Schurr et al. (1985) reported that "sport consumers" typically
have a strong identification with a team and the institution it
represents. Further, Murrell and Dietz (1992) found that affiliation to
an institution could enhance collective groupidentity, which in turn may
have a positive influence on fan support as well as actual attendance at
games.
Schofield (1983) compiled a review of 17 articles that assessed the
impact of different factors on attendance at professional sporting
events. He classified one group of articles as "production
function" studies in which various offensive and defensive outputs
of teams were examined relative to attendance. More relevant to the
purposes of this study was a second group of articles that focused on
the demand for sport by consumers. He divided these studies into four
categories: "economic variables," "demographic
variables," "game attractiveness," and "residual
preference." Hansen and Gauthier (1989) later used 40 different
items that fell within Schofield's four categories and found, for
the most part, items within the "game attractiveness' and
"residual preference" categories appeared to have a greater
influence on attendance than factors in the "economic" and
"demographic" categories. The PCM framework of Funk and James
(2001) plotted different types of sporting
experiences into a group of separate categories on a continuum for
easy identification and marketing usage.
The literature concerning spectators and fans at sporting events
indicates that their motivation to attend an event is generally complex
and multidimensional in nature. While attendance in support of a winning
team is a prime reason, studies also have suggested that social factors,
team quality and performance, atmosphere surrounding the sporting event,
and economic levels also are involved. These factors serve the synopsis of interests in the current study of intercollegiate football games.
Based on the aforementioned theoretical framework and review of
literature, this study initially investigated factors considered to be
the underlying reasons why people purchase season tickets for
intercollegiate football events at an NCAA Division I university.
Secondly, selected market characteristics and competing alternative
sports were examined to find their respective influence on season ticket
holders' reasons to purchase tickets. The results of this study
should be of practical importance to athletic administrators so they
might better understand the expectations of how an intercollegiate
football event is perceived by season ticket holders, and the major
factors and effects that influence season ticket holders to renew or not
renew their tickets.
Method
Participants
A list of 400 mailing address labels was randomly generated by a
ticket computer system from a population of approximately 50,000
football season ticket holders. The determination of sample size was
consistent with Malhotra's (2004) criteria for conducting this type
of marketing research. The criteria suggested consideration of the
following factors: (1) importance of the decision, (2) nature of this
study, (3) number of variables, (4) nature of the analysis, (5) sample
size used in similar studies, and (6) research constraints. The
population from which the sample was drawn accounted for approximately
82.50 percent of the seating capacity of the stadium. This population
was selected because of its commitment and economic importance to the
university's football program.
Materials
A questionnaire was constructed on the basis of the literature
review, the suitability of the theoretical framework, a pilot study, and
specific situations at the institution where the study was conducted.
This instrument enabled season ticket holders to provide responses to
statements in three sections: (1) motives for attending football games,
(2) demographic information of the respondents, and (3) attendance at
alternative sport events.
Respondents were asked to rate the relative importance of 17
motives influencing their decision to purchase season tickets using a
7-point Likert scale from 1 (least important) to 7 (most important).
These items were: Ancillary Prices, Attending Games for Business
Purposes, Attending with Family, Attending with Friends, Conference
Games, Excitement of the Event, Last Year's Record, Level of
Football Performance, Loyalty to the University's Team,
Non-conference Games, Overall Atmosphere, Overall Outlook for the
Season, Pageantry, Season Ticket Price, Star Players, State of the
Economy, and Top-Twenty Opponents. A cover letter explaining the purpose
of the study, the importance of the respondent's cooperation, the
institutional sponsor, and the questionnaire was mailed with a prepaid business reply envelope to participants prior to the beginning of the
football season.
Demographic data also were requested regarding a respondent's
age, gender, size of family, annual household income, driving time to
attend home games, and years holding season tickets. These variables
were selected because of their apparent effect on the decision-making
process to purchase season tickets. Finally, in the "attendance at
alternative sport events" section, respondents were asked to
provide information regarding the frequency of their attendance at other
area sporting events that included minor league hockey, minor league
basketball, minor league baseball, high school basketball, university
basketball, horse racing, and any other competing sports in the nearby
metropolitan area.
Design and Procedure
The first step was to identify the main reasons underlying the
decision to purchase season tickets. In the aforementioned theoretical
framework, this represented the classification of 17 motives derived
from an individual's expected needs relative to product attributes.
The responses to these 17 motives were factor analyzed with a principal
component extraction and orthogonal rotation. Mathematically, a motive
(M), when standardized, contains the elements of latent common and
unique factors as follows:
[M.sub.i] = [A.sub.i1], [F.sub.1], + [A.sub.i2] [F.sub.2] +
[A.sub.i3] [F.sub.3] + ... + [A.sub.im], [F.sub.m], + [V.sub.1]
[U.sub.1] (1.0)
Where we let [M.sub.1] be the ith motives, [A.sub.ij] be the
multiple regression coefficient of motive i on common factor j, F be a
common factor, [V.sub.i] be a regression coefficient of motive i on the
unique factor i, [U.sub.] be the unique factor for motive i, and m be
the number of common factors. The unique factors should be uncorrelated
with each other and with the common factors. The common factors
themselves can be expressed as linear combinations of the observed
motives as:
[F.sub.1] = [W.sub.i1] [M.sub.1] + [W.sub.i2][M.sub.2] +
[W.sub.i3][M.sub.3] + ... + [W.sub.ik][M.sub.k] (1.1)
Where [F.sub.i] is an estimate of ith factor, [W.sub.i] is the
weight of factor score coefficient, and k is the number of motives.
The appropriateness of the factor model was tested using the
Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy (MSA)(Kaiser,
1974, Malhotra, 2004). This measure compares the magnitudes of the
observed to the partial correlation coefficients. A value greater than
0.50 indicated the best explainability of the data and its
appropriateness for factor analysis. The internal consistency of the
data was measured using Cronbach's Coefficient Alpha. A VARIMAX
procedure was used to orthogonally rotate the initial factor matrix to
minimize the number of motives with higher loadings on a factor, thereby
enhancing the interpretability of the factors. Finally, the differences
in the estimated correlations between the motives and factors were
reproduced to determine whether the factor model provided a good fit to
the data.
The second step was to determine the effects of different
demographic variables and alternate competing sports reflected in the
factors identified in the first analysis. This represented the impact of
market characteristics, and choice of competing alternatives, on the
supposed congruent linkage between consumer-needs and expected product
attributes prescribed in the theoretical framework. This analysis was
used to determine if there was a necessity for market segmentation for
different strategies so as to maximize marketing efficiency. A series of
N-way Analysis of Variance (ANOVA) procedures was performed to compare
the effects of demographic variables and attendance at alternative
sports on the factors identified. The mathematical model can be
illustrated as follows:
[SS.sub.y] = [SS.sub.x1] + [SS.sub.x2] + [SS.sub.x1x2] +
[SS.sub.error] (2.0)
where [SS.sub.y] represents the total variation, [SS.sin.x1]
represents variation between the categories of [X.sub.2], or the portion
of [SS.sub.y] related to [X.sub.1], [SS.sub.x2] represents variation
between the categories of [X.sub.2], or the portion of [SS.sub.y]
related to [X.sub.2], [SS.sub.x1x2], represents variation due to
interaction of [X.sub.1] and [X.sub.2], SSerror represents the variation
that is not accounted for by X, or the portion of [SS.sub.y] due to
variation within each of the categories of X.
The strength of the respective effects (2) of overall and
significant demographic variables, attendance at alternative sports, and
their interactions with the factors were reported. Duncan's post ho
multiple comparison procedure was used to determine if significant
differences existed between groups of participants for a main effect.
The established rejection level for all analyses wasp <.05.
Results
Two hundred and thirty-six (59%) of the 400 questionnaires were
returned. For a variety of reasons, 39 were deemed unusable, resulting
in 197 (49%) being used in the final data analysis (see Table 1).
Factor Analysis
Data of the respondents' ratings of the 17 motives for
attending games were analyzed according to Equation 1.0. The adequacy of
the sample size (MSA=.71) indicated that correlations between pairs of
variables could be explained by other variables and that factor analysis
was appropriate. Using predetermined criteria (i.e., a factor's
eigenvalue equal to or greater than 1, factors should account for at
least 60 percent of the total variance, a motive item with a factor
loading equal to or greater than .40 without double loading, a factor
with at least two motive, and both a factor and loaded motive being
interpretable), five factors were identified explaining a total of 60.27
percent of the variance and comprising 16 perceived motives that
influenced the decision to purchase season tickets (see Table 2). The
descriptors "Athletic Event," "Economic View,"
"Game Competitiveness," "Social Affinities," and
"Team Performance" were given to these five factors based on
the nature of the reasons contained within each. "Attending Games
for Business Purposes" did not meet the criteria. Only 8 of the 136
(<6%) residuals were larger than an absolute value of. 10 but less
than. 15, indicating a good fit between the individual motives and group
factors.
Analyses of Variance
A series of N-way ANOVAs (Equation 2.0) were performed to determine
if variations due to individual demographic characteristics, or
attendance patterns at competing alternatives, would have an effect on
the respondents' primary reasons to purchase season tickets as
uncovered in the factor analysis. The results of these analyses are
reported in Table 3 which shows that nine main effects and 14
interactions were statistically significant on four of the five factors
(Athletic Event, Economic View, Game Competitiveness, and Team
Performance). The interactions indicated that season ticket holders
within the same market segment did not follow the same decision or
behavioral patterns. The interaction results rendered a justification
for a further sub-market segmentation to maximize marketing efficiency
in promoting season ticket sales.
Main Effects. Five main effects were found for the factor
"Economic View," three for "Game Competitiveness,"
and one for "Team Performance." Their F values and respective
degrees of freedom, probability, and strengths of the effects
([[eta].sup.2]) are also reported in Table 3. The results of their post
hoc tests are reported in Table 4. No other significant main effects
were found.
Interactions. Fourteen interaction effects were found on all four
factors. Their F values and respective degrees of freedom, probability,
and strengths ([[eta].sup.2]) are also reported in Table 3. The results
of their post hoc tests are reported in Table 5. No other significant
interaction effects were found.
Discussion
Characteristics of Respondents
Results in Table 1 indicate that a majority of season ticket
holders were 40 to 60-year-old Caucasian males, living in a household
having fewer than four people, with an annual income of $40,000 or more.
This income pattern is consistent with findings by Cage (1989) who
reported that individuals with a high income, such as managers and
professionals, spend a larger percentage of their income on tickets for
sporting events than those earning less money.
Forty percent of the season ticket holders traveled for less than
an hour to attend the football games, while almost 37 percent traveled
for more than two hours. This indicated that season ticket holders come
from a wide geographical area. It is interesting because compared to the
results of a study by Pan, et al, (1997) who investigated NCAA Division
IA basketball that a majority of season ticket holders was found to
travel for less than 60 minutes to games. Guenther (2003) expressed
concern that traveling time might be an inhibiting factor to football
season ticket holders at the NCAA Division IA level. This study found
this not to be true. Further, a majority of these season ticket holders
(approximately 50 percent) responded that they had their tickets for
more than 11 years. Considering the time they had to travel to attend
games, this further reflected their lasting loyalty to the
university's football program.
Factor Analysis
Five major factors were identified to be the underlying reasons why
season ticket holders purchase tickets. Of these, "Team
Performance" was found to be most important (explained by 22.3 % of
the variance), and along with "Game Competitiveness" (9.93 %
of the variance), these two variables accounted for about one-half(32 %)
of the total variance (60 %) identified in the analysis. The combined
variances from the remaining factors ("Athletic Event,"
"Economic View," and "Social Affinities") accounted
for about 30 percent. This indicates that the performance-related
variables such as "Winning Team" and "Star Players"
are important reasons to purchase season tickets for intercollegiate
Division I football games. This finding is consistent with that of
DeSchriver and Jenson (2002) who reported that winning percentage was a
significant determinant for spectator attendance at NCAA Division II
football games.
Conversely, Pan et al (1997) found that "Economic
Factors" was the most important reason for purchasing season
tickets, and performance-related variables to be of secondary importance
to season ticket holders at intercollegiate basketball events. The
different results between these studies renders an intriguing question
as to the most important factor prompting sport consumers to attend
these two intercollegiate sports.
We infer that the disparity in the importance of
performance-related variables in intercollegiate football and basketball
may be due to different expectations by the general public for each
sport: the national sport (football) versus a national sport
(basketball). We further hypothesize that if a sport in any given
country is viewed to be the national sport it represents the most
important values or expectations shared in that society. Many people,
therefore, will tend to place these social values or expectations above
other concerns. The reverse is true for a national sport. For example,
research has shown that fans spend about 10 percent of their annual
income attending Premier League soccer matches in England (Sir Norman
Chester Center for Football Research, 2003); spectators watch badminton games in a room temperature of 42 degrees Celsius in Indonesia (Orlick,
1980); and season ticket holders in this and other similar studies in
the United States primarily expect theft football teams to win!
From a sport marketing perspective, the importance of winning to
football consumers, when compared to that of economic factors to
basketball consumers, may be related to other different features
inherently embedded in the nature of the two sports. These could be the
number of games played, the time of day and week when games are played,
the scope of the event's experience, the capacity of the
game's venue, and a lack or availability of other competing
alternatives. An evaluation of these factors should render a cognitive
rationale for season ticket holders to decide which factor has priority
over others for attending football or basketball games. These factors
also could serve as considerations for NCAA sport administrators in
making changes to future conference schedules for both football and
basketball. As the last revision of this paper went for print, Division
I-A members of the Division I Board of Directors have agreed that
beginning with the 2006 season, Division I-A teams will be allowed to
schedule a 12th regular-season game every year. The 12-game proposal,
however, was defeated by the Division I-AA members of the Board, which
means Division I-AA teams will continue to operate under the 11-game
schedule (NCAA, 2005).
These findings provide strong evidence that intercollegiate
football qualifies to be the national sport in the United States because
of its representation of commonly shared social values and expectations
at the national level. Consequently, an appropriate main promotional
theme for football, in order to maintain a viable market base for those
teams whose performance record is mediocre, will require a focused
scheme emphasizing the hard core values and expectations of American
mainstream society. Other value-justification tactics such as lowering
the cost of concessions and parking should also be used when a team
lacks a winning record and/ or offering an intensive excitement
experience.
Assessment of Main Effects
Years Holding Season Tickets. The longer season tickets had been
held, the less emphasis in the purchase decision process was placed on
"Economic View" and "Team Performance." If season
tickets had been held for a short period of time, more emphasis was
placed on "Team Performance." This finding should help sport
marketers formulate a reason-specific strategy for promoting the sale of
season tickets according to the different lengths of time the season
tickets had been held.
Household Income. The average annual household income for this
study was high, with an overwhelming majority of respondents (72 %)
earning more than $60,000. This seems to be reasonable as people must
have a fairly high level of disposable income to become season ticket
holders for university football games. The rating of the importance of
"Economic Factors" highlighted this point where the greater
the household income, the less emphasis was placed on the "Economic
View" when purchasing season tickets. Those having the lowest
household income (less than $40,000) rated all economic factors as being
more important concerns that those at the two higher income levels of
$40,000-$60,000 and more than $60,000. Meanwhile, the season ticket
holders in the lowest income level rated loyalty as being more important
that those in the other two groups. Further, "Last Year's
Record," "Star Players," and "Outlook for the
Season" were perceived to be less important to those in the middle
and high-income ranges.
It appears that individuals with a low income were motivated by a
high level of loyalty to the team rather than quality and performance.
This may be attributed to the strength of their pride related the
"Team Performance" over "Economic Factors." It could
be assumed that the football season ticket holders, despite their
economic constraints, tend to have a stronger loyalty than those in
other sports. Individuals of this type are likely to attend games even
when the team has a mediocre record. To maintain a viable market base,
it would be advisable for administrators of the national sport to reward
this market segment on a regular basis with economic value-based
marketing tactics. These might include a discount on memorabilia and/ or
concession items.
The finding regarding the high level of loyalty for the lower
income football season ticket holders is supported by Cage (1989) who
found that people from this income level tended not only to spend less
money on sporting events than wealthy people, but also spent a lower
percentage of their total income. Only those extremely loyal fans would
spend a large portion of their income on season tickets for the national
sport because of their pride for the team over the cost of the tickets.
Driving Time. Driving time is a reflection of the geographic
dispersion of season ticket holders from their homes to the football
stadium. The four categories of driving time were: less than 30 minutes,
30-60 minutes, 61-120 minutes, and more than 120 minutes. Respondents
driving more than 60 minutes tended to place significantly less
importance on the "Economic View" and "Game
Competitiveness" than those in the other groups. This demonstrates
that because of the strong enthusiasm of these individuals towards
football, driving time may not be a deterrent in the purchase of season
tickets. To be observed displaying a university's emblem while
driving on local streets or interstate highways is a typical sight
during a football weekend, and it is those people who want a winning
team at all costs.
The high level of commitment exhibited by those driving for a long
time, with less emphasis on economic motives, may be further explained
by the fact that they are not part of the campus atmosphere as often as
those living closer to the university. The urge to experience the
college atmosphere may become stronger when they are away from it, and
thus attending football games provides the opportunity to return to a
campus and experience the excitement surrounding the event. This was
supported by Schurr et al. (1985) and Schurr et al. (1987) who found
that students from towns situated a long distance away from a university
were more likely to attend basketball games. They explained this by
pointing out that there was little opportunity to experience the
excitement of the college community. When they finally become part of
the community, they will probably feel compelled to engage in such
university activities as basketball or, in our case, football. Although
these findings seem to reflect the egocentric mentality of a college
town, the enthusiasm and loyalty of students in the Schurr studies
(1985, 1987), could be compared to the season ticket holders in this
study who traveled a long time to watch football games.
Race. While Caucasian Americans highly emphasized the relative
importance of "Game Competitiveness" in their ratings, Native
Americans de-emphasized the value of this factor. This result is
consistent with other findings showing that Native Americans tend to
follow their own cultural values where sporting competition has
consistently been de-emphasized (Coackley, 1998; Paraschak, 1995; and
Schroader, 1995). This appears to render a justification for a
race/ethnicity-conscious marketing strategy for promoting season ticket
sales.
Competing Alternatives. Respondents who frequently attended local
minor league baseball games tended to place a greater importance on the
"Economic View" and "Athletic Event" when purchasing
season tickets than those with a lower frequency rate. This perhaps
exhibits their expectation that high-quality football games should
possess the fundamental values of competitiveness and excitement;
otherwise, they would be prone to attend local minor league baseball
games. The same is true for those with a high attendance frequency at
high school basketball games on the factor of "Economic View."
These results indicate that as the quality of the performance-related
variables of intercollegiate football decreases, the attractiveness of
competing alternatives increases on the dimensions of "Economic
View," and "Athletic Event." A marketing strategy in this
vein would be to decrease the costs of admission and concession, or
allow spectators and fans to bring their own beverages and snacks to the
game.
Assessment of Interactions
Age by Gender. The four age groups used in this study were: less
than 40 years, 40-50 years, 51-60 years, and more than 60 years. Male
and female respondents who were 60 years or younger exhibited a high
level of interest in the "Athletic Event." Regardless of age,
all male respondents placed similar importance on this factor. Females
40-50 years old assigned a much higher score than those who were more
than 60 years old. Females showed less emphasis before they were 60
years old than their male counterparts on the factor "Team
Performance," but later displayed a stronger interest. Males who
were more than 60 years old registered much less interest. As females
age, it was found that their interest in "Team Performance"
increased, while that of males decreased. Females in the 40-50 year old
group exhibited the highest level of interest in the attributes
associated with the "Athletic Event."
Considering that the attributes of "Athletic Event"
include "Excitement," "Overall Atmosphere," and
"Pageantry," this probably indicates that females between the
ages of 40 and 50 are receptive to promotional tactics emphasizing the
"Athletic Event." However, their higher level of interest
seems to be temporary. As their age increases, their interest in the
"Athletic Event" declines significantly, while their interest
in "Team Performance" significantly increases.
Correspondingly, sport marketers should use an age-by-gender-specific
strategy by highlighting the attributes of the "Athletic
Event" to females in their 40s and underscore those of "Team
Performance" when they were more than 60 years old.
Age by Driving Time. For those respondents who were less than 40
years old, season ticket holders who drove for long period time appear
to place a greater emphasis on the importance of the "Athletic
Event" than those driving less time. However, this trend was not
evident in the 40-50 year old group. Those in their 50s who drove more
than 50 minutes exhibited an increasing interest in the "Athletic
Event" when compared to those who drove less than 60 minutes. For
those who were more than 60 years old, only those driving more than 120
minutes placed a high emphasis on the importance of the "Athletic
Event." A similar trend also was found with "Team
Performance." Correspondingly, the content of a letter requesting
renewal of season tickets should be particularly worded to emphasize the
respective individual attributes of the "Athletic Event" or
"Team Performance."
Household Income by Driving Time. Those with an annual income of
less than $40,000 or more than $60,000 who drove less than 30 minutes to
football games, placed lesser importance on "Team Performance"
than those in other groups. Respondents driving less than 30 minutes and
having a household income of $40,000-$60,000 placed the highest
importance on "Team Performance." This finding is not
surprising when people from middle or upper middle class families who
can afford to purchase season tickets happen to live within a reasonable
distance of campus. Intercollegiate football is indeed truly congruent
with their value system as the unique American sport experience. This
market segment, nevertheless, is the one on which our primary marketing
effort should focus.
Family Size by Years Holding Season Tickets. Those respondents
holding season tickets for either less than 6 years or more than 20
years, regardless of family size, placed a similar degree of importance
on the "Athletic Event" in their purchasing decision. The
respondents whose household contained 1-2 persons, along with a 6-10
years' season ticket experience, emphasized a higher level of
importance on the "Athletic Event" than those in the other
groups. Those having season tickets for more than 10 years, however,
de-emphasized the importance of the "Athletic Event" in their
purchase decision process.
These results indicate that regardless of family size, the longer a
season ticket has been held, the lesser importance is placed upon the
"Economic View." Overall, the importance of the "Athletic
Event" was rated much higher than the "Economic View."
Therefore, a value-driven strategy seems to be appropriate by
highlighting extra product attributes in the factor of "Athletic
Event."
Attendance at Local Sports by Driving Time. The interaction
patterns of attendance at local sports by driving time are reported in
Table 5. The attendance frequencies at local sports seems to have
rendered a similar rationale for the different strategies addressed
above. Whether a strategy would work on a segment of season ticket
holders appears to rest with the issue of whether a clear distinction
can be made to identify those season ticket holders who are football
fans, as opposed to those who are merely spectators. Once again, the PCM
proposed by Funk and James (2001) could be appropriate as a market
segmentation tool to draw such distinctions for football spectators and
fans at different stages of their sport experience and involvement.
Conclusions and Recommendations
This study investigated the variables affecting the purchasing
behavior of season ticket holders within a conceptual framework for
understanding the nature of sport marketing. It was hypothesized that
consumers predicate their decision of whether or not to purchase season
tickets on their value-seeking needs and their congruence with expected
attributes of the product. Marketers can prescribe these expected
attributes and market that sport back to a specific segment of the
market according to that market's demographic characteristics and
competing alternatives.
Five main factors were identified as latent reasons used by season
ticket holders in making their decision to renew season tickets for NCAA
Division IA intercollegiate football games. Secondly we assessed the
respective effect of selected demographic variables and competing
alternative sports on the primary reasons for season ticket holders to
purchase the tickets, thereby understanding how to efficiently conduct
marketing efforts.
The results revealed that football season ticket holders in this
study emphasized the importance of performance variables in their
purchasing decision, probably because football is viewed as the national
sport. The findings of the effects of demographic variables and
competing alternative sports also rendered a justification for
formulating market segment-specific strategies by demographic
characteristics.
This study was conducted within a proposed theoretical framework
and limited through the use of variables selected from the literature
review and the suitability of given situations. However, it is believed
that the results will be of interest to athletic administrators at the
NCAA Division I level where the football programs are offered. The
findings will help them better understand the relative importance of the
individual product attributes of their football program as viewed in the
mind of season ticket holders. To achieve congruence between what a
football program can deliver and what football season ticket holders
need and want, athletic administrators must confer with sport consumers.
In comparison to the results of a similar study (Pan, et al 1997)
concerned with season ticket holders for intercollegiate basketball, it
appears that sport consumer behavior may be sport-specific as to whether
the sport is deemed as the national sport or a national sport. For
instance, a shared pride, as reflected by quality performance variables
and the expectations of the sport will help sport marketers not only
develop a lifelong relationship with a targeted market, but also convert
sport customers to be consumers in that marketplace. Ultimately, the
body of knowledge in the sport business will be enriched, thereby
rendering people with harmonized sport products that will ultimately
fulfill their unmet needs and wants, personalities, and lifestyles.
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David W. Pan
Northeastern State University
John A.W. Baker
Southern Illinois University Edwardsville
Address Correspondence To." David W. Pan, Ph.D., J.D.,
Department of Business Administration, Northeastern State University,
Broken Arrow, Oklahoma 74014. Phone: 918-456-5511, Email: pan@nsuok.edu.