Relationship Marketing in Australian Professional Sport: an Organisational Perspective
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Relationship Marketing in Australian Professional Sport: An Organisational Perspective Author Stavros, Constantino Published 2005 Thesis Type Thesis (PhD Doctorate) School Griffith Business School DOI https://doi.org/10.25904/1912/2302 Copyright Statement The author owns the copyright in this thesis, unless stated otherwise. Downloaded from http://hdl.handle.net/10072/367556 Griffith Research Online https://research-repository.griffith.edu.au Relationship Marketing in Australian Professional Sport: An Organisational Perspective Constantino Stavros School of Marketing Griffith University Submitted in the fulfilment of the requirements of the degree of Doctor of Philosophy 2005 ABSTRACT Relationship marketing has become a fundamental concept within modern marketing thought. Some authors even suggest it is the fundamental concept. Its rise to prominence has seen it become a unifying force within the marketing discipline given its application to a whole range of areas. It promises benefits to organisations that can be distilled down to greater profits over the longer term, with less cost. The focus of relationship marketing is relatively simple. Rather than acquiring customers, the retention and development of customers is emphasised. Regrettably, the implementation of relationship marketing is not as straightforward as its definition. It requires at the very least a long-term outlook, an embracing of technology and a commitment to a customer focus. If relationship marketing is such a critical element in modern marketing, it follows that its application across industry sectors be examined. Sport is one such industry and has coincidentally emerged as a major business sector in the same time-frame as relationship marketing’s maturity. As the markets for sport have grown, so too has the sophistication of the sport marketer. From amateur, myopic beginnings, sport continues to claim a strong grip on the cultural identity of countries such as Australia. Buoyed by strong media interest, attendance at sporting events continues to grow, albeit across a much larger choice-set. The road ahead is not necessarily bountiful however. Information presented in Chapter 1 of this thesis suggests that the frequency of individual attendance at major sports in Australia is declining, despite some positive overall attendance figures. In essence, it appears that loyal customers are being replaced by newer, less committed ones. While this might not be instantly damaging, it does require sport marketers to ensure that strong levels of identification with their products are developed. All of this is supported by the existing literature that has recognised that sport can likely benefit greatly from the implementation and application of relationship marketing, but is in urgent need of further study. - i - These scenarios suggest a need to understand where relationship marketing in sport currently rests and this thesis answers the call and asks the following research questions: RQ1) To what extent do professional sporting organisations in Australia undertake relationship marketing; RQ2) what strategies do they employ and RQ3) what are the issues faced in implementing a relationship marketing approach? This thesis takes an organisational perspective, across multiple-cases in major professional sport and considers the sport-consumer relationship exclusively. It is the first study of its kind in this area and adds significantly to the body of knowledge, both within sport marketing and the broader concept of relationship marketing. It indicates that while relationship marketing is acknowledged and indeed welcomed as a concept by practitioners, their efforts at implementation have been primitive, largely unplanned and generally sporadic. More than often they reflect a reactive rather than proactive strategic approach. A range of barriers are presented and discussed as are some examples of organisations that have incorporated some parts of a relationship marketing philosophy into their structure. A conceptual model in the final chapter of this thesis synthesises the issues extracted from the various cases and existing literature. It depicts a challenging road ahead for professional sport organisations. - ii - STATEMENT OF ORIGINALITY This work has not been previously submitted for a degree or diploma in any university. To the best of my knowledge and belief, the thesis contains no material previously published or written by another person except where due reference is made in the thesis itself. Signed Constantino Stavros: _____________________________________ Date: _________________________________________________ - iii - TABLE OF CONTENTS ABSTRACT..........................................................................................................i STATEMENT OF ORIGINALITY...................................................................iii LIST OF FIGURES ..........................................................................................viii LIST OF TABLES..............................................................................................ix ACKNOWLEDGEMENTS ...............................................................................xi 1 INTRODUCTION 1.1 Background...........................................................................................1 1.2 Research questions ...............................................................................1 1.3 Justification for the research ................................................................2 1.3.1 Growth of relationship marketing........................................................2 1.3.2 Development of the professional sport market....................................3 1.3.3 Current sport marketing practice .........................................................5 1.3.4 Limited research contribution to date..................................................8 1.3.5 Conclusion............................................................................................8 1.4 Methodology ........................................................................................8 1.5 Key findings and contribution of the research ....................................9 1.6 Delimitations ......................................................................................10 1.7 Conclusion and outline of thesis........................................................11 2 LITERATURE REVIEW 2.1 Introduction ........................................................................................13 2.2 Relationship Marketing......................................................................13 2.2.1 Relationship Marketing Defined........................................................13 2.2.2 Relationship Marketing’s Growth .....................................................15 2.2.3 A New Approach in Marketing .........................................................17 2.2.4 The Practice of Relationship Marketing............................................19 2.2.4.1 Service Encounters.............................................................................23 2.2.4.2 Internal Marketing..............................................................................24 2.2.5 Criticisms of Relationship Marketing................................................24 2.2.6 Further Research ................................................................................26 2.2.7 Conclusion..........................................................................................27 2.3 Consumer Behaviour and Relationship Marketing...........................27 2.4 Motivation of the Sport Consumer ....................................................31 2.4.1 What is a Fan? ....................................................................................31 2.4.2 General Sport Consumer Motivations ...............................................33 2.4.3 Servicescapes......................................................................................38 2.4.4 Loyalty................................................................................................38 2.4.5 Winning ..............................................................................................39 2.4.6 Group Behaviour................................................................................40 2.4.7 Sport Image & Excellence .................................................................43 2.4.8 Conclusion..........................................................................................45 - iv - 2.5 Sport Marketing Research and Relationship Marketing...................45 2.5.1 Relationship Marketing In Sport........................................................48 2.6 Conclusion..........................................................................................58 3 METHODOLOGY AND RESEARCH METHOD 3.1 Introduction ........................................................................................60 3.2 Research Paradigm Justification........................................................61 3.2.1 Quantitative and Qualitative Approaches..........................................62 3.3 Research Paradigm.............................................................................69 3.4 Research Design and Method ............................................................72 3.4.1 Data Collection...................................................................................82 3.4.2 Data Analysis .....................................................................................91 3.5 Conclusion..........................................................................................95