ANALYSING THE LOYALTY LEVELS DISPLAYED BY FOOTBALL FANS: A CASE STUDY ON CAPE TOWN CITY FOOTBALL CLUB MUHAMMED ZIYAAD DESAI A dissertation submitted in fulfilment of the requirements for the degree of UniversityMaster of Business of Science Cape (Marketing) Town In the School of Management Studies FACULTY OF COMMERCE University of Cape Town Supervisor: Dr Joel Chigada Date: 14th August 2017 The copyright of this thesis vests in the author. No quotation from it or information derived from it is to be published without full acknowledgement of the source. The thesis is to be used for private study or non- commercial research purposes only. Published by the University of Cape Town (UCT) in terms of the non-exclusive license granted to UCT by the author. University of Cape Town Language Quality Assurance Practitioners Mrs KA Goldstone Dr PJS Goldstone 14 Erasmus Drive Summerstrand Port Elizabeth 6001 South Africa Tel/ Fax: +27 41 583 2882 Cell: +27 73 006 6559 Email: [email protected] [email protected] 12th August 2017 TO WHOM IT MAY CONCERN We hereby certify that we have language-edited the dissertation of Mr Muhammed Ziyaad Desai entitled: ANALYSING THE LOYALTY LEVELS DISPLAYED BY FOOTBALL FANS: A CASE STUDY ON CAPE TOWN CITY FOOTBALL CLUB. We are satisfied that, provided the changes we have made are effected to the text, the language is of an acceptable standard, and is fit for publication. Kate Goldstone Dr Patrick Goldstone BA (Rhodes) BSc (Stell.) SATI No: 1000168 DEd (UPE) UPE Language Practitioner (1975-2004) NMMU Language Practitioner (2005) Language Quality Assurance – Certification Statement Page | I ACKNOWLEDGEMENTS In the name of Allah, the most Gracious, most merciful Kindly allow me to thank the following people from the bottom of my heart: • To my family, without whom I would not have been able to complete this dissertation. A special thank you to my parents, Khalied and Fatima Desai and my sister, Rabia Desai, for your support and constant faith in me. • To my supervisor, Dr Joel Chigada, for your inspiration, advice and guidance. Thank you for allowing me to study a topic of great interest to me. Thank you for being easy to work with; and most of all, thank you for all the patience you have shown me over the past 18 months. Your mentorship is highly appreciated – and something that I will not easily forget. • To all my friends, who have helped me along the way: Thank you for your assistance. I would not have been able to get to the finish line without you. I would specifically like to thank Imaan, for your continuous encouragement and firm belief in my abilities – even in those moments when I didn’t believe in myself. • To the Cape Town City Football Club, for allowing me to conduct this study and providing me with any information that I needed. • To all the participants of the study, for your kindness and willingness to participate and provide me valuable insights. • To the language editor for taking time to ensure that the wording of my dissertation was worthy of submission. Page | II DECLARATION 1. I certify that I have read and understand the Commerce Faculty Ethics in Research Policy. http://www.commerce.uct.ac.za/Pages/ComFac-Downloads 2. I certify that I have read the General Rules and Policies Handbook (Handbook 3) regarding Student Rules of Academic Conduct: RCS1.1 to RCS3.2 and Rules relating to examinations, G20.1 to G22.2. 3. I certify that I have read and understand the document, “Avoiding Plagiarism: A Guide for students”. 4. This work has not been previously submitted in whole, or in part, for the awarding of any degree, in this or in any other university. It is my own work. Each significant contribution from, and quotation in, this dissertation from the work, or works of other authors has been acknowledged; and it has been cited and referenced. 5. I authorise the University of Cape Town to reproduce, for the purpose of research, either the whole, or any portion of the contents, in any manner whatsoever. Student Number: DSXMUH002 Student Name: MUHAMMED ZIYAAD DESAI Date: 14/08/2017 Signature: _________________ Page | III ABSTRACT According to conventional wisdom, football fans exhibit perpetual loyalty to the clubs that they choose to support. These prevailing beliefs are largely the product of the fanaticism and intense partisanship that fans display. However, in South Africa, the reality is that the majority of the football teams are either failing to harness this loyalty, or that the loyalty levels that their fans display, contradict conventional wisdom. Due to the important role that these fans play in revenue generation, there is a need for leadership at these clubs to better understand this lucrative market. The objective of this study was to establish whether the loyalty levels displayed by fans in South Africa correspond with, or contradict, conventional wisdom. The limited understanding of the matter within a South African context means that clubs lack the required understanding of their respective fan bases. This creates a situation, which stifles the efficacy of management to implement positive changes. This study was anchored in the model of Stewart and Smith (2007) of sport fans’ motivations. There are three core dimensions distinguished by the model. These relate to psychological, socio-cultural and social motives, all of which facilitate the process of an individual becoming a fan; and then subsequently remaining loyal. A qualitative research approach was used to collect the data for this study. An interview guide was used to collect the information from the fans and the top management of Cape Town City Football Club through face-to-face interviews. Each interview was recorded with the aid of a voice recorder and all the data collected were then transcribed. The findings from the study show that fans demonstrate more support to Cape Town City Football Club when the team is winning, as opposed to when it is going through a rough patch. Conclusively, the lack of understanding of fans in football clubs means that it is difficult to communicate in an all-inclusive way, considering that not all fans are the same. Based on the findings, the study suggests that leadership at South African football clubs should allow for open dialogues to be created, in which the issues Page | IV can be discussed; so that practices implemented would better serve the target population. Keywords: Consumer loyalty, football fan loyalty, team brands, sports marketing, Cape Town City Football Club, South Africa Page | V Table of Contents Language Quality Assurance Practitioners…………………………………………………………………….…………….I Acknowledgements…………………………………………………………….……………II Declaration………………………………………………….……………………………….III Abstract……………………………………………………………………………………...IV CHAPTER 1: INDTRODUCTION AND BACKGROUND OF STUDY 1.1 Introduction .......................................................................................................... 2 1.2. Background to the Study ..................................................................................... 4 1.2.1 Cape Town City Football Club ....................................................................... 4 1.2.2 Clubs as Brands ............................................................................................. 4 1.2.3 Cape Town City Football Club as a Brand ..................................................... 6 1.2.4 Brand Adoption by Fans ................................................................................. 7 1.2.4.1 Attributes .................................................................................................. 7 1.2.4.2 Benefits .................................................................................................... 8 1.2.4.3 Attitudes ................................................................................................... 8 1.2.5 Consumer Loyalty .......................................................................................... 9 1.2.5.1 Attitudinal Loyalty ................................................................................... 10 1.2.5.2 Behavioural Loyalty ............................................................................... 10 1.3 Research Question and Objectives .................................................................... 11 1.4 Methodology ....................................................................................................... 11 1.5 Contribution of the Study .................................................................................... 12 1.5.1 Contribution to sports-marketing literature ................................................... 12 1.5.2 Managerial Implications ............................................................................... 13 1.6 Demarcation of the Study ................................................................................... 14 1.7 Conclusion ......................................................................................................... 14 CHAPTER 2: CONTEXTUAL SETTING IN SOUTH AFRICAN FOOTBALL 2.1 Introduction ........................................................................................................ 15 2.2 Outlining the Football Landscape in South Africa ............................................... 15 2.2.1 An Overview of South African Football History ............................................ 15 2.2.2 An Overview of Cape Town in South African Football Culture ..................... 17 2.3 Importance of Studying South African Football .................................................