UNDERSTANDING PARTICIPANTS AS CONSUMERS Why Do We Participate? • Personal Improvement – Better health, sense of accomplishment, develop positive values, etc. • Sport Appreciation – Enjoy the game and competition • Social Facilitation – Spend time with others, feel like part of a group Adult Sport Participant Market: General Observations • Majority of American adults do not participate in many of the most common sports • Numbers conflicting; Surgeon General’s Report (only 15% of adults say that they exercise regularly) • Why? Most Popular Sports 80 Walking Camping 51 49 47 Ex w Equip Swimming Millions of People Participating at least once a year 38 36 36 31 28 26 Bowling Fishing Biking Billiards Aerobic Ex Basketball 0 20 40 60 80 Participant Consumption Behavior • Actions performed when searching for, participating in, and evaluating the sports activities that consumers believe will satisfy their needs and desires • Attempts to understand participant consumption behavior focus on: – Why consumers participate in certain sports – What are the benefits – When, where, and how often they participate Sports Participant Behavior a Subset of Consumer Behavior (CB) • What is consumer behavior? • What does the "black box" view of consumers imply? • Why are models of consumer behavior important? • How can a model of consumer behavior be constructed? • What are some examples of models of consumer behavior? Model of Buying Behavior • Marketing factors and other stimuli are inputs into the “buyer’s black box” • Stimuli are evaluated in light of the buyer’s decision process and characteristics • Buyer responses influence choice of the product, brand, vendor, as well as the timing and amount of purchase Stimulus-Response Model of Consumer Behavior • Stimuli • 4P’s • Other characteristics • economic • technological • political • cultural •Buyer’s Black Box •Buyer Response •Buyer characteristics •Buyer decision process •Product choice •Brand choice •Dealer choice •Purchase timing •Purchase amount CB Models Simplest CB models have 3 stages: 1. Prepurchase Need recognition, evaluation 2. Consumption Purchase, use or experience, disposal 3. Post-purchase Model of Participant Consumption Behavior Decision-Making Process • Problem Recognition • Information Search • Alternative Evaluation • Participate • Post-Participation Evaluation Types of Participation Decision Processes • Degree of effort or problem solving required for participation/consumption decisions may vary based on familiarity and decision importance. – Habitual problem solving involves routinized or straight rebuy: Requires nearly no effort – Limited problem solving involves evaluating alternatives on a few attributes: Little information search – Extensive problem solving involves evaluating alternatives on more attributes; Meaningful information search Models of Sports Participants' Decision-Making Process • Consumer as Risk Taker – Purchases involve risk – Affected by degrees of uncertainty and the consequences • Consumer as Rational Mathematician – Attributes, weights, and ratings – Compensatory (additive), noncompensatory (multiplicative), lexicographic Are Consumers Rational? • Economists expect consumers will maximize their own utility, but from what do consumers obtain utility? – Examples: Coffee mug and chocolate bar Prospect Theory Indicate your preference of the following option pairs: I. 1a. 1b. 100% chance of getting $3000 80% chance of getting $4000 or 2a. 2b. 25% chance of getting $3000 20% chance of getting $4000 or II. A. 50% chance of winning $1000 and 50% of getting nothing B. 100% chance of getting $450 or Internal (Psychological) Factors • Personality • Motivation (for fulfillment of needs) • Perception • Learning • Beliefs and attitudes • Unique to each person Personality & Self-Concept • Personality: unique psychological characteristics that lead to relatively consistent and lasting responses to one’s environment • Generally defined in terms of traits • Self-concept suggests that people’s possessions contribute to and reflect their identities • Useful for segmentation Motives and Needs • A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction • Can vary across people and cultures • Maslow’s hierarchy of needs explains why people are driven by needs at particular times • Hierarchy implies that lower level needs must be satisfied prior to higher level needs Maslow’s Hierarchy of Needs Perception • Process by which people select, organize, and interpret information to form a meaningful picture of the world – Selective attention – Selective distortion – Selective retention Learning • Relatively permanent change in behavior due to experience • Interplay of drives, stimuli, cues, responses, and reinforcement – – – – Drives: Internal stimulus that calls for action Stimuli: Objects that move drive to motive Cues: Minor stimuli that affect response Reinforcement: Feedback on action • Strongly influenced by behavioral consequences (classical and operant conditioning) – Behaviors with satisfying results tend to be repeated – Behaviors with unsatisfying results tend to be avoided Beliefs and Attitudes • Belief – Descriptive thought about a brand or service – May be based on real knowledge, opinion, or faith • Attitude – Describes a person’s evaluations, feelings and tendencies toward an object or idea – Difficult to change Model of Attitude Formation External (Sociological) Factors • Derived from external environments • Culture • Social class • Reference groups Culture • Culture is the most basic cause of a person's wants and behavior – Learned from family, church, school, peers, and colleagues – Reflects basic values, perceptions, wants, and behaviors – Cultural shifts create opportunities for new products or may otherwise influence consumer behavior – Affects socialization, including sports participation Subcultures • Groups of people with shared value systems based on common life experiences • Examples of major subcultures in U.S. – – – – Hispanic consumers African-American consumers Asian-American consumers Mature consumers Social Class • Society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors • Measured by a combination of occupation, income, education, wealth, and other variables Reference Groups • Groups: – People who influence the information, attitudes, and behaviors of other group members – Types: • Family • Membership • Reference (Opinion Leaders) • Aspirational – Includes athlete role models Model of Consumer Socialization Situational Factors • Temporary factors in a particular time or place • Physical surroundings – Location, weather, facilities, etc. • Social surroundings – e.g., Who is present?, crowds • Time – constraints and availability • Reason for participation • Antecedent states – Physiological (e.g., energy, aches and pains) – Psychological (e.g., moods) Personal Factors • Age and Life-Cycle Stage – People change things bought during lifetimes • Occupation – Influences purchase of clothing and other goods • Economic Situation – Some goods and services especially incomesensitive Personal Factors (cont.) • Lifestyle – Pattern of living as expressed in psychographics • Activities • Interests • Opinions