The Canadian Sport Consumer Chapter 4 Copyright © 2009 Nelson Education Ltd. All rights reserved. OBJECTIVES • Understand why the consumer is the focus of marketing. • Provide details on why Canadians are engaged in sport. • Realize the need to understand consumer ‘minds’ in marketing strategy development. Copyright © 2009 Nelson Education Ltd. All rights reserved. 2 INTRODUCTION • Level, reason and type of engagement varies for each person. Participant consumption behavior: Actions performed when searching for, participating in and evaluating the sports activities consumers feel will satisfy their needs and desires. Copyright © 2009 Nelson Education Ltd. All rights reserved. 3 CANADIAN SPORT CONSUMERS Sport organizations must understand: • Who their consumers are • What value they seek for their dollar • What influences their purchase decisions Copyright © 2009 Nelson Education Ltd. All rights reserved. 4 CANADIAN SPORT CONSUMERS • FANatics • Loyalists • StarStruck • Socialites • Opportunists • Disinterested Copyright © 2009 Nelson Education Ltd. All rights reserved. 5 LOYALTY LADDER • Challenge is to move consumers up the ‘loyalty ladder’. • Must engage new consumers while maintaining loyal fan base. • Done through process of continually creating and maintaining a consumer centered marketing strategy. Copyright © 2009 Nelson Education Ltd. All rights reserved. 6 PSYCHOLOGICAL RELATIONSHIPS The Psychological Continuum Model Level of Connection Description of Consumer Relationship 4. ALLEGIANCE Consumer is loyal fan of a sport and/or organization. 3. ATTACHMENT Consumer has visible relationship with a sport and/or organization. 2. ATTRACTION Consumer begins to acknowledge preference for a sport and/or organization. 1. AWARENESS Consumer first learns of a sport and/or organization. Adapted from Funk, D.C. and James, J. (2001) Copyright © 2009 Nelson Education Ltd. All rights reserved. 7 CONSUMER GATEWAYS TO SPORT • Participation • Attendance • Media • Word of Mouth • Influencers Copyright © 2009 Nelson Education Ltd. All rights reserved. 8 PARTICIPANT CONSUMPTION BEHAVIOUR • Consumers influenced by internal, external and situational factors when making decision to participate in sports. • Model of Participant Consumption Behaviour. Shank (2005) Copyright © 2009 Nelson Education Ltd. All rights reserved. 9 PARTICIPANT CONSUMPTION BEHAVIOUR Copyright © 2009 Nelson Education Ltd. All rights reserved. 10 PARTICIPANT DECISION-MAKING PROCESS • Problem recognition • Information search • Evaluation of alternatives • Participation • Post-participation evaluation Copyright © 2009 Nelson Education Ltd. All rights reserved. 11 INTERNAL INFLUENCES Perception • Involves four stages: Exposure Awareness Attention Retention Learning • Behavioral learning • Cognitive learning Copyright © 2009 Nelson Education Ltd. All rights reserved. 12 INTERNAL INFLUENCES Personality Individual’s personal characteristics. Motivation The force that spurs certain actions. Attitude What a consumer feels or believes and how they act accordingly. Copyright © 2009 Nelson Education Ltd. All rights reserved. 13 EXTERNAL INFLUENCES • Culture • Social Class • Reference groups • Family Copyright © 2009 Nelson Education Ltd. All rights reserved. 14 SITUATIONAL INFLUENCES • Physical surroundings • Social surroundings • Task definition • Time • Antecedent states Copyright © 2009 Nelson Education Ltd. All rights reserved. 15 SPORT CONSUMER BUYING ROLES Initiator Recognizes problem and suggests sport Gatekeeper Conducts information search Influencer Tries to sway outcome Decision maker Evaluates alternatives, can make decision Copyright © 2009 Nelson Education Ltd. All rights reserved. 16 SPORT CONSUMER BUYING ROLES Approver Can approve or reverse decision Real buyer Makes final decision and purchase User Ultimately uses purchase Evaluator Reflects on quality of experience Copyright © 2009 Nelson Education Ltd. All rights reserved. 17 SPORT FAN SEGMENTATION • Active thrill seekers • EZ chair quarterback • Patriotic traditionalist • Cultured individualist Copyright © 2009 Nelson Education Ltd. All rights reserved. 18 Questions? Copyright © 2009 Nelson Education Ltd. All rights reserved.