An examination of Oliver’s product loyalty framework

2016 ◽  
Vol 17 (2) ◽  
pp. 94-109 ◽  
Author(s):  
Galen T. Trail ◽  
Jeffrey D. James ◽  
Hyungil Kwon ◽  
Dean Anderson ◽  
Matthew J. Robinson

Purpose – The purpose of this paper is to test Oliver’s two-dimension (fortitude and community/social support) product loyalty framework. Design/methodology/approach – Oliver categorized each of the two dimensions into high and low, creating a two-by-two framework: low fortitude and low-community/social support (Product Superiority group); low fortitude and high-community/social support (Village Envelopment group); high fortitude and low-community/social support (Determined Self-isolation group); high fortitude and high-community/social support (Immersed Self-identity group). The paper uses two samples. The sample from Study 1 was season ticket holders (n=199) of a West Coast (USA) Major League Baseball team. Results indicated preliminary support for Oliver’s four groups and good psychometric properties of the fan community scale and the individual fortitude scale (IFS). Study 2 focussed on attendees (n=458) at two East Coast (USA) Major League Baseball venues. Findings – The multivariate GLM indicated significant differences among Oliver’s groups, but the variance explained was small on past, current, and future attendance. However, in terms of actual games attended, the Immersed Self-identity group attended between 2.5 and 3 times as many games as the Village Envelopment group over the two years, and more than twice as many games as the Product Superiority group. The groups differed substantially on consumption of product extensions: 22.5 percent of the variance in merchandise purchasing was explained by the grouping, 31.9 percent of broadcast media consumption, and 24.9 percent of print media consumption. In all cases, those in the Immersed Self-identity group consumed significantly more than the Product Superiority and Determined Self-isolation groups. Originality/value – The paper reveals that sport marketers can focus on the Immersed Self-identity segment as the segment most likely to consume the product, repurchase, and purchase product extensions.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Justin Andrew Ehrlich ◽  
Joel M. Potter

PurposeSports economists have consistently found that winning positively impacts team revenue fans prefer to allocate their entertainment dollars to winning teams. Previous research has also found that fans do not have a preference for how their team wins. However, this research ignores the significant variability in revenue that can exist between teams with similar attendance figures. The authors contribute to the literature by testing whether profit maximizing teams should pay different amounts for different types of production by estimating the marginal revenue product of a win due to offense, defense and pitching.Design/methodology/approachUsing data from the 2010–2017 Major League Baseball seasons and an Ordinary Least Squares-Fixed Effects approach, the authors test whether a unit of offensive, defensive and pitching production generates differing amounts of team revenue both before and after revenue sharing. The authors then test if team Wins Above Replacement is a good approximation of actual wins while accounting for the previously observed nonlinear relationship between wins and revenue.FindingsThe authors found that marginal revenue product estimates in the postrevenue sharing model for mowar, pwar and dwar are nearly identical to each other. Further, after predicting prerevenue sharing, the authors find that fans have no preference for mowar, pwar or dwar play styles.Originality/valueThe findings illustrate that team decision-makers appear to be acting irrationally by paying more for offense than they do for defense. Thus, the findings suggest that team decision-makers should value defensive wins and pitching wins at the same rate as offensive wins on the free agent market.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Justin Ehrlich ◽  
Justin Perline ◽  
Joel Potter ◽  
Shane Sanders

PurposeIn baseball, a run scored on offense carries the same on-field (win) value as does a run prevented on defense. Both outcomes bear the same score margin implication. This presumption of unit equality is implicit in the Wins Above Replacement (WAR) measure, which treats units of offensive WAR (oWAR) and units of defensive WAR (dWAR) as perfectly substitutable toward win production. The purpose of this paper is to ask whether the salaries of Major League Baseball (MLB) players reveal such an equal valuation among MLB teams.Design/methodology/approachThe authors examine the relationship between offensive output, defensive output and subsequent salary from free agency in MLB using a set of log-linear OLS, fixed effects regression specifications.FindingsIn general, estimated annual salary from free agency increases significantly and substantially with unit increases in a player's (prior season) wins above replacement WAR. Across specifications, the authors estimate a 42.5–43.4% increase in salary for year t for each additional unit of WAR in year t−1. The authors disaggregate WAR into offensive and defensive components (oWAR and dWAR) and estimate a 52.4–53.3 (4.8–7.2)% increase in salary for each additional unit of oWAR (dWAR).Originality/valueThe efficiency of the baseball labor market has been studied previously with mixed results. The novelty of the present study is its treatment of inputs not as positions or individual players but as the underlying offensive and defensive win production of players. The authors estimate free agency salary returns to (contract season) oWAR and dWAR in MLB to establish whether (to what extent) a salary premium for offensive output exists within MLB.


1983 ◽  
Vol 5 (3) ◽  
pp. 302-313 ◽  
Author(s):  
Michael A. Becker ◽  
Jerry Suls

Two studies examined the relationship between objective, social, and temporal performance indices and fan support of major league baseball teams. In the first study, per game attendance figures for 22 major league teams were regressed on the performance indices. Attendance was found to be positively related to objective and social performance and negatively related to temporal performance. These results were replicated in the second study when season ticket sales for five major league teams was the dependent variable. Although the objective and social results were consistent with expectations, the negative relationship between temporal performance and fan support was unexpected. Primacy effects and regression toward the mean are offered as explanations for this latter finding. The results of both studies are considered in terms of the optimum marketing strategy for professional team sports.


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