IDENTIFICATION OF FACTORS OF CUSTOMER SATISFACTION IN MUNICIPAL SPORT CENTRES IN BARCELONA. SOME SUGGESTIONS FOR SATISFACTION IMPROVEMENT.

Xavier M. Triadó, Pilar Aparicio and Eva Rimbau (University of Barcelona) 

ABSTRACT

One of the main challenges for sports centre managers in Spain is how to improve customer loyalty. Numerous authors suggest that highly satisfied customers tend to be loyal (Oliver, 1980; Fornell, 1992; Jones and Sasser, 1995; Stewart, 1995). Accordingly, the aim of this paper is to identify the elements that most influence customer satisfaction in sport centres. This knowledge will allow managers to improve the aspects that provide most satisfaction and to reduce the problem of high customer turnover.

After discussing alternative theoretical models of satisfaction formation, the "high implication" paradigm is adopted. Data were collected in a survey among current customers of 15 municipal sports facilities in Barcelona. A factorial analysis applied to this information revealed five dimensions that underlie the multiple components of the offer of service in municipal sport facilities: quality of facilities, human resources quality, cost, communication and importance of the social environment.

The relevant variables generated by the factorial analysis were then incorporated in a multiple regression model in which the dependent variable was overall customer satisfaction, resulting in a ranked set of variables of customer satisfaction. According to the results, ceteris paribus, a manager should first try to improve the human resource component of the service, followed by facilities, communication and price policy, in this order.

Finally, some limitations of the study and further research suggestions are discussed.

INTRODUCTION

Over the last decade, researchers have begun to show an interest in the area of sports management, as a result of the constant increase in the practice of sport and the importance of leisure activities. For example, the number of sports federation licenses in Spain increased from 2,249,118 in 1986 to 2,508,202 in 1995 (Instituto Nacional de Estadistica, 1996). The results of a survey on the sports habits of the Spanish population carried out in 1995 by the Centre of Sociological Research ("Centro de Investigaciones Sociológicas", CIS) for the Superior Council for Sports ("Consejo Superior de Deportes"), together with the surveys carried out by this organisation every five years, demonstrate that the sports habits of the Spanish are changing, showing a strong increase in the practice of both competitive and leisure sports. In this respect, there is a search for better quality management, which should be able to incorporate new knowledge and techniques developed by economic and management science. At the Research Unit on Organisations and Work Psychology, at the University of Barcelona, and also in other research centres, some empirical projects have attempted to connect customer satisfaction with management (Ramos, 1991; Martínez-Tur, Tordera and Caballer, 1995).

The problem of the high customer turnover in sports centres requires special attention, since numerous authors have pointed out the advantages of having loyal customers. For example, loyalty reduces costs and increases sales (or, at least, it maintains the current volume); less investment in advertising and communication is required; and it permits managers to know each customer better and, consequently, to increase his/her satisfaction level (see, for extended work on positive effects of customer loyalty, Reichheld and Sasser, 1990; Jacob, 1994; Reichheld, 1996; and Zeithaml, Berry and Parasuraman, 1996).

Additionally, the literature suggests that the most valuable loyalty for service companies is that derived from high satisfaction levels among clients (Fornell, 1992), since companies that basically depend upon switching barriers to keep their clients will find themselves in serious difficulty when this protection disappears and clients can choose other suppliers. That is to say, loyal customers are not necessarily satisfied, but highly satisfied customers tend to be loyal (Fornell, 1992; Jones and Sasser, 1995; Stewart, 1995).

As explained below, this paper assumes the theory that the degree of customer satisfaction is the bottom line of the valuation of the different elements that form the service offer. This assessment has a pronounced subjective component (Kordupleski et al, 1994) and is the result of the quality level identified by each customer. That is to say, customer’s satisfaction does not depend so much on the quality level that a company believes it is offering as on the way each subject perceives that quality and the degree to which it satisfies his or her needs.

This clarification facilitates the distinction between two concepts of quality: objective quality and identified quality (see Parasuraman, A. Berry, Leonard and Zeithaml, Valerie, 1991; and Berry, Leonard L. and Parasuraman, 1993). The former refers to the service supplier, who plans a certain level of quality and struggles to reach this standard in everything it provides. Identified quality is the quality that the customer recognises in those actions that affect him or her, and that he or she therefore evaluates. The satisfaction level depends on "the client’s appraisal of the product’s or service’s ability to fulfil certain needs, wants, or desires that customers value" (Johnson, Anderson and Fornell, 1995), i.e. on identified quality. Any effort to improve objective quality which is not perceived by the customer will be useless, as it will cause additional costs but will not increase either satisfaction or loyalty of current customers. As resources are limited, alternative actions should be given priority according to their relative impact on customer satisfaction.

In summary, the literature suggests that customer loyalty can be increased through the improvement of the satisfaction experienced. Not all efforts will result in the same increase in satisfaction, and consequently we attempt here to identify the variables which are the most appreciated by sports centre users. This study aims to identify and rank the factors that determine customer satisfaction in sports facilities. The study was carried out in the Business Economy and Organisation Department of the University of Barcelona, and received financial support from the Spanish Ministry of Education and Science (project AP38122672).

THEORETICAL PRECEDENTS

Studies on satisfaction and customer behaviour are not limited to companies that pursue economic profit, but they can be used both by public administrations and by other non-profitmaking organisations (Alonso, 1991). Interest in consumer satisfaction studies first became apparent in the 1970s. Since then, fruitful study and research on this subject has been undertaken, and various theoretical currents can be identified.

The recent increase in interest in satisfaction can be explained by the fact that satisfaction has become an important determinant of customers’ post-purchase and post-use behaviour, since high satisfaction levels can lead to brand or company loyalty (Oliver, 1980; Bearden and Teel, 1983; Labardera and Mazursky, 1983; González Romá et al., 1997). Jones and Sasser (1995) highlight the direct relationship between satisfaction and customer loyalty, stating that only absolutely satisfied customers are totally loyal customers.

Although the study of customer satisfaction has been approached from various perspectives, many authors have emphasised its connection with quality. Some authors have related this concept to production, saying that while production refers to the quantity of output, satisfaction considers the quality of output (Fornell, 1992). Others have related satisfaction to the quality of durable goods (Churchill and Surprenant, 1982) or to service quality perceived by customers (Boulding et al., 1993). While others conceive it as the measurement of the quality that companies offer and, therefore, it becomes a principal objective to obtain competitive advantage (Patterson, 1993).

Three models have been developed to explain the role of quality and other elements in the formation of satisfaction. The first global theoretical model developed on customer behaviour was the "perceived discrepancy" (Nicosia, 1974). This model relates the satisfaction level to the degree and direction of discrepancy between consumer expectations and perceived quality, once the use or consumption has ended.

A critical analysis of this model developed a second paradigm: the "cognitive theory" (Oliver, 1980; Helson, 1959), in which satisfaction depends on discrepancy, but also on previous consumer expectations. This additive theory (expectations + discrepancy) attempts to explain why consumers who buy a product or brand that they consider to be of inferior quality, can experience dissatisfaction. Lower satisfaction can be explained not only by the existing degree of discrepancy, but also by inferior consumer expectations (Tse and Wilton, 1988). However, this model does not adequately explain satisfaction formation in the case of new or unknown products, for which previous expectations are not possible. This limitation of the additive model has been studied and solved by Churchill and Surprenant (1982) and Patterson (1993) by incorporating a third variable of satisfaction: perceived quality.

As a result, the "high implication" paradigm appeared. Tse and Wilton (1988) observed that there was a more significant, direct relationship between satisfaction and perceived quality than between satisfaction and the rest of the variables. Moreover, some authors have suggested that perceptions are more dominantly driven by experiences (i.e. the customer perception of the service performance) than by expectations (see, for example, Parasuraman, Berry and Zeithaml, 1994). The basis for this model is the "cognitive dissonance" theory (Festinger, 1957), which briefly suggests that after a very bad (or good) consumption experience, the psychological costs of adjusting the quality perception to previous expectancy may exceed the costs of modifying that expectancy. In that case, perceived quality would have a greater effect on customer satisfaction than previous expectancy (Tse and Wilton, 1988). Additionally, Patterson (1993) observed that in high implication products the variable that exerts the most influence on satisfaction is perceived quality. Since the practice of sports requires the physical, active participation of the customer, the services offered in sports centres can be included in the "high implication" category.

Consequently, the "high implication" paradigm is the theoretical basis adopted in this paper. According to this paradigm, to understand customer satisfaction the research focus should be the perceived quality of the main elements of the offer. If management is aware of the elements that most influence customer satisfaction, and it understands the relationship between these elements, it will be able to develop a strategy to increase customer satisfaction and, hence, loyalty.

STUDY METHODOLOGY

This study collected data from active customers of non-specialised municipal sports centres located in the metropolitan area of Barcelona. Data compilation took place between November 1995 and April 1996. 1700 questionnaires were supplied to the managers of the sports centres, who distributed them among their customers through their receptionists and technical personnel. This method of survey administration was unlikely to have caused bias because of tendentious behaviour by the centres, as it was in their own interest to obtain trustworthy answers and results for individual centres were confidential. 979 completed surveys were collected, of which 698 from 15 centres were suitable for use in the study. Table 1 presents the main characteristics of the sample, which covered all the districts of Barcelona.

Table 1

Sample description

 

Variable

Category

N

%

Gender

Male

317

45.41

 

Female

350

50.14

 

No answer

31

4.44

Age

5 - 15

18

2.59

 

16 -25

259

37.11

 

26 - 35

213

30.52

 

36 - 50

115

16.48

 

51 - 60

39

5.59

 

older than 60

47

6.73

 

No answer

7

1.00

Studies

Higher studies

108

15.47

 

Graduate

113

16.19

 

High School (COU)

142

20.34

 

Professional Education (FP)

139

19.91

 

Basic Education (EGB)

125

17.91

 

No qualifications

32

4.58

 

No answer

39

5.59

 

Total sample:

698

100.00

 

 

In order to decide the aspects of the service offer included in the study, the outcome of formal and informal discussions on the subject with sports centre managers was used. A pre-test was completed starting with these suggestions, and, after the necessary adjustment, the definitive survey was drawn up. The elements of the offer considered were: facilities, dealings with staff, social environment, dealing with complaints, telephone service, prices, availability of schedules and the range of services offered. Some other open and category questions were also included, aimed at a better understanding of the attitudes and assessments of customers, regarding such aspects as past behaviour, complaints, willingness to pay a higher price, etc.

Variables included in the analysis are shown in Table 2. Variables referring to complaint management were finally not included in the study because only 26.17% of the sample had ever complained to the centre and were consequently able to answer to the questions on this subject. A scale of 1 to 10 points was used for all questions, "Completely dissatisfied" being (1) and "Completely satisfied" (10). For variables V11, V12 and V13, low scores were the most favourable for the organisation, since they reflected low perceived price, or easy and convenient payment system. The 1 to 10 scoring scale is the most common in Spain, and was used in order to facilitate the answers of the participants.

The answers showed a great number of valuations of highly correlated variables. In order to find the dimensions underlying the selected variables, a factorial analysis was carried out. The outcome of such an analysis is useful to learn about the interrelations between the variables, and to avoid multicolinearity in a subsequent regression model developed with these variables. We chose the principal components method as the extraction method.

 

Table 2

 

Variables included in the principal component analysis

 

Variables

Description

V1

Level of training of the technical staff

V2

Human side of the dealings with the technical staff

V3

Treatment received from the clerical staff

V4

Overall facilities

V5

Cleanliness of the facilities

V6

Maintenance of the facilities

V7

Importance of making friends in the centre

V8

Changing rooms

V9

Information received on new services

V10

Signposting in the facilities

V11

Centre prices

V12

Value for money

V13

Payment system

 

Having established and measured the main factors that influence the satisfaction of sports centre customers, a regression model was developed, relating such factors to customers’ overall satisfaction. The objective was to determine the aspects of the offer which exert the strongest influence on the overall customer satisfaction, so that improvement efforts can follow the resulting hierarchy of factors.

RESULTS AND DISCUSSION

Principal components analysis

As a result of the principal components analysis, five factors were obtained that explain 71.0% of the variance, as shown in Table 3.

 

Table 3

 

Factors identified through the principal component analysis. Rotated solutions

 

Variables

F1

F2

F3

F4

F5

Average

V1

 

.911

     

7.66

V2

 

.927

     

8.03

V3

 

.642

     

7.70

V4

.598

       

7.13

V5

.962

       

7.51

V6

.944

       

7.26

V7

       

0.947

6.92

V8

.704

       

6.28

V9

     

.799

 

6.80

V10

     

.832

 

6.98

V11

   

.732

   

5.44

V12

   

.738

   

6.03

V13

   

.608

   

3.77

Variance explained

32.3%

12.3%

11.2%

8.1%

7.1%

 

 

Note: Values lower than .4 were omitted

 

We shall now explain each of the factors identified and the repercussions for the strategy of the centres.

  • The first factor can be associated with the idea of the "quality of the facilities", taking into account that this not only covers the facilities variable strictly speaking, but also includes variables such as cleanliness, maintenance and the changing rooms.
  • The second factor can be called "human resources". This factor includes the perceived professional quality of technical employees, and perceived relational quality of both technical and clerical employees. These are the variables likely to affect the customer’s perception of the human side of an organisation.
  • The third factor can be called "money". This factor includes the price, value for money and payment system variables, that is to say everything that the customer perceives as money-related.
  • The fourth factor is called "communication" because it includes variables which refer to the efforts of the organisation to communicate with the customers, both internal and external communication, that is information on new services or facilities, such as static communication inside the centre.
  • The last factor is made up of a single variable, V7. It could be called "importance of the social environment" for the customers. The fact that this factor is defined by one single variable indicates that the assessment of the importance of the social environment is not related to any of the other factors studied.

The results suggest that the varied and numerous elements which make up the offer in sports complexes are grouped together in the customer’s mind in a smaller number of underlying dimensions or factors, in our case 4 or 5. The elements which make up each dimension should therefore be managed coherently, as a unit, given that the perceptions of these elements are closely related. For example, customers perceive maintenance and cleanliness as two closely related aspects, therefore investment in cleanliness may have a positive effect on the perception of maintenance. Taking this consideration into account, the sports centre manager would pay considerable attention to hygiene and maintenance inside the centre, as the same facilities will be assessed as being of higher quality if they are cleaner. On the other hand, the fact that both clerical and technical personnel were grouped in the same factor suggested that efforts should be made to improve the relational competence of both types of employees. Similarly, the high weights of the professional and relational skills of technical employees in this factor indicated that both aspects of professional competence should be considered as a unit and managed in unison.

The factors revealed by the former analysis were then used to better understand the behaviour of different groups of customers in accordance with their demographic characteristics. This analysis can provide managers with valuable information on the preferences of groups of customers depending on their assessment of the factors identified. For example, the study revealed that age is closely related to the assessment given to the first two factors: facilities and human resources. The youngest customers (from 5 to 25 years old) were shown to be the most demanding (they assigned lower scores) with human resources (p<.02) and the most satisfied with the facilities (p<.03), while the segments from 36 to 60 years old were shown to have the opposite behaviour: they are the most critical of the facilities and the most satisfied with human resources. Consequently, a centre manager could determine which aspects to promote depending on the age distribution of its customers, adapt specific facilities for age groups, or train the staff to deal with customers in accordance with the demands characteristic of their age. Surprisingly, no significant difference was found between men and women.

Relative importance of the factors in customer satisfaction

In order to verify the relative weight of the factors in customer satisfaction and to complete the study, a regression model was constructed, the results of which, with 95% confidence, are summarised in Table 4.

Table 4

Regression coefficients

 

 

Coefficient (b )

Std. Error

t-Value

Intercept

7.735

.046

166.938

F1:

.904

.048

18.699

F2:

1.096

.046

23.603

F3:

-.230

.047

-4.920

F4:

.786

.047

16.598

F5:

.106*

.048

2.200

R2=.512

adjusted R2=.508

F-Value: 144.6

 

 

Note: all p-values<.0001 except * p<.05

The value of the coefficient of determination -R2- suggests that some necessary variables may have been omitted, since the variables considered only explain 51.2% of the variation in overall satisfaction. It is possible that omitted variables include the following: perceived importance of sports practice, importance of sport within time devoted to leisure, spare time available, personal commitment to sports practice, and length of time spent travelling to sports facilities. All of these variables, however, are beyond the control of the manager, since they refer to subjective attitudes or circumstances of the customer. In contrast, variables included in this study are those perceived by the managers to be within their competence.

However, the high value obtained for the F statistic shows that the model is appropriate for the explanation of overall satisfaction of sports centre customers, while the t-values show that each of the factors is significant to explain the dependent variable at the .05 level. Nevertheless, the low coefficient value for F5 suggests that its effect on overall satisfaction is so low that it can be ignored.

The coefficients suggest that F2 exerts the strongest influence on overall quality, followed by F1, F4, and F3, in this order. The negative value coefficient for F3 is due to the scale used for its component variables, the lowest scores being the most favourable for the organisation.

The observation that the highest coefficient in the regression corresponds to F2, human resources, is of special importance, since the greater the personal interaction between customer and staff in a service organisation, the lower the score assigned to the organisation (Fierman, 1995). According Triadó (1996) the activity of sport centres can be broken down into 25% goods and 75% services, and as such managers should pay great attention to such aspects as employee training in technical and human skills, and motivation, including both clerical and technical staff, and any other employee that may come into contact with the public.

Moreover, facilities and human contact can be conceived as the core service of a sports centre. In addition, the problems with the essential characteristics of the service and the service contacts are, in turn, the most important determinants of customers leaving service companies (Keaveney, 1995). The results obtained therefore suggest that the managers should control both the facilities and the human resources with extreme care, as they are the aspects which appear to have the most influence on overall customer satisfaction.

The communication factor could be seen as a supporting service, that is to say a service that enhances the core service (Sasser et al., 1982). Consequently, it was not surprising to obtain a lower coefficient for this dimension in comparison with those for facilities and human resources.

The scarce weight of price to explain customer satisfaction could be justified by the fact that all of the centres used in the study are municipal, and, therefore, their prices are limited by the local Administration. Consequently, prices are notably lower than those of comparable private facilities. If customers are aware of this, their perceptions of price will rarely be unfavourable enough to make them feel dissatisfied, although these perceptions will positively or negatively affect their level of satisfaction with the service received. Moreover, according to Stewart (1995), one of the characteristics that a satisfied consumer should show, in addition to greater loyalty, is great insensitivity to price.

An average score of 7.76 was obtained for individual overall satisfaction. This high value may be related to the notion that any measurement of current customer satisfaction will tend to be positively biased, since - except in monopolistic conditions - current customers form the subset of total population that is already minimally satisfied with the product or service (Fornell, 1992). Accordingly, it would not be advisable to consider relatively high scores (such as 7, for example) as a success. According to Jones and Sasser (1995), it is erroneous to consider that "it is sufficient merely to satisfy a customer", because "there is a tremendous difference between the loyalty of merely satisfied and completely satisfied customers". On a 1-to-5-scale, Jones and Sasser accept 4 and 5 as the reflection of a satisfied customer; thus, in the scale used in this paper, scores should be higher than 8 in order to imply "success".

Conclusions

This study has demonstrated the value of knowing the relationship between the distinct elements that make up the offer of a sports centre. In addition, it has provided an initial hierarchical structuring of these underlying factors in accordance with their influence on overall customer satisfaction.

The results indicate that the facilities, the human resources, communication and monetary matters have a real influence on customer satisfaction, and it is therefore necessary to manage them appropriately. Adequate management involves acting first to improve the factors which have the greatest influence on customer satisfaction. The results obtained suggest that, ceteris paribus, a manager should follow a specific order in deciding improvement objectives. Initially, improvement efforts should focus on Human resources (F2), followed by Facilities (F1), Communication (F4), and Price Policy (F3), by this order. This sequence is based on the relative increase that an improvement by one point in each factor causes in overall customer satisfaction.

However, this generic suggestion should be considered within the context of each specific situation. Before carrying out any action to improve the quality offered, the relative cost of achieving an improvement in the perceived quality of each of the factors should be taken into account. In each case it is necessary to consider the cost of increasing the satisfaction of a factor by one point, as it may be more cost-effective to pursue a major improvement of a factor with little influence but with a low improvement cost, than to pursue a small improvement in a factor with a large influence but difficult to improve. An example would be investment in the image or the condition of the facilities, by which their quality is judged. It is thus necessary to extend the horizons of the present study, and to carry out an analysis of the relative improvement costs of the different factors. In any case, it can be considered that the marginal cost of improving more deficient facilities is relatively low.

Limitations and further research

The main limitation of this study is the particular type of sports facility analysed. Due to its controlled prices and offer structure, the characteristics of the customers and the results obtained cannot be applied to other types of facilities. However, other public facilities with similar characteristics may benefit their management strategies from the suggestions presented in the results.

On carrying out this analysis, we are aware that it does not include concepts as complementary facilities (bar, cafeteria, recreation area) or complementary services such as a medical service or competitions. This is because these are often absent in the centres examined, and their impact on satisfaction must therefore be studied within another context.

Moreover, this study refers to aspects of the service that the managers can modify. It would therefore be interesting to extend them and include subjective or intrinsic aspects in order to discover in greater depth on what the satisfaction experienced by the users depends.

It would also be interesting to study the list of costs incurred in improving the assessment of a factor by one point, so that the investment alternatives can be ranked from an economic point of view. This information, combined with the ordering of factors proposed in this paper, would enable managers to make rational investments in order to maximise the impact of the money invested on customer satisfaction.

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