The Paper

Running head: SPORTING ENTHUSIASTS’ EXPECTATIONS AND THE U.S.
ECONOMY 1
Analysis of Sporting Enthusiasts’ Expectations of Purchasing Choices:
Enhancing Sales Efforts for the U.S. Economy.
Jacob Darnell
Mid-Michigan Community College

SPORTING ENTHUSIASTS’ EXPECTATIONS 2
Abstract
The sporting industry plays a vital role in the U.S. economy, generating billions of dollars that
the U.S. would otherwise be without. Many sports organizations and businesses often claim that the
consumers drive the sports and business, so this article goes into further detail in the specific ways in
which consumers, more specifically sporting enthusiasts’, enhance the sport and entertainment industry
in its entirety. Sports organizations play large roles in a variety of ways, from community volunteering to
interacting with fans and enthusiasts all over the world. The growth of the industry ties directly to the
relationships, both those of fans and sports organizations directly and indirectly through friends, family,
etc. and using the sports organization as a common bond. Many important elements in the sales process
regarding consumer buying behaviors and purchasing decisions such as the servicing process, sales
factors, and the risk vs. reward factors discuss the repercussions of what consumers want and are willing
to pay for.
Introduction
On the surface, attending a sport event would appear a simple leisure behavior, but
many academic studies are used to explain such complex behaviors (Funk, 2009). In many
aspects, sports organizations are more than a mere event. Many people will tend to forget the
significance that sporting franchises play regarding both the economy, the industry, and the
lives of millions of people all around the world every day. In many cases, the leisure activity is a
chance for people to step away from everyday hassles and allows them to experience
something real. Beard & Ragheb, (1983) noted that the motivation to engage in a leisure
activity can be measured with four dimensions: escape, competency, mastery, and
socialization. For some teams, like the Manchester United, Real Madrid, the New York Yankees,
and the Dallas Cowboys for example, have ventured far past the status of being a mere sports
team, establishing themselves as premier brands (Couvelare & Richelieu, 2005). In other cases,
sporting franchises become the helping hands that act as role models and give back in many
local communities, both to help make them a better place, and to teach kids valuable life
lessons. They take charge during times of crisis, and help to heal the wounded souls that are in
search of some positivity, while at the same time becoming successful in unifying a nation.
These active interactions take place every single day, allowing for all kinds of people from
around the globe to be given the opportunity to interact and create relationships with these
teams. Further, sports serve as entertainment for people to connect with one another, and that
entertainment value represents who we are as a culture and shapes the world we live in
everyday. With careful studies and observation skills, people can come to learn what types of
expectations businesses will integrate to match their entertainment value, and examine how
those perceptions/expectations drive their influential forces to increase sales revenue in the
sports and entertainment industry; which in the grand scheme of global economic
development, this helps to boost the U.S. economy.
To attempt to understand the fans and sporting enthusiasts’ that attend and contribute
to the revenue of sporting franchises, consumers should understand how their expectations
correlate to their purchasing decisions. The importance of how those decisions are executed
serve as a very large part to the success of the U.S. economy, which is discussed more in-depth
later. One of the many factors that exist for connecting consumer behaviors and the revenue of
the industry stems from the servicing process and the perceptions consumers gather as a
result. For successful business to accumulate, the service process must take place and in a
professional and timely manner. Another factor ties directly to the relationships between
businesses and consumers, with the intention of creating favorable relationships that are long-
term and create favorable images. For the sport industry, sports enthusiasts’ buying/purchasing
choices matters greatly to both the entertainment economy and the U.S. economy overall.
Understanding Expectations
In this section, the elements in the service process will be introduced and discussed in
relevance to understanding the expectations that consumer buyers will have when making
purchasing decisions. Other parts such as the factors of the sale and evaluating the risk versus
reward aspect for consumers are also discussed in this section pertained to consumer
expectations.
Service Process
Simply put, for businesses to succeed, they need customers to buy their products and
services. Sports franchises are no different. They are, indeed, a business of their own.
Therefore, fans and customers become the number one priority for organizations to achieve
revenue and are subjected to quality servicing to ensure that sales take place. When customers
and fans become accustomed to this type of servicing, only then will they seek beyond that for
the other aspects of the business. Enterprises that understand and embody the vital
components of customer focus can move ahead in a way that makes it difficult for others to
catch up (Vandermerwe, 2000). For businesses, through careful analysis of studying consumer
behavioral patterns, they have developed a set of values that they believe to hold the key to
“100 percent guest satisfaction”, which is the second goal (profitability at number one) for
many types of organizations. This set of values is what is known as the Keys to Customer
Satisfaction, which represents an essential code of ethics all businesses will try to introduce,
engage, and implement into their practices, whether it be an accounting firm, local bakery, or
sport franchise team. The keys to customer satisfaction solidify the need for customer
satisfaction through integrated marketing, with the end goal to both please the customer and
make a profit. (Innis, 1994). The biggest and arguably most important keys to customer
satisfaction are commitment, value, face, and understanding, not listed in any order. Some
might argue the case that some are more important than others, but in any sense, each of
these elements need to be addressed by businesses and sporting franchises alike to create an
opportunity to generate sales revenue.
To understand commitment, this element carries some significance in the
representation of what businesses and franchises value as trustworthy. Businesses that put
forth a commitment to their customers exhibit an understanding that allows both customers
and businesses to come together to establish a common ground. For major league sporting
franchises in the sporting industry, they too must put forth a level of commitment to sports
enthusiasts and fans to prove that what the sporting franchises should offer is well worth what
the customer would pay, whether that be for tickets, stadium food, merchandise, memorabilia,
parking tickets, etc. In this way, both the commitment and value come together to help a
consumer make purchasing decisions. Value is discussed in the next section.
In the eyes of many businesses, managing customer equity is an important tool in
developing and maintaining a consistent service for customers. For a business to ensure a
quality service to their customers, business owners and executives will claim that the best
service a business can provide is one in which they can help and assist customers, even if that
means a sale never takes place (Jayawardhena, 2010). Customers understand that businesses
rely heavily on their customers. Therefore, when customers decide to go a store in search of an
item, perceived values based on past experiences are placed on such items and carry hefty
impacts to the level of servicing that any given business can provide at any given time. This idea
is what is known as intrinsic motivation. Intrinsic motivation stimulates behaviors in individuals
that are interesting, enjoyable, and inherently, satisfying to them (Ryan & Deci, 2000). For this,
people have developed the behavioral tendencies to recall on past experiences that relate to
any given situation and apply them as a tool to determine what the value of an item should be,
and evaluate based on what they know to determine how much an item is worth. For
businesses and sports organizations, the obstacle they must then overcome is to determine a
variety of different ways in which to place significant value. One very important element to
mention is customer equity. The main idea of the customer equity literature is that because
customers are the ultimate source of revenues and profits, a firm’s customer base should be
viewed and managed as an economic asset. The idea of managing customer equity is a useful
perspective for considering dynamic aspects of team strategy (Lewis, 2008). For example, let’s
assume a fan wants to attend an NBA Los Angeles Lakers basketball game with some friends,
but wants to find a decent deal for tickets and not overpay. Each individual ticket is priced at
$100 dollars a game. The fan feels as though this deal might be a little steep and begins to
question the actual value of it. Later he finds a ticket package deal for 4 tickets priced at $300,
and decides to purchase the package deal. For the Los Angeles Lakers, the organization just sold
4 tickets to a home game to this fan because they found ways to implement a deal to appeal to
fans. Allowing for teams to study the behaviors of consumers and the rates at which they are
most tempted to purchase tickets will not only raise sales and the level of attendance, but also
keep fans happy because they feel they are receiving the best deal when he/she purchases
tickets.
Another element in keeping customers in high spirits comes from the attitudes they
receive when being serviced. Attitudes are often significant in the crucial steps in the sales
process, which brings understanding to why businesses pride themselves in positive thoughts
and actions through their employees (Palmer, 2010) Often many employees of a company are
told “check your attitude at the door” when they come to work. For many types of
organizations that provide services including those found at stadiums and sporting venues, the
attitudes of the employees in the spotlight of customers can often go a long way to the amount
of customer retention in the future. Being polite, respectful, and being social with customers
when servicing them are all parts of the sales process that will influence their decisions for
business retention in the future. Think of a time when an individual encountered a bad sale
experience with an employee of a business, and how they may have felt afterwards as they left.
Chances are as a customer, he/she probably felt somewhat cheated or treated with some
disrespect. This lasting impact will change the decisions customers will make in the future
regarding that business. To take this further, customer feedback stands as one of the lasting
forms of consumer response that heavily changes the abilities of a company to make money, as
it is discussed in the next section.
Many businesses often time have a hard time obtaining reliable customer feedback to
determine the level of satisfaction they are receiving. Customers that are only mildly satisfied
or somewhat dissatisfied often won’t partake in the online customer surveys that ask them to
rate a business, so the extremities are typically the results that come back, which doesn’t do
much to tell a business about its customer satisfaction. Hence, businesses have adopted a
strategy to their employees called the Social Listening strategy, where business executives and
team presidents alike will read and process the online conversations made by customers about
the business, brand, or team. According to Krashen (1985) and Hamouda (2013), listening skill is
an important element in obtaining understandable input. Learning will not occur if there isn't
any input (as cited in Gilakjani, 2016). This strategy helps organizations to not only draw
conclusions about their own business, but also can be used as competition intelligence too. The
more that a business can learn from its customers, the more opportunities a business can have
to alter and fit to the needs of consumers.
Factors of the Sale

In this section, the external factors that contribute to the sales and servicing process will
be discussed and their implications for the consumer buying decision-making. If you were to
conduct a survey to find out what customers’ value most regarding buying a product or service,
often the responses are going to be in relation to the product or service itself. Woodruff (1997)
conducted 3 figures on the classification of customer value. In Figure 1, square box illustrates
the differences between the snapshot of customer value and the longitudinal level of customer
value about customer determined performance and the causes of performance. For the
customer-determined performance, the snapshot level correlates a short-term customer
focused acquired information, while the longitudinal level performance focus is more long-
term. For the causes of performance, the snapshot level connects to the determinants of short-
term customer-focused performance, while the longitudinal level connects with the long-term
determinants of performance. Figure 1 concludes that when customers consider their values at
different times, such as when they make purchase decisions or experiencing product uses, the
outcome is likely to be different based on these choice decisions. Figure 2 gives an overview on
the customer value hierarchy model. In this model, the items in comparison are the desired
customer value and the customer satisfaction with the received value. Figure 2 concludes that
customers’ goals and purposes have correlated effects on both the goal-based satisfaction and
the desired consequences in usage situations. This means that when customers make a goal
and buy a product they feel will suit their needs, these factors will determine the satisfaction of
their purchasing decisions. What this means for businesses and teams is that customers want to
go home satisfied with a product or service that they can feel confident was worth the
investment that they made (Young, 2006; Ryan & Deci, 2000). When businesses establish this
type of satisfaction, they are exhibiting efficiency to customers. Many studies have shown for
customer efficiency management (CEM), a strategy focusing on customer efficiency, to be
crucial for a service firm’s success in the short run and overall. In the short run, a customer-
efficient service delivery infrastructure is crucial for attracting and retaining customers. (Xue &
Harker, 2002; Freo, 2005). In the end, customer satisfaction depends on the efficient delivery
of a service (Xue & Harker, 2002; Quinn, 2009). Customers use this knowledge of businesses to
make decisions on what products and services to purchase every single day. Businesses known
for having good efficiency ratings with their customers establish some rapport. For the
customers, many will tend to deem this value as trustworthy.
All types of businesses actively strive to achieve a level of trust with their customers,
because those that make those connections with businesses have a high percentage likelihood
of becoming repeat customers and loyal customers. Asch (1952) notes that the ability to trust
enables humans to interact in relationships and is thus essential for psychological health (as
cited in Young, 2006). Many organizations like Nike, Verizon, Coca-Cola, HP, etc. implemented a
variety of techniques and strategies to prove their efficiency of their products to customers,
which grew exponentially high in large part with the trustworthiness that customers had
towards these businesses.
With an economy that is still struggling to get back to it’s prime after the recession in
2008 that put the torch out for many businesses, money for millions of Americans had gotten
much tighter. Factoring the affordability of goods and services became a huge deal for
businesses, making the sales process much more extraneous and teeth-pulling. For businesses,
often when customers begin to window shop instead of shopping with an intent to purchase, it
becomes a struggle to continue making profits. Many customers might walk into a store looking
to buy an item, only to be turned away because of the shocking realization of how much an
item or service is priced at, due to the raised prices from businesses to stay in business.
It’s no secret amongst businesses that sales promotions are key to the advertising
success of a business. Promotions are designed to achieve specific sales objectives, and done
properly can lead to large economic profits. Studies have shown for sales promotions to have
significant impacts on consumers’ purchasing decisions (Freo, 2005). Basic examples of sales
promotions would include sweepstakes, coupons, free samples or gifts, and limited-time
discounts. The goal of these offers to consumers is to bait consumers in becoming attracted to
a specific product on the market (Gelb, Andrews, & Lam, 2007). Mulhern and Michael, (1995)
goes further to claim that the central component of retail pricing comes from the use of price
promotions, which essentially stand of crucial importance to the profitability of retailers. This
means that without promotion, profitability doesn’t even exist. Gelb, Andrews, & Lam, (2007)
mention a specific example regarding General Motors Company. “A sales promotion dubbed
the “you pay what we [employees] pay” price promotion instituted by General Motors Corp.
During the summer of 2005 was imitated after only five weeks by its 2 major U.S. rivals.
Analysts estimate that the promotion cost GM an average of more than $5,000 per vehicle
through its September 30 termination, contributing to a $4 billion loss on North American
operations during the first 9 months of 2005. The full year was marked by a 50% decline in GM
stock value and a 4% decline in sales vs. 2004. The unhappy outcomes for GM — and similar
ones for imitators Daimler-Chrysler and Ford — illustrate the negative consequences of easy-to-
copy promotions, but this example is hardly unique. An analysis of 20 years of research
evaluating sales promotions indicates that most such promotions do not pay off, and even the
studies painting a happier picture find no more than 60% earning back their costs” (p. 1).
When examining the full picture of sales promotions, it becomes an economical game of
cat and mouse, with the cat representing businesses and organizations and the mouse
representing the world population. As already noted above, many sales promotion ideas do not
pay off in the long-run. With that understanding, businesses must constantly study and
strategize further the behaviors of consumers to come to better conclusions about buying
behaviors.
Evaluating the Risk vs. Reward
When sports fans choose to attend a game, they must decide for themselves if
purchasing souvenirs is worth the reward or not. For each purchasing decision a consumer
makes, they must weigh out the risk factors as well as the reward factors, and decide from
there which side of the scale leans more heavily. Many moral and personal decision-making
skills are included in this process. Amidst those decisions, there are many external elements
that each consumer must weigh to help them reach a decision. These external factors come in a
variety of elements in the society we live in today, whether it be the weather itself, to political
issues that eclipse the news, to the opposing teams and players that a team faces on any given
day. When consumers weigh the pros and cons of these external factors, essentially, they are
placing an evaluation on the risk factors compared to the reward factors. Before any sports fan
makes the final decision to buy or not to buy a ticket to attend a game, contemplation is
included in their assessment. Some of the rewarding factors could be the teams playing against
each other, or to watch favorite players in action. The final question that the consumer will ask
themselves before they make their decision is this: “is it worth it?”. With so many elements to
base a decision from, the complexity of the risk and reward factors may not be so black and
white.
One iconic, non-pun example of this complexity happened in 1946, the year that Jackie
Robinson became the first African-American male athlete to play in the MLB and break the pre-
existing color barrier (Edelman, 2011). As well as many things were during the historical period,
African-Americans were segregated from white people in nearly all aspects life, and sports were
no different. During the time, segregation ranged in everything from public bathrooms,
restaurants, barbershops, clothing stores, supermarkets, libraries, and public schools just to
name a few. Since the inauguration season of baseball in 1876, the color barrier had become a
political, economical way of life for people during the time, until Robinson changed the game
and history. Throughout the Brooklyn Dodgers (later renamed to Los Angeles Dodgers) 1946
season, fans obliterated him with threats and hate crimes and many loyal Dodger fans stopped
attending baseball games because of Robinson (Edelman, 2011). One specific example of this
happened for Robinson’s first major league game, in which a mere 26,623 fans attended the
game, which amounted for 6,000 less than the capacity of Ebbets Field in 1946 (Lamb & Bleske,
1998). For those fans, the risks of African-Americans in baseball had outweighed the thrill and
excitement of attending a baseball game. Another instance occurred during a spring training
game before Robinson’s first season, where an armed sheriff on the field told Robinson “Down
here, we don’t have blacks mixing in with whites. Not marrying whites and not playing ball with
whites” (Jean, 2005, p. 103). The complexity that arose from Robinson’s actions on and off the
field made for serious questioning about the moral and political beliefs of fans. Those that were
more open to the idea of Robinson began to look at him and the black community from an
altogether different perspective than they had previously, and over time, more people joined
the movement. Robinson’s legacy grew to what eventually became classified as a hero for
blacks of all ages and a sports pioneer for the strength and character he put forth despite his
mistreatment. Today, Robinson’s name is etched in the history books under many long-held
records and has become a household name. His number 42 was retired by all MLB teams on
April 15th, 1997, commemorating the 50th anniversary of his first game in the majors, becoming
the 1st professional player to achieve the feat (Ardolino, 2005). To put into perspective the
options people should consider when making purchasing decisions, the next section will discuss
the various elements of consumer decision-making.
One of the biggest factors that fans and consumers will pay close attention to before
they choose to buy tickets is in fact the performance of the team itself. Borch (2011) claims that
performance beliefs lead to expectations of future behavior. For this reason, consumers will
retain hope in their beloved teams, even during times of turmoil. Fans never want to go to a
home game of their favorite team to watch them lose, so in advance of that possibility,
consumers will take the time to analyze and evaluate the team and the success of how the
season is progressing. It’s widely known that fans want a memorable experience. Fans always
want to be a part of something special, and when there’s something at stake for the teams set
to face off, consumers and fans will want to be there for the excitement, and depending on the
severity of the stakes, can mean being valued as priceless to the right fans.
Relationships
From watching past experiences, there are times when sports aren’t just sports
anymore. The power that a team can have over a community and a nation is magnifying beyond
words. Teams develop relationships, through all sorts, with people all over the world. While
organizations and corporations often play a role in the daily lives of individuals in a community,
their impact may become most evident during times of crisis (Finch, 2016). Take the Boston
Marathon Bombings of 2013 for example. The Boston Marathon is regarded as the second
largest single-day sporting event in the United States, with the Super Bowl being number one,
while also being the largest marathon event in the world. On April 15th, 2013, during the
running of the 117th Boston Marathon, two explosions occurred near the finish line on Boylston
Street. Three spectators were killed and dozens more severely injured (Finch, 2016). On a day
that was supposed to represent the unity of millions of people achieving a common goal many
had long set for themselves to finish a journey, terror had struck home to the hearts of millions
of Americans. Americans were left traumatized, in shock, and without a sense of hope; a sad
familiar feeling that millions were a little too familiar with after the terrorist attacks on 9/11.
Inevitably the fear, just like before, had towered like a tidal wave over the nation, telling
Americans in their heads that home wasn’t so safe anymore. In the events following the
bombings in Boston, millions of people were full of heartbreak and anguish for one another, as
if the attacks had taken a family member. Several moving ceremonies were held in the days
following the attacks, including a Boston Bruins home hockey game with an emotional singing
of The Star-Spangled Banner and a defiant speech given before the Red Sox home game at
Fenway Park by star player David Ortiz (Finch, 2016) It was then that one by one, people stood
up and joined hands, dropped all differences, and became a unified nation once more. People
halfway across the world were feeling the same type of anguish and despair as those living in
the communities where the attacks took place, Millions of people across the nation began
branding a phrase implemented sometime shortly after the attacks, a slogan deemed “Boston
Strong”, which symbolized the determination to overcome the tragedy. The Boston Red Sox left
a jersey in their dugout that branded the slogan with the number 617 printed on the back,
which signifies the area code number for Boston, Massachusetts. They left the jersey hang
there for the rest of the season, and eventually went on to win the World Series later that year
in October, glorifying the mindset that unity will always triumph tragedy during times of crisis.
Creating lasting relationships has long been a part of the sports and entertainment
industry, both on and off the field. Examples of individuals dedicated to not only the sport, but
to their respective communities, are Cy Young-award-winner Pedro Martínez, pitcher for the
Boston Red Sox, and Jorge Posada, all-star catcher, and World Series champion from the New
York Yankees -- two of the most generous players off the field in the game today. Martínez has
worked to refurbish homes in his native Dominican Republic. He has been involved in Catholic
Charities, assisting hurricane victims, and has worked closely with the Leadership Institute for
Global Hemophilia Training. Martínez also collaborated with Bank Boston to establish the Pedro
J. Martínez and Brothers Foundation, aiding groups focusing on youth, family, and education.
He has made visits to the Jimmy Fund events, which raise funds for young cancer victims, and
has made appearances at schools and hospitals (Arias, 2004). Sports allow us as people to be
able to identify ourselves and find ways to use that knowledge to interact with other people
who share similar interests. These survival traits are behaviors that were bred in us to create an
ability to band together to make our population stronger, and the influences of sports has
visually shown that many of times, including the events in Boston. Whether it be a few friends
that get together in a bar and watch a hockey game, to a mother and son who annually take a
trip together to Dodger Stadium once or twice a year to catch a baseball game, these
relationships keep us in constant reminder that sports are not just sports, but a part of who we
are as individuals.
Thus, one system that many businesses will adopt to attempt to retain customers and
create a rapport with them are through loyalty rewards programs. Loyalty programs use
targeted communications and customize the delivery of branded goods and services to build
stronger bonds with the sponsoring brand/firm than would result without such programs
(Lacey, 2006). Furthermore, loyalty rewards programs have only gained popularity since the
beginning, and are now a huge success. In 2000, a study reported that loyalty marketing
programs in all US industries sported 973 million memberships, with the average US household
belonging to multiple programs. To put into perspective, that’s more than 4 times the total U.S.
population (Ferguson & Hlavnika, 2007). For businesses, the goal becomes an opportunity to
create incentives in which both the customers and businesses will end up winning. In sports,
loyalty to any specific team helps to define how passionate we are and what we hope to see
happen. According to Wann and Bransombe (1993), team identification can be used not only to
understand the interaction between sport consumers and teams, but to gauge the level of
consumer behavior. Team identification can help to predict sport consumption. Many fans that
claim to be die-hard fans will go to extreme ends to see their team play. This level of devotion
and commitment is rare, yet exactly the type of people that franchises hope to profit from for
many years. The die-hard fans will make up the core fanbase of any franchise, but the
organizations won’t put their primary focus on these fans. Instead, the target market will be the
moderate-to-casual fan type, with the goal of transpiring them into long-term fans with
tempting promotion offers and affordable deals on tickets throughout the season. According to
a study by Ahluwalia, Unnava, & Burnkrant (1999), the global business consulting firm Baines
and Company, a 5% increase in customer retention can increase a company's profitability by
75% (as cited in James, 2013). For many businesses and organizations, building the customer
retention is the foundational basis for developing a loyal team fan-base. By knowing what
customers are most attracted to in gaining customer retention, organizations can use this
knowledge to develop a common ground for all their fans, which is discussed in the next
section.
Building a Team Network Fan Base

When viewing the whole picture for sports organizations and how they attract fans in
relation to how they want to represent themselves has forever changed. In the early days, the
primary focus for organizations was to market through print media ads and by radio. With the
advancements in society today, accomplishing only that won’t get a team very far. One of the
biggest elements in building a team fan base ties straight to social media. Marketers have had
to learn to adjust their strategies in how they reach out to fans. Sports teams have been quick
to use multiple social media websites like Facebook as a means of effective communication
with fans, since the new content is easy to generate in season (Moyer, Pokrywczynski, & Griffin,
(2015). Today, if a fan were to get on Facebook, Twitter, Instagram, Snapchat, etc., chances are
high that at some stage in the news feeds, a post would appear representing a sports team and
give news for fans to read. In one specific example, during a study conducted by Hambrick et
al., (2010), the study used content analysis to gain a greater understanding of the use of Twitter
by professional athletes in communicating with their fans (as cited in Meng, et al. 2015). The
accounts of athletes were examined and then categorized to classify their posts. Results
showed that a higher proportion of direct interaction between athletes and their fans, which
differs from traditional media communications (Meng, et al. 2015) Going further, studies by
Frederick et. al. (2014) and Pegoraro, (2010) concluded that athletes tend to use social media to
talk about their personal lives with fans and other athletes (as cited in Meng et. al. 2015). With
this added ability, fans can now stay in the loop with their teams all year-round and never miss
a thing. The goal of social media marketing experts then becomes the task of configuring the
most appealing and great things about a team to try and entice casual and more moderate fans
to attend more games. Many times, opportunities will come up in sweepstakes through social
media means for privilege premiums like meet and greets with players or coaches, VIP access to
pre-game events, or tickets to box office seats that are expensive to obtain. By including these
premium activities for fans to participate in, it allows for them to get involved directly and to
help boost the favorable image to fans.
In another attempt to create a favorable image, gaming experts have developed
additional ways to engage fans. Each year, a new sports game is created and sold to fans for
each of the major professional sports organizations. With each game being introduced each
year, marketers make sure to note the slick features and updated graphics to create a more
real-life experience for the moderate sports fan. In ways like this, sports companies continue to
show that they are a step above the competition, an important element in proving to fans that
they can deliver on their promises. When businesses deliver on promises, it helps to build that
customer feedback, which businesses and organizations will use to help focus in the right
directions.
Effects on the Economy

For the United States and many other countries around the world, the sports and
entertainment industry has grown over the years to become one of if not the largest revenue
source for a country’s GDP. This year the United States media and entertainment market is
expected to generate $632.09 billion dollars in revenue, accounting for 29.4% of the worldwide
GDP (Bond, 2013). Each year, millions of people invest in the industry in a multitude of ways,
sometimes without even realizing it. For economists, it then becomes their job to understand
the driving forces that allow sporting and entertainment franchises to take root and become so
profitable. The profits of these franchises carry significant impact for the U.S. economy on all
levels, from the local economic region to the national economy. Matheson (2006), concluded
that a big component for local and regional areas in the U.S. tie to direct economic impact and
indirect economic impact. This section will then break it down to allow audiences to grasp a
better understanding of the great impacts that communities face.
Local
For the local economy, the region serves as ground zero for where it all begins. As new
stadiums and arenas are built, completed, and open for business, the businesses that will begin
to see the immediate effects will be the local diners, shopping malls, movie theaters, bowling
alleys, etc. in a local area. Teams that play in the central business district tend to be associated
with an increase in the metropolitan area’s share of regional income, in which mostly comes
from the local businesses surrounding stadiums (Coates, 2007). In one specific example, in 2017
the Detroit Redwings and Detroit Pistons celebrated their final seasons and said goodbye to Joe
Louis Arena and the Palace of Auburn Hills, their home stadiums of many decades. In Fall 2018,
both teams are set to come together in a new state-of-the-art stadium called Little Caesars
Arena in downtown Detroit, MI. As Joe Louis Arena and the Palace of Auburn Hills eventually
are demolished, the surrounding restaurants and local businesses will begin to see immediate
effects. Specifically, Cobo Joe’s Sports Bar & Grille will set to lose substantial revenue in the
next few years. For Cobo’s, one of their main attractions was the location, where fans could
dine mere steps away from Joe Louis Arena and enjoy the game. With the large fanbase of the
Redwings and location of the restaurant, Cobo’s became a fan favorite for many years in the
downtown Detroit area. Although this is only one example, the effectiveness of sports teams to
draw crowds of people in are divergent to any other kind of event in the world (Zhang et al.
2013; Owen 2005).
Theoretically, any activity or business has the potential to generate new spending that
would not otherwise have occurred in its absence. In the sporting context, that activity can be a
team, stadium, or a spectator event. These types of activities are what allow people to be
drawn in to a given location, where money is then spent on lodging, food, gas, etc. (Agha &
Rascher, 2016). The reason for this is what is called the Substitution effect. This is defined as
the consumer choice component of choice, where a consumer simply substitutes one activity
for another of the same type somewhere else. With that said, the presence of a stadium gives
the chance for an opportunity to help do positive deeds for the community around them, even
when local businesses struggle to make ends meet. The Chicago White Sox hosted the first-ever
Sleepover Night at Comiskey Park, offering fans the opportunity to spend a night under the
stars on the Comiskey outfield. At midnight guests enjoyed a snack while watching "The
Natural" on the Jumbotron screen and in the morning breakfast was served during a "rise and
shine" workout prior to a matinee game. The event raised nearly $60,000 for White Sox
charities (Arias, 2004). For troubled teens and adults under the influence of drugs, the time that
many of them might spend in a stadium where drugs aren’t allowed might serve as a change of
pace for some individuals, and the change of pace keeps harmful drugs out of people’s hands
and ultimately helps to keep communities safer and a little bit cleaner. The importance of this
effect is that the revenue that was once generated by the local businesses of an area are now
taking place by competition that local businesses cannot compete with, so the result is
bankruptcy and loss of jobs for some people.
Another element of the substitution effect for the local economy is that it works both
ways. It’s widely known that most stadiums are mainly open only when a team is set to play
that day. For sports organizations like the NFL, a league in which the teams are given 1 bye
week throughout the season to rest players and regroup as a team, the time in which no events
are taking place allows for the fans to enjoy the time off, and participate in other activities
(instead of watching football on weekends) in the community such as bowling or watching a
movie or going out to eat with friends or family. In creating stadiums, architects and designers
include various attractions for fans to participate in, such as playgrounds, swimming pools,
shopping malls and food venues, amongst other unique events. The purpose of such
renovations is to allow fans, both adults, teens, and children, to be given the opportunity to
engage with the team across all aspects.
Stadium Costs and its Impact

It is widely known that a sports stadium will cost a community millions of dollars to
build. With majority of the funding coming from the public sectors, it clearly serves as the
pivotal reason for the negative influence that new stadiums bring to local communities.
Melaniphy (1996), quotes “We are a sports crazy country, and it’s in our tax dollars. In Denver,
the community voted new sales taxes to finance the $215,000,000 Coors Field, while they voted
down a $32,000,000 bond issue for schools” (p. 36). USA Today estimates that $4 of every $5
in stadium construction now comes from public sources (Bernstein, 1998). Coates (2007)
believes the biggest reason for the advancement in building stadiums comes from the necessity
to be adaptable, and to enhance the broadest uses possible for the stadiums. Bernstein (1998)
goes on to mention in his article the significant revenue increases resulting from new stadiums.
He claims the Dallas Cowboys profited north of $39.8 million and the Pittsburgh Steelers maxed
out at $1.3 million in revenues after leaving Three Rivers Stadium to Heinz Field where they
currently play. As these new stadiums fork in mounds of profit dollars from taxpayers, the
community suffers further. Everything from the price of a hot dog to a parking spot increases,
so only those with the finances can attend the games and events (Bernstein, 1998).
On another note, the stadiums are only open to the public for a limited time each year.
For the MLB, 81 games take place at home, but only 41 home games for the NHL and NBA. The
NFL is the worst one yet, with only 8 games at home. With the limited availability of home
games for these professional organizations, the opportunities to attend a game are slim, so fans
will pay more to watch them play. Sports marketers understand these downplaying effects, and
work a variety of pricing strategies to encourage and persuade consumers and fans to come to
the events through favorable perceptions. Consumers learn to recognize that pricing tactics
include a range of holistic message themes (e.g., everyday-low-pricing), specific message
elements (e.g., external reference prices), and/or abstract configurations of message elements
(e.g., image pricing) (Friestad & Wright 1994). In the next section, the significance of sports
teams in the surrounding host cities is discussed along with the importance of what the teams
bring to the region.
Regional
For any business, popularity is a key component to generating revenue. The more
people that know about a business and its brand, the higher the likely they are to gain attention
from customers. Therefore, brand popularity positively influences brand performance not only
directly in the short run but also indirectly overall by creating favorable brand image (Chung,
1997). Once a business has established the brand name in the area, the first customers they
receive will often result in either magnifying the takeoff of the business or a slow, sad failure to
launch. The biggest obstacle for many struggling businesses is the ability to retain customers
through the first impressions that they offer. First impressions address the questions of how
impressions of businesses are formed and their effects on thought, feeling, and behavior
(Quinn, 2009). For a successful first impression, something about the business needs to stand
out and be different, whether it be the product, service, or some other factors. Once businesses
have established a first impression, an important element called the Multiplier Effect will take
place. This is when customers will take with them the first impressions they gather, and share
this knowledge with friends, colleagues, teachers, family, among others. These people will then
want to test out the business for themselves and learn if the hype they heard of is worth it, and
the process cycles again, only in larger crowds than before. The more the multiplier effect takes
place, the larger the human network connected to a business becomes.
For sporting franchises, they must continue to use methods like the multiplier effect to
reach other audiences in other areas (Quinn, 2009; Chung 1997). Having already been
established over the numbers of years that the teams have been established, it becomes
important for them to still put out valued first impressions to consumers, because these
consumers are what allow for the sporting industry to continue to grow. A huge factor in the
continued success of sporting organizations has spawned up through social media and the
internet (Meng et al. 2015) (Moyer et al. 2016). According to Cook & Sellers, (1995); Miller,
(1999); Zhang et al., (2000), anecdotal evidence indicates that individuals form impressions of
organizations based on interaction with their sites (as cited in Winter, 2003). There’s an old
saying that goes “Once a fan, always a fan”. This implies that as fans become introduced to
sport and begin to learn and understand more about it, the likelihood of them leaving is worse
than anything else.
A rather large, yet underestimated component of sport organizations deals with the
location of the home stadium. When a new team is coming onto the scene or a current existing
team is in the relocation process, factors regarding where to go become vitally important for
the business’s success. Depending on the size of the franchise itself and the level of sport in
which they are involved with, some areas may not be suitable enough to meet the needs of the
franchise. For example, in 2008 the NBA the Seattle Supersonics were in a struggling situation
to retain enough fans for adequate business needs, but over time of studying consumer
behavioral patterns and other sporting events in various areas, they concluded after careful
consideration for the relocation of the franchise to take place in Oklahoma City, in which the
team would be renamed to the Oklahoma City Thunder (Coates & Humphreys, 2008). Since the
inauguration season for the Thunder, the team has grown very popular with regards to
acquiring much needed talent and has become one of the top contending teams in the NBA
year after year. In 1958, the MLB teams New York Giants and Brooklyn Dodgers took their
places out in California, where the Giants placed their new home in San Francisco and the
Dodgers in Los Angeles (Edelman, 2011). A large benefactor for these franchises dealt with the
financial obligations that team owners saw at the time and the potential profits to be made.
With these sport franchises now placed in higher populated areas of sports fans, teams are
better enabled to reach out not only to pre-existing fans, but also new fans as part of the target
market.
For team owners, one of the factors that they must weigh on when deciding the location
of a franchise is with the sporting tourism around them (Coates, 2007; Agha & Rascher, 2016)
Franchises in St. Louis, MO will use the Gateway Arch as an economical, geographical attraction
and strategically place the stadiums and arenas in accordance with them. One example of this is
with the St. Louis Cardinals, where they use the Gateway Arch as a symbol. The Arch can be
seen for all fans that attend Busch Stadium, as the statue extends over the outfield wall in
center field (Melaniphy, 1996). This attraction helps to draw in crowds to watch the Cardinals
play from their seats. In the state of Arizona, officials there will claim “If you take away the
sporting industry in Arizona, you’re looking at major losses – revenue, employment, morale.
Sports is integral to the overall health of the state’s economy and landscape.” (Rentilly, 2012,
p.12) For the state, revenue increases for spring training games have been increased by as
much as 40% with the rise of new and renovated facilities in the Cactus League, one of 2 spring
training leagues the MLB uses to prepare for the upcoming season during February and March
(Rentilly, 2012).
National
The United States has long been a major competitor in the world of sports, both globally
and nationally. The biggest sporting event known to man, held every 4 years, is the Olympic
Games. The hosting city of the Games profits substantially in exposure and the quality of life
(Zhang et al. (2013); (Owen, 2005), and athletes from their home country are given the
opportunity to refine their craft amongst the world’s best competitors and glory that awaits
them. This wish and the ability to be globally recognized has been a driving force in the
willingness to compete for all countries around the world. In the event of hosting the Olympic
games, construction of arenas and stadiums begin years in advance, well before the location of
the event is even revealed. Whether it is the prestige of hosting a global event, love of sport
and competition, enthusiasm for a major spectacle, or a combination of these, there is no
doubt that winning such a bid gives cause for great pride and celebration of national identity
(Digby, 2008). With the encouragement of such events, it becomes widely acceptable to include
sports as an integral part of our national identity. The sports industry acts like the left half of
the body of the United States. Without it, the country would see major turmoil and up rises,
potentially dividing the country. With the success of the sports industry and its mass entirety,
the creation of thousands of jobs are now in place, opening new job fields and career paths that
people can choose to take. Some specific examples of new jobs created by the sports industry
would include coaching staff positions, sales promotions, scouts, agents, etc. (Rosentraub,
1997). Since some of these positions have come about, many universities are seeing increased
interest in majors in selected areas related to the sports industry over the last 30 years,
meaning that the industry is growing and thriving further and creating opportunities for college
graduates to enhance their career goals (Lambert, 1999).
In many aspects, sports are the reason that many businesses like local bars and
restaurants get real business during seasonal times of the year, like in the middle of October
when the World Series is being televised all over the country. During varied times throughout
the year, special events like the World Series, the Super Bowl, etc. bring unity for many people,
which serves as an indirect health benefit because people come together and spend time with
friends and family during special occasions such as these, in many ways like that of Christmas
and Thanksgiving holidays. People are given the chance to spend time with friends and family,
and cherish the memories that they take with them. In relation to sports, the case can be
similar. Fans and consumers want to be given the opportunities to engage with their teams and
interact with all that a sporting event has to offer, from watching the team play itself, to
socializing with other fans and taking in the atmosphere of being in attendance for the event.
For sports enthusiasts’, whether moderate, casual, or extreme fans, these experiences give a
sense of joy and excitement that keep them coming back for more (James, 2013). On a national
scale, even though not all fans get the opportunity to attend a game, with the advanced
broadcasting and technological advancements, people now have the ability more than ever
before to stay up-to-date on all activities and events related to a team, allowing fans to still
engage even though not directly (Meng et al., 2015). In the next section, ideas about what is
expected moving forward and understanding the important role consumers play in the sports
industry will be brought into discussion.
Discussion
In the sports industry, many people have misconceptions about how it works and why
athletes make more money than they should. Many believe that the industry is very selfish and
doesn’t benefit the economy since teams are privately owned, funded, and operated, and
therefore a select few individuals are building substantially large profit incomes from the profits
of people across the world. Now although the teams are privately owned and operated, the
sporting industry stands near the top in global sales, meaning that the industry is integral to the
success of the global economy. Going further, consumers and fans play a pivotal role in the
generated revenues, because when fans don’t buy tickets, merchandise, or engage themselves
in any of the other means of fan expression, profits substantially decrease, which negatively
effects the economy. Consumers need to understand that their buying behaviors and
purchasing decisions matter greatly to the continued success of the sports industry.
Moving forward, it can be expected that advanced technology will begin to make its way
further into changing sports and fan engagement. Already we have seen the changing of the
MLB, NBA, NHL, and NFL with advanced instant replay systems to review plays and add rules to
the rulebook, reducing and adding different responsibilities for officials during sporting events.
We can also expect to see the continuation of social media become a more involved aspect in
the industry, potentially to the degree of consumers and fans having the ability to purchase
tickets directly through social media instead of online ticket intermediaries. The recent
developments in equipment have allowed for safer gameplay to take place for the athletes,
especially with the issue of concussions that have sprung up new injury protocols in the NFL
and in some cases for the NHL and MLB.
Although there has been extensive research done in a multitude of areas regarding
consumers and their behavior, more research is still needed to understand how consumers’
direct behavior methods can tie to their purchasing decisions. Part of the reason for the statute
of limitations is because this field is still in the early stages of discovery, so in many cases the
studies have produced little-to-inconclusive evidence supporting consumers and their
purchasing behaviors. Further research is also needed in greater demands to understand the
year-by-year effects of local and regional communities by franchise sports organizations.
Conclusion
Sports enthusiasts have long been the backbone of the sports industry for generations of time,
and shall continue to have that effect for many more years to come. After reviewing how sports
consumers help to generate revenue for the sporting industry, the connection can be tied to sports
consumers and their involvement in the U.S. economy. As sport economists continue to watch the
relationships grow between sports organizations and their fans, the connection and involvement will
transpire more through means of social media.
Arguable one of the most challenging problems that sports organizations have had to probe and
research further are the consumers and how to accurately understand the expectations. Sports
marketing has made countless efforts to attract consumers to sports teams in attempt to attract interest
in sports organizations, whether it be though special offers, discounts, celebrities, loyalty rewards
programs, etc. The reason for the struggle to understand is because no 2 people think alike, and so
therefore when trying to persuade consumers to be interested in a product, the timing and the right
persuasion is necessary. In addition, sports organizations work to develop relationships with their fans,
which happen on a wide variety of levels. As people grow and learn about life, they learn that the
relationships that they develop will have an impact on their lives in some form. Recalling on the Boston
Marathon Bombing incident, the entire United States took to heart the tragedy of the events that took
place that day, and through the profound efforts by the Boston Red Sox, Bruins, Celtics, and other sports
teams, they made a stand and spoke out in vibrant ways to the affected communities, and that spoke
volumes of the capabilities that sports can have on our lives and bring people together.
In the economy, both the local, regional, and national economies, the sporting industry has
played large roles in the impacts and significance of the communities around them. The local economy
often has seen more of the negative impacts than the other areas, yet some positive benefits such as
community unification and local businesses increasing sales from stadium crowd’s before and after
sporting events are still in place. For the regional economy, the ultimate key to attracting people into
the area for a sporting event comes from the Multiplier effect and can spread substantially over a very
short span of time. As the popularity of teams expands to other regions, this effect will continue to take
hold as the role of social media continues to become an integral part of the sports community. The
national economy has seen drastic effects because of consumer choice and buying behaviors. Some of
the most notable of those effects would include the substantial revenues from the large sporting events
such as the Super Bowl and The World Series, and the national unity feeling that people have for a team,
whether it be a team nearby or thousands of miles away. The advanced technology today has allowed
for the widespread engagement of fans with their teams to take place, in which they can stay up to date
on team events all year round.
Finally, people should now have a better understanding of sports enthusiasts’ influences as well
as other consumers in sports organizations and how they play an integral part in the sports industry and
being inclusive on the whole U.S. economy. As sports spectators and fans continue to watch as their
sports continue to develop to the advanced technologies of today’s time, we’ll begin to see fan
engagement become more important than ever before. The relationships between fans and their teams
becomes parts of consumers’ everyday lives and gives people something to hold onto, a chance for hope
even during the high and low points of people’s lives. Through these relationships, the sporting industry
can continue to provide fans of all ages the entertainment of a lifetime and present lasting memories for
many years to come.

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Running head: SPORTING ENTHUSIASTS’ EXPECTATIONS AND THE U.S.

Analysis of Sporting Enthusiasts’ Expectations of Purchasing Choices:

Enhancing Sales Efforts for the U.S. Economy.

Mid-Michigan Community College

development, this helps to boost the U.S. economy.

opportunity to generate sales revenue.

To understand commitment, this element carries some significance in the

consumer make purchasing decisions. Value is discussed in the next section.

In the eyes of many businesses, managing customer equity is an important tool in

is what is known as intrinsic motivation. Intrinsic motivation stimulates behaviors in individuals

it is discussed in the next section.

to alter and fit to the needs of consumers.

Factors of the Sale

customer-determined performance, the snapshot level correlates a short-term customer

customer efficiency management (CEM), a strategy focusing on customer efficiency, to be

customers, many will tend to deem this value as trustworthy.

towards these businesses.

through its September 30 termination, contributing to a $4 billion loss on North American

Evaluating the Risk vs. Reward

the various elements of consumer decision-making.

and Company, a 5% increase in customer retention can increase a company's profitability by

Building a Team Network Fan Base

help boost the favorable image to fans.

In another attempt to create a favorable image, gaming experts have developed

Effects on the Economy

better understanding of the great impacts that communities face.

2013; Owen 2005).

bankruptcy and loss of jobs for some people.

(instead of watching football on weekends) in the community such as bowling or watching a

engage with the team across all aspects.

Stadium Costs and its Impact

include a range of holistic message themes (e.g., everyday-low-pricing), specific message

bring to the region.

place, the larger the human network connected to a business becomes.

than anything else.

and competition, enthusiasm for a major spectacle, or a combination of these, there is no

graduates to enhance their career goals (Lambert, 1999).

industry will be brought into discussion.

and in some cases for the NHL and MLB.

studies have produced little-to-inconclusive evidence supporting consumers and their

year-by-year effects of local and regional communities by franchise sports organizations.

transpire more through means of social media.

on team events all year round.

many years to come.

Journal of Popular Film & Television, 33(3), 151-159. Retrieved from

Hispanic Outlook in Higher Education, 14, 12-28. Retrieved from

Hollywood Media Group. Retrieved from:

popularity. Social Psychology of Education: An International Journal, 14(1), 23-39. doi:

Journal of International Business Studies, 28(2), 361-386. Retrieved from

Coates, D. (2007). Stadiums and arenas: economic development or economic redistribution?

Contemporary Economic Policy, 25(4), 565-577. Retrieved from

teams. European Sport Management Quarterly, 5, 23-46.

marketing industry. The Journal of Consumer Marketing, 24(5), 313-321. doi:

Management, 25(1), 91-103. Retrieved from

Attempts,” Journal of Consumer Research, 21 (June) 1–31.

attendance: Bridging the academic-practitioner divide to understanding behavior. Sport

Marketing Quarterly, 18(3), 126-138. Retrieved from

Management Review, 48(4) Retrieved from

and Practice in Language Studies, 6(8), 1670-1677. doi: http://dx.doi.org/10.17507/tpls.0608.22

loyalty, and market share. Journal of Business Logistics, 15(1), 1-27.

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