Academic journal article Asian Social Science

An Investigation of the Effect of Fan Relationship Management Factors on Fan Lifetime Value

Academic journal article Asian Social Science

An Investigation of the Effect of Fan Relationship Management Factors on Fan Lifetime Value

Article excerpt

Abstract

The purpose of this research was investigation of the effect of Fan Relationship Management on Fan Lifetime Value in Iranian premier Football league. The necessary data were gathered through interview, observation, review the relevant theoretical literature and questionnaires. The statistical population was consisted the upper of sixteen years of football fans. The number of 527 questionnaires was used from gathered 674 questionnaires. Results showed that service quality (Beta=0.394) and knowledge management (Beta=0.543) have positive effect on fan lifetime value directly. Also, organizational support has indirectly effect on fan lifetime value. There is necessary for sport clubs that spend extensive efforts for maintaining current fans and attracting new fans by providing suitable facility, conducting customer based program and creating knowledge and information through various relational channels to increase fan lifetime value.

Keywords: fan relationship management, fan lifetime value, fan, football

1. Introduction

The need for fan relationship management is one of the basic requirmens in sport industry. The football industry lags behind other industries in implementing customer relationship management (CRM) techniques and so it has follower advantages in learning from mistakes made elsewhere. There are, however, croucial difrences in football compared with conventional businesses. As a result, the unique characteristics of the sport and its fans need consideration when developing or implementing CRM techniques and a new CRM framework which consider the specifity of sport, is required for football club (Garry et al., 2006). For the purpose of sports organizations and sporting events, CRM seeks to achieve three goals through precision marketing: Generate new fans, Enlarge attendance and purchases of current fans, Motivate and maintain current fan loyalty and identification (Wakefield, 2007). This study focuses on Iranian football fans and from point operational difinition, fan is said who attends more than 8 games of thier favorite teams games at the stadium during a competition season. If an individual is a fan of a professional or major college sports team, even a losing team, the fan will likely: Identify with and follow the behavior of the team and individual players on that team, on and offthe field (via team Web sites, newspapers, television, radio, wireless, etc.); Purchase licensed merchandise (jerseys, automobile paraphernalia, caps, mugs, etc.) promoting the team; Donate or pay for permanent seat-licenses (PSLs) in order to buy season tickets; Travel to see games of that team outside the local market; Support tax-based initiatives to pay for a new arena or stadium for the team; Be a supporter of the conference or league in which the team plays; and, Devote significant social time attending, watching, and discussing the team with others devoted to the same or other teams (Wakefield, 2007).

2. Success Factors of FRM

Numerous studies have been accomplished on the factors of success in customer relationship management applications by researchers in recent years (Rigby et al., 2002; Wikstrom, 2004). Research has shown that there is different reasons for the lack of success in customer relationship management programs. In general, CRM failure is caused by the complexity of technical and organizational issues that are associated with CRM implementation (Goodhue et al., 2002).

According to Nguyen et al., (2007), the lack of factors such as top management support, aligning internal processes, linking CRM project to organization's higher-level strategies, focus on ROI (Return on Investment), achieving success early in the project effect on CRM programs. Lachvtz et al., (2001) have mentioned to increase the lifetime value of basketball fans; developing strategies for more loyal customers; data collection; and developing comunication with fans. Chalmeta (2006) pointed out the following factors as causes for CRM failure: 1. …

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