The marketing of a NHL hockey team

226 Int. J. Sport Management and Marketing, Vol. 5, Nos. 1/2, 2009

Copyright © 2009 Inderscience Enterprises Ltd.

The marketing of a NHL hockey team

Kenneth C. Teed* The George Washington University School of Business, Funger Hall Suite 301, 2201 G Street NW, Washington, DC 20052, USA Fax: +1-202-994-1630 E-mail: [email protected] *Corresponding author

Lisa Delpy-Neirotti School of Business Director, Sports Management Programmes, The George Washington University, Funger Hall, 2201 G Street, NW Suite 301, Washington, DC 20052, USA Fax: +1-202-994-1630 E-mail: [email protected]

Scott R. Johnson Senior Performance Specialist, SAIC, Army Center for Enhanced Performance (ACEP), 2429 Hood Street, TX 78234, USA Fax: +1-765-285-4084

Benoit Séguin School of Human Kinetics, University of Ottawa, 125 University Street, Ottawa, ON, Canada K1N 6N5 Fax: +1-613-562-5149 E-mail: [email protected]

Abstract: The purpose of this paper is to report on an in-house, in-seat marketing survey of a professional National Hockey League (NHL) hockey team. A total of 1,783 surveys were collected over a five game period. The data collection instrument was designed by the marketing and ownership group of a professional NHL franchise. Specific research questions examined issues ranging from ticket usage, demographics, motivation to attend, barriers to future attendance, customer satisfaction, intent to purchase and media preferences of ice hockey spectators. Results indicate a very distinctive pattern

The marketing of a NHL hockey team 227

in regards to motivation to attend and barriers to attendance. Ticket pricing and concessions were identified as major variables in customer satisfaction and decision to purchase. Recommendations for further research are provided.

Keywords: marketing; professional ice hockey; NHL; National Hockey League.

Reference to this paper should be made as follows: Teed, K.C., Delpy-Neirotti, L., Johnson, S.R. and Séguin, B. (2009) ‘The marketing of a NHL hockey team’, Int. J. Sport Management and Marketing, Vol. 5, Nos. 1/2, pp.226–246.

Biographical notes: Kenneth C. Teed is a Senior Research Scholar at The George Washington University School of Business and is an active Consultant in the field of sport management and has presented research findings at numerous conferences, symposia and boardrooms, including the International Olympic Committee Headquarters and the US Department of Education. Also has wide-ranging interests, from IOC marketing to the development of Title 9 and worked on the Equity in Athletics Disclosure Act report to Congress.

Lisa Delpy-Neirotti is an Associate Professor of Sport, Event and Tourism Management at the George Washington University School of Business. She works with a number of sport event organisers and professional teams to conduct economic, spectator and market research studies including Pacific Life Tennis Open, Legg Mason Tennis Classic, Marine Corp Marathon, Rock and Roll Marathon, Cherry Blossom Ten Mile Race, Army Ten Miler, Washington Wizards, Washington Capitals, Washington Nationals and Washington Redskins.

Scott R. Johnson received a Doctorate in Sport Psychology from West Virginia University. In addition, he received master degrees in Sport Business Management and Business Administration from the DeVos Sport Business Management program at the University of Central Florida. From 2005 to 2007, he was an Assistant Professor and Graduate Coordinator in Sport Administration at Ball State University. Currently, he is the Senior Performance Enhancement Specialist with the Army Center for Enhanced Performance at Fort Sam Houston, Texas; where he consults with US Army Soldiers and their families concerning peak performance and personal development.

Benoit Séguin is an Associate Professor in the School of Human Kinetics, University of Ottawa, Canada. His area of specialisation is Sport Marketing. His work on sport sponsorship, ambush marketing and Olympic Marketing has been published in various journals and presented at numerous international conferences. He is actively involved in sports as a Consultant and a Member on numerous Boards of Directors for National Sport Organisations in Canada.

1 Introduction

Marketing is a critical component for any business or sport organisation to generate revenue. Effective and efficient marketing of a product and/or service allows an organisation to develop a relationship with potential consumers. Therefore, an exchange of consumers’ money for an organisation’s product and/or service has the potential of generating revenue for an organisation while benefiting consumers’ needs.

228 K.C. Teed et al.

In order to gain a comprehensive understanding of this process, we must initially discuss the evolution of sport marketing within the sport business industry. Then, the present paper will discuss aspects of sport consumer behaviour (i.e. fan loyalty, brand equity and brand extensions and ticket pricing). In conclusion, some research investigations analysing marketing in the National Hockey League (NHL) will be introduced and evaluated.

1.1 Historical overview of sport marketing

According to Street and Smith’s Sports Business Journal (n.d.) the sports industry is worth $213 billion. Therefore, the opportunity to generate billions of dollars in revenue within sports appears to make the value of discussing sport marketing valid.

“Sport marketing consists of all activities designed to meet the needs and wants of sport consumers through exchange processes. Sport marketing has developed two major thrusts: the marketing of sport products and services directly to consumers of sport, and marketing of other consumers and industrial products or services through the use of sport promotion” (Mullin et al., 2000, p.9).

Even though sport consumption has occurred for centuries (e.g. ancient Greece and Rome), implementing marketing strategies to produce revenue from sports is relatively new (Mullin et al., 2000). A possible reason for the delay in the development of marketing programmes is ‘marketing myopia’. Mullin et al. explained that Theodore Levitt referred to ‘marketing myopia’ as a ‘lack of foresight in marketing ventures’ (p.9). A series of components can potentially be the antecedents of ‘marketing myopia’:

1 the production and sale of products and/or services instead of determining and fulfilling consumers’ needs and desires

2 believing winning takes care of all mistakes

3 misunderstanding marketing and promotion are similar

4 emphasising short-term financial returns instead of long-term marketing research (Mullin et al., 2000).

Ferrand and Pages (1999) indicated four major elements are necessary for successful marketing of any sport organisation: “total control, integration of all the different programmes together, a positive relationship with community partners and professionalism” (p.388).

With the globalisation and commercialisation of sports, sport marketing must comprehend and examine the role sport plays in consumers’ lives. For example, sport may be a psychosociological component of sport enthusiasts’ actual existence. Therefore, sport marketers should emphasise the product, market, finance and promotion while developing marketing programmes (Mullin et al., 2000). A marketing programme consists of identifying consumers (i.e. market segment), developing the market’s consumption, creating a quality product and/or service and positioning this product and/or service and implementing the ‘Five Ps’ in the marketing mix (Mullin et al., 2000). These ‘Five Ps’ include:

1 product (development and positioning)

2 price

3 place (product distribution)

4 promotion

5 public relations (Mullin et al., 2000).


A successful marketing programme will potentially enhance consumption of a sport organisation’s products and/or services. Hence, an increase in consumer spending will produce revenue (i.e. dollars) for the organisation.

1.2 Sport consumer behaviour

Since the sport business industry has been valued at $213 billion (Street and Smith’s Sports Business Journal, n.d.), researchers are continuously interested in determining the behaviour of sport consumers (Funk et al., 2003). Due to the intense competition for consumers’ money, sport organisations want to create marketing plans which will entice consumers to purchase their product and/or service. As Wilkie and Moore (2003, 2006) mentioned, the field of marketing has experienced enormous growth via globalisation. Hence, Funk et al. suggested sport marketing research investigations should analyse national and cultural differences within and across sport. Additionally, the attraction of a new generation of sport consumers is a necessity for professional sport organisations to generate future revenue (Howard, 1999). Therefore, in relation to sport consumer behaviour, fan loyalty, brand equity and brand extensions and ticket pricing will be discussed.

1.3 Fan loyalty

Fan loyalty is one aspect of sport consumer behaviour which has garnered examination. Day (1969) indicated loyalty occurs when individuals consume a product and/or service on a regular basis and exhibit a strong, positive attitude toward a specified brand. Based on previous investigations (Backman and Crompton, 1991a,b; Olson and Jacoby, 1971), the integration of behavioural and attitudinal components have evolved into a two-dimensional design of loyalty.

Thus, Mahony et al. (2000) constructed the Psychological Commitment to Team (PCT) scale in order to segment sport consumers based on loyalty. The PCT scale was developed from the loyalty attitude component of the Pritchard et al. (1999) investigation. Mahony et al. exclaimed the PCT scale was a reliable and valid instrument. However, Kwon and Trail (2003) utilised confirmatory factor analysis and revealed the PCT scale did not contain sufficient construct validity. Therefore, continuous evaluation of the PCT scale as well as fan loyalty is needed (Kwon and Trail).

Nonetheless, sport consumers build strong emotional connections with sport teams which can help in building trust and loyalty for that team (Richelieu, 2004). In return, the sport marketer can leverage this loyalty by generating additional revenue through various goods (i.e. merchandise) and services (sponsorship) that may expand well beyond the sport building (Gustafson, 2001). Since consumer loyalty toward a product is central to the concept of brand equity, this study of sport brands has received added attention in recent years.

1.4 Brand equity and brand extensions

This study of brand and its importance to marketing has received much attention in the marketing literature (Aaker, 1991, 1996, 1997; de Chernatony, 1999, 2001; de Chernatony and Harris, 2000; Harris and de Chernatony, 2001; Kapferer, 2001; Keller, 2003a,b). Brand equity has emerged as a central concept in marketing and, for


many scholars, is one of an organisation’s most important assets (Aaker, 1991; Keller, 1993). A strong brand provides a company with a ‘point of difference’ which is essential in a highly competitive marketplace (Kapferer, 2001; Keller, 2003a,b). This provides firms with a competitive advantage (Aaker, 1991). Moreover, successful brands are able to quickly establish relationships (emotional and personal) with the customer. Since sport teams operates in a highly emotional environment, this relationship can in turn trigger loyalty toward the brand (de Chernatony, 2001).

While relatively new to sports, this study of brand has increased in importance, especially in relation to professional team sports (e.g. Toronto Maple Leafs, New York Yankees). This has driven a number of academics to investigate brand concepts in sport (Couvelaere and Richelieu, 2005; Gladden and Funk, 2002; Gladden and Milne, 1999; Gladden et al., 1998; Pons and Richelieu, 2004; Richelieu, 2004). Gladden’s work on brand equity in relation to intercollegiate athletics (Gladden and Wolfe, 2001; Gladden et al., 1998) and professional teams (Gladden and Funk, 2001, 2002; Gladden and Milne, 1999; Gladden et al., 1998, 2001) has provided a framework for studying a number of brand concepts (e.g. image, loyalty, associations) in the context of team sports. The conceptual framework of team sport brand equity (Gladden et al., 1998) suggests that prior to achieving optimal brand equity, three antecedent conditions should be considered: the team (success and head coach), the organisation (tradition, conference and logo) and the market (media coverage and geographic location). These three conditions lead to brand equity with six forms of marketplace consequences: national media exposure, merchandise sales, individual donations, corporate support, atmosphere and ticket sales.

Since the establishment of consumers’ trust is critical to generating revenue, sport organisations are concerned with their image (i.e. brand equity). Ferrand and Pages (1999) discussed a sport organisation’s image may potentially influence everyone involved (e.g. participants, spectators or media).

As suggested earlier, sport team brands must build ‘positive’ relationships with consumers in order to generate revenue. In other words, these ‘positive’ relationships will create sales of the sport organisation’s product and/or service to consumers. Since an organisation’s image will allow consumers to act (i.e. purchase or not purchase a product and/or service), marketers should be cognisant of consumers’ feelings and meanings attributed to the product and/or service (Ferrand and Pages, 1999).

In addition to purchasing the core product (i.e. sporting event), brand extensions may create additional revenue streams for sport organisations. Thus, developing products and/or services, in addition to the core product, is associated with sport consumer behaviour.

Five categories of brand extensions for a professional sport organisation would consist of:

1 sport-related

2 entertainment-related

3 media-related

4 information-related

5 miscellaneous products with low perceived fit with the core product (i.e. ‘stretch extensions’) (for descriptions of these categories see Apostolopoulou, 2002, p.209).


Apostolopoulou explained the following factors assist the success of product extensions:

“1) the strength of the parent brand; 2) the perceived fit between the club and the extension; 3) the promotional support offered by the sport organization to the extension; 4) the quality of the extension product; 5) the distribution strategy; and the management of the extension” (p.210).

Research investigations should continue evaluating the impact of brand equity on brand extensions in sport teams so that sport organisations may develop marketing plans which generate revenue efficiently.

“The accurate identification of key variables will assist the design and implementation of successful extension strategies and tactics, and will minimize the risks of the new introductions by the sport industry” (Apostolopoulou, p.213).

1.5 Ticket pricing

A crucial component of sport marketing attempts to answer the following question: who is attending the sporting event? The actual person (i.e. attendee) attending the event usually needs a ticket to gain entrance. The attendee may gain a ticket via:

1 direct purchase from the sport organisation

2 receiving a gift from another individual.

Sport marketing of the sporting event is important because this exchange process between consumer and sport organisation generates revenue (i.e. money). Sport organisations may promote a variety of ticket packages. For example, an attendee may purchase a single game ticket, a series of games or a season ticket package. Many factors may be intertwined within the consumer’s decision concerning which ticket package to purchase.

O’Reilly and Nadeau (2006) indicated numerous factors are influential pertaining to any sport professional organisation’s procedures for generating revenue. Specifically, market support, competition and heritage were the most significant in relation to revenue-generation (O’Reilly and Nadeau). Therefore, sport organisations should develop marketing plans which entail an effective pricing strategy for all ticket packages. Mullin et al. (2001) refers to the ‘escalator concept’ which suggests that marketing strategies are built to move the consumer up the escalator (i.e. from non-consumer to light consumer to medium consumer to high consumer). The more intense the consumer becomes with one’s team, the more likely the sport organisation may benefit from numerous revenue-generating opportunities. For example, sport organisations may gain supplemental monies from each attendee via concessions, team merchandise and parking. Additionally, sport marketers will have an opportunity to sell additional tickets for future sporting events to attendees.

Rishe and Mondello (2003) analysed National League Football (NFL) ticket pricing data from 1996 to 2001 for all NFL teams. Results revealed team performance, fan income, population and playing the initial year in a new stadium impact average ticket prices across all NFL teams (Rishe and Mondello). However, these investigators mentioned average ticket prices may be “misleading, given that every team has a multitiered pricing structure” (Rishe and Mondello, p.79). In other words, sport organisations are pricing tickets based on location (i.e. sections) within the athletic facility.


Rishe and Mondello (2004) extended their analyses to include ticket pricing information from the NFL, National Basketball Association (NBA), NHL and Major League Baseball (MLB). Results indicated playing in a new athletic facility was the most influential factor in ticket pricing differences among cities. Specifically, within the same sport, Rishe and Mondello explained ticket prices were 10–33% higher for teams playing their initial season within a new facility. In addition, population size was a significant factor, except for the NFL, concerning ticket price differences among cities. Hence, due to the larger demand in cities with the presence of more potential consumers, cities with larger populations should have higher ticket prices (Rishe and Mondello). However, Rishe and Mondello indicated attendance is also a significant factor concerning ticket price differences among cities. Specifically, Rishe and Mondello explained “teams with higher attendance have higher ticket prices” (p.110). The concept of brand equity is also link to attendance and ticket price. A team with a strong brand (i.e. Maple Leafs) usually has a strong fan base which means more revenue from ticket sales. In addition, the stronger the brand the less elastic the consumer becomes to prices. Therefore, sport organisations must continuously pay attention to their brand and carefully analyse attendance data to sporting events in order to determine effective ticket pricing strategies.

1.6 National Hockey League and marketing

Some research investigations have utilised data from the NHL to analyse some marketing factors (e.g. brand equity, attendance and customer-based discrimination) concerning sport consumption of professional hockey. A few of these investigations will be discussed for the purpose of stimulating new marketing programmes to enhance consumption of NHL’s products.

Paul (2003) examined data from 1999 to 2000 season (N = 984 games) to determine influential factors associated with the attendance for each individual game. The Colorado Avalanche, Detroit Red Wings and Dallas Stars were excluded from the analyses because each organisation’s home games were sold out. Results revealed weekend games and games at the end of the regular season (i.e. heading toward the playoffs) had increased attendance. Paul explained NHL teams which had more fights tended to experience higher attendance. Russell (1995) determined individuals who attended hockey games because they ‘liked to watch the fights’ believed other attendees came to the games for the same reason. Interestingly, Paul noted scoring decreased attendance for NHL teams who experienced a similar level of success during both the regular and playoff seasons. Additionally, the institution of divisions within the Eastern and Western Conferences allowed NHL regional rivalries to play more often. These NHL contests among rivals led to an increase attendance. Therefore, sport marketers should utilise these factors in the development of effective NHL marketing programmes.

Based on the previous literature, the purpose of the present investigation is to extend the research for the marketing ice hockey. The present study examined a number of Research Questions. These being:

Research questions:

1 What is the demographic profile of the Washington Capital hockey fan and is there a marked shift between season ticket holder and short-term plan or single game holder?


2 What are the barriers to purchase or consume the professional ice hockey product in the Washington DC area?

3 What are the factors that determine motivation to consume the professional ice hockey product in a large US metropolitan market?

4 What are the elements of customer satisfaction involved in professional ice hockey?

5 What factors are important in the decision for intent to purchase a professional NHL ticket?

2 Methods

2.1 Overview of study

The rationale for this study originated from the ownership group of the Washington Capitals hockey club. The ownership group instructed the marketing department to develop a marketing study of their fans at a series of Capitals home games. Specifically it was intended to develop a series of data collection points to answer some key marketing questions that the ownership and the marketing department held about their fan base. The ownership group felt that a greater understanding of their consumers would lead to more efficient and effective marketing programmes.

2.1.1 Survey instrument

The survey instrument was a 36 item 7 page questionnaire. The instrument was developed by the ownership and the marketing group of the Washington Capitals. A breakdown of the 36 item survey yielded eight questions that captured general demographics of the spectator. The remaining 28 questions recorded information about:

1 ticket information and usage characteristics

2 motivation to attend and barriers to future attendance

3 elements of customer satisfaction (likes/dislikes)

4 interest (intent) to purchase in the future

5 customer/spectator media preferences for sports information.

Pilot testing of the survey instrument was undertaken on a limited number of small groups to establish ‘readability’, grammar and face (content) validity. It was very important in this research study to ensure that the respondent was familiar with the terms and language in this testing instrument.

2.1.2 Data collection training and personnel

Data collection at the ice hockey games was undertaken by 30 graduate and senior undergraduate students who were registered at The George Washington University. Each study data collector was provided with an extensive training session that included a number of survey data collection techniques. Practice sessions and classroom instruction allowed for the provision that each student was evaluated and given performance


feedback by at least two university instructors who then determined them to be qualified for data collection. Each member of the final group was well experienced and extremely competent.

2.1.3 Data collection strategy

Each data collector (30 students) was given a package of surveys and asked to administer these instruments during five games of the Washington Capitals home season during the month of October and November. The games were spaced out evenly by day and location. Random distribution across the five games and locations was necessary to prevent a cluster. The geographic disbursement across the arena concourses and the upper and lower bowls (to include a random distribution of the ends and subsections with in each area) was coordinated on site to maintain an accurate cross section. This was undertaken to prevent pockets of data collection that may profile only one type of ice hockey spectator. Although labour intensive, this a priori approach greatly allows for a better data collection technique. Data collection was random in each section and from a wide variety of respondents. The five games selected for data collection were:

1 Anaheim Mighty Ducks

2 Toronto Maple Leafs

3 New Jersey Devils

4 Dallas Stars

5 The Carolina Hurricanes.

2.1.4 Sample delimitations and target sample

This sample was delimited to English speaking individuals who participated in an in-arena 36 item questionnaire. The data was collected over five games during the NHL regular season. This study was further delimited to those spectators who would fill out the instrument onsite with little or no prompting. A Washington Capitals baseball hat/pin was given as compensation for a complete survey. The target sample was delimited to English (written comprehension) speaking people. The goal was to collect around 300–400 surveys per game over a five game period. It was intended to acquire the surveys evenly across the collection period. Even distribution by venue area and geographic location was the goal. In an effort to maintain motivation, the goal of specific number for each data collector was maintained and appreciated by the survey administrators.

2.1.5 Statistical analysis

Inferential and descriptive statistics were utilised to answer the research questions for this study. Descriptive marketing analysis was undertaken and provided for the marketing department of the Washington Capitals. Specific analysis was used to detect submarkets that could be targeted for further research. More detailed and specific analysis that utilised the use of parametric and non-parametric analysis (statistics) to model the data was undertaken to determine differences and trends in spectator perceptions for continued participation as a Washington Capitals consumer.


2.1.6 Purpose of the study

The purpose of this study was to garner a more complete understanding of those consumers who watch professional ice hockey in the Washington, DC Region. Specific research questions were centred around; ticket information, demographics, motivation to attend, customer satisfaction, intent to purchase, sport media preferences and reasons for not attending more often. It was intended that this data could be used to advantage by the ownership and the marketing department of the Washington Capitals in the provision of more detailed and efficient marketing plans to enhance the spectatorship of professional ice hockey.

3 Results

3.1 Demographics

A total of 1,783 completed surveys were collected over a five game period. The response rate for the in-house arena survey was 69%. The number of survey responses from each of the five games and their respective demographic information to include gender, marital status, age, location of residence, location of business, household income and type of employment for respondent and spouse are displayed in Table 1. While the arena is located downtown in the District of Columbia, it was found that the largest number of the respondents were found to reside in Northern Virginia (46.2%), then Maryland (25%) and then followed by only 10.5% who reside in the District of Columbia.

Table 1 Demographics

Demographic Percentage

Residential zip code (n = 1,764)

DC 10.5

Baltimore 8.0

NOVA (including Dulles) 46.2

MD (suburban and southern) 25.0

Business zip code (n = 1445)

DC 21.0

Baltimore 5.4

NOVA (including Dulles) 37.6

MD (suburban and southern) 9.5

Gender (n = 1742) by survey type arena

Male 66.5

Female 33.4

Washington MSA

Male 48.0

Female 52.0


Table 1 Demographics (continued)


NHL

Male 63.0

Female 37.0

Gender (n = 1742) by survey type arena

Male 50.8

Female 49.2

Washington MSA

Male 46.0

Female 54.0

NHL

Male 43.0

Female 57.0

Children

With 36.0

Without 63.2

Education (n = 1708)

High school 8.0 Some college 16.2 College 41.3 Graduate school 33.3 Technical school 1.2

Age (n = 1680)

18–24 11.1

25–34 34.8

35–44 27.7

45–54 17.8

55–64 6.3

65–74 1.7

75 or older 0.5

Annual household income (n = 1541)

Less than $25,000 5.3

$25,000–$34,999 9.3

$35,000–$44,999 8.9

$45,000–$54,999 8.8

$55,000–$74,999 16.0

$75,000–$98,999 16.2

$99,000–$1,50,000 20.1

More than $1,50,000 15.2


Table 1 Demographics (continued)


Occupation, self (n = 1627)

Business 26.2

Computers 10.1

Construction 3.7

Education 6.6

Emergency services 1.5

Government 15.5

Law 6.5

Medicine 5.0

Military 2.0

Parent at home 1.0

Retail 3.3

Retired 2.6

Other 15.4

Occupation, spouse if applicable (n = 752)

Business 22.6

Computers 9.6

Construction 2.0

Education 8.9

Emergency services 2.5

Government 13.2

Law 5.1

Medicine 7.2

Military 1.2

Parent at home 6.8

Retail 3.9

Retired 4.4

Other 12.0

3.2 Ticket information and usage characteristics

A number of very interesting findings are displayed in Table 2. While a normal NHL schedule has 41 home games, these respondents indicated that they attended approximately 15–16 games per season. Also 72.6% of the spectators indicated that they paid for the ticket while 26.8% did not, perhaps indicating a strong social network that utilises hockey as its centrepiece.

A post hoc analysis of ticket location (upper 45.2% versus lower bowl 54%) indicated that the population measured was in accordance with the sampling strategy


(n = 1,073). As well the respondent percentages on the side and end sections also matched up with the geographical targets set for the data collection. The spectators indicated that they obtained their ticket (n = 1073) by being a season ticket holder (38.7%) and or a partial season plan holder (10.5%).

These plan holders were represented as following:

1 a 20 Game Plan (23%)

2 a 10 Game Plan (77%) holder.

This indicates that approximately 50% of the crowd was not a season ticket holder. A breakdown of people who were not season ticket holders indicated that they received their ticket from:

1 box office, 13.4%

2 friend, 22.2%

3 employer, 6.1%

4 other 8.9%.

Data that queried the type and nature of the use of the ticket yielded some interesting findings. Specifically, the average size of the group attending the game was 3.25 people with a mode and median of 2.0. An analysis of the social network of attendees (who they usually attend Capitals’ games with?) the results were:

1 spouse/significant other 36%

2 other family members/friends 51%

3 business associates 4.8%

4 other 4.6% out of 1699 spectator responses.

Table 2 Ticket and usage information

Purchase tickets for today’s game (n = 1735) Percentage

Yes 72.6

No 26.8

Attendance per season (n = 1735)

Mean 15.6

Median 11.0

Mode 10.0

Number of people in party tonight (n = 1699)

Mean 3.25

Median 2.0

Mode 2.0


3.3 Motivation to attend and barriers to future attendance

It was important to highlight the reason(s) why spectators enjoying coming and what motivates them most to attend. Clearly being a fan of the Capitals accounts for the largest and most salient market segment at 66.3%. There appears to be a very large team association and identity that is very important in the marketing of a NHL team. Secondary reasons such as going out for a social outing (9.2%) and a free ticket (8.5%) are the next largest and still indicate the affiliation with the team and atmosphere provided in the arena. These results speak largely to the marketing of the team platform. These results will also be important to investigate other elements of the brand to enhance a more detailed marketing plan.

Conversely Figures 1 and 2 displays the reason(s) that prevents them from attending more Capitals games. Oddly with such a high household income the cost of the ticket (32%) is the largest factor that inhibits future attendance. However, unlike motivation to attend that retained one over riding factor for attendance, barriers to attendance were far more uniform and numerous. Specifically these were:

1 work commitment 21.1%

2 family commitment 12.1%

3 starting time of game 3.8%

4 Capitals’ record 4.1%

5 cost of ticket 32%

6 cost of parking 2%

7 cost of food and beverage 9.5%

8 location of MCI Center 3.2 %

9 not that interested in hockey 1.6%

10 other 10.5%.

Figure 1 Motivation to attend today’s Capital’s games (n = 1730) (see online version for colours)


Figure 2 Barriers for future attendance of Capitals games (n = 1666) (see online version for colours)

3.4 Elements of customer satisfaction (likes/dislike)

In looking at travel to the arena 87.7% of the customers indicated that it was easy to get to the venue. It was not surprising to see that about 60% of the fans used the subway as the facility is located directly on a metro/subway stop. Other elements of customer satisfaction (see Figure 3) such as on-ice action was rated the highest with 96.8% and food and beverage was liked the least with 89.2%. In an analysis of the importance and quality of customer satisfaction it was found that ticket pricing and team quality were the highest rated factors for importance while expected quality of the team and experience travelling to the arena were ranked the highest for overall quality. The questionnaire item that assessed the benchmark of over all satisfaction yielded that 23.2% found room for improvement and only 2% were dissatisfied or had deep concerns. Further, 54% were satisfied and 19.5 were very satisfied. Over all, these results indicated a very content consumer base and on going efforts to improve and understand the segment for improvement have been identified as a result of this study.

3.5 Interest (intent) to purchase in the future

It was found that 52.7% of those people who were not season ticket holders indicated that they would purchase with almost 30% indicating preference for a full season ticket, 8.6% for a 10 game package and 14.5% would purchase a 20 game ticket package. These results indicate a very solid or good response for the sampling of the product and leaving with very strong impressions and a willingness to consume the product in the near future. Interestingly the top reasons for not purchasing a ticket package (Figure 5) highlighted the largest concern to be financial commitment (52.7%) and the Capitals record (15.2%). In light of the household income and customer satisfaction the ticket price and or the financial commitment to purchase is the largest barrier to overcome in regards for intent to purchase. These results are important to place in context of a city that retains a highly transient employment market with military and government employers.


Figure 3 Elements of customer satisfaction (likes/dislikes) (see online version for colours)

Figure 4 Intent to purchase in the future (n = 972) (see online version for colours)

Figure 5 Top reasons for not purchasing ticket packages (n = 972) (see online version for colours)


4 Discussion

This paper represents a concerted effort to overcome the concept of marketing myopia that Mullin et al. (2000) have espoused. It was felt by collecting valid reliable data better decisions could be made on the marketing programmes of a professional ice hockey NHL team. The fact that the sport industry is a 213 billion dollar industry (Street and Smith) (n.d.) indicates that there is wide spread competition for the sport entertainment dollar. In Washington, DC, there are five major sports all competing for the same season ticket dollar. The ability to better understand the market, the consumers and the potential for growth will greatly enhance value to any professional sport franchise. While it would be best to look at brand equity, (James, 2001; Ferrand and Pages, 1999), fan loyalty (Backman and Crompton, 1991a,b; Olson and Jacoby, 1971) and fan commitment (Jubenville et al., 2004; Kwon and Trail, 2003; Mahony et al., 2000) it would be premature to not fully understand the consumers and their marketplace first. Thus, this investigation was a primary data gathering effort that sought to add value to the marketing department of a NHL team.

The primary data in this study raised some interesting points, while the arena is located downtown DC the majority of the fans lived in the other two border states and only 10% actually retained residence in the city of the team. As with any niche market, certain characteristics are important to understand and place them in context with the local or regional market. This study revealed that the fan base was predominately male, single, with a high household income and was extremely well educated (74% with a University and or graduate degree). This, in combination with the government and business as the largest employers is a very interesting market to obtain long-term consumers. Washington, DC retains may government and military workers that are transient and may or may not stay in the area. As the seat of the Federal government, many people change jobs for promotion, relocation or change of political party. The ability for the marketing department to discern these target segments and build a strong base is a challenging task. Changing of personnel in the area does often attract people from different areas of the country where hockey may be more culturally relevant and thus exposure and the ability to reach this incoming segment is a very cyclical process. This investigation, while a primary data collection effort does recognise the need for continual evaluation. This market more than other markets may need constant measurement due to the constant regional and economic change agents.

Following in the footsteps of O’Reilly and Nadeau (2006), Rishe and Mondello (2003) and Rishe and Mondello (2004) that have all undertaken research studies on ticket pricing in hockey and other major league sports this study sought to add value to a better understanding of the ticket usage in Washington, DC. It was very interesting to note that 26.8% of the people surveyed did not pay for their ticket. This indicates a social, business or some other network that indicates that the long term (full) season ticket holder base may be a more than simple construct to deal with in this market. While corporate hospitality did not seem like a significant factor, the box office percentage (13.4%) and social network percentage friend, 22.2% did reveal some interesting data. It would be well worth delineating the social network and box office walk up data to determine the actual acquisition practices of these groups. It could be suggested that the determination of how people are going to the box office, where they are from, may add


great value to the advertising campaign to determine the channels of how people purchase and why. Follow up investigations will need to develop more specific and detailed information on these subgroups.

The ability to determine the consumer behaviour and in particular the motivation to attend is a key point of this study. Researchers like (Funk et al., 2003) have suggested that research investigations into sport marketing should analyse national and cultural differences within and across sport while Howard (1999) indicated that the attraction and retention of a new generation of sport consumers is paramount for sport organisations to generate revenue. These points are well taken as hockey has only been in DC since the early 1970s. Thus, the marketing of ice hockey to a non-winter region that does not retain the same fervour and cultural attachment that a franchise like Montreal or Toronto does pose unique challenges for an ice hockey marketing department. It would be foolish to emulate Canadian or hockey rich (culturally rich) marketing strategies in this marketplace. The development of a niche or very unique marketing approach would appear to be well worth discussing. The data in this study indicated that the motivation to attend was primarily because they were a Capitals fan (66%). This does bode well for the development of a loyal and ice hockey marketing approach. However, the data also revealed that the barriers to attendance were the cost of the ticket and commitments (work and family). The issue of ticket cost is very interesting since the demographics of the fan base indicates a much higher than average (US) household income. This suggests that the Washington Capitals have not reached a high level of brand equity yet. Consumers seem sensitive to prices which in turn impact on brand loyalty. Given the large numbers of entertainment options in the area, this does cause some threats to the Capitals’s brand. While there are five major sports (football, baseball, soccer, basketball and hockey) there also are a number of minor league teams and a myriad of other entertainment choices (theatre, restaurants, gyms, etc.). Thus, the cost of the ticket may be affordable, however, the cost of two different professional sports teams may not be affordable to a family of four.

The data from the customer satisfaction section of this investigation did reveal some very useful information. In particular 96.8% of the spectators liked the on-ice action. This very much reinforces that there is the potential to develop a strong fan base that is attracted to the central elements of the game. As well, the opportunity for social and family interaction was considered fairly positive. The points for worry would be the in game entertainment (72.9% dislike) and food and beverage (89.2% dislike). A number of people have indicated that the price of food and drinks was too high and of insufficient quality. Once again, there appears to be a consistent theme around price. There should be steps taken by management to address this issue. Further, ticket prices and team quality were listed as the top two factors for importance for customer satisfaction. Finally, about 75% indicated overall that they were very satisfied or satisfied with the Capitals. The marketing department should be very happy with these results, however, it would be incumbent on them to determine why or how much of the variance that ticket prices and concession prices are elastic to the decision to purchase.

A very salient finding from this data that could be further developed would be the intent to purchase a season ticket (package). It was found in this study that 52.7% of those surveyed would be intent on purchasing a ticket. This is a very promising finding regarding the construct of product sampling. The ability of any organisation to retain 52% of people who have consumed the product to repeat purchase is well above average. It may be important to develop quick channels of contact, interactive ticket offers and


hospitality opportunities to drive this new market. Product sampling, while not a new concept, may be a very reliable and time tested sports marketing technique if used properly in this marketplace.

5 Conclusions

Based on the present investigation’s results, the investigators concluded a number of findings that may be used to advantage by the marketing department of the Washington Capitals. It appeared that the demographics of spectators were one that was well educated, single, male, lived in the adjoining states and were fairly wealthy. Ticket prices and concessions were factors of concern for customer dislikes (satisfaction). On-ice action and being a fan of the Capitals were considered very large factors in customer satisfaction. While ticket prices were a repeated concern, overall satisfaction was slightly over 75% (very satisfied and satisfied). Finally, the finding that indicated that 52% of the fans that were asked if they retained an intent to purchase in the future indicated that they would be interested in full season, 20 game and or 10 game packages was very encouraging. Product sampling and the mechanisms that centre on exposure to the on-ice hockey product appear to be areas that should require the greatest focus for this franchise. It is recommended that future research replicate this study on a frequent time interval due to the nature of the changing populous in the Washington DC region. Further detailed information should be gleaned from the box office, walk up and other point of purchase outlets to garner a more accurate information profile on this segment of ice hockey consumers. Finally, the ability to discern the elastic nature of ticket and concession prices in each of the segments should be undertaken.

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The marketing of a NHL hockey team

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