Developing a sport fan equity index

Abstract

Purpose

The primary purpose of this study was to generate a composite sport fan equity index (SFEI) for use in estimating the asset value of an individual fan to a sport organization. The index was developed by applying a simple additive weighting (SAW) method.

Design/methodology/approach

A cross-sectional survey-based research was carried out to validate key components of sport fan equity (SFE) and formulate the SFEI on the basis of the NCAA Division I collegiate sport context. These objectives were satisfied through a twofold process involving first-order confirmatory factor analysis intended to assess the validity of SFE measurement scales and SAW designed to produce the composite SFEI.

Findings

The developed index indicated that the average SFE of focal sport fans of Division I collegiate sport was 54.8 and that the overall SFE of such contributors ranged from 20.4 (the lowest score) to 94.6 (the highest score). The SFEI serves as a single, summary score and an essential gauge for sport marketers to use when assessing profitable fans and tracking/comparing them over time.

Originality/value

This research contributes to the sport marketing literature through its application of SAW in an initial effort to produce an easily understandable index that determines the asset value of sport fans and serves as an imperative criterion for overall sport team valuation from the sport consumer side. Specifically, the SFEI can function as a standard numeric measure that enables sport marketers to identify fans from whom sport organizations can generate considerable profits, segment these devotees systematically, and tailor marketing strategies to each fan base.

Citation

Kim, Y.D., Magnusen, M.J., Kim, Y. and Kim, M. (2020), "Developing a sport fan equity index", International Journal of Sports Marketing and Sponsorship, Vol. 21 No. 2, pp. 247-266. https://doi.org/10.1108/IJSMS-02-2019-0022