2009-10 SLM Seminar 2009/12/21 Dr. Eddie Lam Eddie T. C. Lam, Ph.D., FAAHPERD Associate Professor in Sport Management, Cleveland State University Editor‐in‐Chief, Measurement in Physical Education & Exercise Science Service Quality and its Role in Sport & Leisure Management Education Background Springfield College: Bachelor of Physical Education (1992) Master of Science in Sport Management & Sport Psychology (1995) University of Houston: Ph.D. in Kinesiology: Measurement & Research in Exercise Science (2000) Professional Experience Cleveland State University: Associate Professor in Sport Management Measurement in Physical Education & Exercise Science Editor‐in‐Chief Exercise Science Physical Activity Psychology Pedagogy Research Methodology/Statistics Sport Management & Administration Tutorial/Teachers Toolbox Professional Experience Serve also on the Editorial Board or as a reviewer of: Future Focus International Journal of Sport Management & Marketing Journal of Physical Activity and Health Journal of Physical Education, Recreation & Dance Sport Management Review Sport Management Education Journal Research Quarterly for Exercise & Sport Service Quality Definition: Service is an activity or benefit offered by one party to another that is “essentially intangible and does not result in the ownership of anything” (Kotler & Armstrong, 1997, p. 265) Service quality is the consumer’s overall impression of an organization and its services (Bitner, Booms, & Mohr, 1994) Service quality is a function of the differences between expectation and performance (Parasuraman, Zeithaml, & Berry, 1985) Service Quality Importance of Service Quality: Service quality has been recognized as one of the major elements that affect member retention and the long‐term profitability of an organization (McDonald & Howland, 1998; Patterson & Spreng, 1997; Zeithaml, Berry, & Parasuraman, 1996). The implications of inadequate or poor service are serious. For example, a dissatisfied customer will tell 11 people about their experience while a satisfied one may tell only three people (Horowitz 1990).
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2009-10 SLM Seminar 2009/12/21
Dr. Eddie Lam
Eddie T. C. Lam, Ph.D., FAAHPERDAssociate Professor in Sport Management, Cleveland State UniversityEditor‐in‐Chief, Measurement in Physical Education & Exercise Science
Service Quality and its Role in Sport & Leisure Management
Education BackgroundSpringfield College:Bachelor of Physical Education (1992)Master of Science in Sport Management & Sport Psychology (1995)
University of Houston:Ph.D. in Kinesiology: Measurement & Research in Exercise Science (2000)
Professional ExperienceCleveland State University:Associate Professor in Sport Management
Measurement in Physical Education & Exercise ScienceEditor‐in‐Chief
Professional ExperienceServe also on the Editorial Board or as a reviewer of:
Future FocusInternational Journal of Sport Management & MarketingJournal of Physical Activity and HealthJournal of Physical Education, Recreation & DanceSport Management Review Sport Management Education JournalResearch Quarterly for Exercise & Sport
Service QualityDefinition:Service is an activity or benefit offered by one party to another that is “essentially intangible and does not result in the ownership of anything” (Kotler & Armstrong, 1997, p. 265)Service quality is the consumer’s overall impression of an organization and its services (Bitner, Booms, & Mohr, 1994)Service quality is a function of the differences between expectation and performance (Parasuraman, Zeithaml, & Berry, 1985)
Service QualityImportance of Service Quality:Service quality has been recognized as one of the major elements that affect member retention and the long‐term profitability of an organization (McDonald & Howland, 1998; Patterson & Spreng, 1997; Zeithaml, Berry, & Parasuraman, 1996). The implications of inadequate or poor service are serious. For example, a dissatisfied customer will tell 11 people about their experience while a satisfied one may tell only three people (Horowitz 1990).
2009-10 SLM Seminar 2009/12/21
Dr. Eddie Lam
Service QualityImportance of Service Quality:High service quality is critical to the profitability of an organization because of two reasons:
it earns customer loyalty (customer retention)it enhances customer satisfaction
By demonstrating the impact of customer retention on profitability, Zeithaml et al. (1996) asserted that customers who stay with the firm longer are more likely to buy additional services and refer the firm to others than customers who remain with the firm for a shorter period of time.
Service QualityImportance of Service Quality:It costs five times less for an organization to retain a customer than for it to attract a new one (Sonnenberg, 1989) Marketing resources are better spent by keeping existing customers than attracting new ones (Fornell & Wernerfelt, 1987, 1988; Fornell, 1992;Hormozi & Giles, 2004)Rose (1990) found that the average profit on credit card services purchased by a 10‐year customer is three times higher than a 5‐year customer.
Service QualityImportance of Service Quality:Satisfied customers are:
a)more likely to involve frequently and in larger volume in other services from the organization
b)more willing to pay for the benefits they receivec)more likely to be tolerant of increases in price (Reichheld & Sasser 1990)
Service QualityFor further information regarding:
Characteristics and classification of serviceDefinition and determinants of qualityDimensions of service qualityConcepts of quality assuranceEvaluation of service qualityLam, E. T. C. (2004). Service quality. In U. MacMahon‐Beattie & I. Yeoman (Eds.), Sport and leisure operations management (pp. 93‐107). London, England: Thomson.
Service QualityIn the sport setting, fans (spectators) go the games for two “E”sExcitementEntertainment
Customer satisfaction = How to satisfy the needs of the consumers (i.e., fans or spectators)
Service QualityProfessional SportsExcitement – star players, close competition, rough play, etc.Entertainment – half‐time performance, contests, cheerleaders/dancers, etc.
2009-10 SLM Seminar 2009/12/21
Dr. Eddie Lam
Service QualityImportant of Star Players:Star players are the main focus of the game, not the teamsFor example, Cleveland Cavaliers vs Los Angeles Lakes
Service QualityIt is not advertised as:
Cleveland Cavaliers vs Los Angeles Lakes
Service QualityLeBron James vs Kobe Bryant
Service QualityIs Hong Kong using the same model?
2009-10 SLM Seminar 2009/12/21
Dr. Eddie Lam
Service Quality• In the professional setting, we examine why spectators go to the game in order to emphasize more in that particular area(s).
• See the section on “Decision Information” in Exhibit A (Gladiators Fans Survey)
2009-10 SLM Seminar 2009/12/21
Dr. Eddie Lam
Service QualityIn the recreation or leisure setting, customer satisfaction is based on the technical quality and functional quality (Grönroos, 1984) as well as the physical environment (McDougall & Levesque, 1994) Technical quality – outcome of service performance (including personnel skills)Functional quality – perceptions of how service is delivered (i.e., the process)Physical environment – the facilities of the service provider
Service QualityExample: see Exhibit B (Service Quality Assessment Scale for health‐fitness clubs)
Survey Research:One of the most important and common types of research in social scienceMade up most of the sport management researchA standardized questionnaire (or survey) is used
Survey Research
2009-10 SLM Seminar 2009/12/21
Dr. Eddie Lam
Common Forms of Administration:1. Questionnaire:
On‐siteMailOnline
2.Interview:Face‐to‐facePhone
Survey ResearchGeneral Considerations:1. Who are the respondents?2.Are they accessible?3.How large will be the sample size?4.Which sampling method should be used?5.What types of questions to be asked?6.How long will be the survey?7.What will be the cost of the survey?
Survey Research
General Considerations:1. Who are the respondents?2.Are they accessible?3.How large will be the sample size?4.Which sampling method should be used?5.What types of questions to be asked?6.How long will be the survey?7.What will be the cost of the survey?
Survey ResearchA Suggested Measurement Model (Lam, Zhang, & Jensen, 2005)
1. Formulation of Items2.Pilot Study3.Survey Administration4.Exploratory Factor Analysis5.Confirmatory Factor Analysis
Lam, E. T. C., Zhang, J. J., & Jensen, B. E. (2005). Service Quality Assessment Scale: An instrument for evaluating service quality of health‐fitness clubs. Measurement in Physical Education and Exercise Science, 9(2), 79‐111.
Survey Research
Examination on the number of factor Pilot Study
Survey Administration
Exploratory Factor Analysis
Confirmatory Factor Analysis
Item revision or modification
Number of factors
Estimation method (e.g., ML or WLS)
Extraction method
Test of normality
Composite reliability & variance extracted
Model respecification?
↑ number of factors?
↓ number of factors? ↓ number of items?
↑ number of items?
Sampling method Survey method
Rotation method Variance explained
Data transformation?
Goodness-of-fit index
Items retained
Data entry & screening Replacing missing data
Review of literature
Panel of experts (Delphi technique)
Site observation
Interviews (focus group, users, etc.)
Test of Sphericity
Formulation of Items
A Suggested Measurement Model (Lam, Zhang, & Jensen, 2005)
1. Formulation of ItemsContent validity
Survey Research
2009-10 SLM Seminar 2009/12/21
Dr. Eddie Lam
A Suggested Measurement Model (Lam, Zhang, & Jensen, 2005)
2.Pilot StudyIncluding questionnaire design
What is your age?1 Under 18 years 2 18‐25 years 3 26‐35 years4 36‐50 years 5 51‐65 years 6 Over 65 years
Survey ResearchA Suggested Measurement Model (Lam, Zhang, & Jensen, 2005)
3.Survey AdministrationSample sizeSampling method
Survey Research
A Suggested Measurement Model (Lam, Zhang, & Jensen, 2005)
Survey ResearchA Suggested Measurement Model (Lam, Zhang, & Jensen, 2005)
5.Confirmatory Factor Analysis (Validation)Estimation method (Maximum Likelihood or Weighted Least Squares)Type of fit indicesModel SpecificationComposite Reliability and Variance Extracted
Gürbüz, B., Koçak, S., & Lam, E. T. C. (2005). The reliability and validity of the Turkish version of the Service Quality Assessment Scale. Education and Science, 30(138), 70‐77.
Survey Research
Eddie T. C. Lam, Ph.D., FAAHPERDAssociate Professor in Sport Management, Cleveland State UniversityEditor‐in‐Chief, Measurement in Physical Education & Exercise Science
Department of HPERD2121 Euclid Avenue, PE 218Cleveland, Ohio 44115‐2214
