It’s More than Just a Game: The Effect of Core and Supplementary Services on Customer Loyalty

Executive Summary: All service providers seek to provide a comprehensive experience for their customers, with the goal of cementing customer loyalty and encouraging future purchases. In most services, we can identify core aspects (e.g., a good night's sleep at a hotel) and supplementary aspects (e.g., concierge and valet services). For professional sports, the core service is the sporting contest itself, but many other supplementary services...

Executive Summary: All service providers seek to provide a comprehensive experience for their customers, with the goal of cementing customer loyalty and encouraging future purchases. In most services, we can identify core aspects (e.g., a good night's sleep at a hotel) and supplementary aspects (e.g., concierge and valet services). For professional sports, the core service is the sporting contest itself, but many other supplementary services may also be included. We use a comprehensive dataset of over 7,000 patrons of a major professional sport in the United States to determine how customers' satisfaction with core and supplementary services influence their intent to repeat a ticket purchase. We find that satisfaction with both core and supplementary services are important for loyal customers, but first-time customers tend to focus only on core service satisfaction when considering whether to purchase another ticket. One implication of this study is that firms should focus on their customers' full experience. Firms must first focus on their core services and then augment them appropriately with supplementary services.

Download The Supporting Documents
To view the documents, please click on the link below

Sales & Marketing USA & Canada United States

Rohit Verma, Ph.D., is a professor of service operations management at the Cornell University School of Hotel Administration (SHA), where he is also the coordinator for MBAMMH Dual Degree Programs, and formerly was executive director of the Cornell Center for Hospitality Research.

The Cornell Institute for Hospitality Labor and Employment Relations was established in 2013 as a platform for students, employers, employees, unions, and their advocates involved in the hospitality industry. The institute's mission is to support educational programs, sponsor and disseminate research, and hold conferences and roundtables dedicated to modernizing labor and employment relations, analyzing labor and employment law, and improving...

Comments

Comments for this content

0 comments available
Loading comments...