Marketing
Implications of the Consumer Golf Industry
Introduction
The game of golf has seen a surprising increase in
popularity over the past several decades and has brought with it consumers who
are passionate about golf and are willing to spend more than ever on the game
they love. Beditz, Ph.D. and Kass (2010)
reported that the number of golfers in America grew 50%, from 20 million to 30
million, from the mid 1980s to the turn of the century. While this number shows high growth, almost a
3% compound annual growth rate, since 2000 this number has experienced a
plateau. While this has raised some
concerns in the past, signs of recovery are beginning to show; it is estimated
that in 2011 the U.S. golf industry “supported approximately $4.2 billion of
total economic activity, over 52,000 jobs, and $1.3 billion of wage income”
(N.C. Golf Economy, 2013).
The golf market is a dynamic
and growing activity globally (Hinch & Higham 2001), and has developed a
culture of consumption, rituals, symbols, societal influences, and many other
aspects that have helped to distinguish this sport from others and has created
a sense of unity among the players.
Consumers in the golf subculture are a loyal group who value quality
products and look for deals when possible.
Golf is a relatively expensive game, and, contrary to popular belief,
not everyone who enjoys the game of golf is wealthy, so finding enjoyable
courses for an affordable price is high among the golf wish list.
Subculture of Consumption
According
to McAlexander and Schouten (1993), subcultures of consumption are distinct,
homogeneous groups of people united by a common commitment to a particular set
of consumption items or activities. These
social units are often targeted by marketers and researchers due to their
homogeneity of norms, values, and behaviors.
Most subcultures are those that you are born into, such as your ethnic
subculture (African-American, Italian, Native American), but this group of
golfers is a self-selected subculture that is united by their shared
consumption interest (Donnelly and Young 1988).
McAlexander and Schouten
(1993) reported that certain non-ethnic subcultures, like surfers, golfers, hot
rodders, and Deadheads, are united by commitments to particular careers,
avocations, or lifestyles, and exhibit high degrees of homogeneity that not
only carry over into consumer behaviors but actually become articulated as
unique ideologies of consumption. Often
times their commitment and innovative styles and behaviors help to extend the
market impact of subcultures beyond everyday consumer consumption. Hard-core or high status members of a
consumption subculture act as innovators and opinion leaders (Fox 1987),
engraining normal products with special meaning that are eventually shared or
consumed with a much larger market than just the core users. A good example of this is when apparel or
certain brands of golf club or balls are popularized by a famous player, such
as Tiger Woods or Phil Mickelson, and a good majority of the subculture will
then go out and buy these products.
Another good example of this concept is the effect that Rickie Fowler
has had on the golf industry. Rickie is
young, talented, and extremely popular with the younger viewers. He uses Cobra clubs and always wears
distinctive, bright orange Puma apparel.
Since his popularity has risen kids all over the country are now
emulating his style; wearing the same clothes and buying the same colorful products
that Rickie uses.
Product Symbolism
Some
products are able to not only offer their everyday practical functions, but
also act as symbols for people that have personal meaning. For example a big fancy house can act as a
status symbol, letting people know that you are wealthy and successful. A police officer’s badge is just a piece of
medal attached to his uniform; it’s what it represents that holds the
meaning. The same concepts can be seen
in the golf industry as well. A golfer
with high end clubs shows people that he takes his game seriously, and is
willing to spend big money to keep his game going strong. Similarly a golfer that is dressed nicely and
“looks” like a professional golfer gives people the impression that you are
probably a good player, even if they have never seen you swing a club
before.
Much
like the equipment and apparel associated with golf carries symbols and
meanings, simply playing golf can act as a status symbol. We’ve all heard the jokes about rich old men
smoking cigars and playing golf all weekend.
Society has molded golf into a symbol, so people automatically associate
golf with wealth and high social standing.
Many events have helped to shape this idea over the years, such as golf
courses and country clubs only letting certain “types” of people in or only
people who are well dressed. This
stereotype has started to fade in recent years, however, due to measures being
put in place to make golf more accessible to all Americans, not just the
wealthy. As interest in golf continues
to rise and more people begin to play, this status symbol that has developed
over the years will begin to disappear.
If this trend continues a new golf status symbol may begin to appear;
golf is America’s game.
Rituals
Just
as there are symbols and images in the game of golf, there are also rituals,
both in playing the game and from a consumer standpoint. Throughout our daily lives people
participate, usually unknowingly, in rituals and ritualized behavior, such as
brushing our teeth or celebrating our friend’s birthday. These rituals help to unite us as a society
and give us a sense of belonging. Just
like brushing our teeth, golfers go through an assortment of physical and
mental rituals every time they tee it up.
Players will often stand back and envision what they want the ball to
do, or will perform a specific and repeatable set of actions before hitting the
ball. Players will also bend down to
look at their putts when they get on the green and imagine the break and the
line they want to start the ball on. Some
players have to wear two gloves at all times, some must have exactly seven tees
in their pocket, or two extra balls in their front left zipper pocket. All of these routines, or rituals, are
performed before each shot or putt. If
the routine isn’t followed to the letter oftentimes the player will feel out of
sorts or will begin to have negative thoughts about the upcoming shot.
Other
rituals seen in the golf industry are observed from the consumer side of
things. Some groups will play the same
course, on the same day of the week, at the same times every week. Another example is a charity golf event being
played at the same course every year. Consumers
perform these rituals because it has been engrained in them and helps them fell
like a part of the community. When
marketing to this group it’s important to observe these rituals and determine
how you can best help your target perform that ritual. This is a way to gain the trust of your
target audience. If they see you’re
there to help them perform their beloved rituals then your product or service
can become a part of that ritual.
Levels of Involvement
Consumer
buying decisions are usually either made quickly without much thought or very
carefully and painstakingly, pouring over product details and customer
reviews. These are known as consumer
levels of involvement and are important factors for marketers to consider
(Hawkins, 2011). Some products we
purchase every day with little or no thought, such as candy or a drink, but
then there are other products that we take the time to learn about. These are high involvement products and are
typically expensive items or those that aren’t purchased on a daily basis, such
as a computer or a new car. The
digitization of world marketplaces has turned more products into high
involvement items, giving consumers the ability to weigh their options and
compare brands. These high involvement
products are a marketer’s dream (Hawkins, 2011). In the high involvement category there is
also enduring involvement and deep involvement.
For many of us there are
products that we take pleasure in consuming or using. We can’t wait for the next time we’re able to
use the product and time is spent learning about and engaging in the
product. This is known as enduring
involvement. Still yet there is deep
involvement, which is the extreme form of enduring involvement, in which case
the consumer engages in almost frantic consumption of the product. The consumer thinks about this product
constantly and spends every chance they can with the product or consuming the
product.
The products consumers buy in
the golf industry are all high involvement products and services, with many
relationships showing enduring involvement qualities and some teetering on deep
involvement. Golf clubs, balls, and
apparel all vary widely in terms of price and availability, but it’s safe to
say that none of these are small or easy purchases. Prices are almost always compared between
stores and customer reviews are often read extensively. Many golf consumers go beyond the typical
high involvement behaviors however and begin to show enduring and deep
involvement qualities. Golfers who take
their game seriously often fantasize about their next round or previous rounds
that may have had a better than expected outcome. Swing paths are scrutinized and ball
trajectory is analyzed. Every bit of
available free time is spent on the golf course or attempting to perfect their
game. This driving desire to be
encompassed in the game at all times shows the high levels of involvement that
are seen in the game of golf.
Cognitive Dissonance
One trait that consumers must be
wary of when making high involvement purchases is cognitive dissonance. Cognitive dissonance is a human motivation
theory that explains the guilt or discomfort that’s felt when a person holds
conflicting beliefs. Sweeney, Hausknecht
and Soutar (2000) observed that dissonance includes both cognitive aspects, as
the title “cognitive dissonance‟ implies, as well as an emotional dimension. For consumers this occurs after a purchase
when the expected outcome is greater than the actual outcome. After spending large amounts of money on new
golf equipment or apparel, which doesn’t improve your game or live up to
expectations, then a sense of guilt or remorse is felt.
There are several steps marketers
can take to alleviate this dreadful feeling.
To begin with marketers shouldn’t over-promise benefits when
communicating with consumers. This
instills high expectations in the consumer and when the outcome isn’t what is
expected, dissonance sets in. Instead of
over-promising the product marketers should over-deliver. The company should have open lines of
communications with customers to address any concerns they may have. This will help assure that the company stands
behind their product, which will then reduce the dissonance felt (Gottdiener
2000). Dissonance often drives consumers
to conduct post-purchase information searches to reduce the negative feelings
after a large purchase. Knowing that
they will actively avoid information that will further their dissonance,
marketers should develop ads specifically for this situation. This will not only give previous customers
confidence, but will help attract new customers as well.
Extended Self
Often
times we envision products that we love as parts of ourselves. This theory of extended self can be seen at
work constantly on the golf course. When
we are able to exercise control over the clubs and make the ball go where we
want, the club becomes just like an arm or a leg; a part of the body that can
be controlled and manipulated at will. This
feeling that the product is a part of one’s self builds brand loyalty and gets
consumers talking. The more golfers that
are using your brand and are able to gain the feeling of extended self the
better your brand image will be and the more repeat customers you will have. To take advantage of this phenomenon
marketers should listen to their customers and pay attention to what they like
and don’t like. The more comfortable the
customer is with the product the sooner and stronger this feeling of extended
self will be.
Social Influence
The
social aspect of golf can’t be overlooked when making marketing decisions. Golf
is a game that is played, by the average consumer, in groups of three or more
with friends, family, and work colleagues.
These consumers spend a large amount of time not only reading about and
interacting with golf products, but talking to their friends about these
products. Word-of-mouth advertising has
a large impact in the golf community. If
one person finds a product that they like or a brand that they are loyal to
they’ll let everyone else know about it.
Similarly if they discover a product that doesn’t meet their
expectations they’ll let people know about that as well.
With
recent advances in technology and the explosion of apps and social media golf
is easier to stay connected to then ever.
It only takes a couple clicks of the mouse to book a round of golf, and
while you are on the course you can now keep track of your round and even see
distances to the hole. While this
technology has tremendously improved the experience of playing golf, it has
also made it easier to review and purchase products online. Consumers also have the ability to “like” the
pages or websites of their favorite golf courses and receive coupons or other
special benefits. The ability to stay
connected to customers has helped golf courses adapt to the changing times and
capture the attention of more people.
Segmentation and Target Identification
Identifying
the target audience is among the first steps when compiling a marketing
strategy. Knowing who your customers are
and how you can reach them is crucial to adapt to changing times and stay
successful (Pringle, 2014). The best
way to reach this somewhat older audience is through direct mail and catalogs,
although the Golf Channel has recently gained a lot of popularity and is
currently being exploited to reach consumers.
Some of the basic demographics of the golf community include:
29 million total U.S.
golfers
Average age: 46
·
77.5% are male
·
50% are white collar
workers
·
67% are college
educated
·
90% use the Internet
regularly
·
Average household
income is $95,000
Ethical Issues
Ethical
issues are prevalent in all aspects of human life. All companies and people should attempt to
act in an ethical manner at all times.
If your brand is seen as an ethical brand the more loyal your customers
will be. These ethical actions and decisions
should be practiced throughout all business transactions, and meet the needs of
not only the customer, but the supplier, retailers, and employees as well (Best
& Hawkins 2011). Practicing
unethical behaviors like deceptive marketing or price wars can be negatively
impact a company’s image and business relationships.
Companies
marketing to consumers in the golf industry should be honest and upfront with
their customers. They should tell
customers about the positive aspects of their products as well as possible
negative aspects. While this may seem
contradictory at first, if you’re honest with customers you will be able to
serve them better and build stronger relationships. This honesty is especially important in the
golf world; golf is a game built around honesty and sportsmanship.
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