Understanding Customer Loyalty Through System Dynamics:the Case Of A Public Sports Service In Spain

摘要

Purpose - The aim of this paper is to propose a model for understanding a complex managementrnissue - the customer loyalty in a public sports service.rnDesign/methodology/approach - Customer loyalty is discussed through the methodology ofrnsystem dynamics. The proposed model considers the dynamic, non-linear, asymmetric, and reciprocalrnrelationships between its elements, and permits the analysis of the evolution of the system underrnhypothesized conditions.rnFindings - The model reproduces historical data of abandonment and consumers' attitude towardrnthe service (ATS). The achieved simulations showed how the future entry of new competitors canrnseverely threaten public service performance. Furthermore, it was also found that the consumers' ATSrnwas not a very good predictor of the consumers' behavior.rnResearch limitations/implications - System dynamics methodology can also be applied tornunderstand the loyalty in the remaining services offered by the public institution. Other services, suchrnas fitness, aerobics, martial arts, can be analyzed by considering their respective different competitivernenvironments.rnPractical implications - The new competitive environment can dramatically affect the number ofrnconsumers per year if a public institution does not differentiate its service. In addition, the entry of newrncompetitors will affect the evolution of the system, as the customer satisfaction rates will be modified.rnOriginality/value - Understanding customer loyalty is one of the most important concerns forrnacademics and practitioners in the areas of management and marketing. The system dynamicsrnapproach is an under-utilized methodology in the field of sports management, which overcomesrnsimplistic linear approaches. The paper shows how system dynamics can provide attractive insightsrninto the field of sports management.