An Investigation into Relationships among Constructs of Service Quality, Customer Satisfaction and Repurchase Intention in Korean Private Golf Courses

This study was designed to investigate the relationships among the constructs of service quality, customer satisfaction, and repurchase intention in Korean private golf courses. The regression model regarding five service quality factors and customer satisfaction indicated statistical significance (F (5, 428) = 121.06, p = . 00), with 58% of customer satisfaction explained by the service quality factors. The regression model for service quality and repurchase intention was statistically significant (F (5, 428) = 37.27, p =. 00), with 29% of repurchase intention explained by the service quality factors. The simple regression model for customer satisfaction and repurchase intention found significant interactions (R2 = .517) among the respondents. An Investigation into Relationships among Constructs of Service Quality, Customer Satisfaction, and Repurchase Intention in Korean Private Golf Courses The golf industry is continually developing and expanding in many countries to satisfy the demands from sport consumers. The sporting goods manufacturing industry and the type and number of organizations offering services in sport and recreation have grown dramatically (Beck, 2005). Over the past decade, in the field of business and sport management, the importance of services has obtained a substantial amount of attention by many managers and academic scholars. This realization is reflected in the increasing number of publications devoted to such topics as customer satisfaction, service quality, customer service, and service marketing and the number of companies that have reemphasized their relationship with the customer (Beck, 2005; Cho, Lee, & Chon, 2004; Choi, 2001; Cronin & Taylor, 1992; Karatepe & Avci, 2002; Patterson & Spreng, 1997; Theodorakis, Kambitsis, Laios, & Koustelios, 2001). There has been a significant change in the size of the Korean golf industry over the past decade. This may be a result of more available leisure time, an increase in personal income and/or a greater health consciousness (Lee, 2003). Traditionally, Korean employees have worked six days each week, including Saturday. However, recent political policies influenced the implementation of a five-day work week. As a result, the medium income working class has more leisure time. Most scholars in the sport and leisure industry anticipate that this may increase interest in the sport and leisure industry in South Korea (Beck, 2005; Cho et al., 2004; Lee, 2003). Due to many Korean golfers’ success on the world stage, the Korean golf industry has experienced rapid growth and the image of golf as a game for the high social class is slowly being replaced by the image of a public sport enjoyed by various market segments (Cho et al., 2004). According to the annual report of Korean Golf Business Association (KGBA) for the year of 2003, there were 68 new private and public golf courses under construction, adding to the 264 golf courses already present in Korea. The number of golf courses in 2002 rose by 71.6 % when compared to 1998 when Korea was experiencing a severe financial crisis that required financial assistance from the International Monetary Fund (IMF). As an indicator of the rapid growth of the Korean sport industry, the KGBA also reported that over 11 million golfers visited golf courses in 2003, and the number had risen by 66.7%, compared to 1995. The number of visitors to golf courses was the largest number of participants in any single sport (Cho et al., 2004). The core products provided at the Korean private golf courses can be regarded as services when considering the explanation – offered by Berry and Parasuraman (1991) – for distinguishing a service from a tangible product. They emphasized that, “if the core benefit source is more intangible than tangible, it would be considered a service” (p. 9). In accordance with their description, private golf courses in Korea are involved in the production of services rather than that of goods. In this regard, it is necessary to cast such questions as, “how is service quality linked to the success of businesses? ” and “why has service quality gained such a great deal of attention by managers and academic scholars? ” Customer retention has evolved as one response to such questions. With the concept of customer retention in mind, Anderson and Fornell (1994) mentioned that, “if customers are the ultimate source of all revenue, then efficiency in acquiring and retaining customers is the key to long-term financial health” (p. 241). According to Choi (2001), consumers are no longer willing to compromise quality for lower cost because the appealing alternatives are affordable due to high levels of income. Thus, managers involved in the Korean golf industry must have a clear understanding of the nature of customer satisfaction, service quality, customer value, and how these factors interact. Moreover, an investigation of the relationship between service quality and consumer satisfaction appears to be warranted for the administrators and managers of the Korean golf industry. In this regard, the study is conducted on the basis of three research questions. First, what differences exist in perceptions of service quality related to golfers’ education, age, gender, income, years of playing golf, and the number of rounds played per year? Second, what are the relationships among the constructs of service quality, customer satisfaction, and repurchase intention? Third, what influence do the five service quality factors have on constructs of customer satisfaction and repurchase intention? Theoretical Background The study of service quality in the field of marketing has evolved into important parameters that need to be understood in order to satisfy the needs and wants of customers (Beck, 2005; Choi, 2001; Choi & Kim, 2005; Kim, Shin & Song, 2005; An Investigation into Relationships among Constructs of Service Quality, Customer Satisfaction, and Repurchase Intention in Korean Private Golf Courses