GOLF IS FOR EVERYONE:

COUNTERACTING THE DECLINE OF THE RECREATIONAL GOLF INDUSTRY

A THESIS

Presented to the Department of Kinesiology

Graduate Program in Sport Management

California State University, Long Beach

In Partial Fulfillment

of the Requirements for the Degree

Master of Arts in Kinesiology: Sport Management

By Jonathan K. Anderson

B.S., 2013, Brigham Young University, Hawaii

January 2015

ii

TABLE OF CONTENTS

Page

LIST OF TABLES ....................................................................................................... iv

LIST OF FIGURES ..................................................................................................... v

ABSTRACT………………………………………………………………………..... vi

CHAPTER

1. INTRODUCTION ............................................................................................ 1

Significance................................................................................................ 5

Problem Statement ..................................................................................... 6

Delimitations .............................................................................................. 6

Limitations ................................................................................................. 6

Assumptions ............................................................................................... 7

Definition of Terms.................................................................................... 7

2. REVIEW OF LITERATURE ........................................................................... 8

Breaking the Status Quo ............................................................................ 10

Breaking the Cost Barrier .......................................................................... 14

Peak-Load Pricing ...................................................................................... 14

Equipment Costs ........................................................................................ 16

Retail Woes ................................................................................................ 17

Capitalizing on a New Business Segment ................................................. 18

Change Perception to Appeal to a Broader Audience ............................... 21

Lowering Cost ............................................................................................ 23

Capitalizing on Youth as a Market Segment ............................................. 24

3. METHODS ....................................................................................................... 26

Research Design......................................................................................... 26

Participants ................................................................................................. 26

Sampling Procedure ................................................................................... 27

Instrumentation .......................................................................................... 27

Procedure ................................................................................................... 27

Data Analysis ............................................................................................. 28

4. RESULTS.. ....................................................................................................... 29

Demographics ............................................................................................ 29

Demographic Variable Analysis ................................................................ 31

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CHAPTER Page

Golfer vs. Non-Golfer Analysis ................................................................. 33

Golfer Responses ....................................................................................... 36

Non-Golfer Responses ............................................................................... 38

5. DISCUSSION ................................................................................................... 39

APPENDICES…. ........................................................................................................ 46

A. SURVEY INSTRUMENT ............................................................................... 47

B. END PRODUCT – GOLF IS FOR EVERYONE MARKETING PLAN ....... 54

C. THREE YEAR FINANCIALS FOR END PRODUCT ................................... 62

REFERENCES ............................................................................................................ 66

iv

LIST OF TABLES

TABLE Page

1. Respondents Based on Sex ............................................................................... 29

2. Frequency of Golf vs. Age ................................................................................ 32

3. Golfer Status vs. Current Pricing ...................................................................... 34

4. Golfer Status vs. Participation .......................................................................... 35

v

LIST OF FIGURES

FIGURE Page

1. Respondent age ................................................................................................. 30

2. Respondent ethnic background ......................................................................... 30

3. Gender vs. golfer status..................................................................................... 31

4. Golfer status vs. ethnicity ................................................................................. 32

5. Preventative factors ........................................................................................... 35

6. Frequency of golfers playing golf ..................................................................... 36

7. Likelihood of participation among golfers ....................................................... 37

8. Likelihood of participation among non-golfers ................................................ 38

vi

ABSRACT:

According to data presented in past research and in current studies, the

recreational golf industry is at its lowest point in a decade and continues to rapidly

decline. Based on previous statistics, the United States has lost upwards of 400,000

consumers each year in 2012 and 2013 and only accounted for 462 million rounds of golf

in 2013, the lowest mark since 1995. This research explores the current state of the

recreational golf industry based on an industry survey and discusses the opportunity to

create programming that will make golf more welcoming for all.

After research of the industry, it was found that cost is the largest preventative

factor that has barred both current consumers and newcomers into the industry.

Preventative measures such as the Southern California Golf Association’s (SCGA) Youth

on Course program on the youth level; however, nothing has been done on the adult

level. Golf has continued to target the game to youth and the older generation, excluding

the working professional ages 18-55 who often are the consumers who most consume a

recreational sport.

This research pulls upon peer reviewed journals, industry Professional Golf

Association interviews and magazines coupled with a quantitative survey from

individuals in the identified target age range in order to pinpoint the leading causes for

the decline in the industry. At the conclusion of the research, it was found that between

all of the different demographical and categorical categories, cost was the largest

vii

underlying theme that has led to the decline of the recreational golf industry. This data

will be used to create Golf is for Everyone; a marketing plan for the Southern California

Golf Association to boost membership in the 18-55 age range, making golf a more

accessible game for all.

Keywords: counteract, perception, cost, recreational, barrier, demographical, preventative

1

CHAPTER 1

INTRODUCTION

The purpose of this study was to describe the perceptions of golfers and non-

golfers regarding the current state of the recreational golf industry in order to create

programming that would make golf more welcoming for all. Over the past decade,

recreational golf has become a failing industry all in its own. In 2013, the United States

accounted for only 462 million rounds of golf; its lowest number since 1995. Each of the

past three years, the industry has lost 120,000 golfers with a fraction of that number

entering as new consumers. Programs such as the Youth on Course program from the

Southern California Golf Association (SCGA) have been identified and implemented to

try and bring more golfers to the game; however, the industry has not come out of its

sliding state. Analysis of the current state of the recreational golf industry has provided

insight into the factors leading the decline and has shed light on programming to be

created to counteract the trend.

The current perception of the industry has caused many to think golf is an old

man’s game. This opinion has been created over time with the cost of equipment and tee

times, the time it takes to play a round of golf, and the stigma of the game being a non-

active sport. The creation of the perception has been aided with the lengthening of

courses and the emergence of the popularity of golf carts on American golf courses. This

mental perception not only bars individuals from entering an industry that was once

welcoming to all, it pushes out some of the most loyal customers the industry has.

Because of the downward trend that this perception has caused, the number of people

entering the industry is at its lowest point in a decade, aiding the decline in the industry.

2

Recreational golf has continued to become more expensive for the end consumer.

Unlike other popular sports, golf requires equipment that must be replenished on a round

by round basis. Likewise, the initial start-up cost of golf clubs has continued to rise with a

new set of quality clubs averaging around six hundred dollars. It is very difficult for one

to spend the kind of money that golf entitles; therefore cost is a large barrier to entry for

many individuals into the recreational golf industry.

Because of the current perception that has changed the industry’s thinking of the

recreational golf industry, golf courses and manufacturers have been constantly losing out

on sales to a new market. The aforementioned industry analysis studies have thoroughly

studied the effect that cost has on the industry. Golf equipment prices continue to rise

with the push to be the latest and greatest in technological advances which is a larger

factor for many to enter into the industry. Likewise, the cost to simply step onto the first

tee of a golf course has risen exponentially due to golf’s peak load pricing model.

Different golf associations have taken steps to put together programs to lessen the cost to

end consumers; however, a national initiative has not yet been put in place to counteract

the barrier. These programs, according to the sources of the local organizations that have

put them in place, have not only aided their bottom line; however it opened the game up

to many who have never been exposed to the game in the first place.

The golf industry’s peak-load pricing model is a model which prices heavier when

demand time periods are at a much higher rate than lower demand periods. While this

peak-load pricing model brings avid golfers back onto the course at a continual rate, it

pushes new golfers away from entering the industry. The difficult situation with the peak-

load pricing model is that to bring more golfers into the industry, a completely different

3

pricing structure is necessary. Limehouse, Maloney, and Rotthoff (2012) performed an

industry analysis taking into consideration the current peak-load pricing structure and

looking at green fees as a barrier for many to enter the golf industry. Their conclusions

were an avid representation that the recreational golf industry is inclusive to select people

who can take the time and money to play a round of golf at off peak times.

Likewise, golf manufacturers are continually pricing new golfers out of wanting

to start to play the game. It is becoming more aware among industry professionals that

the cost to become what is generally considered a good golfer is continuing to rise.

Heerwagen (1996) studied the prices of golf equipment over the past decade and came to

the conclusion that newfound advancements in technology have made the game even

more costly to play. In the equipment facet of the recreational golf industry, retailers are

continuing to add technologies and advancements to their equipment that has done

nothing more than raise the price it costs to add those golf clubs into a golf bag. The data

analysis that was presented with Heerwagen’s findings were consistent in representing

the fact that costlier equipment costs are pushing people away from entering into the

game of recreational golf.

Because of the continued raise in manufacture’s cost and the quick turnover of

new products, the recreational golf retail division is also starting to fail. According to

Stickel (2007) the recreational golf industry’s retail division is hitting all-time lows due

to the decrease in play among new golfers. The study outlines the retail divisions of

recreational golf retailers and their IPO’s outlining a steady decline over the past decade.

The largest example supporting Stickel’s research is the recent case of Dick’s Sporting

Goods; the largest golf retailer in the world. For a long time Dick’s Sporting Goods

4

dominated the retail golf space as they expanded rapidly to accommodate the spike in

demand that came about a decade ago. Unfortunately for Dick’s, the industry slid. Smith

and Gayle (2004) researched situations with Dick’s Sporting Goods and found that

retailers and courses alike tried to expand too quickly as the industry boomed and after

the fall, the industry never caught up. Changing the pricing models of the recreational

golf industry while also creating trade in programs to fix the retail woes is one of the

largest factors to bring more players into the industry.

With golf being a sport that is playable for people of all ages, the emergence of

youth sport training facilities as a moneymaker needs to be a welcomed sight for golf

industry professionals. All around the world there have been dedicated youth training

centers popping up that have turned youth sports from a recreational activity dependent

on volunteer coaches and minimally paid referees to a multimillion dollar per year

business model. When looking at the current situation of the recreational golf industry,

the lack of marketing towards youth is apparent. One of the current most profitable sports

market segments, has added to the decline of the recreational golf industry.

Jozwiak (2013) studied how youth sports have changed over the past ten years

and how it has turned from something vicarious parents entered their kids into for fun

into a multimillion dollar per year business model. This article specifically points out

how the entrance of youth into the recreational golf industry does more than just bring in

an immediate revenue stream; however, it creates a lifelong customer whose market

presences will not disseminate over a period of time. When the older generation is

brought onto the course, there is naturally a shortened time period that they will have in

their customer life cycle bringing revenue to both individual courses and retailers. Youth

5

as a market segment however have a much more elongated customer life cycle that

presents itself as a future opportunity down the road.

My research will focus on the previously mentioned factors leading to the steady

decline of recreational golf. This research differs from research previously done on the

recreational golf industry because it will not only survey to recognize the issues with the

current industry; however, it will also provide solutions to the glaring problems affecting

the profitability of the industry. Problems that the current state of the recreational golf

industry is facing have been identified, but no identifications have provided solutions that

can be sustained on a national level. Also, this research looks at solutions for long-term

profitability. By creating long-term programs and initiatives that address the problems

found in research, the industry will be in a better state going forward. This research will

lay a roadmap for industry professionals to counteract the three factors that are most

commonly attributed to the current decline of the recreational golf industry and put

programs in place to bring back the profitability that the industry beckoned a decade ago.

Also, because change is the only constant in the sports industry, this research and the

programs that it creates as a result of the finding lays a roadmap for future managers in

the recreational golf industry to follow as different aspects of the game lead to changes

both positive and negative in their respective industry.

Significance

The Golf is for Everyone initiative plays a large role in bringing more people to

recreational golf as a sport. Studies have found that the recreational golf industry is at its

lowest point in a decade and that there is no clear indication that it will turn around

6

anytime soon. According to industry experts, the factors that have led to the decline of

the recreational golf industry could have been easily been prevented. The study and data

that I have collected will create programming that will ensure that the two biggest factors

that led to the decline, cost and lack of a welcoming environment will not be overlooked

again. With the assistance of the Golf is for Everyone, recreational golf will be on its way

to a full recovery.

Problem Statement

The purpose of this study was to describe the perceptions of golfers and non-

golfers regarding the current state of the recreational golf industry in order to create

programming that would make golf more welcoming for all.

Delimitations

This study was delimited to:

1. Recreational golfers and non-golfers at least 18 years of age or older.

2. Members of golf country clubs 18 years of age or older.

Limitations

This study included the following limitations:

1. Non-probability sampling was used with no control for non-response error; hence,

the results cannot be generalized beyond the data sample.

2. The data separated golfers from non-golfers: the results may have been different

had the two groups been asked the same questions

7

Assumptions

1. It was assumed that the participants understood the instructions and were honest

in responding to the questionnaire items.

2. It was assumed that the Anderson scale of attitudes was a valid measure of both

golfer and non-golfer perceptions.

Definition of Terms

Perceptions: A way of regarding, understanding, or interpreting something; within the

context of this study, perceptions were measured as responses on the Anderson scale of

golfer and non-golfer perceptions.

8

CHAPTER 2

REVIEW OF LITERATURE

The purpose of this study was to describe the perceptions of golfers and non-

golfers regarding the current state of the recreational golf industry in order to create

programming that would make golf more welcoming for all. While professional golfers

are being marketed and iconized much more with the likes of Tiger Woods, Phil

Mickelson, and Rory McIlroy, golf for recreational golfers has become a failing industry

all in its own. Preventative measures such as the Youth on Course program from the

Southern California Golf Association (SCGA) have been identified and put into place to

try and counteract the decline; however, the industry has not come out of its sliding state.

Analysis of the current state of the recreational golf industry has identified three factors

as being preventative factors for the industry.

The current perception of the industry has caused many to think golf is an old

man’s game. This opinion has been created over time with specific course dress codes,

the cost of equipment and tee times, and the time it takes to play a round of golf. The

creation of the perception has been aided with the lengthening of courses and the

emergence of the popularity of golf carts on American golf courses.

Not only does the mental perception of golf as an old man’s game prevent people

from entering the industry; there have been recurring physical inconsistences that do not

9

market well to the market segments that the industry is lacking. Local golf

associations have taken preventative measures in including all to the sport of golf but

nothing of value has been done on a national level to push the marketing of golf as

anything else but an old man’s game.

The aforementioned industry analysis studies have thoroughly studied the effect

that cost has on the industry. It is important to look at the financial aspect of the industry

through the eyes of the consumers. Golf equipment prices continue to rise with the push

to be the latest and greatest in technological advances which is a larger factor for many to

enter into the industry. Likewise, the cost to simply step onto the first tee of a golf course

has risen exponentially due to golf’s peak load pricing model. Different golf associations

have taken steps to put together programs to lessen the cost to end consumers; however, a

national initiative has not yet been put in place to counteract the barrier. These programs,

according to the sources of the local organizations that have put them in place, have not

only aided their bottom line; however it opened the game up to many who have never

been exposed to the game in the first place.

With golf being a sport that is playable for people of all ages, the emergence of

youth sport training facilities as a moneymaker needs to be a welcomed sight for golf

industry professionals. All around the world there have been dedicated youth training

centers popping up that have turned youth sports from a recreational activity dependent

on volunteer coaches and minimally paid referees to a multimillion dollar per year

business model. When looking at the current situation of the recreational golf industry,

the lack of marketing towards youth is apparent. One of the current most profitable sports

market segments, has added to the decline of the recreational golf industry.

10

My research will focus on all three of the previously mentioned factors leading to

the steady decline of recreational golf. This research differs from research previously

done on the recreational golf industry because it will not only survey to recognize the

issues with the current industry; however, it will also provide solutions to the glaring

problems affecting the profitability of the industry. Problems that the current state of the

recreational golf industry is facing have been identified, but no identifications have

provided solutions that can be sustained on a national level. Also, this research looks at

solutions for long-term profitability. By creating long-term programs and initiatives that

address the problems found in research, the industry will be in a better state going

forward. This research will lay a roadmap for industry professionals to counteract the

three factors that are most commonly attributed to the current decline of the recreational

golf industry and put programs in place to bring back the profitability that the industry

beckoned a decade ago.

Breaking the Status Quo

The general sports fan finds has a perception of the recreational golf industry that

pins recreational golf as an old man’s game. As this has been the stereotype for years, the

industry is losing out on the marketability it gains from the youth on the PGA tour. As

described by James (2011), the current state of the golf industry pushes away the teenage

and young adult demographic. James’ research verifies that golf has become a much less

active sport in America and verifies that not only is golf itself becoming much less active,

the emergence of the golf cart and its role on lengthening courses is taking away real

estate that can be developed for other fitness sport related activities.

11

According to Funk, Beaton, and Pritchard (2011), there is a stage-based

development of physically active leisure in which newcomers to any sport look for

certain aspects while trying to feel associated with the sport. Golf does not fit into the

mold that the stage-based development process relates to, posing a problem in the

marketing of golf to the younger generation. In the stage-based development process, the

research indicates that the younger generations looking at recreational golf were grouped

into four different categories, awareness, attraction, attachment and allegiance. From

these four stages, the category of physical active leisure in picking up recreational golf

was studied and quantified to look at what youth are searching for in moving into a new

sport. The issue that was populated is that older generations look for much different

characteristics in recreational leisure than younger generations. To this point, the

recreational golf industry has solely focused on the characteristics which attract the older

crowd. Based upon the research, even though the industry is tagged as being an older

man’s game and is losing out on the youth demographic, their marketing and innovations

in the industry continue to cater to that audience.

Not only is there a lack of physicality that markets to the younger population,

there are other excluding factors that are prevalent in today’s recreational golf industry.

According to research by Law and Hall (2009), there is a motivational context into

people first venturing into the game of golf. Law and Hall found a strong; positive

correlation that linked skill level, age, and motivation with the entrance to the

recreational golf industry. The perception analysis found that golf is one of the least

attractive sports to the younger generation because of the motivational and performance

contexts that go along with the game. Law and Hall found that a motivational factor for

12

youth picking up a sport is their potential for success, which in golf is relatively low. Golf

is a game of practice and technique, not one of running the fastest or jumping the highest

which a lot of times detracts a large group of the population that would be willing to give

the sport a try.

Law and Hall’s statistical analysis of the emotional determent of the game was a

large contributing factor. One of the greatest emotions, embarrassment was a profound

part of the research. The study showed that the fear of embarrassment hinders youth from

partaking in the game of golf. It has been found that it is much easier for someone that is

older to walk up to a tee box and hit a bad drive than it is for a younger person, due to the

emotional level of a younger generation. Often times on the golf course, the pro shop

announces your first tee off and individuals are placed with strangers, forcing players to

play a round of golf with people they may not be comfortable with. After Law and Hall’s

study of motivation to play golf, it was found that the minimal chance for immediate

success on a golf course prevents many from stepping onto the tee box in the first place.

The older generation however lends itself very well to the game of golf.

Sachau, Simmering, Ryan, and Adler (2013) found it a point to study the goal

versus ego orientation in the recreational golf industry to see what different age groups

are seeking as the motivational factors while playing golf. Their findings discovered that

in the older population, goal orientation is the main driving factor behind playing golf. As

people age, they understand that typically their physical ability decreases and they try to

play against themselves hence the higher handicaps and more frequent play.

13

Youth, however were found to have a mix between goal orientation and ego

orientation in their motivation for playing golf. While youth set a similar set of goals to

the older generation, their mentality is more of an “us versus them” mentality. It was

found that youth focus more on their individual strokes than they do on the overall score.

Likewise, it was found that youth measure themselves against their peers they are playing

with and on what society describes as being a good golfer. For this reason, many youth

are deterred from playing the game because it is not a game that anyone has any real

advantage over the other. The game of golf is known as the most frustrating game in the

world which coupled with the ego orientation of the younger generation, dissuades the

younger generation that did not grow up playing the game. This societal bridge united

with embarrassment factors of today’s youth has prevented the PGA from breaking the

social perception that recreational golf is an old man’s game.

The aspect of time management is another factor that lends itself to the perception

of recreational golf as an old man’s game. The average round of golf on today’s courses

takes approximately 5 hours to finish. Analysis of the top golf courses around the world

along with new construction on golf courses shows that the amount of time it is going to

take to play a round of golf is going to continue to increase with the widening and

lengthening of current and new golf courses. Just like an assembly line on the factory

floor, Riccio (2012) found that overcrowding and congestion on a golf course lowers the

throughput time that would provide for a more successful golf industry.

When looking at the recreational golf industry and analyzing the time factor and

relating it to the current perception of the industry, the problem becomes clear. Course

designers around the world are doing nothing more than lengthening courses and making

14

them harder to play; thereby increasing the time it takes to play a round of golf. The time

factor has an immediate impact on the people’s perception of golf as an old man’s game.

Whether it be a Wednesday afternoon or a Sunday morning, it is very common that a

retired individual will have more leisure time than someone in their young adulthood or

even in their mid-life stage. With the time it takes to play a round of golf, it is continually

lending itself to their current targeted market; the older generation.

Breaking the Cost Barrier

As it is currently known, recreational golf is one of the most expensive sports to

pick up and start playing without the assistance from scholarship or donations. Unlike

basketball, football and other popular sports, golf requires equipment that must be

replenished on a round by round basis. Likewise, the initial start-up cost of golf clubs has

continued to rise with a new set of quality clubs averaging around eight hundred dollars.

It is very difficult for one to fork over the kind of money that golf entitles; therefore cost

is a huge barrier of entry for many individuals into the recreational golf industry.

Peak-Load Pricing

The golf industry runs on a pricing model which prices heavier demand time

periods at a much higher rate than lower demand periods. While this peak-load pricing

model brings avid golfers back onto the course at a continual rate, it pushes new golfers

away from entering the industry. It is a known fact in the golf industry that golf on a

weekday afternoon is at a much lower rate than golf on a weekend morning. The difficult

situation with the peak-load pricing model is that to bring more golfers into the industry,

a completely different pricing structure is necessary. Limehouse, Maloney, and Rotthoff

15

(2012) performed an industry analysis taking into consideration the current peak-load

pricing structure and looking at green fees as a barrier for many to enter the golf industry.

Their conclusions were an avid representation that the recreational golf industry is

inclusive to select people who can take the time and money to play a round of golf at off

peak times.

The peak-load pricing research surveyed current golfers and found that the

industry is catering to the older population (Limehouse, Maloney, and Rotthoff, 2012).

The younger working class does not have the five hour time allotment to play golf during

the week, whereas the older retirees have all the time in the world and actually prefer to

play during the week when the pace is slower and there is less waiting. Similarly, the

working class who do not have the time allotment available to play during the week are

the population that would benefit much more from a price break than established retirees

who can afford to pay a bit more for recreational golf. Statistics presented in the above

research found that people who have the extra income to play on the weekend during

peak price times have the opportunity to play during the week at reduced rates whereas

the people who have to work all week and cannot afford the peak pricing are stuck with

weekend premiums. Instead of being a welcoming environment to bring in new golfers

positively impacting the recreational golf industry’s bottom line, the peak-load pricing

model has continued to deter new golfers from playing and encourages the older retirees

with extra money to play at a reduced rate.

Shmanske (1998) took the peak-load pricing model and did a research analysis on

forty-eight golf courses in the San Francisco area in hopes of changing the peak-load

pricing model. He took his findings and put them into an economic analysis of the

16

recreational golf industry in the San Francisco area based upon the current pricing model.

Shmanske found the results in his study to overwhelmingly claim that people try to avoid

peak loaded pricing and look for the best deals rather than sticking to a particular course

out of favoritism. There are member courses who have the same users as repeat players;

however, those course are usually higher priced and do not attract the golfers that have

been found needed to counteract the decline of recreational golf worldwide.

Equipment Costs

One of the largest barriers to entry into playing the game of golf is the cost of the

equipment itself. It is extremely difficult for the average working class citizen who is

thinking of picking up the game to go out and spend the average two hundred dollars on a

new driver and hundreds more for a full set of irons. The cost of golf balls for a beginner

learning the game is much higher for an established player as more balls are erratically

hit and lost by a new player. Once you take everything into consideration a person fully

equipped to step onto the first tee for the first time with all new equipment has spent over

one thousand dollars. Craigslist and EBay have helped lessen the blow for new players as

they can buy some of their clubs used; however, as they continue in the game the

equipment cost will continue to rise no matter if the equipment is new or used.

It is becoming more aware among industry professionals that the cost to become

what is generally considered a good golfer is continuing to rise. Heerwagen (1996)

studied the prices of golf equipment over the past decade and came to the conclusion that

newfound advancements in technology have made the game even more costly to play. In

the equipment facet of the recreational golf industry, retailers are continuing to add

17

technologies and advancements to their equipment that has done nothing more than raise

the price it costs to add those golf clubs into a golf bag. The data analysis that was

presented with Heerwagen’s findings were consistent in representing the fact that costlier

equipment costs are pushing people away from entering into the game of recreational

golf.

Retail Woes

Not only is more advancement in technology being added into golf clubs to make

them swing smoother, easier, and hit the ball further, retailers are pushing out new

products now faster than ever. While retailers are trying to capitalize on having the latest

and greatest, they are ultimately pushing people away from entering the game and buying

clubs altogether. According to Stickel (2007) the recreational golf industry’s retail

division is hitting all-time lows due to the decrease in play among new golfers. The study

outlines the retail divisions of recreational golf retailers and their IPO’s outlining a steady

decline over the past decade. The largest example supporting Stickel’s research is the

recent case of Dick’s Sporting Goods; the largest golf retailer in the world. For a long

time Dick’s Sporting Goods dominated the retail golf space as they expanded rapidly to

accommodate the spike in demand that came about a decade ago. Unfortunately for

Dick’s, the industry slid. Smith and Gayle (2004) researched situations with Dick’s

Sporting Goods and found that retailers and courses alike tried to expand too quickly as

the industry boomed and after the fall, the industry never caught up. Manufacturers were

still producing new products every few months to beat each other out that companies

such as Dick’s had to carry; however, they were not moving product off of the shelves.

Dick’s, like many other golf retailers have found that cutbacks are inevitable and after not

18

hitting their performance numbers three quarters in a row. Due to the unfortunate

numbers, Dick’s fired thirty percent of their golf retail division. Over, five hundred of the

industry’s leading golf professionals and fitters were fired due to the rapid expansion and

inflated prices from golf manufacturers.

Covey (n.d.) from My Golf Spy, a leader in golf news, recently released an article

discussing the severity of the cutbacks and who is to blame for the retailer’s collapse.

Yes, Dick’s has taken the responsibility for their failing golf division; however, Covey’s

statistics show the lessened life cycle of golf equipment has been one of the major pitfalls

to the global retailer. With golf manufacturers pushing to have the latest and greatest

equipment, the life cycle of a driver; the most popular club in a golf bag has gone from

1.5 – 2 years now to about six months. Because of the change of life cycle, golf retailers

such as Dick’s are being stuck with excess inventory that they have to then discount and

liquidate to make room for the new models coming out six months later. Retailers such as

Dick’s Sporting Goods have to purchase new equipment in heavy bulk to provide them

with the discount needed to profit off of equipment and as was seen in Dick’s Sporting

Good’s released earnings, it has negatively affected their company in not just profits but

in their employee count as well.

Capitalizing on a New Business Segment

As has been outlined in the research cited above, golf has traditionally catered to

the older population which leaves the industry missing out on one of the most lucrative

industries in sports today; youth sports. The emergence of youth sports as a financial gain

and specific skill training as a booming marketplace has changed the marketing of the

19

major sports in America and to this point, golf has yet to follow suit. The capitalization of

the newly booming youth sports industry and assimilation of youth programs into the

game is widely seen by industry professionals as a gateway to counteract the decline of

the recreational golf industry. Youth development through sport is being pushed so hard

in society right now that it has been turned into one of the most lucrative marketplaces in

the sports industry in total. Weiss, Bolter, Bhalla, and Price (2007) outlined parent

participation in the emergence of youth sport that has been linked to the current financial

capitalization of the industry. Programs that have been put in place for youth

development have become more appealing to parents as it has linked positive

development, life skill learnings, and positive behavioral characteristics with youth sport

development; leading to the increase in parents willing to pay for more expensive youth

programs. Golf’s capitalization on that current success is key for the turnaround of the

recreational golf industry.

Jozwiak (2013) took a look at how youth sports have changed over the past ten

years and how it has turned from something vicarious parents entered their kids into for

fun into a multimillion dollar per year business model. This article specifically points out

how the entrance of youth into the recreational golf industry does more than just bring in

an immediate revenue stream; however, it creates a lifelong customer whose market

presences will not disseminate over a period of time. When the older generation is

brought onto the course, there is naturally a shortened time period that they will have in

their customer life cycle bringing revenue to both individual courses and retailers. Youth

as a market segment however have a much more elongated customer life cycle that

presents itself as a future opportunity down the road.

20

Not only does Jozwiak point out the customer life cycle of a younger consumer

compared to an older one, he also outlines the likelihood of add-on purchases from the

youth to the adult population finding that it is much more likely for someone younger to

partake in lessons, buy range balls, stay for drinks at the course restaurant, etc. The

current push towards parents starting their children almost infancy lends itself greatly to

the research done in this study. When youth are targeted at a young age, parents have a

long term future in mind thinking about scholarships, future career opportunities in sport,

etc. which makes it much more likely for them to purchase lessons and add on purchases

for their children. With dedicated training facilities for youth sports charging a premium

for private lessons, the recreational golf industry has a lot of room for capitalization on

that current business model. Although there are lessons available to the general public,

they are generally not marketed as something that is an option for youth development.

This opportunity is only getting stronger as the youth sports market continues to develop.

Although there is currently a push for youth to start sports at a very young age and

it has been found that the youth sports training model has been a very lucrative industry

with other sports, Law (2013) points out that the golf industry is continuing to push their

marketing tactics and consumer strategies toward the older generation. The author

distinctively identifies golf as a family game which can be played together from a very

young age to adulthood. Law clearly points out that youth in golf is one of the largest

business opportunities of our time that is continually being missed by industry

professionals. The author points towards the lack of marketing of youth accessible

opportunities and the heavy emphasis on newfound, expensive equipment that is

mainstreamed towards the affluent older generation. Youth rental clubs are not wildly

21

available at pro shops at golf courses around the world and golf manufacturers are

constantly releasing new product designed specifically for the use of an adult leaving

youth golf equipment as a backburner.

Coupled with the push for parents to train their children at a young age, Law’s

study also found that parents are willing to provide their children with the equipment

necessary to push them to their limits. Being a family game, youth golf equipment is also

missed out upon as children strive to emulate their parents. Once their parents purchase

new expensive equipment, it is only natural for the children to want to follow suit. There

are very few sports that provide the opportunity for parents to spend five hours with their

children doing something that they both can enjoy. Family involvement may serve as a

strength in recreational golf marketing efforts, and become a predominant key in the

turnaround of the recreational golf industry.

Change Perception to Appeal to a Broader Audience

There is no reason golf needs to be regarded as an old man’s game. Changing the

perception of the recreational golf industry can be as simple as adding programs that

address the problems that youth have with the game. Cousineau (2013) outlined a way to

address the physically active issue, the time issue, and the performance embarrassment

issue that often pushes the younger generation away from entering the industry. His

research studied recreational Canadians who have not golfed before and tried to find what

would bring them out to try golf in the first place. Because courses cannot be shortened in

terms of real estate, adding more tee boxes to golf courses is the next best alternative.

22

The reason that more courses around the world have pushed the use of golf carts

is because the industry continued to push for longer courses during the boom causing

courses to prohibit walking. Adding more tees however shortens time required to play a

round of golf, promotes walking to change golf to a more physically active game, and

typically makes courses easier for lower scores for beginners. Chung-Mi, McLean,

Strigas, and Bodey (2006) added after a study of youth recreational golfers that golf is a

benefit needs game and consumers of a younger generation are looking for achievement,

satisfaction, and well-being, all of which are being addressed with the added tees

program.

Similarly, Pellissier (1994) did a study on restaurant and bars offered at golf

courses nationwide and found that quicker stop snack bars are the best enticement to

bring in players. He found that golf course restaurants around the world were being

frequented much more often from business professionals at lunch time rather than their

golfers who are coming on and off the course. After spending five hours on a round of

golf, the last thing people want to do is sit in a restaurant for a long period of time. Golf

courses taking this into consideration can either add or change their restaurant into a to go

bar style which will promote more eating on the turn, make it easier for carts to bring

food to players on the course. This bar style will also promote more on course alcohol

which is much more appealing to a younger generation which will change golf into a

social gathering rather than an old man’s game.

23

Lowering Cost

Being one of the overwhelming barriers preventing people from picking up golf

for the first time, programs need to be put in place to counteract the rising costs from both

retailers and from courses. The peak-load pricing model that was discussed above is one

of the main contributors to the cost barrier being a part of the issue. To counteract this

and bring more players onto the course, a quantity versus price approach will be taken in

what will be called Golf is for Everyone. Being a member of Golf is for Everyone will be

very common to the current Youth on Course model that the SCGA has found successful.

Players eighteen and older will register for this program for a one hundred dollar yearly

fee and will then be awarded a database of courses around the United States that they can

play at peak hours for ten dollars per person instead of the current prices. Courses can run

this program internally with management’s ability to add and change on the fly

capitalizing on the quantity of golfers on the course and not just the peak-load pricing

model that is currently hurting the recreational golf industry.

With membership to the Golf is for Everyone program, members will receive five

days of complimentary rental clubs and discounted lessons from membership

professionals. This gives the opportunity for people who have not currently played the

game time to not have to provide their own clubs for a short amount of time creating

more of a trial period. Once new users are done with their trial period, the natural

progression will be to continue taking lessons at the discounted rate while going out and

purchasing their own equipment providing a cost buffer for players as they are learning to

play the game. Tee times in the Golf is for Everyone program will be limited during on

peak times and will be more readily available at off peak times to provide golf courses

24

with a full set of tee times every day. Also, the program will provide limited exclusive

opportunities for members to play at tourist destination courses. Correia and Pintassilgo

(2006) outlined a study of golfer’s desires when it comes to tourist golf courses and the

number one concern was price. People were not traveling to tourist destinations for the

sole purpose of golf anymore because of the price discrimination that they found when

they arrived. Adding this into the Golf is for Everyone package however opens up this

opportunity to everyone for a reduced rate.

Capitalizing on Youth as a Market Segment

As the marketplace for youth sports grows, the recreational golf industry has a

better chance to capitalize on a booming industry. There have been localized successful

programs put in place to try and bring more youth onto the course; however, there has

been nothing put in place on a national level. According to Won, Sunhwan, and Kleiber

(2009), golfers choose their courses based upon three main factors: range, round, and cart

fees. With this in mind and coupling it with the success of localized programs, the Youth

on Course program will be brought to a national level to provide the opportunity for

youth to play as much as they want at discounted rates at courses all around the world.

The program will run as it currently is; however, working with the PGA courses

nationwide will be added to the program opening up the industry to the entire world. By

allowing more courses to be accessible, we create a bond with youth and course which

will keep past the eighteen year old deadline when they pay full price for green fees. This

creates another recreational golfer and a lifelong customer to a particular course.

25

In a study by Zhang and Chen (2011), a factor analysis of motivating factors was

done on youth in golf to find out what they were looking for to play more golf. The

overwhelming actor that was found is that leisure, social, and skill development were

extremely important for children growing up with the game. Keeping this in mind, the

PGA will be instituting the golf kid’s club. There will be certain times throughout the day

where children can come to the range and be paired with both other youth learning to

play the game and there will be a swing instructor present to help in their skill

development. This will provide youth an opportunity to come and learn the game of golf

while in a social setting where friends can be made; one of the missing factors of the

game of golf. All of these factors combined will assist to counteract the decline of the

recreational golf industry.

26

CHAPTER 3

METHODS

Research Design

This study used a quantitative survey design via Survey Monkey to describe the

attitudes of both golfers and non-golfers regarding the decline in the recreational golf

industry over the past decade. The survey instrument consisted of 26 questions broken

down between golfer and non-golfer question sets followed with a set of demographic

questions which were answered by all.

Participants

This study consisted of 150 individuals who were at least 18 years of age or older.

Within those participants, 92 individuals categorized themselves as a golfer and 52

categorized themselves as a non-golfer. The individuals who partook in this study

included 100 males, 40 females, and 10 who failed to respond with their gender. Past

studies of recreational golf perceptions are heavily answered by men and lack a

significant female respondent rate. As the recreational golf industry has declined, female

participation has actually increased making it imperative to understand their perceptions

of the industry. The participant base included an even spread among age ranges from

categories of 18-24 to 61+ with the largest number of respondents coming from the 25-30

age range (24.46%). The respondents in this study came from a very narrow ethnic spread

with 81.62% of respondents being Caucasian/white.

27

Sampling Procedure

Participants of this study were gathered through non-probability, purposive

sampling, and snowball sampling. Only individuals 18 years of age or older qualified for

this study.

Instrumentation

A questionnaire was designed via surveymonkey.com and sent out to qualified

respondents. The questionnaire included a combination of 26 multiple-choice questions,

and 6 questions on a 5-point Likert scale. The survey instrument broke the respondents

into two groups; golfer and non-golfer. Each grouping had an individual set of questions

which both funneled into demographic questions to finish the instrument.

This study achieved the psychometric properties of content validity and suitability

respectively. Content validity was achieved through distribution of the survey tool to a

panel of four experts who are directors of golf at country clubs in Newport Beach, CA

and Colorado Springs, CO. Suitability was achieved via a pilot test including 15

respondents after suggested changes to the instrument were made based off of expert

feedback.

Procedure

A brief 5-7 minute survey was created using the online survey tool Survey

Monkey. Qualified participants of this study were gathered by way of email, as well as

invitation via Facebook, Instagram, and blast e-mail at member golf clubs in Newport

Beach and Colorado Springs provided from the panel of experts who I sought content

28

validity from. Similarly, LinkedIn was utilized to bring in the most respondents from this

survey. The survey link was posted to the Graduate Program in Sport Management

alumni page and to two recreational golf pages which were joined for the sole purpose of

posting this link. Individuals that landed on the survey page and did not qualify were

immediately redirected to a thank you and disqualification page.

At the beginning of the survey, a consent page was provided which allowed the

participants to understand the reasons for my research and to also be briefed on their

rights of confidentiality. Participants were directed to a disqualification page if they were

not 18 years of age or older and were directed to different survey questions based on

whether or not they were a golfer or a non-golfer. Both survey sets reached the same

conclusion demographical questions as well as a thank you for their time to take the

survey.

Data Analysis

Data collected on surveymonkey.com was analyzed using Microsoft Excel and

SPSS statistical software. Descriptive statistics were used to describe the data. Paired t-

tests, one-way ANOVAs with Tukey post-hoc tests, Chi-Squared tests, and Mann-

Whitney U tests were run to determine significance between different independent and

dependent variables at the p <.05 level. Once significance was verified, data was

analyzed to discuss the findings.

29

CHAPTER 4

RESULTS

Demographics

The respondent data consists of 140 respondents broken down between males and

females. 10 respondents decided to skip this question. Of the 140 respondents, all were

over the age of 18 and included in the study. See table 1 below for breakdown of

individual respondents based on sex.

Table 1

Respondents based on sex

Frequency Percentage

(n) %

Male 100 66.67%

Female 40 26.67%

Non-Response 10 6.67%

30

The respondent data consists of individuals falling in the following age range categories

(See Figure 1 Below)

Figure 1

Respondent age

The respondent data consists of individuals falling in the following ethnic

categories (See figure 2 below). 134 respondents disclosed their ethnic background

whereas 16 respondents chose to skip the question.

Figure 2

Respondent Ethnic Backgrounds

16%

24%

14% 12%

17%

17%

18-24 25-30 31-40 41-50 51-60 61+

5%

9%

10% 1%

75%

African American/Black Asian American/Pacific Islander Latino/Mexican/Chicano

Native American/Alaska Native Caucasian/White

31

Demographic Variable Analysis

A Chi-square test was used to determine if male respondents were more likely to

be golfers than female respondents. Results suggested male respondents were more

likely to be golfers than female respondents (χ2 = 24.803, p = .000) (See figure 3 below)

Figure 3

Gender vs. Golfer Status

Note: 79.00% of males are golfers whereas 65.00% of females are non-golfers

A chi-squared test was used to determine if there is a difference between ethnic

groups on golfer status. Results suggested there is a difference between ethnic groups on

golfer status at the p <.05 level. (χ2 = 14.235, p = .003) (See figure 4 below)

0

10

20

30

40

50

60

70

80

90

Golfer Non-Golfer

Nu

mb

er o

f R

esp

on

den

ts

Male

Female

32

0

10

20

30

40

50

60

70

80

90

African American/Black Asian American/PacificIslander

Latino/Mexican/Chicano Native American/AlaskaNative

Caucasian/White

Nu

mb

er o

f R

esp

on

den

ts

Golfer Non-Golfer

Figure 4

Golfer Status vs. Ethnicity

A chi-squared test was used to determine if there is a difference between age of a

golfer and frequency of playing golf. Results suggested there is a difference between how

often individuals of different age groups play golf (χ2 = 38.309, p = .008 (See Table 2

Below)

Table 2

Frequency of Golf vs. Age

Age Range

Variable 18–24 25-30 31-40 41-50 51-60 61+

Never 0 0 0 0 0 1

Few times per year 3 10 6 6 2 3

Few times per month 2 6 5 7 8 3

Once per week 1 1 0 0 6 4

Multiple per week 0 0 1 3 5 9

33

A chi-squared test was used to determine if there is a difference between age of a

golfer and perception of how the industry is currently priced. Results suggested there is a

difference between how individuals of different age groups feel about the current pricing

of the industry (χ2 = 46.04, p = .001)

Golfer vs. Non-golfer Analysis

Familiarity with on-course golf rules among golfers and non-golfers was

evaluated using an independent samples t-test. Golfer status was a categorical variable

with two levels, golfer and non-golfer. The dependent variable, familiarity with on-course

golf rules was a quantitative variable reflecting the individual’s familiarity with on-

course golf rules (1 being most familiar and 5 being not familiar at all). A value of p <.05

was used to evaluate significance. Results show that golfers are much more familiar with

on-course golf rules (M = 2.44, SD = 1.173) than non-golfers (M = 3.62, SD = 1.104)

t(141) = -5.805 , p = .000.

Familiarity with on-course golf etiquette among golfers and non-golfers was

evaluated using an independent samples t-test. Golfer status was a categorical variable

with two levels, golfer and non-golfer. The dependent variable, familiarity with on-course

golf etiquette was a quantitative variable reflecting the individual’s familiarity with on-

course golf etiquette (1 being most familiar and 5 being not familiar at all). A value of p

<.05 was used to evaluate significance. Results show that golfers are much more familiar

with on-course golf etiquette (M = 2.17, SD = 1.419) than non-golfers (M = 3.85, SD =

1.072) t(141) = -7.247 , p = .000.

34

A Mann Whitney U Test was performed to determine if there is a difference

between golfers and non-golfer regarding their opinion of current golf pricing. Results

suggested there is no statistical difference between golfer status and opinion on the

current pricing of the golf industry (U = 2192, p = .697). According to the results, most

respondents clearly feel golf is overly priced (see table 3 below)

Table 3

Golfer status vs. current pricing

Golfer Non-Golfer

Variable n % of Category n % of Category

Much too Expensive 21 23% 13 30%

Unfairly Priced 33 36% 16 36%

Fairly Priced 31 34% 3 7%

No Problem 6 7% 12 27%

A chi-squared test was performed to determine if there is a statistical difference

between golfers and non-golfers regarding their willingness to participate in a new

program which combines lessons, green fees, and range fees. Based on the results, non-

golfers would be more willing to participate in a program which combines lessons, green

fees, and range fees (χ2 = 10.638, p = .014). Although there is a significant difference

among golfers and non-golfers on the levels of their responses, 76% of respondents

35

would be at least somewhat likely to play more golf if the program existed (see table 4

below)

Table 4

Golfer status vs. participation

Figure 5

Preventative Factors

Golfer Non-Golfer

Variable n % of Respondents n % of Respondents

Not At All Likely

Somewhat Likely

Likely

Very Likely

20

20

43

10

21.5%

23.7%

35.5%

10.8%

13

20

10

4

27.7%

42.6%

21.3%

8.5%

0 0.5 1 1.5 2 2.5 3 3.5 4

Activity

Difficulty

Time

Cost

Measure of Contibuting Factors

Pre

ven

tati

ve

Fact

ors

Activity

Difficulty

Time

Cost

36

Golfer Responses

Figure 6

Frequency of Golfers Playing Golf

66.31% of golfers stated that they are either familiar or very familiar with on-

course golf etiquette whereas 22.11% of golfers stated they were either barely familiar or

not familiar at all. The last 11.58% of respondents claimed they were moderately familiar.

57.89% of golfers stated that they are either familiar or very familiar with on-

course golf rules whereas 21.05% of golfers stated they were either barely familiar or not

familiar at all. The last 21.06% of respondents claimed they were moderately familiar.

88.42% of golfers stated that cost was at least a slight prohibitive factor

preventing them from playing golf. Only 11.58% of respondents answered “not at all” in

1%

31%

34%

13%

21%

Never Few times per year Few times per month Once per week Multiple times a week

37

this category whereas the other answer choices had “not at all” rates of 26.32%, 77.89%,

69.15%, 80.85% and 67.74% respectively.

74.19% of golfers at least sometimes practice on the range before they tee off

prior to a round of golf (43.01% sometimes, 19.35% very often and 11.83% always).

78.49% of golfers stated that they would be at least likely to participate in a new

golf is for Everyone program that packaged green fees, range fees and individual swing

instruction at a lessened cost. Only 21.51% of respondents stated they would be “not at

all” interested in the program.

Figure 7

Likelihood of Participation Among Golfers

21%

24%

9%

35%

11%

Not at all likely Somewhat likely No difference Moderately likely Very likely

38

Non-Golfer Responses

8.33% of non-golfers responded that they were familiar with on-course golf

etiquette.

Only 16.66% of non-golfers responded that they were familiar with on-course

golf Rules.

63.83% of non-golfers listed cost as a prohibitive factor preventing them from

playing golf (39.58% of non-golfers rated cost as the MOST prohibitive factor).

71.43% of golfers stated that they would be at least likely to participate in a new

golf is for Everyone program that packaged green fees, range fees and individual swing

instruction at a lessened cost.

Figure 8

Likelihood of Participation Among Non-Golfers

28%

43%

21%

8%

Not at all likely Somewhat likely Moderately likely Very likely

39

CHAPTER 5

DISCUSSION

The purpose of this study was to describe the perceptions of golfers and non-

golfers regarding the current state of the recreational golf industry in order to create

programming that would make golf more welcoming for all. After review of the analyzed

results, it has become very evident that programming needs to be implemented to bring

both golfers and non-golfers together in a program that is welcoming for all skill levels.

After compiling the results, comparisons were made to previous research presented in the

review of literature. Through a quantitative survey approach via Survey Monkey, main

themes were exposed and results were found that both agreed with and differed with

previous research.

The initial impact of the survey was measured using demographical categorical

variables to understand the make-up of individual respondents. Similar to prior research,

the bulk of my respondents were Caucasian males. At the outset of the survey process I

attempted to obtain a broad array of survey responses from different demographical

areas, most evidently gender. According to Higgs and Weiller (1999) in past studies

involving individuals from the recreational golf industry, there has been a lack of

consideration of female respondents willing to participate in the survey. This information

has deemed females as a small participant in the industry and has changed the perception

of the female golfer. At the start of this procedure, I sent the survey tool out asking only

females over the age of eighteen to respond to try and gain access to a market that is often

40

under-represented in golf studies. Although I attempted to represent this population, just

as many studies before me, I was only able to obtain a female response rate of 26.67%.

Of the 40 female respondents, 26 respondents considered themselves to be non-golfers

leaving 14 or 35% of the female population to categorize themselves as a golfer.

Similarly, sticking with demographic characteristics for analysis, the categorical

makeup of individuals based on ethnicity was studied to identify the significance between

ethnic categories and golfer status. Using a chi-squared analysis to determine

significance, it was found that there was a difference between ethnic groups and the

categorization of an individual as either a golfer or a non-golfer status. Although a

difference was found, there is only enough evidence to support the claim that there is a

difference between Caucasian respondents and Latino/Chicano/Mexican respondents.

Looking at the population data, it was suggested that the reason for a difference only

between these two categorical groups was because these were the two largest populations

of respondents. No other ethnic category was found to have any difference on golfer

status.

After looking at demographical variables that make up the respondent data, the

main factor that was used to compare the data set was the categorization of respondents

into golfer vs. non-golfer. This categorizing of the data set allowed programming to be

created that would be easily adapted and welcoming for both sets of individuals partaking

in the same industry. This data shed light into the perspective of a different set of

opinions to pinpoint where the true issues were in the recreational golf industry.

41

The first variable that was studied using golfer status was the familiarity of on-

course golf rules based on golfer status. In the game of golf, there is a set of rules that all

individuals who step onto a course are expected to abide by. By assuming that everyone

understands these rules, golf courses are alienating individuals who have never played

before thus pushing individuals away from entering the game. On the same note, many

individuals who do categorize themselves as golfers are expected to understand the

different rules that the golf industry abides by. By looking at this issue from the

standpoint of golfer vs. non-golfer, we understand how to integrate golf rules into the

Golf is for Everyone program.

Using an independent samples t-test, it was found that there is a strong difference

between golfers and non-golfers regarding their understanding of on-course golf rules.

Understanding this difference, it is evident that it is necessary to require new golfers to

learn on-course golf rules as part of the Golf is for Everyone program and provide the

option for review for current golfers.

Similar to the analysis performed on golfers and non-golfers based on on-course

golf rules, an independent samples t-test was performed to determine if there was a

difference between golfers and non-golfers in their understanding of on-course golf

etiquette. As the analysis was completed, the results were nearly identical to that of the

on-course golf rules. There was a strong significance supporting the fact that golfers are

much more likely to have a solid understanding of on-course golf etiquette than non-

golfers do.

42

After looking at familiarity between on-course golf rules and etiquette and finding

that there is a difference between golfers and non-golfers, it was necessary to study the

opinion of each group on the current pricing model used in the recreational golf industry.

The industry uses a standard peak-load pricing model in which rounds of golf are priced

heavier based upon demand of timing and season. The results were backed up with data

found in previous research on the topic. Limehouse, Maloney, and Rotthoff (2012)

performed an industry analysis taking into consideration the current peak-load pricing

structure and looking at green fees as a barrier for many to enter the golf industry. Their

conclusions were an avid representation that the recreational golf industry is inclusive to

select people who can take the time and money to play a round of golf at off peak times.

A Mann Whitney U test performed on the topic similarly found that there is no difference

between golfer status and opinion on the current pricing of the golf industry. Both sets of

respondents feel that the industry is entirely overpriced. 60% of individuals responded

that the industry is either unfairly priced or much too expensive. Only 34% of golfers and

7% of non-golfers felt that the industry was fairly priced warranting the creation of a

program that more fairly prices the industry.

Likewise, it was important to study the opinion of respondents based on age

versus their feelings of the current pricing model. The peak-load pricing research

surveyed current golfers and found that the industry is catering to the older population

(Limehouse, Maloney, and Rotthoff, 2012). Similar to the conclusion in their presented

research, using a chi-squared test it was found that there is a difference between age

ranges when it comes to the opinion on how rounds of golf are currently priced. Looking

at the data, it was clear that the older population was the group that approved of the

43

current pricing model. 47% of individuals age 50 or older either have no problem with

the current pricing model or are supportive and think that the industry is fairly priced.

Using this information, Golf is for Everyone’s target audience was set at 18 – 55 years

old.

Looking at the data of current golfers and range fees coupled with Won,

Sunhwan, and Kleiber’s (2009) research, it was found that issues in golf pricing are

evident before the round even begins. Not only do the green fees pose an issue to

consumers, ability to play on the range before tee-off is another concern. Won, Sunhwan,

and Kleiber found that golfers choose their courses based upon three main factors: range,

round, and cart fees. The data collected found that 74% of golfers at least sometimes

practice on the range before they tee off. Of that 74% it was found that the bulk of

individuals who use the practice range before they tee of are the individuals who fall into

the age category of Golf is for Everyone’s target market.

After looking at past research done on the recreational golf industry, there was

only one difference that I found in this respondent data. Funk, Beaton, and Pritchard

(2011) found that there is a stage-based development of physically active leisure in which

newcomers to any sport look for certain aspects while trying to feel associated with the

sport. The statistics presented in their research show that physical activity was important

to newcomers coming into the recreational golf industry. The data collected here states

that only 69% of newcomers to golf find that physical activity is even mildly important in

playing golf. Rather than physical activity, it was found that on a scale of one to five cost

was by far the most preventative factor for individuals entering the recreational golf

industry.

44

Looking at both this new research presented and research done by past surveyors,

it is clear that future research will be necessary for long lasting success of the industry.

As both this data set and preceding data sets have shown, men tend to be more willing to

participate in a study dealing with recreational golf. It would be very interesting to see a

replicated study with a large concentration in women’s golf and characteristics that the

female gender population would find important in the industry. Also, this research leaves

the door open to future research should the industry continue to slide when cost

preventing programs such as this are implemented and have had time to become popular.

At that point, understanding different factors leading to a decline in the industry will be

mandatory. Future researchers can use the basis of this data as a launching pad to delve

deeper into an analysis of the industry. As future research is implemented it would be

nice to see a larger population size more encompassing of the industry and more of a

wide range of respondents. Most of the respondents in this data set were Caucasian males

from the Southern California area so it a different data set may yield entirely different

results. Similarly, to truly get a feel of respondent opinion, focus groups and individual

interviews should be conducted to give the respondent the ability to freely speak their

minds.

As research is being further conducted on the topic, it is mandatory that the

limitations of this study are understood. This survey was strictly a quantitative survey

design with pre-determined answers on the survey instrument. The data set could have

been entirely different if in-person interviews were conducted with open ended questions

to gauge opinion. Similarly, the data separated golfers from non-golfers. The data set

could have changed dramatically should both respondent categories have been asked the

45

same set of questions. The survey instrument assumed that individuals were familiar with

basic golf terminology such as etiquette, handicap, etc. That assumption could have

swayed opinion based on a leading answer if the respondent was unsure of the question

verbiage. Lastly, most of the respondents of this survey came from Southern California to

house Golf is for Everyone under the SCGA. The data could have come out different if a

more broad array of respondents were surveyed.

All in all, it was found that between all of the different demographical and

categorical categories, cost was the largest underlying theme that has led to the decline of

the recreational golf industry. Using the data presented, Golf is for Everyone will be

created to counteract cost, teach newcomers and golfers alike the rules and etiquette

needed to start playing, and lastly create a more welcoming group environment for

individuals during both on peak and off peak times. As future research is conducted with

the limitations and factors of this study in mind, the industry will be on its way to its

strongest point in a decade. As Golf is for Everyone is implemented based upon the

findings in the research, recreational golf in Southern California will be a more

welcoming environment to all.

46

Appendices:

47

Appendix A: Survey Instrument

48

Consent Form:

You are invited to participate in a research study conducted by Jonathan Anderson, a

Master’s Candidate enrolled in the Sport Management Program at California State

University, Long Beach.

Purpose of Study:

The purpose of this study was to describe the perceptions of golfers and non-golfers

regarding the current state of the recreational golf industry in order to create

programming that would make golf more welcoming for all.

Procedures of Study:

As a participant in this study, you will complete a brief online survey. You will not

receive any incentives for participating in this study.

Confidentiality:

The information obtained during this project will be treated as privileged and confidential

and will not be released or revealed to any person without your expressed written

consent. Confidentiality and anonymity will be maintained throughout the study to

facilitate the most accurate results. The information gathered through the study may be

used for statistical or scientific analysis with your right of privacy retained. Your

complete and honest responses will be greatly appreciated.

49

Survey Questions: (The Anderson scale of perceptions)

1. Are you 18 years of age or older?

A. Yes B. No

2. Do you consider yourself a golfer?

A. Yes

B. No

Golfer Questions:

3. How often do you play golf?

A. Never B. A few times per year

C. A few times per month

D. Once per week

E. Multiple times per week

4. On a scale of 1 to 5 how would you rank your familiarity with golf etiquette? (1 being

very familiar and 5 being not familiar at all)

A. 1

B. 2

C. 3

D. 4

E. 5

5. On a scale of 1 to 5 how would you rank your familiarity with on-course golf rules? (1

being very familiar and 5 being not familiar at all)

A. 1 B. 2

C. 3

D. 4

E. 5

6. As a consumer, how would you describe the current state of the recreational golf industry?

A. It is improving

B. It is static

C. It is declining

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7. To what degree does each of the factors below prohibit you from playing more golf?

(Likert Scale)

Not at all To a slight degree To a moderate degree To a large degree To a

very large degree

A. Length of play

B. Cost

C. Lack of physical activity

D. Lack of enticement programs

E. Lack of playable equipment

F. Too difficult to learn

G. Other (please specify)

8. Which of the following best describes your opinion on how rounds of golf are currently priced?

A. Much too expensive B. Unfairly priced

C. Fairly priced

D. No problem with current pricing

E. Other (please explain)

9. If golf courses were shorter, which of the following is true of you?

A. I would play more golf B. I would play less golf

C. No difference

10. How would making golf a more active sport affect your likeliness to play golf?

A. I would play more golf B. I would play less golf

C. No difference

11. What time of day do you prefer to play golf?

A. Early morning B. Mid-morning

C. Mid-day

D. Twilight

E. Super twilight

12. What time of day do you prefer to play golf?

A. Family B. Spouse/partner

C. Friends

D. Alone

E. Company/Co-workers

F. Church group

G. Community organization

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13. How often do you practice on the range before you tee off?

A. Never B. Rarely

C. Sometimes

D. Very often

E. Always

14. If a discounted pricing package which combined green fees, range fees and a swing coach were available, how likely would you be to play more golf?

A. Not likely

B. Less likely

C. No difference

D. Likely

E. Very likely

Non-Golfer Questions

15. Have you ever played golf?

A. Yes B. No

16. How many rounds of golf have you played?

A. 1-2

B. 3-4

C. 5-6

D. 7 or more

17. On a scale of 1 to 5 how would you rank your familiarity with golf etiquette? (1 being very familiar and 5 being not familiar at all)

A. 1 B. 2

C. 3

D. 4

E. 5

18. On a scale of 1 to 5 how would you rank your familiarity with on-course golf rules? (1 being very familiar and 5 being not familiar at all)

A. 1

B. 2

C. 3

D. 4

E. 5

52

19. Which of the following factors have prevented you from playing golf? (Select all that

apply).

A. It takes too much time B. It is too expensive

C. I do not have clubs

D. Difficult to learn

E. Golf is for the older generation

F. I would prefer a more physically active sport

G. Other (please specify)

20. Please rank the following words as factors preventing you from playing golf. (1 = most preventative; 5 = least preventative)

A. Cost

B. Time

C. Difficulty

D. Activity

E. Age

21. Which of the following best describes your opinion on how rounds of golf are currently priced?

A. Much too expensive B. Unfairly priced

C. Fairly priced

D. No problem with current pricing

E. Other (please specify)

22. In your opinion, how important is physical activity in golf?

A. Not important

B. Mildly important

C. Important

D. Very important

E. Extremely important

23. If a discounted pricing package which combined green fees, range fees and a swing coach were available, how likely would you be to play more golf?

A. Not at all likely B. Somewhat likely

C. Moderately likely

D. Very likely

Demographics

24. What is your gender?

A. Male B. Female

53

25. What is your age range?

A. 18-24 B. 25-30

C. 31-40

D. 41-50

E. 51-60

F. 60+

26. What is your race/ethnicity? (Check all that apply)

A. African American/Black

B. Asian American/Pacific Islander

C. Latino/Mexican/Chicano

D. Native American/Alaska Native

E. Caucasian/White

F. Other (please specify)

Disqualification Page:

Thank you for your willingness to complete this survey. Your answer indicates that you

do not meet the qualification for this study of being at least 18 years old.

Thank you again for your time.

Thank You Page:

If you have any questions or concerns about the research study, please feel free to contact

Jonathan Anderson at jkanderson0629@yahoo.com.Thank you for your participation!

54

Appendix B: End Product – Golf is for Everyone Marketing Plan

55

Counteracting the Decline of the

Recreational Golf Industry

Marketing Plan

“Making Golf Accessible to All”

56

Executive Summary:

Golf is for Everyone is a marketing plan for a non-profit unit housed under the

Southern California Golf Association providing a cost-effective program to bring adult

consumers to the game of golf. Golf is for Everyone builds on the current Youth on

Course non-profit program which provides a cost-effective solution to the cost barrier for

children. The target customer for a Golf is for Everyone consumer is any male or female

between the ages of 18 and 55. Typically, the program will be marketed towards

individuals who have either a non-existent or limited exposure to recreational golf.

Based on research, this target market were the individuals who felt strongly that

cost was the main preventative barrier of entry into playing golf. Based on that data, Golf

is for Everyone has set a price point of $150 for a yearly membership fee to gain access

to the discounted rates and membership benefits the program provides. Once an

individual has become a member, it will be a $15-20 per green fee for each round of golf

played and $2-$3 per every large bucket of range balls.

The program will be a non-profit organization executed under the SCGA name.

Each member will have a SCGA membership built into their Golf is for Everyone

membership helping obtain their goal of more billable members. Golf is for Everyone

staff will have banners made and placed in all SCGA member courses promoting the

program and will be added to the content at Youth on Course instructional

seminars/clinics. Similarly, e-mail blasts will be sent to parents of Youth on Course

members as a tool to easily convert parents and local Southern California universities and

community colleges will be contacted for access to e-mail information of students

enrolled in beginning golf classes. Ultimately, providing this cost effective way to enter

57

the industry will bring more members to the SCGA and more revenue for struggling

courses.

Target Customers:

Golf is for Everyone targets consumers both male and female between the ages of

eighteen and fifty-five years old. The program targets individuals who are both currently

active in the recreational golf industry and consumers who have not yet been exposed but

may be interested in starting to play the game of golf. Before the age of 18, consumers

are able to take part of the juniors program Youth on Course. Based on statistics found

during market testing, individuals over the age of 55 have less of a problem with the

current pricing model of recreational golf and tend to have more discretionary spending

income; therefore, they do not fit the market that we are targeting. Golf is for Everyone

targets individuals of all sports backgrounds and athletic abilities and provides different

avenues to both learn and play the game of golf in a recreational setting for a fraction of

the price under the current peak-load pricing model.

Unique Selling Proposition

For the price of two average rounds of golf every year, Golf is for Everyone

makes golf accessible to all. No clubs needed, no prior golf experience needed, no more

ridiculous green fees, Golf is for Everyone will change new customer acquisition in the

golf industry forever.

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Pricing and Positioning Strategy

Golf is for Everyone will cost $150 in membership fees per year. Once

membership is achieved, courses will cost $2 - $3 for each bucket of range balls and $15

- $20 for each round of golf depending on the course. All proceeds from the golf and

range fees will go directly to the course. At the end of each month, Golf is for Everyone

will reimburse the course $5 for every time a member plays with discounted green fees

giving the course $20-$25 in revenue they would have lost without use of the program.

Renewal rates will stay constant for the first three years as word of mouth spreads and the

programs membership grows. Golf is for Everyone will be positioned entirely as a

program for newcomers and novices in the recreational golf industry who want to learn

the game for a highly discounted cost. At the point they hit the handicap exit mark, the

individual will no longer be eligible for the program.

Execution Plan

Prior to launch, Golf is for Everyone staff will work with the Southern California

Golf Association (SCGA) to mirror their efforts with their youth program Youth on

Course. We will be a program housed entirely under the SCGA as a way to grow the

game of golf in Southern California and increase their membership numbers. Golf is for

Everyone will operate under the same course list that is available under Youth on Course

providing the program with immediate access to 150 courses that will be running the

program.

Once the program is up and running, Golf is for Everyone will have a team of two

full time employees and four part time employees running the day to day operations of

59

the program. At the end of every month, member courses will submit their data recorded

counting the number of times the program is used at their course and will be reimbursed

$5 per round played. Part time employees will be in charge of collecting and mining this

data to provide accurate totals to full time staff to submit check requests and pay member

courses.

Member courses will be visited on a monthly basis by golf is for Everyone staff to

check in on the status of both the course and the program. Staff will solicit to on course

professionals to film tips and tricks videos that will be provided via the member online

portal that will be beneficial for members and give exposure both to the course the pro is

working out and to the pro themselves.

Marketing

Golf is for Everyone will run on a webpage with mobile capabilities and online

tutorials consisting of both instructional golf videos and golf content courses and quizzes.

We will be producing 150 10’ x 5’ banners to hang in SCGA member course pro shops

around Southern California to help spread word of mouth advertising. Pamphlets will be

created to hand out at local golf trade shows and product conventions. Golf is for

everyone will work with local golf non-profits and partners to solicit the program to their

members. Program e-blasts will be sent to alumni of the Youth on Course and the

program will purchase targeted advertisement posting to Facebook.

60

Online Presence

The program will be hosted entirely online with member access to a mobile

friendly webpage allowing members to make tee time reservations, view instructional

videos, and more. The reimbursement program will also run entirely through an online

system which exports data from member courses and uploads the information onto a

secured program server which was developed and provided by the SCGA for Youth on

Course.

What We Offer

Membership Includes:

One year long membership to the SCGA

Access to heavily discounted green and range fees at over 150 SCGA courses

$3 golf club rentals per visit

Access to group member training sessions by a PGA certified professional

instructor (Reservations required in advance)

Access to online tutorials and quizzes to help members learn and understand on-

course golf rules and etiquette (must be completed at membership application)

Access to Golf is for Everyone online portal where members can make advanced

tee times and can watch online instructional videos

Opportunities to sign up for Club Events including clinics and tournaments

61

SCGA Benefits:

In hosting Golf is for Everyone under the SCGA arm, the SCGA will

receive a heightened member base as every individual that registers has a

SCGA membership built into the cost. Once the individual graduates from

Golf is for Everyone, the SCGA will have more exposure to a potential

new billable member who would not otherwise have been exposed to

either SCGA courses or SCGA membership advantages.

Partner Courses Benefits:

The courses that partner with Golf is for Everyone will be gaining more

business that they would not otherwise have. Members will be able to

come mostly during off-peak hours with limited access during on peak

hours maximizing productivity of the golf courses production capacity.

Being a perishable good, individuals on the course for any cost is better

than no one on the course at all. Also, courses will be able to make better

use of their certified instructors during off-peak hours with group training

sessions, maximizing time, efficiency and cost of professionals while also

bringing in more incremental revenue with more people on the course

(tees, food, beverages, range balls, etc.). Courses will also receive a

reimbursement of $5 every time an individual of the program plays on

their course. Broken down, the course will receive a total of $20-$25

dollars (depending on the course rating) that was once unused capacity

losing the course money.

62

Appendix C: Three Year Financials for End Product

63

Year 1 Finances

Year 1

Revenue: Note:

Membership Fees $ 300,000.00

$150/year, 2,000 members

based on Youth on Course

first year numbers

Donations: Note:

Southern California Golf Association $ 150,000.00 Covers Salaries/Benefits

Legend Level Donors $ 10,000.00 1 @ $10,000/sponsor

Platinum Level Donors $ 5,000.00 1 @ $5,000/sponsor

Gold Level Donors $ 5,000.00 2 @ $2,500/sponsor

Silver Level Donors $ 3,000.00 3 @ $1,000/sponsor

Bronze Level Donors $ 2,000.00 4 @ $500/sponsor

Total Revenue $ 475,000.00

Expenses: Note:

Course Reimbursement $ (200,000.00)

$5/time used Average 15

times per user

Salaries $ (150,000.00)

Program Director - $60,000

Program Coordinator -

$40,000 Part Time Staff -

$30,000

Benefits $ (30,000.00) 30% of full time salaries

Marketing $ (20,000.00) Banner printing

Mileage Reimbursement $ (50,000.00)

Travel/Misc. $ (20,000.00)

Tournaments/Club Outings Starting in Year 2

Non-Profit Start Up Fee $ 6,250.00

$5,000 Attorney Fee, $850

IRS Form 1023, $400 IRS

Form 1023 EZ

Total Expenses: $ (463,750.00)

Net Income: $ 11,250.00

64

Year 2 Finances

Year 2

Revenue: Note:

Membership Fees $ 360,000.00

$150/year, 2,400 members based

on Youth on Course first year

numbers (20% growth)

Donations: Note:

Southern California Golf Association $ 150,000.00 Covers Salaries/Benefits

Legend Level Donors $ 10,000.00 1 @ $10,000/sponsor

Platinum Level Donors $ 5,000.00 1 @ $5,000/sponsor

Gold Level Donors $ 7,500.00 3 @ $2,500/sponsor

Silver Level Donors $ 3,000.00 3 @ $1,000/sponsor

Bronze Level Donors $ 3,000.00 6 @ $500/sponsor

Total Revenue $ 538,500.00

Expenses: Note:

Course Reimbursement $ (180,000.00)

$5/time used Average 15 times

per user

Salaries $ (150,000.00)

Program Director - $60,000

Program Coordinator - $40,000

Part Time Staff - $30,000

Benefits $ (30,000.00) 30% of full time salaries

Marketing $ (30,000.00) Tournament Advertising

Mileage Reimbursement $ (50,000.00)

Travel/Misc. $ (20,000.00)

Tournaments/Club Outings $ (37,695.00) 7% of revenue

Non-Profit Yearly Cost $ (5,000.00) Attorney/Filing Fee

Total Expenses: $ (502,695.00)

Net Income: $ 35,805.00

65

Year 3 Finances

Year 3

Revenue: Note:

Membership Fees $ 486,000.00

$150/year, 3,240 members

based on Youth on Course first

year numbers (35% growth)

Donations: Note:

Southern California Golf Association $ 150,000.00 Covers Salaries/Benefits

Legend Level Donors $ 10,000.00 1 @ $10,000/sponsor

Platinum Level Donors $ 5,000.00 1 @ $5,000/sponsor

Gold Level Donors $ 10,000.00 4 @ $2,500/sponsor

Silver Level Donors $ 6,000.00 6 @ $1,000/sponsor

Bronze Level Donors $ 4,000.00 8 @ $500/sponsor

Total Revenue $ 671,000.00

Expenses: Note:

Course Reimbursement $ (243,000.00)

$5/time used Average 15 times

per user

Salaries $ (150,000.00)

Program Director - $60,000

Program Coordinator - $40,000

Part Time Staff - $30,000

Benefits $ (30,000.00) 30% of full time salaries

Marketing $ (40,000.00) Tournament Advertising

Mileage Reimbursement $ (50,000.00)

Travel/Misc. $ (20,000.00)

Tournaments/Club Outings $ (67,100.00) 10% of revenue

Non-Profit Yearly Cost $ (5,000.00) Attorney/Filing Fee

Total Expenses: $ (605,100.00)

Net Income: $ 65,900.00

66

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