Sport Management Review, 2002, 5, 25–43

© 2002 SMAANZ 25

The Relationships among Service Quality,

Value, Satisfaction, and Future Intentions
of Customers at an Australian Sports and
Leisure Centre

Duncan Murray and Gary Howat

University of South Australia

The concept of value and its relationship to service quality, satisfaction

and behavioural intentions was studied in a sample of 218 sports and leisure
centre customers. Using structural equation modelling, this study focused
on the role that value may play as a potentially significant mediating variable
in the service quality → satisfaction → behavioural intentions chain.
Findings indicated that value appears to play an important mediating role
in satisfaction judgments of customers. This exploratory study is a step
towards developing more comprehensive models to assist managers of
sports and leisure centres to better understand the key drivers of satisfaction
and customers’ future purchase or visitation intentions.

Providing a service that results in satisfied customers will generally improve

profitability for any organisation that operates in a consumer market (Parasuraman,
Zeithaml, & Berry, 1988). This is based on the premise that satisfied customers will
be more likely to re-use or repurchase the service (Anderson & Sullivan, 1990;
Bernhardt, Donthu, & Kennett, 2000; Fornell & Wernerfelt, 1987; Gale, 1997; Howat,
Murray, & Crilley, 1999; Philip & Hazlett, 1997). Retaining customers and improved
profitability have become increasingly important for local government sports and
leisure services in Australia. This is, in part, due to the move away from a traditional
community merit approach towards local recreation provision. In its place is a user-
pays rationale, which has seen a more commercial focus in the provision of public
sports and leisure opportunities (Crilley, Murray, & Kelly, 1999).

The authors are with the School of Environmental and Recreation Management at the University
of South Australia, Mawson Lakes, Adelaide, 5095. E-mail for Duncan Murray:
Duncan.Murray@unisa.edu.au

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 26 Murray and Howat

A considerable body of research in the broader marketing literature has focused

on the nature of satisfaction and its relationship to service quality and the future
intentions of customers (Brady & Robertson, 2001). However, there has been limited
research in this field specific to sports and leisure contexts in Australia. A clearer
understanding of how to produce satisfied customers in a sports or leisure context
will help managers to better predict the return or repatronage of customers. Several
recent studies support the dominant position that satisfaction is a consequence of
service quality (Brady & Robertson, 2001; McDougall & Levesque, 2000) and this
appears consistent across service contexts. Similarly, relationships between service
quality through satisfaction to repurchase intentions of customers were reported by
Cronin and Taylor (1992), and Patterson and Spreng (1997).
Many other factors have been shown to influence the satisfaction that a
customer experiences with a service. These include affective or emotional attachments
with the service, self-esteem or self-concept concerns (Mahony & Moorman, 1999),
or even social norms. McDougall and Levesque (2000) recognised the already
extensive research on service quality and its relationship to customer satisfaction
and argued for more comprehensive models to assist managers in better understanding
the key drivers of satisfaction. A specific focus was the concept of perceived value.
Perceived value is generally defined as the gap between what is received compared
to what is given in an exchange (McDougall & Levesque, 2000; Zeithaml, 1988).
McDougall and Levesque (2000) argued that, along with perceived service quality,
perceived value was an antecedent to customer satisfaction, which in turn was directly
related to future purchase intentions of customers.
While McDougall and Levesque (2000) encouraged further research on
concepts such as perceived value, Cronin, Brady, and Hult (2000) asserted that partial
consensus had been achieved, supporting perceived value along with perceived service
quality as antecedents to customer satisfaction (e.g., Hallowell, 1996). However,
Cronin et al. (2000) did also note that the literature was deficient in research that
simultaneously compares the relative influence of quality, value and satisfaction with
service outcomes. Such research, they believed, would further clarify our
understanding of consumers’ decision-making. Similarly, Petrick, Backman, and
Bixler (1999) supported the need to augment customer satisfaction measurement
with such variables as perceived value to provide more in-depth understandings of
customer perceptions at a diagnostic managerial level.
Accordingly, the purpose of this study was to empirically test a model of
service quality, satisfaction, value and the future intentions of customers, as per the
calls of McDougall and Levesque (2000). Consistent with Brady and Robertson
(2001), the model proposed that satisfaction as a consequence of service quality has
a direct effect on future intentions of customers, as well as an indirect effect which is
mediated by value. Alternately, the model also tests whether value has a direct effect

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 Service Quality, Value, Satisfaction and Future Intentions 27

on future intentions of customers and if an indirect effect mediated by satisfaction

also exists. Improved understanding of such relationships will provide managers of
sports and leisure services with an enhanced ability to utilise customer feedback data
in a diagnostic manner to improve the potential for repeat patronage and positive
word of mouth promotion.

Conceptual Background
Each of the constructs tested in the model (service quality, satisfaction, value and
future intentions) is summarised in the sections that follow. More comprehensive
discussions of each construct are well documented elsewhere (e.g., Babin & Griffin,
1998; Brady & Robertson, 2001; Giese & Cote, 2000; McDougall & Levesque, 2000).

Service Quality
Considerable research has focused on the nature of service quality, and there is general
acceptance that service quality is composed of a number of underlying dimensions.
However, there is a lack of agreement on the exact nature of these dimensions. For
example, Parasuraman et al. (1988) derived five dimensions of service quality:
responsiveness, assurance, tangibles, empathy and reliability (RATER), using the
SERVQUAL scale. They asserted that these five dimensions were consistent across
a number of independent samples in different service contexts. Consequently, they
proposed that the SERVQUAL scale could be used directly in different service
industries and contexts.
However, subsequent research consistently confirmed that service quality
measurement should be tailored to the context being examined (Asubonteng,
McCleary, & Swan, 1996; Babakus & Boller, 1991; Carman, 1990; Cronin & Taylor,
1992; Crompton, MacKay, & Fesenmaier, 1991; Johnson, Tsiros, & Lancioni, 1995).
It should be noted that, subsequently, Parasuraman, Berry, and Zeithaml (1993) also
acknowledged the need for context-specific tailoring of the SERVQUAL instrument
based on the service industry context in which it was to be employed.
Numerous studies provide support for the industry-specific dimensional
structure of service quality. For example, Gagliano and Hathcote (1994), in a study
of retail apparel specialty stores, found that 19 service quality attributes (of the original
22 SERVQUAL attributes) loaded into four dimensions. These were interpreted as:
reliability, tangibles, personal attention, and convenience. In contrast, Carman (1990),
in his study on service quality perceptions in hospitals, derived nine factors to explain
service quality.
This variability in dimensional structure is also apparent when sports and
leisure services are considered (Chelladurai & Chang, 2000). For example, Hill and

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 28 Murray and Howat

Green (2000) used four groupings of service quality attributes in their study that
linked perceptions of sportscape with future attendance intentions of spectators at
rugby league games. Additionally, Howat et al. (1999), in a study of 30 Australian
sports and leisure centres, obtained a three-factor solution for 17 service quality
attributes. Interpretation of the factors identified them as: personnel (loading on staffing
functions), core (loading on principal role functions such as clean facilities) and
peripheral (loading on secondary services, such as food and drink facilities).
The three-factor solution found by Howat et al. (1999) was consistent with
the service quality dimension models that emphasise core and peripheral services
proposed by Philip and Hazlett (1997) and Norman (1984). However, a more global
approach was taken by McDougall and Levesque (2000). They proposed that debate
on service quality dimensions was largely irrelevant, as service quality could be seen
as being composed of two overarching dimensions: the core (what is delivered in the
service) and the relational (how it is delivered) aspects of the service. The three-
factor model of Howat et al. for leisure services may be seen as consistent with this
approach. The relational aspects of service appear to be a combination of the personnel
factor and the peripheral factors found by Howat et al. For example, a creche operating
at a leisure centre would not be perceived by customers as a core service of the
centre. However, it may be perceived as an example of how management of the
centre respond to their customers’ needs and provide them with enhanced experiences.

Customer Satisfaction
There is general support for defining satisfaction in a consumer context as an overall
evaluation of the service compared to customers’ expectations (e.g., see Jones &
Suh, 2000; and McDougall & Levesque, 2000). However, there has been considerable
debate in the literature regarding the nature of satisfaction as a construct and its
relationship to other constructs. Several major themes or questions have emerged in
the literature: whether satisfaction and dissatisfaction are poles of a single continuum
or separate constructs (Soderlund, 1998); whether satisfaction may be considered as
transaction-specific or an overall or global phenomenon (Rosen & Suprenant, 1998);
the relationship between service quality and satisfaction (Parasuraman et al., 1988;
Cronin & Taylor, 1992); and finally the relationship between satisfaction and future
intentions of customers (McDougall & Levesque, 2000). Although the first two issues
are important in the field of customer satisfaction research, the latter two issues are
central to this paper and will be dealt with briefly to provide a background for readers.
Satisfaction and service quality. There has been considerable debate about
whether satisfaction is an antecedent to, or a consequence of, service quality, or indeed
if they are distinct constructs (Buttle 1996; Crompton & MacKay, 1989; De Ruyter,
Bloemer, & Peeters, 1997; Liljander & Strandvik, 1997; Oliver, 1993). To summarise,
although there is conflicting evidence (e.g., Rosen & Suprenant, 1998), the bulk of

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 Service Quality, Value, Satisfaction and Future Intentions 29

the literature tends to support satisfaction as an outcome of service quality (Brady &
Robertson, 2001; Cronin & Taylor, 1994; Parasuraman, Zeithaml, & Berry, 1994;
Taylor & Baker, 1994; Teas, 1994). The dominant assumption therefore is that the
evaluation of the quality of the service provided determines, along with other factors,
the customer’s level of satisfaction with the organisation or service provider (Hurley
& Estelami, 1998).
Satisfaction and future intentions. There is also evidence to suggest that it
is the satisfaction of the customer that ultimately determines their future intentions
and behaviour towards the service (De Ruyter, Wetzels, & Bloemer, 1997; McDougall
& Levesque, 2000; Taylor & Baker, 1994). Both Bitner, Booms, and Tetreault (1990)
and Jones and Suh (2000) found that overall satisfaction had a direct influence on
how likely customers were to re-use the service. Similarly, McDougall and Levesque
(2000) proposed a causal path, with perceptions of service quality influencing feelings
of satisfaction, which in turn influenced future purchase behaviour of customers. In
a sports and leisure context, Howat et al. (1999) found that satisfaction of customers
was positively related to their willingness to recommend the service. Indicators of
customer retention that are invariably used to denote customers’ intended loyalty
include: the level of customer repurchase (such as renewed memberships), how willing
customers are to recommend the service to other prospective customers, and
customers’ intentions to increase their frequency of visitation (Howat et al.).

Value
The concept of perceived value has become of increasing interest to researchers,
particularly those investigating its potentially mediating relationship with the
perceptions of satisfaction held by customers (McDougall & Levesque, 2000). Value
may be viewed as the evaluation of what is received compared to what is given in a
service encounter. For example, McDougall and Levesque (2000) defined value as
“benefits received relative to costs” (p. 393). Likewise, Zeithaml (1988) defined
value as a consumer’s overall assessment of product utility, based on perceptions of
what was received and what was given in the exchange. The relationship between
value and satisfaction appears to be well established in the literature, with the
customer’s perception of receiving value for their money positively related to the
satisfaction of the customer (Zeithaml, 1988).
Although the relationship between value and satisfaction appears to be well
established, there is uncertainty regarding the broader nature of the relationship
between value and satisfaction, and the implications of this relationship to both service
quality and future intentions. Zeithaml (1988) suggested that value might be a mediator
in perceptions of service quality. In forming an overall perception of that service,
customers may use value to evaluate the service compared to alternatives available
to them. This premise implies that satisfaction, when considered as an overall

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 30 Murray and Howat

evaluation of a service, and value may be similar constructs, or at least may be strongly
inter-correlated. For instance, Patterson and Spreng (1997) explained that “value is
considered a cognitive-based construct which captures any benefit-sacrifice
discrepancy in much the same way disconfirmation does for variations between
expectation and perceived performance” (p. 4).
In a similar vein, Cronin et al. (2000) found strong and consistent results for
the indirect path linking service quality to intentions (through service value and
satisfaction), and value to intentions (through satisfaction) across industry contexts.
These findings are consistent with the premise that service quality and value
perceptions (cognitive evaluations) precede satisfaction (affective responses) (Cronin
et al.). This in turn has potential implications for managers, as affective responses
(i.e., emotions) may act as better predictors of behaviour than cognitive evaluations
such as service quality perceptions and value judgments (Patterson & Spreng, 1997).
On the other hand, monitoring of service quality attributes is also important for
managers because many of these reflect aspects of the service that can be more easily
controlled or manipulated by service providers. In contrast, satisfaction may be
influenced by a range of factors outside the control of a service provider, such as
weather conditions or social group influences (Crompton & MacKay, 1989).
McDougall and Levesque (2000) proposed that, in addition to satisfaction,
value might be a dominant mediator of future intentions and behaviour of customers,
with decisions to return to a service based on whether or not the customer received
“value”. To this end, Cronin et al. (2000) suggested that there are two dimensions of
value: price and service received. They concluded that customers “place greater
importance on the quality of a service than … on the costs associated with its
acquisition” (p. 196). Consequently, perceptions of service quality may drive
perceptions of value, which, in turn, influence satisfaction judgments and future
intentions of customers. However, McDougall and Levesque (2000) proposed that
the relationship is more complex, stating that customers may be happy with the service
provided (the core), how it is provided (the relational) and overall be satisfied with
the service, but not feel that they have received their money’s worth.
In summary, it is apparent that although the path relationship between service
quality and satisfaction is well accepted, there is conflicting evidence regarding the
potentially mediating role that value may play in the satisfaction relationship.
Accordingly, this paper will evaluate two models of service quality, satisfaction, value
and future intentions in a sports and leisure context, focusing on the role of value as
a mediator of satisfaction. Specifically, the models will assess the role that value
plays in mediating the relationship between service quality, satisfaction and future
intentions.

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 Service Quality, Value, Satisfaction and Future Intentions 31

Figure 1: Conceptual model of the relationships between service quality,

value, satisfaction and future intentions – (a) with satisfaction mediating
the effect of value; (b) with value mediating the effect of satisfaction

(a)

(b)

The model shown in Figure 1a considers service quality to be composed of

two variables as proposed by McDougall and Levesque (2000): relational aspects of
service quality (such as the interaction with staff and child-minding services) and
core aspects of service quality (such as how well the centre is organised and run).
The model proposes that satisfaction is a product or outcome of perceptions of service
quality, and that satisfaction is an antecedent to future intentions. In this model, value
is considered to mediate the influence of satisfaction, as the exogenous variables of
core and relational service quality may affect satisfaction both directly and indirectly
through the value–satisfaction relationship.
However, the direction of the relationship between satisfaction and value is
unclear. Accordingly, it will be tested by re-analysing the model with the direction of
the relationship reversed (satisfaction as the antecedent to value). This is presented
in Figure 1b.

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 32 Murray and Howat

Method

Instrument
The instrument used in the study included individual measures of all four constructs
discussed in this paper: satisfaction, service quality, value and future intentions.
Satisfaction. A global measure of satisfaction was utilised in the questionnaire,
with a single question requesting the respondents to rate their overall satisfaction
with the sports and leisure centre on a 7-point Likert scale ranging from 1 (Very
dissatisfied) to 7 (Very satisfied). This is consistent with McCollough, Berry, and
Yadav (2000), Petrick et al. (1999) and Ganesh, Arnold, and Reynolds (2000) who
measured overall satisfaction on a single 10-point scale. Rosen and Suprenant (1998)
argued that each service encounter assists customers in forming overall perceptions
of satisfaction with a service. Consequently, given that first-time customers were
excluded from the study, the use of an overall satisfaction item was considered
appropriate in this context.
Service quality. In this study, 18 service quality attributes for sports and leisure
centres were included (see Table 1). Wording of the 18 attributes was intended to
measure customer service quality at a macro level. Consequently, the 18 attributes
included in the service quality component of the instrument were reasonably broad.
A biased 6-point Likert-type scale, ranging from 1 (Disagree) to 6 (Very strongly
agree), was used for both expectations and performance for each attribute of service
quality. Howat et al. (1999) provide a rationale for employing such an approach. In
addition, an option was also provided in the performance section of the instrument
for those respondents unfamiliar with a specific attribute of the service (Don’t know).
Reliability analysis indicated high reliability for the service quality component of
the questionnaire (α = 0.95).
Data reduction to simplify the manifest variables of service quality was
undertaken via factor analysis, as per both Poznanski and Bline (1997) and Eskildsen
and Dahlgaard (2000). Results for the factor analysis are included in Table 1. The
factor analysis obtained a three-factor solution, interpreted as: core, personnel and
peripheral, consistent with that previously found in the Howat et al. (1999) study. It
was considered acceptable to measure relational service quality as a combination of
attributes that loaded on either the personnel or the peripheral factors. This was
consistent with McDougall and Levesque’s (2000) call for simplification for the
dimensional debate in service quality. It was also acceptable from a conceptual
perspective, as personnel and peripheral factors reflect those aspects of service that
focus on maintaining and developing the customer–provider relationship.

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 Service Quality, Value, Satisfaction and Future Intentions 33

Table 1: Factor Analysis of Service Quality Attributes Used in the

Instrument (Pattern Matrix)

Factor 1 Factor 2 Factor 3

Service quality attributes ‘Core’ ‘Personnel’ ‘Peripheral’

Two-dimensional model factors

‘Core’ ‘Relational’

Parking safety and security –0.05 0.09 0.65

Facility cleanliness 0.77 0.11 0.03
Up-to-date information available 0.29 0.25 0.74
Programs start and finish on time 0.22 0.15 0.70
Broad range of activities available –0.04 0.03 0.80
How well the centre is organised and run 0.91 0.03 0.05
The centre‘s physical comfort 0.67 0.23 0.08
Value-for-money services 0.81 0.02 0.05
Equipment quality and maintenance 0.57 0.18 –0.09
Food and drink services –0.13 0.11 0.59
Child minding –0.19 0.08 0.43
Staff friendliness 0.31 0.80 0.05
Staff responsiveness 0.16 0.70 0.19
Staff presentation 0.25 0.68 0.36
Staff experience 0.29 0.75 0.27
Instructors –0.06 0.76 0.06
Officials (umpires) 0.14 0.62 0.24
Centre maintenance –0.02 0.04 0.89

Principal axis, oblique rotation (direct oblimin, ∆ = 0)

Total variance extracted = 67.7%
Eigen value = 1
KMO measure of sampling adequacy = 0.90152
Bartlett test of sphericity = 3287.0694, Significance < 0.001

Core service quality was measured from a combined mean of items that loaded
on the single factor core. Reliability of the scale items for both the core (α = 0.92)
and relational (α = 0.92) scales of service quality was high.
Value. Value was measured using a single item (“The centre provided good
value for money”), where customers were requested to rate their expectations and
performance in relation to the value the centre provided. Measurement was identical
to the service quality instrument, with the same biased 6-point Likert-type scale
ranging from 1 (Disagree) to 6 (Very strongly agree). This approach appears to be
followed consistently in the literature, and is similar to the single item used by

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 34 Murray and Howat

McDougall and Levesque (2000). It should be noted that measuring value on a single
value item does exclude the potential to investigate the issue of pricing as a component
of value. However, since the focus of this study were general perceptions of the
macro concept of value, rather than a detailed investigation on the components of
value, the single-item scale was considered appropriate.
Behavioural intentions. Using a 5-point Likert-type scale ranging from 1
(Not at all likely) to 5 (Extremely likely), customers were asked to indicate their
likelihood to recommend the centre to someone else. This single item is consistent
with behavioural intention items used in other studies, including those having a sports
and leisure centre context. For example, Howat et al. (1999) used a recommendation
scale to measure behavioural intentions in their study on repurchase behaviours in
sports and leisure centres.

Participants and Procedure

Data for the study were obtained from sampling customers at an Australian public
sports and leisure centre located in a capital city. The centre offered both court sports
activities, and fitness and health programs, and was considered an appropriate site
for collection as it mirrored the range of activities available in other similar types of
facilities. To ensure that overall satisfaction ratings were based on repeat visits, as
recommended by Jones and Suh (2000), first-time customers of the centre were
excluded from the survey. This is consistent with Rosen and Suprenant’s (1998)
position that each service encounter assists customers in forming overall perceptions
of satisfaction, which are less likely to be distorted by a single incident. In a manner
consistent with studies reported by the Australian Bureau of Statistics, children under
12 years of age were not included in this study.
Data collection. Using stratified sampling methodology, a data collection
schedule was devised for the centre, based on individual programs and timetables in
order to maximise the potential of obtaining the most representative sample of
customers. Furthermore, data collectors were instructed to obtain a random cross-
section of the customer population during their collection period.
Collectors situated themselves near the main entrance, where they could
approach arriving customers to request their participation in the survey. Customers
were invited to complete the survey either on-site and prior to their activity, or to
take the questionnaire home and return it on their next visit. A total of 372
questionnaires were handed out, with 231 being returned (62%). Of these, 13 were
omitted from further analysis due to incomplete data. Although it has been noted that
disconfirmation measures of service quality as used in this study should obtain
expectation perceptions prior to the service encounter and performance ratings after
the service encounter, this was not feasible in terms of collection and cross-matching
of respondents.

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 Service Quality, Value, Satisfaction and Future Intentions 35

Results

Participant Profile
Completed questionnaires from 218 customers of the centre were included in the
analysis. The demographic profile of respondents was biased towards females (89%),
30–49 year age groups (80%) and people participating in court-sport activities, such
as netball (45%) and basketball (30%). The majority of respondents were long-term
users of the centre (63% had been attending for over two years), with 98% attending
at least once per week.

Analysis of the Model

Testing of the potential model was conducted through AMOS 4. The results of the
model tests are provided in Table 2. Following the approach taken by Gerbing and
Anderson (1992), emphasis is placed on the fit indices CFI (comparative fit index),
RNI (relative non-centrality index) and DELTA2 estimates, due to their relative
stability (Brady & Robertson, 2001), as well as the RMSEA (root mean square error
of approximation) as per the approach cited by MacCallum and Austin (2000).

Figure 2: Path model of the relationships among service quality, value,

satisfaction and future intentions

As shown in Figure 2, the relationships among core and relational service

quality to satisfaction and value, satisfaction and value to future intentions and value
and satisfaction as reciprocal variables, were all tested. Overall fit of the first model

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 36 Murray and Howat

was acceptable χ2 (3, N = 218) = 2.86, p = 0.67; with CFI, RNI and DELTA2 estimates
of 0.99 and RMSEA of 0.043 (an RMSEA of 0.05 or lower indicates a good fit of the
data with the hypothesised model). It should be noted for readers not familiar with
structural equation modelling, that the chi-figure tests the significance of the model’s
residuals. A significant chi-square indicates that the model’s residuals are significantly
greater than zero, an indication that there is still substantial unexplained variance.
Consequently an insignificant chi-square is an indication that the model fits the data
well. The non-significant χ2 figure obtained for the first model therefore indicates
that the model may be one possible explanation of the relationships within the data.
Examination of parameter estimates (see Table 2) indicates that the
hypothesised relationships were all significant. Of note is that R2 figures for core and
relational service quality indicate that relational service quality explained slightly
more of the variance in both value and satisfaction in this context, than core service
quality (see Table 2).

Table 2: Results of Parameter Estimates and Figures for the Final Model
(Model 1)
Parameter
Model Path estimate t-value p R2 Fit statistics

1: SQ→ VAL CSQ→SAT 0.68 9.28 < 0.001 0.43 χ2 (3, N = 218) = 2.86, p = 0.67,
→ SAT→ FI CSQ→VAL 0.59 6.68 < 0.001 0.47 CFI = 0.99, RNI = 0.99,
RSQ→SAT 0.64 8.68 < 0.001 0.50 DELTA2 = 0.99,
RSQ→VAL 0.63 8.56 < 0.001 0.51 RMSEA = 0.043
VAL→SAT 0.66 8.89 < 0.001 0.41
VAL→FI 0.51 6.04 < 0.001 0.40
SAT→FI 0.68 9.29 < 0.001 0.45

The model also tested the direction of the relationship between satisfaction
and value, in order to establish value as a mediator of satisfaction. To investigate
this, the model was retested with satisfaction as the antecedent to value, as outlined
in Figure 1b. The overall fit of the model was not acceptable χ2 (3, N = 218) =
100.57, p < 0.01; with CFI, RNI and DELTA2 estimates of 0.96, 0.94 and 0.93
respectively, and a RMSEA of 0.13. Additionally, the path from satisfaction to value
was not significant in this model (R2 = 0.15, t (209) = 0.76, p = 0.26). These results
suggest that satisfaction has a direct effect on future intentions, as well as an indirect
effect, which is mediated by value. The effect of value on future intentions is direct,

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 Service Quality, Value, Satisfaction and Future Intentions 37

with no indirect effect mediated by satisfaction. Consequently, the path from

satisfaction to value was omitted in the final model (Figure 2).

Discussion
The major theme of the study was to investigate the role that value plays in mediating
relationships between service quality, satisfaction and future intentions of customers,
and to investigate these relationships within a sports and leisure context. The results
support the basic premise that perceptions of service quality influence satisfaction,
which in turn affect customers’ future intentions. Additionally, the results also provide
support for the position that perceptions of value do play a mediating role in the
formation of satisfaction judgments of customers, rather than satisfaction leading to
perceptions of value. These findings support McDougall and Levesque (2000), who
proposed that any model considering the nature of service quality and satisfaction of
customers must also consider the mediating role that value plays in the satisfaction
judgments of customers.
The findings reported in this paper also raise a number of potential theoretical
as well as practical implications. These will be discussed in turn, with future research
directions identified for each set of implications.

Theoretical Implications
There are a number of theoretical implications of the findings. First, the findings
indicate that service quality is an antecedent of satisfaction in a sports and leisure
centre context. This is consistent with the dominant position in the literature that
service quality is one antecedent that contributes to the satisfaction of customers
(Brady & Robertson, 2001; Cronin & Taylor, 1994; Hurley & Estelami, 1998;
Parasuraman et al., 1994; Teas, 1994). Consequently, this position appears to have
broad-based empirical support across a diversity of service contexts.
Second, results suggest that satisfaction appears to be a dominant antecedent
of the future intentions of customers. This reaffirms previous research findings
(Anderson & Sullivan, 1990; Backman, 1991; Cronin & Taylor, 1994; Fornell &
Wernerfelt, 1987; Patterson & Spreng, 1997; Philip & Hazlett, 1997), which found
that satisfaction was the most significant factor influencing the future intentions of
customers in service environments. However, even though research findings appear
to clearly demonstrate the central role that satisfaction plays in influencing the future
intentions of customers, there is still inconsistency pertaining to satisfaction as a
research construct. Accordingly, a focus on satisfaction research, particularly
addressing the nature of satisfaction, is worthy of consideration. An initial investigation

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 38 Murray and Howat

into the nature of satisfaction and dissatisfaction, in order to obtain a clearer picture
as to whether or not they are distinct constructs, would be a logical starting point. In
like fashion, more detailed investigation into transaction-specific satisfaction,
compared to overall perceptions of satisfaction is recommended. Extension of the
work of Jones and Suh (2000), focusing on the consequences of transaction-specific
and overall perceptions of satisfaction in sports and leisure services, may be
appropriate.
Even though satisfaction was found to be the dominant predictor of customers’
future intentions, the role of perceived value should not be overlooked. Findings
indicated that value was a significant mediator of satisfaction. This also suggests that
there are structural links between the two concepts and that they are strongly inter-
correlated. It should be noted that the positive nature of the relationship also suggests
that as perception of value improves, so too does the overall satisfaction of the
customer.
A major limitation of this study, however, was the failure to capture information
relating to perceptions of pricing. McDougall and Levesque (2000) and Zeithaml
(1988) defined value as benefits received compared to costs accrued. Consequently,
while benefits may be seen as reflected in service quality attributes captured in the
instrument, the lack of variables addressing pricing limited the potential for a more
detailed investigation of value perceptions in a sports and leisure centre context.
Further research should examine pricing and its effect on value perceptions in sports
and leisure contexts more closely. For example, Varki and Colgate (2001) suggested
that managers can improve value perceptions by actively managing the price
perceptions of customers (e.g., by communicating to them comparisons between the
price they pay and the price other customers pay for similar services elsewhere). If
this assertion is true, then the nature of the relationship between price and value
could be considered more closely. However, such an approach may lead to a
discounting war among leisure centre competitors, making it almost impossible for
the industry to offer true value to customers.
Other questions relating to the nature of value and price are also apparent.
For example, if quality of the service is improved, to what extent can prices be
increased to pay for the improvements in quality and yet still retain positive perceptions
of value? Is there an absolute threshold of price beyond which value perceptions
decline, irrespective of quality? These are all research issues that should be addressed,
particularly in such a publicly significant service context as sports and leisure services.
Consequently, more comprehensive models to test the interrelationships between
price, quality and value in a sports and leisure context would be appropriate for
researchers to consider. This was also proposed by Brady and Robertson (2001), in
relation to the wider services marketing field.

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 Service Quality, Value, Satisfaction and Future Intentions 39

Practical Implications
From a managerial perspective, the findings of the study clearly show that managers
should monitor service quality perceptions of customers, as these have an effect on
customer satisfaction. However, consistent with McDougall and Levesque (2000),
managers of sports and leisure centres should also be aware of the perception of
value that the customer has of the service. Value significantly mediates perceptions
of satisfaction and must be considered carefully in any assessment of customer
satisfaction with the service. Accordingly, modification of existing customer surveys
or feedback instruments to include a greater depth of information in relation to value
perceptions appears warranted.
Observation of R2 figures indicate that relational service quality is a slightly
stronger antecedent of both value and satisfaction than core service quality. This may
be expected in a personnel-dominated setting such as a sports and leisure centre. The
finding that value significantly mediates the relationship with satisfaction also suggests
that managers should focus on providing value to customers, possibly through a
focus on the relational aspects of service quality. This is in direct conflict with the
findings of McDougall and Levesque (2000), who suggested that providing the core
service should be the priority. However, in a sports and leisure centre context, this
focus on value appears appropriate. Sports and leisure may be perceived by many in
the community as a luxury, rather than a necessity. Satisfaction with sports and leisure
services therefore may be particularly prone to influence from perceptions of value.
If the service is not perceived to be “of high value”, the strength of the service delivery,
in either relational or core functions, may not be enough to overcome the negative
perception based on low value.

Conclusion
In conclusion, the results of this study support the following:
• that service quality is a direct antecedent of satisfaction and that satisfaction is
a strong antecedent of customers’ future intentions in a sports and leisure context,
• that relational service quality is a slightly stronger antecedent of satisfaction
and value than core service quality in a sports and leisure centre context,
• that perceived value is a direct mediator of satisfaction in a sports and leisure
centre context.
These findings suggest that managers of sports and leisure centres should
modify existing survey or feedback instruments to obtain more detailed information
relating to what influences their customers’ perceptions of value. However, this study
also found that, from a theoretical perspective, there appears to be room to improve

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 40 Murray and Howat

the clarity of satisfaction as a construct in the literature. Similarly, the nature of the
relationship between quality and price in contributing to perceptions of value in a
sports and leisure centre context needs to be examined. Accordingly, these are two
major themes that researchers could focus on. Improving clarity in these areas will
contribute further to an understanding of customer behaviour in sports and leisure
centres, with the ultimate aim of assisting managers to be better able to serve their
customers and provide a quality experience. This in turn should result in managers
improving their financial performance and, ultimately, their organisational profitability.

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