CUSTOMER PURCHASING DECISION

Customer Purchasing Decision For Fitness First And California WOW Xperience in Thailand? : Service Quality or Marketing Communications



Customer Purchasing Decision For Fitness First And California WOW Xperience in Thailand? : Service Quality or Marketing Communications

Introduction

Fitness centers in Thailand can be divided into 4 types, mega clubs, multi-sports centers, fitness centers (as defined by Asia Plus Securities Public Company Limited, see 4.2), and niche clubs. CAWOW (BT Securities 2005), the abbreviation of California WOW Xperience, is the leading fitness center operator in the Thai fitness center market including competitors like Fitness First, Yes! Fitness, and Clark Hatch. Aside from its general fitness and exercise facilities, CAWOW also offers additional individualized services such as personal training, Yoga, and Pilates. In addition, CAWOW possesses strong brand recognition in Thailand under an “extertainment” concept.

For an effective CRM program, there are some factors—e.g. price; service features; place and location; marketing communication and advertising; screening new members; sanitary conditions; atmosphere, setting, and environment; technology and member management; interactions; staff selection, training, and development; employee benefits; and management skills,—which fitness centers including CAWOW should seriously take into consideration.

CAWOW utilizes CRM by capitalizing on several advantages including its certified professional trainers, its ability to respond to its customers needs by providing new exercise routines (which shows CAWOW's responsive service features), good locations, and marketing communication and advertising. This thesis is intended to help the management level of CAWOW make strategic decisions concerning factors affecting how CAWOW utilizes CRM in its operations in the Thai fitness center market. However, this paper can also be of value to managers working for any fitness center.

Discussion

CAWOW (BT Securities 2005) was founded by Fitness Holdings International Corporation; a subsidiary of 24 Hour Fitness Worldwide Inc. of the US. The first club was opened in 2000 on Silom road in Bangkok's central business district. Founded by Eric Mark Levine, CAWOW is the leading fitness center operator in the Thai fitness industry, which includes competitors like Fitness First, Yes! Fitness, and Clark Hatch. Aside from its general fitness and exercise facilities, CAWOW also offers additional personalized services such as personal training, Yoga, and Pilates. Major shareholders include founder Eric mark Levine's Group 51% and the Major Cineplex Group 49%. In 2003, the company's name was changed from “California Fitness Center” to “California WOW Xperience. In 2004, the company's registered capital was increased to Bt150 million (BT Securities 2005).

CAWOW (BT Securities 2005) believes that it can “differentiate itself from its competitors in terms of modern instruments, brand recognition, the use of key celebrity spokespersons, and full range of fitness facilities and services”. According to Figure 1 and an interview conducted with an instructor working for CAWOW at Pinklao, a member, who wants to use the facilities swimming pool, has to pay 499 per month. This amount of money includes access to the swimming pool, free towels, and Jacuzzi. A member needs to bring his or her own swimming outfits.

Figure 1: Clubs and Facilities, BT Securities 2005

Aside from those extra services in Figure 1, ...