Factors Influencing Members’ Perceptions of the Bloomington-Normal Home Builders Association

1. Factors Influencing Members’ Perceptions of the Bloomington-Normal Home Builders Association

2. Factors Influencing Members’ Perceptions of the Bloomington-Normal Home Builders Association Prepared by: MKT 232, Section 1 Prepared for: Bloomington-Normal Area Home Builders Association Date: December 10, 2003

3. Introduction of Group Members • Kevin Douglas • Matt Moder • Grant Rhode • Sarah Wendt

4. History/Background • Approximately 200 members, 50 builder members and 150 associate members • Recent trend in declining membership and participation • The ISU MKT 232 research team ask to identify potential reasons behind the declining membership • What changes can be made to retain current members while gaining new membership • Perceptions of members/associate members with regard to meetings, social events, the Association

5. Purpose of Research • To determine factors and their relationship to the development of feelings of value and satisfaction for members of the Bloomington-Normal Area Home Builder’s Association. • To determine factors that contribute to continued and active membership of the BNHBA.

6. Research Questions • What are factors contributing to members and associate members of the BNAHBA desire to continue or terminate their membership? • What is the overall level of satisfaction of all the membership with the BNAHBA? • What are the factors that add value to a member of the BNAHBA? • Do members and associate members have different perceptions as to the benefits they receive from their membership? • Are associate members more active than builder members? • What are factors that build successful BNHBA meetings? • What types of members typically attend meetings?

7. Secondary Research:Trends in Professional Organization Membership • Many associations have suffered a decline in attendance at their meetings • Need to market better • Meetings, Social Events, etc. • Member Benefits • Member Inputs (obtain voice of Customer)

8. Secondary Research:Issues involved in planning a successful meeting • First and foremost, meetings serve as benefit transistors. The core benefits offered are distributed through the meeting; and, the successful exhibition determines the overall value that is available to attendees. • Most money should be spent on the aspect, or core benefit, of the meeting that is the root purpose. • The venue needs to be accommodating. • Falling attendance is no reason to cancel or reduce the number of meetings an organization holds. • Buzz needs to be created by focused advertising beforehand, a strongly developed release of the event, and post-meeting advertising.

9. Secondary Research:Home Builder Association Websites • BNAHBA’s website not as informative or organized as other local HBA web pages • BNAHBA Website has limited amount of information • Material dated • Schedule of Events/Calendar limited on BNAHBA website (e.g. Christmas Social) • Difficult to Navigation the BNAHBA website • Other HBA sites do a much better job of promoting excitement and information regarding their association region.

10. Shifting Gears to Look at Factors Impacting Professional Organizations’ Success • Performance’s Impact on Value: • Value can be defined as exceeding the customer’s expectations of product quality, service quality, and price (Naumann and Giel1995) • As such, high level of performance is a necessary requisite for “Good” Value to exist

11. Secondary Research: Value’s Impact on Satisfaction • The perceived value of the meeting has a positive correlation with satisfaction. • Most definitions of satisfaction favored the notion that consumer satisfaction is a response to an evaluation process. • If the customer’s expectations of product quality, service quality, and price are exceeded (increased value), then high levels of satisfaction result (Naumann and Giel1995)

12. Secondary Research: Value’s Impact on Commitment • Value is often measured by the benefits that members receive. • As value is increased, customer’s commitment to the company’s product increases • As value increases, not as likely for the competitor’s product to be considered as a viable alternative

13. Secondary Research: Satisfaction and Commitment’s Impact on Loyalty • An extremely satisfied customer will bring new business to a company as well as becoming a “loyal” customer • Members “do not function very well when their members feel insignificant or irrelevant” (Wiseman, 98). Source: Hill (2000). Handbook of customer satisfaction and loyalty measurement.

14. Introduction of Group Members • Aaron Cowan • Ryan Gregoire • Friederike Hein • Keith Rader • Edwin Reyes

15. Research Design • Survey Methodology – Key Measures • Performance • Value • Satisfaction • Commitment • Affective • Continuance • Normative • Loyalty

16. Measure for Perceived Performance of the BNAHBA • Constitutive Definition: BNAHBA members’ perceptions of how well the BNAHBA meets key attributes • Association in General – 8 item, 6 point Likert scale, 1=Strongly Disagree; 6=Strongly Agree • Annual fees – 3 item, 6 point Likert scale, 1=Strongly Disagree; 6=Strongly Agree • Bi-Monthly membership/Speaker meeting – 16 item, 6 point Likert scale, 1=Strongly Disagree; 6=Strongly Agree • Social function – 4 item, six point Likert scale, 1=Strongly Disagree; 6=Strongly Agree

17. Measure for Perceived Value of BNAHBA Membership • Constitutive Definition: Member’s perception of the ratio of benefits received from the BNAHBA compared to the costs the costs associated with membership • 11 item, 6 point non-comparative scale, where 1=Very Little Value; 6=A Great Deal of Value

18. Measure for Member Satisfaction with the BNAHBA • Constitutive Definition: Overall post-purchase evaluation by the members regarding their favorable or unfavorable perception of the BNAHBA’s performance • Satisfaction with the BNAHBA – 6 item, six point Likert scale, 1=Strongly Disagree; 6=Strongly Agree

19. Measure of Member’s Affective Commitment to the BNAHBA • Constitutive Definition: Emotional attachment the member has to the BNAHBA based upon the member’s rewarding and positive view of the association • 6 item, six point Likert scale, 1=Strongly Disagree; 6=Strongly Agree

20. Measure of Member’s Continuance Commitment to the BNAHBA • Constitutive Definition: Perceived costs to a member associated with leaving the BNAHBA. • 5 item, six point Likert scale, 1=Strongly Disagree; 6=Strongly Agree

21. Measure of Member’s Normative Commitment to the BNAHBA • Constitutive Definition: Member’s sense of moral obligation to belong to the BNAHBA • 4 item, six point Likert scale, 1=Strongly Disagree; 6=Strongly Agree

22. Measure of Member Loyalty to the BNAHBA • Constitutive Definition: Intention of members to attend BNAHBA functions and renew their membership. • 3 item, 11 point non-comparative rating scale, 0=Definitely will not_______; 100=Definitely will _______ • Attend next meeting • Attend next social event • Renew my membership

23. Sampling Methodology • Population of Interest – All Current Members of the Bloomington-Normal Area Home Builders Association during October 2003.

24. Sampling Methodology • Sampling Frame – Mailing list of Current membership for the Bloomington-Normal Area Home Builders Association

25. Sampling Methodology • Sampling Procedure – Census of Current Members of the Bloomington-Normal Area Home Builders Association

26. Sampling Methodology • Sample Size – 190 surveys sent to all current members of the Bloomington-Normal Area Home Builders Association

27. Sampling Methodology – Survey Package • 190 Surveys Mailed in October • Cover Letter • Four Page Survey • Postage-Guaranteed Return Envelope • $1.00 Incentive

28. Sampling Methodology • Response Rate • Overall • Four surveys returned undeliverable • Three returned incomplete • 71 completed surveys • 71/186 = 38.2% • By Member Type • Builder Member – 23/48 = 47.9% • 32.4% of all responses; actual 25% • Associate Member – 48/142 = 33.8% • 67.6% of all responses; actual 75%

29. Introduction of Group Members • Fadi Awayda • Monique Foster • Justin Hood • Tom Putting • Gretchen Weiler

30. Members and Associate Members Responding to Survey

31. Industries Represented by Builder Members

32. Industries Represented by Associate Members

33. Length of Membership in BNAHBA

34. Membership in Other Home Builder Associations

35. Number of New Members Recruited in the Past Year

36. Number of Speaker Meetings Attended in the Past Year

37. Reasons Members Do Not Attend Meetings

38. Number of Social Events Attended in the Average Year by Member Type

39. Preferred Meeting Days for Membership Meetings

40. Preferred Times of Day for Membership Meetings

41. Modes of Communication for the Membership

42. Percent of Members Who Have Had Interactions with BNAHBA Board Members and Staff in the Past Year 75.0% 56.3% 57.1% 66.7%

43. Ratings of the Membership’s Interactions with the Board and Staff Mean Scores Note: 0=Very Negative; 100=Very Positive

44. Means of the Association’s Performance by Membership Type

45. Means of Fee Performance by Membership Type

46. Means of Meeting Performance by Membership Type

47. Means of Social Activities Performanceby Membership Type

48. Means of Value Perceptions by Membership Type

49. Means of Members Satisfaction with the BNAHBA

50. Means of Member Commitment to BNAHBA