Professional Sports Teams Outsource Merchandise to Cut Costs, Boost Profits
The study looked at why sports teams in Korea decide to outsource the production and sale of licensed merchandise. They surveyed 61 teams and 111 employees in marketing or logistics. The results showed that when transactions happen more often, costs go down, making teams more likely to outsource. But if costs are high, teams are less likely to outsource. Overall, the study suggests that transaction costs play a big role in teams' decisions to outsource merchandise. To be good partners for teams, companies should focus on improving communication, logistics, and order processing.