Examining Consumer Perceptions of Demand-Based Ticket Pricing in Sport

Stephen L. Shapiro
Joris Drayer
and Brendan Dwyer

Dynamic ticket pricing (DTP), a new revenue management (RM) strategy in sport, has grown in popularity in response to the demand-based ticket resale market. Previous research has examined the relationship between the primary and secondary ticket market and determinants of price in a DTP environment. However, research has not focused on consumer perceptions of DTP or resale prices. The purpose of this study was to examine consumer perceptions of demand-based pricing over time, to assess the influence of attitudes on perceived value and purchase intentions. Results indicated that time, team performance expectations, fairness perceptions, seat location, and ticket market influenced perceived value of the ticket. Interestingly, these variables were not consistent when examining purchase intentions. Further investigation of the perceived value/purchase intention relationship is warranted when using DTP. Sport managers can use these findings to better understand the impact of RM strategies like DTP on consumer attitudes and behaviors.