FiT Publishing

Sport organizers may employ one of two common pricing strategies—partitioned pricing (PP) and all-inclusive pricing (AIP)—to present the price of the ticket and associated fees to potential consumers. The study examines differences in spectators’ price recall, perceived value, and search intentions when purchasing tickets to attend a regular-season Major League Baseball game based on the pricing format experienced (PP v. AIP), as well as the moderating effect of price tier selected, and participants’ level of team identification on the impact of the pricing format. Findings point to both...Read more

An interview with Grant Jostol, Business Data Analyst for the Seattle Mariners.Read more

During the past decade there has been a proliferation of sports stadia being built in America’s municipal districts. While it used to be common for the public to fully fund stadium construction projects, over the past 20 years factors such as political motives, tax reform, and increased public awareness of tax equity have forced sports teams to share increasing amounts of the financial burden (Crompton, Howard, & Var, 2003). As public funding for stadia construction has decreased, franchises have continued to strive for maximized profits. Concurrently, the cost of attending events in...Read more

Though most academic research on sports pricing finds that sports organizations price their tickets in the inelastic region of consumer demand, most events do not consist of several micro-events contested in different locations where the event participants are not known until days before the event occurs. The Division I Men’s College Basketball tournament offers a contrast to most sporting events because there are several micro-events occurring at different sites, and there is greater uncertainty regarding event quality because participating teams are unknown until just days before each...Read more

For decades, the airline and hotel industries have regularly changed prices to keep pace with fluctuating levels of consumer demand. This demand-based approach to pricing is referred to as revenue management. Meanwhile, the sport industry has traditionally underpriced tickets using a cost-based approach in order to maximize attendance and promote fan satisfaction. However, as operating costs have grown, sport organizations are now forced to reconsider these conservative pricing practices. Subsequently, in 2009, the San Francisco Giants were the first team to utilize dynamic pricing, which...Read more